OREANDA-NEWS. The total revenue of telecommunication and IT services provider TEO during the three quarters of 2014 amounted to LTL 513.9 million and net profit amounted to LTL 99.4 million. The third quarter was marked by a rapid growth in the number of customers of smart television and fiber Internet. In summer implemented changes of organizational structure resulted in increased operational efficiency.

The growth of number of TEO smart (IPTV) television customer during the third quarter was the fastest over the last two years and reached 123.9 thousand. Only during this period number of the service users increased by 7.5 thousand, and during the last twelve months it increased by more than a fifth. Increase in the number of customers was due to service update and simplification of usage at the beginning of the year, and starting from July customers can view their online uploaded video or audio clips and photos on TV screens.

The number of TEO fiber Internet customers was growing rapidly as well - during the year it increase by 11.5 per cent up to 193.8 thousand. Access to the continually expanding TEO fiber-optic network already has about two-thirds of the country's population. Over the last twelve months the number of TEO Wi-Fi service users has almost doubled and reached 126 thousand.

"We successfully completed the quarter, during which the company had implemented the new organizational structure and by the end of the summer formation of the management team was over. This period was characterized by high intake of television and Internet service customers, growing market shares. In September grew both the total number of TEO customers and the company's revenue. In addition, revenue from IT services provided to business customers in this quarter for the first time exceeded revenue from voice telephony services provided to business customers. Those are the first significant results of changes in the company", - on the company's results commented Kęstutis Šliužas, General Manager of TEO.

This year commenced TEO efficiency improvement program and implemented structural changes led to significant reduction of operating expenses. The total operating expenses excluding non-recurring expenses for the three quarters of 2014 decreased by 4.6 per cent, and EBITDA margin remained high and amounted to 42.6 per cent.

"Increased efficiency and reduced expenses indicate that we are on the right path forming a new TEO. But much more important is improving customer's evaluations. Of course, there is still a lot we need to do in this area, so in the future we will continue to focus on the quality of provided services and customer care", - said K.Šliužas.

Last year TEO revenue for the three quarters was LTL 541.8 million, and net profit - LTL 118.2 million. The revenue this year, as in earlier periods, was impacted by decreasing revenue from voice telephony services. The share of this service group in the total revenue during the three quarters of this year amounted to just roughly 40 percent.

According to the data of the Communications Regulatory Authority of the Republic of Lithuania, during the second quarter of 2014 TEO market share, in terms of revenue, of the Internet access services amounted to 44 per cent, and in digital pay-TV services - 42.5 per cent. TEO market share for fixed telephony services in the second quarter of 2014 was 94 per cent.

The Company has allocated LTL 62 million for investment during the nine months of this year. The majority of investments went to further expansion of the core network and development of the next-generation fiber-optic access network and amounted to LTL 56 million. Almost LTL 4 million was allocated to the development of IT systems.