TEO LT, AB - Interim information

Results for the nine months of 2011

On 18 October 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, for the nine months period ended 30 September
2011. 

The total consolidated TEO Group's revenue for the nine months of 2011 was LTL
554 million (EUR 161 million), a decrease by 4.6 per cent over the total
revenue of LTL 581 million (EUR 168 million) for the nine months of 2010. 

EBITDA for the nine months of 2011 went down by 4.9 per cent to LTL 228 million
(EUR 66 million) over LTL 240 million (EUR 69 million) in the nine months of
2010. Nevertheless, EBITDA margin was almost the same and amounted to 41.1 per
cent (41.3 per cent in 2010). 

Profit before income tax in January-September of 2011 was down by 7.8 per cent
and amounted to LTL 131 million (EUR 38 million). It was LTL 142 million (EUR
41 million) a year ago. 

Profit for the period amounted to LTL 117 million (EUR 34 million), while a
year ago it was LTL 125 million (EUR36 million), a decrease by 6.3 per cent.
The profit margin was 21.2 per cent (21.5 per cent a year ago). 

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

“TEO revenue decline is easing - for the first 9 months of 2011 the Company
generated LTL 554 million (EUR 161 million) in sales, which is by 4.6 per cent
lower than during the same period in 2010. Due to rigorous cost control,
operating expenses were decreasing accordingly. This allowed TEO to maintain a
high EBITDA level of over 41 per cent. 

Substantial investments into the next-generation fiber-optic network allowed
TEO to increase its broadband customer base to 367 thousand. The total increase
during the last 12 months was 9.7 per cent. Over the 9 month period in 2011,
the net broadband customer increase was by 0.9 per cent higher than the
corresponding increase in 2010. The number of TV customers increased by 21 per
cent. TEO modern broadband technology solutions also contributed to successful
operation of the EuroBasket 2011 competition. The Company installed and
maintained a secure network of over 3000 working places providing direct
high-speed connection to more than 27 countries.” 



ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements for the nine months
period ended 30 September 2011 
- TEO LT, AB presentation of the results for the nine months of 2011




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

Attachments:

2011_9_months_report.pdf

2011_9_months_results.pdf