Telia Lietuva results for 12 months of 2023
The Board of Telia Lietuva, AB (hereinafter “Telia Lietuva” or “the Company”) approved unaudited Telia Lietuva, AB Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, for 12 months’ period ended 31 December 2023.
Fourth quarter of 2023 (compared with the same period a year ago):
- Revenue grew by 5.9% and amounted to EUR 123.3 million (EUR 116.4 million)
- Adjusted EBITDA up by 7.8% to EUR 39.3 million (EUR 36.5 million)
- EBITDA increased by 5.6% and amounted to EUR 38.3 million (EUR 36.3 million)
- Profit for the period went down by 9.7% to EUR 13.3 million (EUR 14.7 million)
- Free cash flow amounted to EUR 16.4 million (EUR -5.4 million)
12 months of 2023 (compared with the same period a year ago):
- Revenue grew by 7.2% and amounted to EUR 476.6 million (EUR 444.6 million)
- Adjusted EBITDA up by 13.7% to EUR 168.5 million (EUR 148.1 million)
- EBITDA increased by 12% and amounted to EUR 165.2 million (EUR 147.5 million)
- Profit for the period went up by 12.8% to EUR 63.6 million (EUR 56.4 million)
- Free cash flow went up by 67.5% and amounted to EUR 58 million (EUR 34.6 million)
Comment by Giedrė Kaminskaitė-Salters, CEO of Telia Lietuva:
During 2023 Telia Lietuva continued to lead in technology deployment, inspire customers as well as launching a significant new initiative in the area of sustainability.
Having the largest 5G network in the country and setting new records when it comes to the speed of data downloads in the mobile network has enabled us to attract over the year 39 thousand of new mobile communication subscribers, as a result of which we have become a leader in mobile data consumption. This has converted into double-digit growth in revenue from billed mobile communication services.
Other total revenue growth engines in 2023 were IT and broadband Internet services supported by higher equipment sales. Revenue from Internet services grew despite a rather moderate (2 thousand) increase in the number of FTTH/B connections which did not fully offset the decline in the number of DSL connections (3 thousand).
During 2023, the number of TV service users increased by 4 thousand which is a positive development following the shake-up of the entire TV industry following the shutting-down of Russian channels in 2022. Given the intense competition in the TV market, TV revenue was slightly lower than in 2022. Revenue from retail voice telephony services went down in line with the continuously contracting number of fixed lines, while higher volumes of voice transit in 2023 partially compensated the loss of revenue from retail voice telephony services.
The Company’s operating expenses were under control despite inflationary pressure. Energy costs in 2023 were a fifth lower than a year ago. All that in combination with higher revenue led to double-digit annual growth of earnings. Adjusted EBITDA margin for January-December of 2023 stood at 35.4 per cent (33.3 per cent in 2022).
Since October 2023, the content platform Telia Play became accessible without a special STB which was historically necessary for the provision of IPTV service. Holders of smart TV sets that have Android operating systems could download Telia Play LT app and enjoy all functionalities and content of Telia Play.
In November, following the decision of the Extraordinary General Meeting of shareholders, Telia Lietuva renounced and returned to the Lithuanian Central Bank the Company’s electronic money institution license for restricted activity. The license had been obtained in October 2016 with the purpose of take-over of payment activities of Omnitel after its merger into the Company and the provision of instant payment services. Due to changes in legislation regulating the payments market, the license was no longer required for the provision of Telia Lietuva’s existing and future planned payment related services.
We are not only the technology and 5G leader in Lithuania but also provide the best customer experience. For the fourth consecutive year Telia Lietuva’s customer care provided at our retail shops was recognized as best in class among Lithuanian and the Baltic States’ telecommunications operators according to the secret shopper research by DIVE group.
In 2023 we set ourselves the goal of ensuring our technologies become an enabler for higher inclusivity of the currently marginalized communities. As part of our Christmas campaign, we highlighted the role our technologies play in increasing the quality of life and accessibility for the visually impaired. Following the campaign, we recorded and donated 10 children’s books for the audio sensory library, added audio descriptions to all the Harry Potter movies on Telia Play platform and financed the continued operation of the ELVIS mobile library which provides audio books for the visually impaired in the whole of Lithuania. Finally, we promoted the BeMyEyes app which enables volunteers to provide online assistance to the blind and visually impaired.
In 2024 we will continue to support our Ukrainian brothers and will ongoingly provide calls to and from Ukraine at reduced tariffs. Our customers in Ukraine – many of whom are volunteering as emergency and humanitarian workers – will be able to use mobile data at a lower price point.
ENCL.:
- Telia Lietuva, AB Interim Report for January-December 2023.
- Presentation of Telia Lietuva, AB results for 12 months of 2023.
Darius Džiaugys,
Head of Investor Relations,
tel. ,
e-mail:
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