The Board of
First quarter of 2020:
- Total revenue amounted to
EUR 92.1 million , up by 3.4 per cent over the revenue ofEUR 89.1 million in Q1 2019. - EBITDA, excluding non-recurring items, was
EUR 33 million , an increase by 3.7 per cent over EBITDA, excluding non-recurring items, ofEUR 31.8 million a year ago. - Profit for the period was
EUR 12.5 million , an increase by 6.5 per cent over profit ofEUR 11.8 million a year ago. - Free cash flow amounted to
EUR 23.3 million and was 16.3 per cent higher than in Q1 2019 when it amounted to 20 million.
Management comment:
While in February we have celebrated the third anniversary of our combined mobile and broadband operations under one Telia brand that brought number of unique on the market converged offers and much better experience to our customers, in March we and the whole world have faced unprecedented challenge due to COVID-19 spread to the way we live, work and communicate. Almost over the night we had to adjust to a new reality and swiftly move forward as importance of our usual activities – keeping the people and business connected – increased dramatically.
It is a proof test to our network that we have been building for number of years allocating large amounts of investments. From the very first day of coronavirus-imposed quarantine in
As our customer service outlets are closed all over the country from mid-March, all customers are continuously served online or by phone, and sale of equipment completely moved to our online shop. It goes without saying that we put our employees and customers’ health at a highest priority, therefore most of the Company’s employees work remotely, while engineering teams that are installing new services and involved in fault eliminating observe extreme safety requirements.
The country’s lockdown – staying and working from home – changed the way our customers use the services. We observe a great demand for connectivity speed increase, VPN and other IT solutions for remote work, mobile signature as well as premium TV content and video-on-demand for entertainment. During the quarantine sales of PC and TV sets more than doubled while demand for mobile handsets and tablets declined. To ensure remote learning from home, we will supply 10 thousand tablets to
Being a devoted member of our society, we contributed to the purchase of vital protective equipment for medical specialists, donating
It is still difficult to predict what impact on the Company’s financial results will have the current situation.
In the long run, restrictions on people’s movement between the countries will have a negative impact on roaming service, closure of retail outlets will impact equipment sales, delayed payments by customers and potential increase of bad debt is expected. We have already taken necessary actions to mitigate those risk and are closely monitoring the situation development. The Company generates strong free cash flows and has enough liquidity reserves and support from its main shareholder,
At the beginning of 2020, together with Telia teams in
Good results of the first quarter of 2020 show that we are successfully improving our operations. We have growth in both revenue and profitability, while equipment sales are already affected by coronavirus-imposed quarantine from mid of
Intake of new customers continued during the first quarter of 2020 and over the last 12 months:
- number of mobile service subscriptions increase by 5.6 per cent up to 1,349,
- number of IPTV users grew by 5.1 per cent up to 246 thousand,
- number of FTTH Internet customers was up by 3.2 per cent up to 290 thousand,
- number converged offer “Telia One” users reached 62 thousand.
Compared with the first quarter of 2019:
- revenue from billed mobile services increased by 3.4 per cent
- revenue from TV services grew by 19.6 per cent,
- revenue from IT services surged by 20.5 per cent.
In the beginning of 2020, we were the first in
In
In January, a new Collective Bargaining Agreement between the Company, as the employer, and united representation of Trade Unions was signed. Following the requirements of a new Labour Code in order to be valid for all employees of the Company (not only for members of
In March, shareholders of loss generating associated entity, UAB Mobilieji Mokėjimai, (the Company hold 33.3 per cent of shares) decided to terminate provision of instant payment services from
Successful Company’s performance in 2019 led to the Board’s proposal to the Annual General Meeting of Shareholders to decide on payment of dividend of
ENCL.:
-
- Presentation of
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
Attachments
- Telia_Lietuva_2020_3_months_Financial_Statements
- Telia_Lietuva_2020_3_monhts_results_presentation
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