OREANDA-NEWS. July 19, 2012.  The total consolidated revenue of TEO Group, the largest provider of integrated telecommunication, IT and TV services in Lithuania, during the first half of 2012 amounted to LTL 380.7 million, an increase by 3 per cent over the total revenue of LTL 369.8 million during the same period a year ago. The Company’s EBITDA margin for the first six months of 2012 was 40.5 per cent, and net profit – LTL 78.3 million.

Last year, TEO EBITDA margin for the first six months was 40.8 per cent, while net profit amounted to LTL 76.6 million.

“With economy struggling to take a clear direction for growth and the decreasing telecommunications market, TEO managed to ensure revenue growth, mainly from IT, digital TV and Internet services”, - Arыnas Рikрta, General Manager of TEO, said when commenting on the activity results.

 According to him, the development of the next-generation fiber-optic network allowed further increasing customer intake in this segment. Over the last year, the number of Internet users connected to TEO fiber-optic network increased by more than a quarter and exceeded 150 thousand. At the end of June, TEO fiber-optic Internet access services were available to 61 per cent of the country's population.

“During the first half of 2012 there was a rapid growth in TEO revenues from IT services, mostly due to the development of Baltic Data Center and the Company's successful international contracts”, – A. Shikshta said.

Over the last 12 months, the number of the Company’s television service users increased by almost 9.7 per cent and at the end of June amounted to 156.4 thousand. The number of broadband Internet access users increased by 5.3 per cent – up to 377 thousand. The total number of main telephone lines in service at the end of June amounted to 625.7 thousand.

The Company's share of revenue from Internet services from total amount of revenue for the first half of 2012 amounted to 22.2 per cent, data communications services and network capacity sales – 11.5 per cent, IT services – 8.5 per cent, television services – 7.2 per cent. The share of revenue from television services from total amount of revenue for January-June 2011 amounted to 6.1 per cent, IT services – 5.5 per cent and other services – 3.2 per cent. Share of revenue from voice telephony services from total amount of revenue for January-June 2012 amounted to 47 per cent, and from other services – 3.5 per cent from total amount of revenue for the first six months of 2012.

According to the data of the Communications Regulatory Authority (CRA) of the Republic of Lithuania, at the end of March 2012 TEO market share of the Internet access services market in terms of revenue amounted to 41.4 per cent, while TEO market share in terms of revenue from digital television services was 44.9 per cent. At the end of March 2012 TEO market share in terms of revenue from fixed telephony services was 93 per cent.

During the first six months of 2012 the Company allocated LTL 52 million for investments. The majority of investments (LTL 41 million) went to next-generation fiber-optic access networks.  An amount of LTL 9 million was allocated for the development of IT systems.