TEO LT, AB - Interim information

Results for the six months of 2011

On 18 July 2011, the Board of TEO LT, AB (hereinafter - “TEO” or “the Company”)
approved unaudited TEO LT, AB Consolidated Interim Financial Statements,
prepared according to International Financial Reporting Standards as adopted by
the European Union, and Consolidated Interim Report for the six months period
ended 30 June 2011. 

The total consolidated TEO Group's revenue for the first six months of 2011 was
LTL 370 million (EUR 107 million), a decrease by 4.4 per cent over the total
revenue of LTL 387 million (EUR 112 million) for the first six months of 2010. 

EBITDA for the first six months of 2011 went down by 5.4 per cent to LTL 151
million (EUR 44 million) over LTL 160 million (EUR 46 million) in the first six
months of 2010. Nevertheless, EBITDA margin stood above 40 per cent and
amounted to 40.8 per cent (41.2 per cent in 2010). 

Profit before income tax in the first half of 2011 was down by 9.5 per cent and
amounted to LTL 86 million (EUR 25 million) (LTL 95 million (EUR 28 million) a
year ago). 

Profit for the period amounted to LTL 77 million (EUR 22 million), while a year
ago it was LTL 84 million (EUR 24 million), a decrease by 8.3 per cent. The
profit margin was 20.7 per cent (21.6 per cent a year ago). 

Management's comment on financial results for the six months period of 2011:

“TEO achieved a healthy net profit of LTL 77 million (EUR 22 million) for the
first half of 2011. Although revenue for the first 6 months of 2011 decreased
by 4.4 per cent compared to the same period in 2010, the Company managed to
reach good profitability by accordingly reducing its costs. EBITDA margin
stands at a high 40.8 per cent, which is only by 0.4 percentage points lower
than it was during the same period in 2010. 

TEO continues its investments into the next generation fiber optic network.
Although the broadband customer base increased by around 8 per cent, due to
high competition and market penetration strategy revenue from Internet services
was slightly lower than a year ago. Revenue from TV services was by 26 per cent
higher than for the same period in 2010. New customers' acquisition rate
remains high - TEO had 25 per cent more TV customers than it had in the middle
of 2010. The upcoming switchover to digital television signal transmission in
2012 gives TEO a good opportunity for further increase of its pay-TV customer
base.” 



ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements and Consolidated Interim
Report for the six months period ended 30 June 2011. 
- Presentation of TEO LT, AB results for the six months of 2011.




         Darius Džiaugys,
         Head of Information Sector,
         tel. +370 5 236 7878

Attachments:

2011_6_months_results.pdf

2011_6_months_statements.pdf

2011_6_months_report.pdf