MOST SIGNIFICANT FINANCIAL INDICATORS
Eesti Telekom Group
--------------------------------------------------------------------------------
| | Q1 2007 | Q1 | Change % |
| | | 2006 | |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 1,497 | 1,327 | 12.8 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 542 | 521 | 4.1 |
--------------------------------------------------------------------------------
| Margin, % | 36.2 | 39.2 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 424 | 351 | 21.0 |
--------------------------------------------------------------------------------
| Margin, % | 28.4 | 26.4 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 440 | 361 | 21.7 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 440 | 361 | 21.7 |
| EEK | | | |
--------------------------------------------------------------------------------
| EPS, EEK | 3.18 | 2.62 | 21.7 |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 117 | 131 | -10.3 |
--------------------------------------------------------------------------------
| Net gearing, % | -35.4 | -44.2 | |
--------------------------------------------------------------------------------
| ROA, % | 29.6 | 24.3 | |
--------------------------------------------------------------------------------
| ROE, % | 43.9 | 36.5 | |
--------------------------------------------------------------------------------
Elion Group (fixed-line communications)
--------------------------------------------------------------------------------
| | Q1 2007 | Q1 | Change % |
| | | 2006 | |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 779 | 685 | 13.7 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 217 | 218 | -0.7 |
--------------------------------------------------------------------------------
| Margin, % | 27.9 | 31.9 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 151 | 127 | 18.1 |
--------------------------------------------------------------------------------
| Margin, % | 19.3 | 18.6 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 152 | 131 | 16.3 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 152 | 131 | 16.3 |
| EEK | | | |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 69 | 69 | -0.6 |
--------------------------------------------------------------------------------
| ROA, % | 19.7 | 17.8 | |
--------------------------------------------------------------------------------
| ROE, % | 31.1 | 27.5 | |
--------------------------------------------------------------------------------
EMT Group (mobile communications)
--------------------------------------------------------------------------------
| | Q1 2007 | Q1 | Change % |
| | | 2006 | |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 863 | 754 | 14.5 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 330 | 308 | 7.0 |
--------------------------------------------------------------------------------
| Margin, % | 38.2 | 40.9 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 279 | 230 | 21.4 |
--------------------------------------------------------------------------------
| Margin, % | 32.3 | 30.5 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 286 | 233 | 23.1 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 286 | 233 | 23.1 |
| EEK | | | |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 49 | 62 | -21.2 |
--------------------------------------------------------------------------------
| ROA, % | 47.7 | 39.0 | |
--------------------------------------------------------------------------------
| ROE, % | 78.7 | 62.7 | |
--------------------------------------------------------------------------------
CHAIRMAN'S STATEMENT
Sales revenues, operating costs, and profit
The first quarter of 2007 was successful for the Eesti Telekom Group—the numbers
for turnover and profits both increased.
The sales revenues for the first quarter of 2007 exceeded the results for the
same period in 2006 by 13% reaching 1,497 million EEK. The principal part of the
supplemental sales revenues were generated in the field of mobile
communications. The rapid growth of EMT Group sales revenues continued, and in
the first quarter of 2007, exceeded the indicators for the same period in 2006
by 15%, reaching 863 million EEK.
The growth of EMT Group sales revenues came primarily from the group's primary
activity. The sales revenues of the Group's parent company increased by 14%
compared to the same period in 2006. During the year, the client base of AS EMT
increased significantly. As of 31 March 2007, the operator has 763 thousand
customers (measured by the number of active SIM cards), which is 88 thousand
more than a year ago (31 March 2006: 675 thousand). At the same time, the
beginning of the year has traditionally been a slow period for the growth of the
customer base. Thus, in the first quarter of this year, AS EMT added 4 thousand
customers (net growth).
The number of AS EMT contractual clients at the end of the first quarter was 437
thousand. In a year, the number of clients has increased by 22 thousand (31
March 2006: 415 thousand). The rate of growth of contractual clients had already
remained stable for several quarters. In the first quarter of 2007, the operator
added 4 thousand new contractual customers (net growth).
In a year, 66 thousand pre-paid call cards were added. At the end of the first
quarter of 2007, the number of active pre-paid cards reached 326 thousand cards
(31 March 260 thousand). The client base of pre-paid cards is strongly
influenced by seasonal factors, as well as the level of marketing activity. The
beginning of the year is a period of low activity for pre-paid cards; in
addition, many of the cards acquired during the previous summer lose their
validity. Thus, the net growth of pre-paid cards in the first quarter was zero,
or the number of cards remained at the level achieved at the end of 2006.
AS EMT assesses its market share based on active SIM cards to be approximately
48%.
The customer base that has increased in a year has been raised through the use
of various mobile communications services. The greatest positive influence on
the growth of first quarter turnover was the increase in the number of call
minutes. Compared to the same period in 2006, the number of call minutes
initiated by EMT customers has increased by almost 25%. In addition to the
increase in call volumes related to the addition of new customers, the number of
average call minutes used per customer has also showed strong growth.
The number of call minutes terminated in the EMT network also demonstrated
strong growth, although somewhat more slowly than the increase of initiated call
minutes. Since the dispute between the Communications Board and Tele2 Eesti AS
and Elisa Eesti AS regarding the declaration of the given operators as
undertakings with significant market power in the market of terminating voice
calls in their own mobile telephone networks continues, then the termination
fees of all three mobile operators remained at the same level during the first
quarter (2.50 EEK per minute), and in the EMT network, the increase in
terminated minutes was accompanied by a similar rate of increase for
interconnection revenues.
The fastest increase in AS EMT basic services continues to be demonstrated by
message services and mobile Internet. The number of SMSs and MMSs sent during
the first quarter of 2007 increased by almost 12% compared to the same period in
2006. However, the volume of mobile data communications has increased by more
than 80% during the year. Mobile data communications is a very rapidly
developing field. On the one hand, the expanding EDGE, 3G and 3.5G coverage
areas are constantly improving the quality of the service. On the other hand,
new communication services are continually being introduced. In the given
situation, it is EMT's goal to primarily increase the number of mobile data
communications users and to popularize various services. Therefore, several
discount packages have been designed for mobile data communications and the
increase in revenues earned from mobile data communications was markedly slower
than the increase in data volumes.
Strong growth was also shown in the first quarter by revenues from monthly fees
- the level of the first quarter of 2006 was exceeded by 21%, whereby the
increase is not related so much to monthly fees from traditional call packages
but increasingly to fees for specified additional services. As a new service in
this field, AS EMT introduced a mobile version of Microsoft Windows Live
Messenger (MSN) with a monthly fee in March. The service is based on a JAVA
application that the customers can download to their phones from the EMT
Surfport similarly to games or rings. Messenger enables text-based conversations
and the use of emoticons. The Messenger service was designed in cooperation with
companies in the TeliaSonera Group and Microsoft, and the project, which was
managed from Estonia, will also be implemented in the companies of the entire
TeliaSonera Group.
The only field of basic activity, for which the revenues were lower in the first
quarter of this year than last year was roaming. In the first quarter of 2007,
the roaming revenues were 11% lower than for the same period in 2006.
The EMT Group revenues for the retailing and wholesaling of telecommunications
merchandise increased in the first quarter of 2007 compared to the same period
in 2006 due to an expanded range of merchandise.
In the first quarter of 2007, strong growth was also demonstrated by the sales
revenues of the companies of the Elion Group that are active in the field of
fixed communications. The sales revenues of the first quarter of this year
exceeded the results for the same period of 2006 by 14%, reaching 779 million
EEK.
The greatest contribution to the increase of revenues from the field of fixed
communications was provided by MicroLink Eesti, the Group's subsidiary that
provides IT services, and the non-group revenues of which increased by 74%. The
company that underwent restructuring at the beginning of 2006 has consolidated
its market position in the provision of project-based solutions as well as mass
solutions for business clients. Thus, an information system produced by
MicroLink guaranteed the data processing related to the preparation and
implementation of the recent parliamentary elections. MicroLink Eesti won the
state procurement organized by the Tax and Customs Board for the purchase and
introduction of an electronic document management system. A contract was signed
with the Ministry of Social Affairs, based on which MicroLink Eesti will start
to develop a national IT solution for digital pictures (the digital picture
project will enable x-ray pictures and results of radiological analyses to be
transmitted between hospitals). In the first quarter, in cooperation with ML
Arvutid, the Arvuti Varukoopia package, which helps clients preserve and
administer the most active and vulnerable data by preventing data losses in case
of viruses, thefts, data deterioration or errors made by users, was developed as
the first mass solution for business clients.
In the first quarter of 2007 the fastest growth in the field of fixed
telecommunications services was demonstrated by revenues from connection fees,
which increased by 11% compared to last year. The principal engine for the
growth of connection fees was the provision of integrated solutions—double and
triple packages. During the year, the revenues from monthly fees for integrated
solutions have increased by 45%. Of the integrated services, the one with the
fastest growing number of users continues to be the Kodulahenduse triple
package, which provides the customers with quality, digital television reception
in addition to telephone calls and Internet connection. By the end of the first
quarter of 2007, the number of Elion DigiTV customers had increased to 32.4
thousand (31 December 2007: 28 thousand). In February 2007, Elion was the first
in Estonia to start transmitting new-generation high-resolution television
(HDTV). In the last quarter, the possibility of listening to Estonian-language
radio stations was added to the basic package for DigiTV clients. This spring, a
remote video rental service should arrive on the market. Shortly, customers
should have the opportunity to watch DigiTV on two TV sets from one connection
and to record TV shows.
During the first quarter of 2007, the growth of permanent Internet connections
continued to increase. As of 31 March 2007, Elion had 148 thousand permanent
connection customers (31 December 2006: 142 thousand; 31 March 2006: 115
thousand). Since increasingly more clients prefer to secure Internet connections
as part of integrated solutions, the revenues earned from Internet connections
provided as separate services decreased..
The number of Elion call connection at the end of March 2007 was 465 thousand
(31 December 2006: 463 thousand; 31 March 2006: 457 thousand). The same trend is
occurring in call connections as in Internet connections, or increasingly
connections are part of double or triple packages and the revenues earned from
monthly fees of separate call connections are decreasing. In the case of call
connections, in addition to integrated solutions, discount packages continue to
be popular, and therefore, monthly fees are lower than usual.
The revenues earned from Elion Group call minutes decreased by 1% during the
first quarter compared to the first quarter of 2006. There was an increase in
revenues from interconnection fees, while the revenues earned from end consumers
decreased by 9%.
Elion assesses its market share for call minutes initiated in the fixed network
to be 83% (December 2006: 83%). The market share of local call minutes is 84%
(December 2006: 85%), 65% of international call minutes (December 2006: 65%),
69% of call minutes made to mobile phones (December 2006: 70%), and 97% of
internal calling minutes (December 2005: 96%).
Elion Group retail sales chain's revenues from sale of telecommunications and IT
merchandise increased by 16% in the first quarter of 2007 compared to 2006.
In the first quarter of 2007, Eesti Telekom Group operating costs increased by
18% compared to the same period on 2006, reaching 957 million EEK.
The EMT Group operating costs increased by 19%, reaching 535 million EEK. The
principal part of the supplemental operating costs is related to the Group's
primary activity. Costs related to interconnection fees and roaming have
increased by 20%. The given costs are caused primarily by greater volumes of
inter- network traffic. Personnel costs have increased by 23%. The increase in
personnel costs has been caused both by an increase in employees' salaries as
well as an increase in the number of employees from 510 to 567 during the year.
The operating costs of AS MWS, the wholesaler that supplies both the EMT and
Elion Groups' retail sales chains has increased by 30%.
The Elion Group operating costs increased by 20% in the first quarter, reaching
562 million EEK. Over half the additional operating costs are related to
MicroLink Eesti, the operating costs of which have almost doubled in comparison
to the first quarter of 2006. The second factor in the growth of Elion Group
operating costs was the increase in costs for sales-related merchandise. As in
the case of the EMT Group, an increase in personnel costs also influenced the
growth of Elion Group operating costs. The Elion Group personnel costs increased
19% during the year. The number of employees at the Group has increased from
1,692 people at the end of March 2006 to 1,799 people at the end of March this
year.
The Eesti Telekom Group EBITDA was 542 million EEK in the first quarter of 2007,
which is 4% more than the first quarter of 2006. The increase in EBITDA came
from the mobile communications field. The EMT Group EBITDA grew by 7% compared
to the first quarter of 2006 while the Elion Group EBITDA dropped by 1%. The
EBITDA margin has decreased during the year, reaching 36% in the first quarter
of this year (1st quarter 2006: 39%). The decrease in margin is caused by an
increase in the percentage of lower margin activities in the Group's sales
revenues. Thus the percentage of the IT segment in the consolidated sales
turnover increased from 4% last year to 6% in the first quarter of this year.
The Group's depreciation cost reached 118 million EEK in the first quarter of
2007, which is 31% less than in the first quarter of 2006. The past quarter was
the last quarter in which the changes in the useful life span of fixed assets
applied in May of 2006 still exerted an influence. Based on the data specified
during the course
of compiling the 2006 annual report, the influence of the
implementation the new useful life spans on the Group's depreciation costs was
approximately 14 million EEK per month.
In the first quarter of 2007, the Eesti Telekom Group earned an operating profit
of 424 million EEK, which is 21% more than in the first quarter of 2006. The
Group's financial revenues (net) reached 15 million EEK (1st quarter 2006: 11
million EEK). The Eesti Telekom Group earned a net profit of 440 million EEK
(1st quarter 2006: 361 million EEK) in the first quarter of 2007. The EPS
reached 3.18 EEK (1st quarter 2006: 2006: 2.62 EEK).
Balance sheet and cash flows
As of 31 March 2007, the Eesti Telekom Group balance sheet was 5,175 million EEK
(31 December 2006: 4,812 million EEK). The tangible fixed assets have decreased
by 5 million EEK during the quarter reaching 2,390 million EEK (31 December
2006: 2,395 million EEK) by the end of March. Compared to the end of 2006, the
current assets have increased by 368 million EEK. The remainder of cash, cash
equivalents, and short-term financial investments has increased by 238 million
EEK reaching 1,627 million EEK by the end of the period. The increase is caused
by a strongly positive cash flow from operations in the first quarter. Trade
receivables and other short-term receivables have increased by 137 million EEK.
The growth resulted from the expansion of MicroLink Eesti activities and the
more active provision of financial services by Elion Enterprises.
As of 31 March 2007, Eesti Telekom Group equity totaled 4,553 million EEK (31
December 2006: 4,113 million EEK). The increase in equity resulted from the
first quarter profit. The Group's long-term liabilities remained at the same
level as the end of the year, reaching 36 million EEK (31 December 2006: 38
million EEK). Short-term liabilities decreased by 74 million EEK, reaching 586
million EEK (31 December 2006: 660 million EEK). The reduction resulted from a
decrease in Elion Group indebtedness to suppliers. As of 31 March 2007, the
Group's net debt was -1622 million EEK and the net gearing was -36% (31 December
2006: -1383 million EEK and -34%).
The Eesti Telekom Group cash flow from operations in the first quarter of 2007
was 358 million EEK (1st quarter 2006: 487 million EEK). The reduction in cash
flow from operations resulted primarily from an increase in short-term
receivables.
In the first quarter, the Group's cash flow from investment activities reached
782 million EEK (1st quarter 2006: 488 million EEK). This year, as well as in
the first quarter of 2006, the principal part of the cash flow from investment
activities resulted from short-term financial investments. In the first quarter,
cash flow for the acquisition of tangible and intangible fixed assets totaled
117 million EEK (1st quarter 2006: 128 million EEK). In the first quarter of
this year, the EMT Group invested 48 million EEK (1st quarter 2006: 60 million
EEK). The investments were primarily made in the network, foremost for the
development of a network that enables quality data communications. Important
investments were also made in the development of mobile applications. The Elion
Group investments totaled 69 million EEK (1st quarter 2006: 69 million EEK). In
the case of the Elion Group, the primary field of investment continues to be the
expansion of the coverage area for permanent connections and digital TV
reception, but also the creation of special solutions for business clients.
In the first quarter of 2007, cash flow into financing activities was less than
1 million EEK (1st quarter 2006: 1 million EEK).
Ownership structure of AS Eesti Telekom
In the first quarter of 2007, there were no significant changes in the ownership
structure of AS Eesti Telekom. TeliaSonera AB (through Baltic Tele AB), the
majority owner of Eesti Telekom, continues to own 54% of the company's shares.
The Estonian government continues to own 27% of AS Eesti Telekom shares. In
February, the Government of the Republic decided to transfer 3% of its shares
(4,138,636 shares) to the Estonian Development Fund.
The goal of the Development Fund founded in November 2006 is to stimulate and
support changes in the Estonian economy that should help to update the economy,
guarantee the
growth of exports, and create new jobs that require high qualifications. The
Development Fund will be financed from earmarked investment capital, the main
part of which will comprise AS Eesti Telekom shares. The Development Fund may
use the resources received from dividends or from the sale of the shares for
investment activities. As of 31 March 2007, the AS Eesti Telekom shares had not
been transferred to the Development Fund.
As of 31 March 2007, 19.1% of the AS Eesti Telekom shares could be freely
traded. As of the end of the first quarter, 42% of the freely traded shares had
been converted to GDRs traded on the London Stock Exchange.
As of 31 March 2007, the 10 largest shareholders in AS Eesti Telekom were:
--------------------------------------------------------------------------------
| | Number of | Participation |
| | securities | |
--------------------------------------------------------------------------------
| Baltic Tele AB | 74,110,079 | 53.7207% |
--------------------------------------------------------------------------------
| Ministry of Finance / State Treasury | 37,485,100 | 27.1721% |
--------------------------------------------------------------------------------
| Deutsche Bank Trust Company (GDR | 10,978,638 | 7.9582% |
| accounts) | | |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken AB | 2,074,890 | 1.5040% |
| clients | | |
--------------------------------------------------------------------------------
| ING Luxembourg S.A. | 1,526,330 | 1.1064% |
--------------------------------------------------------------------------------
| Danske Bank clients | 1,378,842 | 0.9995% |
--------------------------------------------------------------------------------
| Bank Austria Creditanstalt AG clients | 1,366,948 | 0.9909% |
--------------------------------------------------------------------------------
| Morgan Stanley Co International Equity | 1,018,400 | 0.7382% |
| clients | | |
--------------------------------------------------------------------------------
| The Northen Trust Company | 470,000 | 0.3407% |
--------------------------------------------------------------------------------
| ABN Amro Bank | 430,550 | 0.3121% |
--------------------------------------------------------------------------------
The regular general meeting of AS Eesti Telekom shareholders will take place on
22 May 2007 at 1 pm in Tallinn at the National Library. Starting on 23 April
2007, the 2006 annual report and draft resolutions for the general meeting with
be available on the Internet at http://www.telekom.ee and at Eesti Telekom at
Roosikrantsi 2, Tallinn on workdays from 10 am to 2 pm. Questions related to the
general meeting can be submitted through the AS Eesti Telekom website, by
telephone at 6 311 212, or by e-mail to mailbox@telekom.ee.
Dividends
The Management Board of AS Eesti Telekom will make a proposal at the
shareholders' general meeting to distribute and pay out 1,311 million EEK or
9.50 EEK per share as dividends, based on the number of dividend-paying shares,
or 137,954,528 shares.
In 2006, 1,241.6 million EEK was distributed as dividends among the
shareholders, or 9.00 EEK per share.
INCOME STATEMENT
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | I Quarter | I Quarter | 2006 |
| | 2007 | 2006 | |
--------------------------------------------------------------------------------
| Net sales | 1,496,518 | 1,326,975 | 5,767,734 |
--------------------------------------------------------------------------------
| Cost of production | (851,181) | (755,120) | (3,260,113) |
--------------------------------------------------------------------------------
| Gross profit | 645,337 | 571,855 | 2,507,621 |
--------------------------------------------------------------------------------
| Sales, administrative, and | (222,964) | (224,771) | (908,854) |
| research & development expenses | | | |
--------------------------------------------------------------------------------
| Other operating revenues | 3,127 | 5,823 | 53,011 |
--------------------------------------------------------------------------------
| Other operating expenses | (1,056) | (2,038) | (5,405) |
--------------------------------------------------------------------------------
| Operating profit | 424,444 | 350,869 | 1,646,373 |
--------------------------------------------------------------------------------
| Finance income | 15,653 | 11,509 | 42,768 |
--------------------------------------------------------------------------------
| Finance costs | (550) | (888) | (1,950) |
--------------------------------------------------------------------------------
| Finance income, net | 15,103 | 10,621 | 40,818 |
--------------------------------------------------------------------------------
| Net income / (expenses) from | 203 | (90) | 193 |
| associated companies | | | |
--------------------------------------------------------------------------------
| Profit before tax | 439,750 | 361,400 | 1,687,384 |
--------------------------------------------------------------------------------
| Income tax on dividends | - | - | (373,377) |
--------------------------------------------------------------------------------
| Net profit for the period | 439,750 | 361,400 | 1,314,007 |
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 438,069 | 361,400 | 1,309,443 |
--------------------------------------------------------------------------------
| Minority interest | 1,681 | - | 4,564 |
--------------------------------------------------------------------------------
| | 439,750 | 361,400 | 1,314,007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for profit | | | |
| attributable to the equity holders | | | |
| of the parent during the reporting | | | |
| period (expressed in EEK) | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | 3.18 | 2.62 | 9.49 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 3.18 | 2.62 | 9.49 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 542,082 | 520,634 | 2.194.709 |
--------------------------------------------------------------------------------
| Depreciation, amortization and | (117,638) | (169,765) | (548.336) |
| write-downs | | | |
--------------------------------------------------------------------------------
BALANCE SHEET
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | 31 March | 31 December | 31 March |
| | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2,051,109 | 2,044,595 | 1,792,803 |
--------------------------------------------------------------------------------
| Intangible fixed assets | 206,536 | 214,046 | 168,683 |
--------------------------------------------------------------------------------
| Investments in associates | 17,450 | 17,247 | 1,485 |
--------------------------------------------------------------------------------
| Other financial fixed assets | 114,783 | 119,139 | 51,462 |
--------------------------------------------------------------------------------
| Total non-current assets | 2,389,878 | 2,395,027 | 2,014,433 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 135,973 | 142,692 | 89,158 |
--------------------------------------------------------------------------------
| Trade and other receivables | 1,020,814 | 884,212 | 815,183 |
--------------------------------------------------------------------------------
| Short-term investments | 163,171 | 1,064,859 | 549,845 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1,464,010 | 324,405 | 1,406,227 |
--------------------------------------------------------------------------------
| Total | 2,783,968 | 2,416,168 | 2,860,413 |
--------------------------------------------------------------------------------
| Assets classified as | 1,076 | 771 | 17,662 |
| held-for-sale | | | |
--------------------------------------------------------------------------------
| Total current assets | 2,785,044 | 2,416,939 | 2,878,075 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 5,174,922 | 4,811,966 | 4,892,508 |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Capital and reserves | | | |
| attributable to equity holders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Share capital | 1,379,545 | 1,379,545 | 1,379,545 |
--------------------------------------------------------------------------------
| Share premium | 356,018 | 356,018 | 356,018 |
--------------------------------------------------------------------------------
| Statutory legal reserve | 137,955 | 137,955 | 137,955 |
--------------------------------------------------------------------------------
| Retained earnings | 2,234,831 | 925,388 | 2,166,979 |
--------------------------------------------------------------------------------
| Net profit for the period | 438,069 | 1,309,443 | 361,400 |
--------------------------------------------------------------------------------
| Total capital and reserves | 4,546,418 | 4,108,349 | 4,401,897 |
| attributable to equity holders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | 6,711 | 5,030 | - |
--------------------------------------------------------------------------------
| Total equity | 4,553,129 | 4,113,379 | 4,401,897 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest bearing loans and | 2,568 | 3,124 | 3,948 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Retirement benefit obligations | 7,738 | 7,912 | 6,731 |
--------------------------------------------------------------------------------
| Provisions | 20,047 | 22,124 | - |
--------------------------------------------------------------------------------
| Non-interest bearing | 5,150 | 5,152 | 1,030 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total non-current liabilities | 35,503 | 38,312 | 11,709 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 577,497 | 651,365 | 470,703 |
--------------------------------------------------------------------------------
| Interest bearing loans and | 2,571 | 2,742 | 1,814 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Retirement benefit obligations | 865 | 865 | 865 |
--------------------------------------------------------------------------------
| Provisions | 5,357 | 5,303 | 5,520 |
--------------------------------------------------------------------------------
| Total current liabilities | 586,290 | 660,275 | 478,902 |
--------------------------------------------------------------------------------
| Total liabilities | 621,793 | 698,587 | 490,611 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 5,174,922 | 4,811,966 | 4,892,508 |
--------------------------------------------------------------------------------
CASH FLOW STATEMENT
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | I Quarter 2007 | I Quarter 2006 |
--------------------------------------------------------------------------------
| Operating activities | | |
--------------------------------------------------------------------------------
| Net profit for the period | 439,750 | 361,400 |
--------------------------------------------------------------------------------
| Adjustments for: | | |
--------------------------------------------------------------------------------
| Depreciation, amortisation and impairment | 117,638 | 169,765 |
| of fixed and intangible assets | | |
--------------------------------------------------------------------------------
| (Profit) / loss from sales and discards of | (8) | (493) |
| fixed assets | | |
--------------------------------------------------------------------------------
| Net (income) / expenses from associated | (203) | (90) |
| companies | | |
--------------------------------------------------------------------------------
| Provisions | (1,926) | (2,301) |
--------------------------------------------------------------------------------
| Financial items | (5,856) | (21,392) |
--------------------------------------------------------------------------------
| Miscellaneous non-cash items | (317) | 2,267 |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 549,078 | 509,156 |
--------------------------------------------------------------------------------
| Change in current receivables | (122,869) | 73,300 |
--------------------------------------------------------------------------------
| Change in inventories | 6,679 | (2,248) |
--------------------------------------------------------------------------------
| Change in current liabilities | (74,508) | (93,402) |
--------------------------------------------------------------------------------
| Change in working capital | (190,698) | (22,350) |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 358,380 | 486,806 |
--------------------------------------------------------------------------------
| Investing activities | | |
--------------------------------------------------------------------------------
| Intangible and tangible fixed assets | (117,063) | (127,682) |
| acquired | | |
--------------------------------------------------------------------------------
| Intangible and tangible fixed assets | 126 | 147 |
| divested | | |
--------------------------------------------------------------------------------
| Shares, participations and operations | - | (59,134) |
| acquired | | |
--------------------------------------------------------------------------------
| Net change in interest-receivables short | 901,622 | 693,159 |
| maturities | | |
--------------------------------------------------------------------------------
| Net cash changes of other long-term | (2,984) | (18,883) |
| receivables | | |
--------------------------------------------------------------------------------
| Cash flow from investing activities | 781,701 | 487,607 |
--------------------------------------------------------------------------------
| Cash flow before financing activities | 1,140,081 | 974,413 |
--------------------------------------------------------------------------------
| Financing activities | | |
--------------------------------------------------------------------------------
| Repayment of borrowings | - | (34) |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | (454) | (1,370) |
--------------------------------------------------------------------------------
| Cash flow used in financing activities | (454) | (1,404) |
--------------------------------------------------------------------------------
| | 1,139,627 | 973,009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of | 324,405 | 430,393 |
| year | | |
--------------------------------------------------------------------------------
| Cash flow for the year | 1,139,627 | 973,009 |
--------------------------------------------------------------------------------
| Effect of foreign exchange rate changes | (22) | 2,825 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period | 1,464,010 | 1,406,227 |
--------------------------------------------------------------------------------
Hille Võrk
AS Eesti Telekom, CFO
Tel: +372 6 311 212
Email: hille.vork@telekom.ee
