On 29 April 2015 the Annual General Meeting of TEO LT, AB (hereinafter ‘Teo’ or ‘the Company’) Shareholders approved Financial Statements, Consolidated Annual and Independent Auditor's Reports for the year ended 31 December 2014.
Audited financial results of Teo Group for the year 2014 are the same as on 29 January 2015 announced results for the twelve months of 2014: consolidated Teo Group revenue for the year 2014 amounted to LTL 698,450 thousand (EUR 202,285 thousand) and profit for the period was LTL 131,465 thousand (EUR 38,075 thousand).
The Company’s management comment on the results for the year 2014:
“During 2014, Teo reached several milestones: number of Internet subscriptions, including Wi-Fi, exceeded half a million and at the end of 2014 amounted to 517 thousand (371 thousand excl. Wi-Fi). Customers using modern Teo fiber-optic network reached 201 thousand, an increase by 20 thousands or 11 per cent over the year, while number of IPTV customers was 131 thousand, a record growth of 24 per cent.
In terms of total revenue, the decline in 2014 was by 3.1 per cent: residential customers’ segment declined by 1.3 per cent, business customers’ by 7 per cent, while Business to Operators showed a growth of 2.2 per cent due to positive development in the transit services. During the year non-voice revenue increased in total by 1.3 per cent, driven by net increase in customer base of broadband Internet and IPTV subscriptions as well as higher sales in IT goods and equipment, and the share of non-voice services for the first time reached over 60 per cent. Negative impact on revenue during 2014 was still from the decrease in revenue from fixed voice telephony (down by 9.1 per cent) as disconnection of telephone lines continues, but in a slower pace than before. During 2014, voice subscription base decreased by 7 per cent, outgoing voice traffic generated by residential and business customers decreased by 15.4 and 11.4 per cent, respectively, while total volume of calls to mobile operators’ networks increased by 29.6 per cent.
The efficiency improvement program and the setup of new organization with rather high non-recurring (redundancy) costs during the year resulted that operating expenses were almost the same as in 2013, i.e. lower by 0.1 per cent. Excluding non-recurring items, the operating expenses (excluding cost of goods and services) were down by 10.5 per cent, while cost of goods and services increased by 8.7 per cent due to higher sales of IT goods, customer equipment and transit services. The operating free cash flow in 2014 stood at LTL 141 million, a decline of 2.4 per cent compared with the previous year. Positive was that bad debts decreased by over 50 per cent with a ratio of only 0.16 per cent of the total revenue. Return on capital employed ended up at 15.2 per cent (16.4 per cent in 2013), while return on shareholders’ equity reached 13.8 per cent (14.7 per cent in 2013). During 2014, EBITDA excluding non-recurring items decreased by 3.7 per cent and reached LTL 287 million, while EBITDA margin (excl. non-recurring items) was almost on the same level as in previous year and amounted to 41.1 per cent (41.4 per cent in 2013).”
The Company also prepared Corporate Social Responsibility Report for the year 2014 in html format.
The Financial Statements and Corporate Social Responsibility Report for the year 2014 are available on the Internet at http://www.teo.lt/ma2014/en/node/107
Video address by Kęstutis Šliužas, CEO of TEO LT, AB http://www.teo.lt/ma2014/en/node/114
Movie about Teo achievements in 2014 http://www.teo.lt/ma2014/en/node/124
ENCL.:
- TEO LT, AB Financial Statements, Consolidated Annual and Independent Auditor's Reports for the year ended 31 December 2014
- Presentation of the results for the year 2014.
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878
