TEO LT, AB - Interim information

Results for the first half of 2010

On 16 July 2010, 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 2010. 

The total consolidated TEO Group's revenue for the first six months of 2010 was
LTL 387 million (EUR 112 million), a decrease by 5.3 per cent over the total
revenue of LTL 409 million (EUR 118 million) for the first six months of 2009. 

EBITDA for the first six months of 2010 went down by 16 per cent to LTL 160
million (EUR 46 million) over LTL 190 million (EUR 55 million) in the first six
months of 2009. Nevertheless, EBITDA margin amounted to 41.2 per cent (46.5 per
cent in 2009). 

Profit before income tax in the first half of 2010 was down by 19.8 per cent
and amounted to LTL 95 million (EUR 27 million) (LTL 118 million (EUR 34
million) a year ago). 

Profit for the period amounted to LTL 84 million (EUR 24 million), while a year
ago it was LTL 92 million (EUR 27 million), a decrease by 9.1 per cent. The
profit margin was 21.6 per cent (22.5 per cent a year ago). 

Management's comment on financial results for the first six months of 2010: 

“While the Lithuanian electronic communications market contracted by more than
11 per cent (CRA data for Q1 2010) and the recession continued, TEO revenue for
the first half of the year 2010 was down by only 5.3 per cent. Although the
number of fixed telephony customers continued to decline, TEO managed to reduce
churn for the second quarter in a row. On the other hand, decreasing telephony
customers were successfully replaced with new broadband and TV customers. Total
customer increase, excluding telephony, was over 51 thousand or 13.2 per cent,
compared to the same period in 2009. This allowed the Company to maintain its
high EBITDA level and net profitability (41.2 and 21.6 per cent respectively).
TEO continued deployment of its next generation network by allocating for that
purpose even more funds than in 2009.” 

ENCL.: 
- TEO LT, AB Consolidated Interim Financial Statements and Consolidated Interim
Report for the six months period ended 30 June 2010. 
- Presentation of TEO LT, AB results for the six months of 2010.


Darius Džiaugys, 
Head of Information Sector, 
tel. +370 5 236 78 78

Attachments:

2010_6_months_financial_statements.pdf

2010_6_months_results.pdf

2010_6_months_report.pdf