AS Eesti Telekom consolidated I Quarter 2008 interim report, EEK
MANAGEMENT REPORT
In the given economic situation, 2008 first quarter results for Eesti Telekom
Group were gladdening for the strong increase in EBITDA and EBIT. Despite the
significant reduction in interconnection fees between mobile operators at the
end of 2007, the mobile communications services segment was able to maintain its
sales revenues compared to the same period last year. Both mobile data revenues
and number of users showed strong growth. The broadband services segment has
seen continued growth in the number of permanent Internet connections and the
users of triple packages. Several important tenders were won by the IT services
segment.
Significant financial indicators
Eesti Telekom Group
--------------------------------------------------------------------------------
| | Q1 2008 | Q1 2007 | Change, % |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 1,484 | 1,497 | -0.8 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 576 | 542 | 6.3 |
--------------------------------------------------------------------------------
| Margin, % | 38.8 | 36.2 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 436 | 424 | 2.8 |
--------------------------------------------------------------------------------
| Margin, % | 29.4 | 28.4 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 452 | 440 | 2.8 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 452 | 440 | 2.8 |
| EEK | | | |
--------------------------------------------------------------------------------
| EPS, EEK | 3.27 | 3.18 | 2.9 |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 119 | 117 | 1.5 |
--------------------------------------------------------------------------------
| Net gearing, % | -29.5 | -35.6 | |
--------------------------------------------------------------------------------
| ROA, % | 31.2 | 29.6 | |
--------------------------------------------------------------------------------
| ROE, % | 43.0 | 44.0 | |
--------------------------------------------------------------------------------
Mobile communications segment
--------------------------------------------------------------------------------
| | Q1 2008 | Q1 2007 | Change, % |
--------------------------------------------------------------------------------
| Total revenues. million EEK | 874 | 863 | 1.3 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 329 | 330 | -0.2 |
--------------------------------------------------------------------------------
| Margin, % | 37.6 | 38.2 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 266 | 279 | -4.5 |
--------------------------------------------------------------------------------
| Margin, % | 30.4 | 32.3 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 273 | 286 | -4.7 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 273 | 286 | -4.7 |
| EEK | | | |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 57 | 48 | 17.9 |
--------------------------------------------------------------------------------
| ROA, % | 44.5 | 47.7 | |
--------------------------------------------------------------------------------
| ROE, % | 75.4 | 78.7 | |
--------------------------------------------------------------------------------
Broadband services segment
--------------------------------------------------------------------------------
| | Q1 2008 | Q1 2007 | Change, % |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 764 | 697 | 9.5 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 247 | 215 | 14.7 |
--------------------------------------------------------------------------------
| Margin, % | 32.3 | 30.8 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | 176 | 155 | 13.9 |
--------------------------------------------------------------------------------
| Margin, % | 23.1 | 22.2 | |
--------------------------------------------------------------------------------
| EBT, million EEK | 177 | 153 | 15.7 |
--------------------------------------------------------------------------------
| Net profit for the period, million | 177 | 153 | 15.7 |
| EEK | | | |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 56 | 64 | -12.3 |
--------------------------------------------------------------------------------
| ROA, % | 24.3 | 20.2 | |
--------------------------------------------------------------------------------
| ROE, % | 39.1 | 31.4 | |
--------------------------------------------------------------------------------
IT services segment
--------------------------------------------------------------------------------
| | Q1 2008 | Q1 2007 | Change, % |
--------------------------------------------------------------------------------
| Total revenues, million EEK | 79 | 108 | -26.6 |
--------------------------------------------------------------------------------
| EBITDA, million EEK | 4 | 2 | 100.9 |
--------------------------------------------------------------------------------
| Margin, % | 4.9 | 1.8 | |
--------------------------------------------------------------------------------
| EBIT, million EEK | -2 | -3 | -19.5 |
--------------------------------------------------------------------------------
| Margin, % | -2.9 | -2.6 | |
--------------------------------------------------------------------------------
| EBT, million EEK | -3 | 0 | N/A |
--------------------------------------------------------------------------------
| Net profit for the period, million | -3 | 0 | N/A |
| EEK | | | |
--------------------------------------------------------------------------------
| CAPEX, million EEK | 5 | 5 | 19.8 |
--------------------------------------------------------------------------------
| ROA, % | 2.5 | 5.6 | |
--------------------------------------------------------------------------------
| ROE, % | 4.0 | 6.6 | |
--------------------------------------------------------------------------------
Sales revenues, operating costs, and profit
The results of the Eesti Telekom Group for the first quarter of 2008
corresponded to the expectations of the management board. The sales revenues of
the Group in the first quarter of 2008 reached 1,484 million EEK (1st quarter
2007: 1,497 million EEK), and is primarily affected by the reduction in
interconnection fees (as of 5th of November 2007 the state regulator fixed the
interconnection fee in mobile phone networks at 1.66 EEK instead of the former
2.50 EEK).
In the mobile communications services segment, the consolidated turnover reached
874 million EEK, increasing by 1% compared to the same period on 2007 (1st
quarter 2007: 863 million EEK). The modest growth was caused by the reduction in
interconnection revenues resulting from the decrease in interconnection prices,
which was compensated on the principal activity side by the growth of the number
call minutes for calls initiated from and completed in the network, the growth
of mobile data communications and the growth of the volume of subcontracting
services.
Compared to a year ago, the number of contractual clients had increased by 36
thousand, reaching
473 thousand by the first quarter of 2008, while, at the
same time, the number of active users of pre-paid cards decreased by 47 thousand
to 278 thousand users by the end of the first quarter. As opposed to the
previous year, an aggressive client recruitment campaign did not take place in
the first quarter of 2008 to find new card users. EMT assesses its market share
of active SIM cards as 47%. The estimated penetration of active cards in Estonia
is 118%.
The increase in revenues was most affected by the increase in the number of call
minutes initiated by EMT clients, which, in the first quarter of 2008, increased
by 3% compared to the same period in 2007.
Pursuant to the resolution of the Communications Board dated 21 March 2006, the
termination fee for voice calls in the mobile phone networks (interconnection
fee) for AS EMT, Elisa Eesti AS and Tele2 Eesti AS for the period 1 July 2006 to
30 June 2007 was fixed at 2.05 EEK per minute, and pursuant to the resolutions
of the Communications Board dated 20 June and 22 June 2007, was fixed at 1.66
EEK for the period
1 July 2007 to 30 June 2008. Since Elisa Eesti AS and Tele2
Eesti AS disputed the decisions in court, and in the course of provisional legal
protection, the validity of the aforementioned administrative act was suspended,
the interconnection fees of all three mobile operators remained at 2.50 EEK
until 5 November 2007. On 5 November 2007, the ruling of the Tallinn Circuit
Court came into force, whereby the provisional legal protection was cancelled
and all three mobile operators were obligated to apply interconnection fees of
1.66 EEK. Litigation by Elisa Eesti AS and Tele2 with the Communications Board
are continuing, and EMT is participating in the litigation as a third party.
With its resolution of 25 March 2008, the Competition Board, which is the legal
successor to the Communications Board, established a fee of 1.37 EEK per minute
for the termination of voice calls in mobile phone networks for the period 1
July 2008 - 30 June 2009, which is four cents lower than was stated in the
resolution's earlier prognosis.
The revenues received from mobile Internet continued to show very rapid growth.
In the first quarter of this year, EMT revenues from mobile data communications
exceeded the revenues for the same period in 2007 by more than 60%. At the same
time, the transmitted data volumes increased tenfold. In March 2008, the number
of EMT mobile data communications users was 160 thousand, or 55 thousand more
users than a year ago. The increase in the popularity of mobile data
communications is caused, on the one hand, by the introduction of new data
communications packages based on monthly fees in the summer of 2007, and on the
other hand, by the dynamic expansion of the 3G coverage area, which allows the
clients to use high-quality and high-speed data communications at conveniently
controllable prices. The rapid development, especially in the private segment,
has been accompanied by an EMT Internet startup package, which includes a free
high-speed 3.5G modem for loyal customers signing up for the EMT Internet 399
package. This provides the client with an opportunity to use Estonia's 3G
network with the largest coverage area and provides Internet connections with
speeds approaching those of ADSL. Secondly, the number of mobile Internet users
has been positively affected by the establishment of a price ceiling of 9 EEK
per day for the use of EMT SurfPort. This has made using the Internet on their
mobile phones affordable for many customers.
A regulation applies to AS EMT, as it does to other mobile operators in the
European Community, which specifies that as of September 2007 the rate per
minute for outgoing calls made within the borders of the European Community
cannot exceed the maximum price established by the European Community.
Therefore, the revenues received from roaming clients have decreased by 20%.
The revenues for the mobile communications services segment from retailing and
wholesaling telecommunications merchandise increased in the first quarter of
2008 compared to the same period in 2007 thanks primarily to a wider range of
available merchandise.
The sales revenues for the broadband services segment increased by 10% compared
to the same period last year, reaching 764 million EEK (1st quarter 2007: 697
million EEK). The greatest increase was demonstrated by domestic interconnection
services, which increased by 73% during the year. The growth was primarily based
on the increases in call transit volumes from the networks of fixed network.
Revenues from international call services increased by 27% compared to 2007,
primarily as a result of an increase in the number of calls initiated from
mobile networks.
Similarly to previous quarters, the trend in broadband services, whereby clients
are replacing individual services with packages of integrated services,
continued in the last quarter. Compared to last year, the broadband services
segment revenues from connection fees for integrated services grew by 35%. The
number of triple package users increased by 5,100, reaching 58.6 thousand as of
31 March (31 March 2007: 29.8 thousand). At the end of the first quarter, Elion
had 63.2 thousand IP and cable TV clients (31 March 2007: 32.4 thousand). The
popularity of the triple package has been significantly enhanced by the offering
of
supplemental services. Since the introduction of the remote video rental service
last year, the selection of available films, TV series and programs has
constantly expanded.
In the first quarter, the total number of Elion clients with permanent Internet
connections increased by 4,400 connections, reaching 167.5 thousand by the end
of March (31 March 2007: 148 thousand). The company assesses its market share
based on clients with permanent connections to be 55%. In addition to the sale
of integrated solutions, the growth of permanent connections is based on the
WiMax base stations that were completed in Võru, Pärnu and Rapla Counties in
February in the course of the Külatee 3 continuation project.
Based on the significant ratio of the increase in the volume and revenues from
integrated solutions, the revenues from monthly fees for call connections and
Internet connections fell by 10% and 14% respectively.
In the first quarter, the call revenues of the broadband services segment
increased by 10% compared to the same period in 2007. As mentioned above, the
growth resulted primarily from an increase in the volume of domestic call
transit and international calls initiated from mobile networks. At the same
time, the call revenues earned from end consumers in the last quarter continued
to decrease. Compared to the same period in 2007, the revenues earned from
domestic call services decreased by 10.5% due to a reduction in minute volumes.
Elion assesses its market share for call minutes initiated in the fixed network
to be 81% (March 2007: 83%). The market share for local call minutes is 82.9 %
(March 2007: 84%), 66.4 % for international call minutes (March 2007: 65%) and
71.2% for call minutes made to mobile phones (March 2007: 69%).
By the end of the first quarter, the number of Elion's active call interfaces
reached 470 thousand (31 March 2007: 465 thousand interfaces). The increase in
call interfaces is primarily based on the constant energetic activities directed
at keeping existing clients and finding new ones. In March, Elion started
providing Private Client VoIP call services, which are based on WiMax wireless
Internet connections. In order to use VoIP call services, clients must acquire
IP-telephones or IP-adapters to connect an ordinary phones.
As a result of the general cooling of the Estonian economy, the retail sales of
broadband services segment telecommunications and IT merchandise decreased in
the first quarter by 4% compared to last year.
Sales revenues for the IT services segment reached 79 million EEK in the first
quarter of 2008 (1st quarter 2007: 108 million EEK). Whereas the sales revenues
of the IT services segment increased by 17% and the sales revenues for IT
merchandise was 52% less than for the same period last year. The latter is
caused by the fact that in the 1st quarter of 2007, MicroLink Eesti ordered and
installed the base infrastructure solution necessary for the Schengen
information system, which comprised a noteworthy part of the hardware and
software sales revenues for the given period.
The greatest impact on the sales results for infrastructure solutions in the
first quarter of this year was caused by a significant reduction in announced
public procurements compared to the first quarter of 2007, and the postponement
of the order of workstation computers for the Ministry of Justice into the
second half of the year.
The most important procurements won in the first quarter included servers for
the Health Insurance Fund and the Ministry of Defense, the disk array for the
e-health project, and the expansion of Eesti Energia's existing disk array.
In the IT services segment, the growth of sales revenues took place as
anticipated based on the increase of ongoing services. The most important
contracts concluded during the first quarter included the maintenance of Empower
Eesti's central system and workstation computers, the hosting of the URRAM
information system of the Ministry of Culture, and the hosting of the
information system of the Estonian Private Forest Union.
The most important keyword during the first quarter in project business was
continuation of the work on the e-health project. The project will be completed
in June of this year.
MicroLink Eesti also won two important document management procurements -
Estonian Post and the Tallinn City Government - the results of which will be
reflected in subsequent periods.
The operating costs of the Eesti Telekom Group decreased by 5% in the first
quarter of 2008 compared to the same period in 2007, reaching 913 million EEK
(1st quarter 2007: 957 million EEK).
The operating costs in the mobile communications services segment increased by
2% compared to the first quarter of 2007 reaching 547 million EEK (1st quarter
2007: 535 million EEK). The largest increases are in the operating costs related
to retailing and wholesaling, which have increased in connection with the growth
of trade sales turnovers.
The operating costs in the broadband services segment increased by 8% compared
to the same period last year, reaching 520 million EEK (1st quarter 2007: 482
million EEK). More than half the increase in operating costs resulted from the
growth of direct sales costs based on increased volumes of international call
services and domestic interconnection services. The second principal growth
factor that is related to operating costs was personnel costs, which increased
by 13.1% compared to the previous year. At the same time, the direct sales costs
related to domestic call services fell by 38% due to the reduction in call
volumes.
The operating costs in the IT services segment decreased in the first quarter by
29%, reaching 76 million EEK (1st quarter 2007: 106 million EEK).
The Eesti Telekom Group EBITDA in the first quarter of 2008 reached 576 million
EEK, which is 6% more than in the first quarter of 2007 (1st quarter 2007: 542
million EEK). EBITDA in the mobile communications services segment remained in
the first quarter at the same level as at the same period in 2007. EBITDA in
the broadband services segment increased by 15% and the corresponding indicator
in the IT services segment increased approximately twice. The Group's EBITDA
margin in the first quarter of 2007 was 39%, which is slightly higher than the
corresponding period in 2007.
The Group's depreciation cost reached 140 million EEK in the first quarter of
2008, increasing by 19% compared to the same period in 2007 (1st quarter 2007:
118 million EEK).
In the first quarter, the Eesti Telekom Group earned an EBIT of 436 million EEK,
which is 3% more than in the first quarter of 2007 (1st quarter 2007: 424
million EEK). The Group's (net) financial revenues increased by 14% in the first
quarter and reached 17 million EEK (1st quarter 2007: 15 million EEK).
In the first quarter of 2008, the Eesti Telekom Group net profit was 452 million
EEK (1st quarter 2007:
440 million EEK). The profit per share was 3.27 EEK (1st
quarter 2007: 3.18 EEK).
Balance sheet and cash flows
As of 31 March 2008, the Eesti Telekom Group balance sheet totaled 5,342 million
EEK (31 December 2007: 5,023 million EEK). Compared to the beginning of the
year, fixed assets have decreased by 24 million EEK, thereby bringing the
depreciated value at the end of the first quarter to 2,726 million EEK. In three
months, the Group's current assets have increased by 343 million EEK, reaching
2,616 million EEK by the end of March (31 December 2007: 2,273 million EEK). The
depreciated value of cash and cash equivalents as well
as short-term financial
investments has increased by 320 million EEK, reaching 1,411 million EEK by the
end of the period. The increase is caused by a strong positive cash flow from
operations in the first quarter.
As of 31 March 2008, the Eesti Telekom Group equity was 4,766 million EEK, which
is 452 million EEK more than at the end of 2007 (31 December 2007: 4,314 million
EEK). The increase in equity is based on first
quarter profit. The Group's long-term obligations of 25 million EEK remained at
the same level as at the end of the year (31 December 2007: 25 million EEK). The
short-term obligations decreased by 132 million EEK to 551 million EEK (31
December 2007: 683 million EEK). The decrease is caused by a reduction of
indebtedness to suppliers in the mobile communications and broadband services
segments. The net debt of the Eesti Telekom Group at the end of the first
quarter was -1,408 million EEK and the net debt to equity ratio was -30% (31
December 2007: -1,087 million EEK and -25%).
The Eesti Telekom Group three-month cash flow from operations was 447 million
EEK (3 months of 2007: 358 million EEK). The Group's cash flow from investments
was 550 million EEK (3 months of 2007:
782 million EEK). The cash flow into
tangible and intangible fixed assets in the first three months was
119 million
EEK (3 months of 2007: 117 million EEK). This year, the mobile communications
services segment has invested 57 million EEK in three months (3 months of 2007:
48 million EEK). In mobile communications, in addition to the constant
development of the GSM network, a large development field was the implementation
of technologies supporting high-speed data communications. In the first quarter,
the project for implementing EDGE data communications in all GSM base stations
was completed. Therefore, EDGE with speeds of up to 200 kbit per second can
currently be used in all EMT GSM coverage areas. During the three months of
2008, the investments in the broadband services segment reached 56 million EEK
(3 months of 2007: 64 million EEK). The principal part of the investments
continued to be directed at improving the quality of services, developing
network resources, and improving the availability of permanent Internet
connections and DigiTV. At the beginning of March, Elion's international network
node in Amsterdam was completed, which was created based on a need to increase
the reliability of connections with London and Frankfurt. The establishment of
the Amsterdam network node allows Elion to better distribute network traffic
among various foreign connections and to provide clients with increasingly rapid
access to various Internet networks. The new network node enables an Elion call
communications network to be developed. Elion already had international network
nodes in London, Frankfurt, Helsinki (two), Riga (two), Vilnius, St. Petersburg,
and Moscow. In the first quarter of 2008, similarly to the same period of last
year, the IT services segment invested 5 million EEK primarily for the expansion
of the infrastructure necessary for the provision of services.
The Eesti Telekom Group cash flow from financing activities in the first three
months was less than 1 million EEK, similarly to the first quarter of 2007.
Ownership structure of AS Eesti Telekom
In the first quarter of 2008, the majority shareholder, TeliaSonera AB (through
its subsidiary Baltic Tele AB) increased its share in AS Eesti Telekom.
TeliaSonera acquired an additional 1,197,400 AS Eesti Telekom shares, thereby
increasing its participation to 60.12%.
The increase in the participation of TeliaSonera reduced the ratio of freely
traded shares (shares that do not belong to TeliaSonera AB, the Estonian state,
or the Development Fund). As of the end of the first quarter, the ratio of
freely traded shares was 12.7% of the total number of shares. Of these, 19.81%
were converted into GDRs trades on the London Stock Exchange.
As of 31 March 2008, the 10 largest shareholders in AS Eesti Telekom were:
--------------------------------------------------------------------------------
| | Number of | Participation |
| | securities | |
--------------------------------------------------------------------------------
| Baltic Tele AB | 82,936,299 | 60.12% |
--------------------------------------------------------------------------------
| Ministry of Finance / State Treasury | 33,346,464 | 24.17% |
--------------------------------------------------------------------------------
| Estonian Development Fund | 4,138,636 | 3.00% |
--------------------------------------------------------------------------------
| Deutsche Bank Trust Company (GDR | 3,472,509 | 2.52% |
| accounts) | | |
--------------------------------------------------------------------------------
| ING Luxembourg S.A. | 1,818,330 | 1.32% |
--------------------------------------------------------------------------------
| Danske Bank clients | 1,367,436 | 0.99% |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken AB | 1,311,850 | 0.95% |
| clients | | |
--------------------------------------------------------------------------------
| Bank Austria Creditanstalt AG clients | 1,028,730 | 0.75% |
--------------------------------------------------------------------------------
| Clearstream Banking Luxembourg clients | 601,149 | 0.44% |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken finnish | 352,956 | 0.26% |
| clients | | |
--------------------------------------------------------------------------------
Shareholders' general meeting
The regular general meeting of AS Eesti Telekom shareholders will take place on
22 May 2008 at 12 pm in Tallinn at Valge 16. Starting on 28 April 2008, the 2007
annual report and draft resolutions for the general meeting will be available on
the Internet at http://www.telekom.ee and at Eesti Telekom at Valge 16, 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 our 1,449 million EEK or
10.50EEK per share as dividends, based on the number of dividend-paying shares,
or 137,954,528 shares.
In 2007, 1,311 million EEK was distributed as dividends among the shareholders,
or 9.50 EEK per share.
Definitions
Net debt - Long- and short-term interest-bearing borrowings, less cash and cash
equivalents and short-term investments
ROA -Net profit for the last four quarters divided by the average total assets
for the same period
ROE - Pre-tax profit for last four quarters divided by the average equity for
the same period
CONSOLIDATED INCOME STATEMENT
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | I Quarter | I Quarter | 2007 |
| | 2008 | 2007 | |
--------------------------------------------------------------------------------
| Net sales | 1,484,181 | 1,496,518 | 6,261,002 |
--------------------------------------------------------------------------------
| Cost of production | (830,495) | (851,181) | (3,542,791) |
--------------------------------------------------------------------------------
| Gross profit | 653,686 | 645,337 | 2,718,211 |
--------------------------------------------------------------------------------
| Sales, administrative, and | (221,982) | (222,964) | (900,011) |
| research & development expenses | | | |
--------------------------------------------------------------------------------
| Other operating revenues | 6,285 | 3,127 | 28,114 |
--------------------------------------------------------------------------------
| Other operating expenses | (1,554) | (1,056) | (6,336) |
--------------------------------------------------------------------------------
| Operating profit | 436,435 | 424,444 | 1,839,978 |
--------------------------------------------------------------------------------
| Finance income | 17,751 | 15,653 | 48,626 |
--------------------------------------------------------------------------------
| Finance costs | (584) | (550) | (2,342) |
--------------------------------------------------------------------------------
| Finance income, net | 17,167 | 15,103 | 46,284 |
--------------------------------------------------------------------------------
| Net income / (expenses) from | (1,680) | 203 | (3,817) |
| associated companies | | | |
--------------------------------------------------------------------------------
| Profit before tax | 451,922 | 439,750 | 1,882,445 |
--------------------------------------------------------------------------------
| Income tax on dividends | - | - | (370,897) |
--------------------------------------------------------------------------------
| Net profit for the period | 451,922 | 439,750 | 1,511,548 |
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | 450,651 | 438,069 | 1,505,098 |
--------------------------------------------------------------------------------
| Minority interest | 1,271 | 1,681 | 6,450 |
--------------------------------------------------------------------------------
| | 451,922 | 439,750 | 1,511,548 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share for profit | | | |
| attributable to the equity holders | | | |
| of the parent during the reporting | | | |
| period (expressed in EEK) | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | 3.27 | 3.18 | 10.91 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 3.27 | 3.18 | 10.91 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA | 576,352 | 542,082 | 2,336,260 |
--------------------------------------------------------------------------------
| Depreciation, amortization and | (139,917) | (117,638) | (496,282) |
| write-downs | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | 31 March | 31 December | 31 March |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2,392,029 | 2,405,114 | 2,051,109 |
--------------------------------------------------------------------------------
| Intangible fixed assets | 206,191 | 216,011 | 206,536 |
--------------------------------------------------------------------------------
| Investments in associates | 11,742 | 13,422 | 17,450 |
--------------------------------------------------------------------------------
| Other financial fixed assets | 116,072 | 115,059 | 114,783 |
--------------------------------------------------------------------------------
| Total non-current assets | 2,726,034 | 2,749,606 | 2,389,878 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Assets classified as | 3,258 | 1,732 | 1,076 |
| held-for-sale | | | |
--------------------------------------------------------------------------------
| Inventories | 184,799 | 187,573 | 135,973 |
--------------------------------------------------------------------------------
| Trade and other receivables | 1,016,762 | 992,939 | 1,020,814 |
--------------------------------------------------------------------------------
| Short-term investments | 17,222 | 694,040 | 163,171 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1,393,882 | 396,778 | 1,464,010 |
--------------------------------------------------------------------------------
| Total current assets | 2,615,923 | 2,273,062 | 2,785,044 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 5,341,957 | 5,022,668 | 5,174,922 |
--------------------------------------------------------------------------------
| 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 | 2,429,361 | 924,263 | 2,234,831 |
--------------------------------------------------------------------------------
| Net profit for the period | 450,651 | 1,505,098 | 438,069 |
--------------------------------------------------------------------------------
| Total capital and reserves | 4,753,530 | 4,302,879 | 4,546,418 |
| attributable to equity holders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Minority interest | 12,751 | 11,480 | 6,711 |
--------------------------------------------------------------------------------
| Total equity | 4,766,281 | 4,314,359 | 4,553,129 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest bearing loans and | 749 | 1,343 | 2,568 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Retirement benefit obligations | 3,004 | 3,239 | 7,738 |
--------------------------------------------------------------------------------
| Provisions | 20,937 | 20,673 | 20,047 |
--------------------------------------------------------------------------------
| Non-interest bearing | - | - | 5,150 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total non-current liabilities | 24,690 | 25,255 | 35,503 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 540,929 | 670,989 | 577,497 |
--------------------------------------------------------------------------------
| Interest bearing loans and | 2,560 | 2,778 | 2,571 |
| borrowings | | | |
--------------------------------------------------------------------------------
| Retirement benefit obligations | 4,856 | 4,814 | 865 |
--------------------------------------------------------------------------------
| Provisions | 2,641 | 4,473 | 5,357 |
--------------------------------------------------------------------------------
| Total current liabilities | 550,986 | 683,054 | 586,290 |
--------------------------------------------------------------------------------
| Total liabilities | 575,676 | 708,309 | 621,793 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 5,341,957 | 5,022,668 | 5,174,922 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
In thousand of Estonian kroons (EEK)
--------------------------------------------------------------------------------
| | I Quarter | I Quarter |
| | 2008 | 2007 |
--------------------------------------------------------------------------------
| Operating activities | | |
--------------------------------------------------------------------------------
| Net profit for the period | 451,922 | 439,750 |
--------------------------------------------------------------------------------
| Adjustments for: | | |
--------------------------------------------------------------------------------
| Depreciation, amortisation and impairment | 139,917 | 117,638 |
| of fixed and intangible assets | | |
--------------------------------------------------------------------------------
| (Profit) / loss from sales and discards of | (2,964) | (8) |
| fixed assets | | |
--------------------------------------------------------------------------------
| Net (income) / expenses from associated | 1,680 | (203) |
| companies | | |
--------------------------------------------------------------------------------
| Provisions | (1,830) | (1,926) |
--------------------------------------------------------------------------------
| Financial items | (25,536) | (21,323) |
--------------------------------------------------------------------------------
| Miscellaneous non-cash items | 64 | (317) |
--------------------------------------------------------------------------------
| Cash flow before change in working capital | 563,253 | 533,611 |
--------------------------------------------------------------------------------
| Change in current receivables | 4,664 | (122,869) |
--------------------------------------------------------------------------------
| Change in inventories | (4,104) | 6,679 |
--------------------------------------------------------------------------------
| Change in current liabilities | (131,516) | (74,508) |
--------------------------------------------------------------------------------
| Change in working capital | (130,956) | (190,698) |
--------------------------------------------------------------------------------
| Cash flow after changes in working capital | 432,297 | 342,913 |
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| Interest received | 16,459 | 15,798 |
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| Interest paid | (1,463) | (331) |
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| Cash flow from operating activities | 447,293 | 358,380 |
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| Investing activities | | |
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| Intangible and tangible fixed assets | (118,806) | (117,063) |
| acquired | | |
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| Intangible and tangible fixed assets | 3,232 | 126 |
| divested | | |
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| Net change in interest-receivables short | 676,818 | 901,622 |
| maturities | | |
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| Net cash changes of other long-term | (10,996) | (2,984) |
| receivables | | |
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| Cash flow from investing activities | 550,248 | 781,701 |
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| Cash flow before financing activities | 997,541 | 1,140,081 |
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| Financing activities | | |
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| Repayment of finance lease liabilities | (590) | (454) |
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| Cash flow used in financing activities | (590) | (454) |
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| Cash flow for the year | 996,951 | 1,139,627 |
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| | | |
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| Cash and cash equivalents at beginning of | 396,778 | 324,405 |
| year | | |
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| Cash flow for the year | 996,951 | 1,139,627 |
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| Effect of foreign exchange rate changes | 153 | (22) |
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| Cash and cash equivalents at end of period | 1,393,882 | 1,464,010 |
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