TEO LT, AB - Interim information

Results for the nine months of 2010

On 21 October 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, for the nine months period ended 30 September
2010. 

The total consolidated TEO Group's revenue for the nine months of 2010 was LTL
581 million (EUR 168 million), a decrease by 5.9 per cent over the total
revenue of LTL 618 million (EUR 179 million) for the nine months of 2009. 

EBITDA for the nine months of 2010 went down by 14.2 per cent to LTL 240
million (EUR 69 million) over LTL 279 million (EUR 81 million) in the nine
months of 2009. EBITDA margin amounted to 41.3 per cent (45.2 per cent in
2009). 

Profit before income tax in the nine months of 2010 was down by 17.4 per cent
and amounted to LTL 142 million (EUR 41 million) (LTL 172 million (EUR 50
million) a year ago). 

Profit for the period amounted to LTL 125 million (EUR 36 million), while a
year ago it was LTL 134 million (EUR 39 million), a decrease by 6.8 per cent.
The profit margin was 21.5 per cent (21.7 per cent a year ago). 

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

“TEO revenue for the 9 months of 2010 was LTL 581 million (EUR 168 million) - a
5.9 per cent drop compared y-o-y. Operating expenses decreased 1.2 per cent.
Despite the country's decreasing GDP and a more than 11 per cent drop of the
Lithuanian telecommunications market, the Company maintained its high
profitability (EBITDA margin - 41.3 per cent). TEO continues to successfully
gain new customers who replace churning voice service customers. Our special
focus areas are next-generation network-based services as well as IT services.
To strengthen its position TEO Group acquired Hostex - one of the leading
providers of hosting and data center services - which, together with Interdata,
acquired in 2009, will ensure a better platform for providing integrated IT
services for recovering businesses.” 

ENCL.: 
- TEO LT, AB Consolidated Interim Financial Statements for the nine months
period ended 30 September 2010. 
- Presentation of TEO LT, AB results for 9 months of 2010.


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

Attachments:

2010_9_months_report.pdf

2010_9_months_results.pdf