Results of Telia Lietuva for the twelve months of 2021


The board of directors of Telia Lietuva, AB (hereinafter “Telia Lietuva” or “the Company”) has approved the interim unaudited consolidated financial statements of Telia Lietuva, AB, prepared in accordance with International Financial Reporting Standards as ‘adopted by the European Union, for the twelve-month period ending on 31 December 2021.

Fourth quarter 2021:
– Total revenue was €113.3 million, an increase of 4.3% compared to revenue of €108.6 million in the fourth quarter of 2020.
– Adjusted EBITDA excluding non-recurring items was €33.9 million and was 1.5% lower than EBITDA excluding non-recurring items of €34.4 million for the fourth quarter of 2020.
– EBITDA amounted to €33 million and was 3.1% lower than EBITDA of €34.1 million a year ago.
– Profit for the period was €16.2 million, down 3.9% from profit of €16.9 million a year ago.

Twelve months of 2021:
– Total revenue amounted to €420.8 million, an increase of 5.7% compared to revenue of €398.1 million for the twelve months of 2020.
– Adjusted EBITDA, excluding non-recurring items, amounted to €139.9 million and increased by 2.7% compared to EBITDA, excluding non-recurring items, of €136.2 million euros for the period January-December 2020.
– EBITDA amounted to €139.4 million, an increase of 3.4% compared to EBITDA of €134.9 million a year ago.
– Profit for the period was €57.6 million, up 3.2% from profit of €55.9 million a year ago.
– Free cash flow amounted to 85.7 million euros, 0.9% higher than the free cash flow of 84.9 million euros a year ago.

Management Comment:
Our investments and financial results for the year 2021 are a literal reflection of the importance and relevance of our services in the Lithuanian market. The last quarter of 2021 was marked by a surge in capital investment. A total of 41.9 million euros have been invested in areas that have become extremely important during the pandemic and are generating double-digit growth – connectivity and cloud computing. By the end of the year, in response to ever-increasing demand for IT services, the modernization and expansion of two major data centers were completed and data server capacity had quadrupled.

Accelerating the mobile network upgrade will ensure a smooth transition to the 5G era. By the end of 2021, more than 450 base stations supporting 2G, 3G, 4G and 5G connections have been upgraded with Ericsson equipment. In the last quarter of the year, two important connectivity milestones were reached: from October, every second call in the company’s mobile network is made using Voice over LTE technology (VoLTE), while the download speed of mobile data in the Telia Lietuva network exceeded 100 Mbps and at the end of December amounted to 104.5 Mbps.

The Company’s leadership in connectivity quality has helped attract new customers. During the fourth quarter of 2021, the net influx of mobile communication customers alone was 69,000. Growth was also recorded in other segments and in the last twelve months:
– the number of mobile service subscriptions increased by 8.6% to reach 1,518,000,
– the number of fiber optic Internet connections increased by 2.7% to reach 305,000,
– the number of television service users increased by 0.8% to reach 255,000.

Double-digit revenue growth in mobile communications, broadband Internet and IT services continued to boost total revenue. Over the year, comparing January to December 2021 with the same period a year ago:
– revenue from IT services increased by 24.3%,
– revenues from broadband Internet services increased by 11.2%,
– revenue from billed mobile services increased by 10.4%,
– Revenues from television services increased by 8.5 percent.

At the end of 2021, electricity prices more than quadrupling and higher marketing spend negatively impacted quarterly EBITDA. Nevertheless, the EBITDA for the twelve months of 2021 was the highest in the history of the Company as well as the amount of capital investments. In 2021, a total of 93.9 million euros (i.e. more than a fifth of turnover) was invested in upgrading and expanding fixed and mobile networks, IT infrastructure and of the business transformation program. Strong cash flows enabled the Company to halve its bank loan to €30 million.

The two-year project for the renovation of the 30 largest customer service stores was completed at the end of 2021. A total of 2.5 million euros were invested in making the retail stores more comfortable and welcoming. In November, Telia Lietuva was recognized for the second consecutive year for the best quality of customer service provided by a telecommunications company in Lithuania. The survey was conducted by mystery shoppers and Dive Lithuania. At the end of 2021, Telia Lietuva was among the companies recognized as the most transparent in Lithuania by the Lithuanian unit of Transparency International.

PC:
– Telia Lietuva, AB Interim consolidated financial statements for the twelve-month period ended December 31, 2021.
– Presentation of the financial results of Telia Lietuva, AB for the 12 months of 2021.

Darius Dziaugys,
Head of Investor Relations,
Phone. +370 5 236 7878,
e-mail: [email protected]

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