OREANDA-NEWS. April 17, 2012. The total consolidated revenue of TEO Group, the largest provider of integrated telecommunication, IT and TV services in Lithuania, during the first quarter of 2012 amounted to LTL 190.5 million, an increase by 2.5 per cent over the total revenue of LTL 185.8 million during the same period a year ago. The Company’s EBITDA margin for the first three months of 2012 was 39.1 per cent, and net profit – LTL 37.1 million.

Last year, TEO EBITDA margin for the first three months was 39.8 per cent, while net profit amounted to LTL 37.7 million.

“The Company's good performance was driven by the continuously intake of customers of the next-generation fiber-optic network and IPTV services respectively, while loss of voice revenue was compensated by the increase in IT services revenue", – Arunas Shikshta, General Manager of TEO, said when commenting on the activity results.

During the first quarter of 2012 TEO revenues from IT services grew rapidly due to the development of Baltic Data Center, a company belonging to TEO Group, one-off sales of IT equipment, and long-term computer and office equipment rental services for businesses and organizations that were launched by TEO in January.

Over the last 12 months, the number of the Company’s television service users increased by 11.4 per cent and at the end of March amounted to 154.2 thousand. The number of broadband Internet access users increased by 6 per cent – up to 373.9 thousand. The total number of main telephone lines in service at the end of March amounted to 636.1 thousand.

At the end of March 2012, TEO fiber-optic (FTTH) Internet access services were available for use to 714 thousand or 59 per cent of the country’s residents.

The Company's share of revenue from Internet services from total amount of revenue for the first quarter of 2012 amounted to 21.7 per cent, data communications services and network capacity sales – 11.7 per cent, IT services – 10.3 per cent, television services – 7.2 per cent. Share of revenue from voice telephony services from total amount of revenue for January-March 2012 amounted to 45.5 per cent, and from other services – 3.7 per cent from total amount of revenue for the first three months of 2012.

According to the data of the Communications Regulatory Authority (CRA) of the Republic of Lithuania, TEO market share of the Internet access services market in terms of revenue amounted to 39.1 per cent, while TEO market share in terms of revenue from digital television services was 45.6 per cent. At the end of 2011 TEO market share in terms of revenue from fixed telephony services was 93 per cent. According to the Report of the CRA, the Lithuanian electronic communications market during 2011 decreased by 7 per cent – down to LTL 2.4 billion.

During the first three months of 2012 the Company allocated LTL 23 million for investments – an increase of 57 per cent over a year ago. The majority of investments (LTL 15.1 million) went to expansion of the core network and development of the next-generation fiber-optic access network. An amount of LTL 6.9 million was invested into IT systems.

TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: Lintel, Baltic Data Center, Hostex, Interdata, Hosting, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of The Communications History Museum.