1 / 26

RESULTS FOR THE YEAR 2006

RESULTS FOR THE YEAR 2006. TEO LT, AB. HIGHLIGHTS - YEAR 2006. Changed its name to TEO LT, AB Introduced new sub-brands for its main activities Completed streamlining of the Group structure Reorganised sales units structure Simplified product portfolio and introduced new services

oakes
Download Presentation

RESULTS FOR THE YEAR 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. RESULTS FOR THE YEAR 2006 TEO LT, AB

  2. HIGHLIGHTS - YEAR 2006 • Changed its name to TEO LT, AB • Introduced new sub-brands for its main activities • Completed streamlining of the Group structure • Reorganised sales units structure • Simplified product portfolio and introduced new services • Launched digital TV services • Started provision of new IT services • Became a full member of ETNO (European Telecommunication Network Operator) association • World Communication Awards 2006 award “Best changemaker”

  3. RESULTS - YEAR 2006 • Continuous leadership on broadband internet, fixed voice, data communication, leased lines and Call Center market • Rapid growth of broadband internet users’ number • Stopped customers’ churn • Increased speed at and number of WiFi hot spots • Continued revenue growth in spite of sale of Comliet • Strong EBITDA and cash flows • Continued growth of net profit • Repaid EBRD loan

  4. VISION Your best partner in communicating with the constantly changing world By employing the most modern technologies we enable our customers to reach people, knowledge and entertainment MISSION To create value for shareholders and customers by providing professional and high-quality telecommunications, TV and IT services TEO VISION AND MISSION

  5. TEO GROUP TEO LT, AB(voice, internet, wholesales, data communication, digital TV services; Internet portal Zebra) 100% UAB Lintel(directory inquiry 118, contact center services, treasury stocks) • In 2006, sold UAB Comliet (construction business), UAB MicroLink Lietuva, UAB Baltijos Kompiuterių Akademijaand 26% in UAB TietoEnator Consulting • Acquired remaining 40% in UAB Baltic Data Center • Completed liquidation of UAB Verslo Portalas • In January 2006 acquired 100% stake in OOO Comliet-Kaliningrad (Russian Federation) was sold in February 2007 100% UAB Baltic Data Center (IT infrastructure services) 100% UAB Voicecom (NMT-450 network) 100% UAB Kompetencijos Ugdymo Centras (training and consultancy) 100% VšĮ TEO Sportas (women’s basketball team TEO, fitness club ZEBRA SPORT)

  6. TEO BUSINESSES VOX - voice services for residential customers ZEBRA - internet services for residential customers GALA – digital television services TEO VERSLAS - voice, internet, data communication and IT services for business customers

  7. VOX - VOICE TELEPHONY SERVICES • Number of main lines: -1.7% (or 13.6 thousand lines) • From September number of main lines is growing • 53 thousand new lines installed and 66.6 thousand disconnected • Increased number of revenue generating lines • Number of subscribed payment plans: 607 thousand • Total traffic: -2.1% • Number of alternative operators customers: 53 thousand (end of 2006)

  8. ZEBRA - INTERNET SERVICES • Number of broadband internet connections: +72.5% (y-o-y) • 176.1 thousand retail DSL, 2.2 thousand – wholesales DSL and 2.5 thousand LAN DSL connections • 3 major ZEBRA internet payment plans: - Basic (up to 256 kbps during off-peak and weekend time for 26 LTL), - Optimum (up to 1 Mbps without limitations for 49 LTL),- Premium (up to 4 Mbps without limitations for 79 LTL). • 804 wireless internet (Wi-Fi) access points with connection speed up to 4Mbps and more (287 hot spots in 2005) • 1,135 ZEBRA VoIP services users

  9. GALA – NEW GENERATION TELEVISION • Digital TV over IP launched in October • Basic package - 40 TV programs • 4 additional packages: news, cinema, leisure and knowledge • Basic monthly fee – 35 LTL • 4,902 GALA service users • Digital video and audio quality • Selection of broadcasting language • Internet and e-mail on TV screen • More IP TV functionalities in 2007

  10. DIGITAL TERRESTRIAL TELEVISION • July 2006: TEO started transmission of digital terrestrial television (DVB-T) signals in Vilnius area • Licence for construction of 2 out of 4 national DVB-T networks for transmission of 10 TV programs per network • By 2012 DVB-T should completely substitute analogue terrestrial transmission of TV programs in Lithuania

  11. OTHER NEW SERVICES • August 2006: consultancy service on PC and internet usage by short number all around the clock provided by Lintel • First virtual Call Center for insurance company implemented by Lintel, Baltic Data Center (BDC) and TEO • September 2006: PC maintenance service for small and medium size companies provided by TEO • November 2006: a new and the largest in Lithuania data center opened by BDC and TEO

  12. TELECOMMUNICATIONS MARKET IN LITHUANIA (YEAR 2006) • Total revenue: LTL 2,695 million (LTL 2,516 million in 2005) • Growth: 7.14 % (y-o-y) • Penetration per 100 residents: fixed voice – 23.4mobile voice – 139.2internet – 45.3broadband internet – 10.9 • Investments: LTL 526 million Source: Report of Communications Regulatory Authority

  13. FIXED VOICE TELEPHONY MARKET IN LITHUANIA (YEAR 2006) • Total revenue: LTL 425 million (LTL 444 million in 2005) • 52 companies are providing fixed voice services: 27 provide national and international calls, 19 only international, 5 only wholesales (transit) and one only call center services • 27 companies are using IP network, 13 of them CATV networks • Total fixed voice traffic (y-o-y): -3.9% • TEO market share (Q4 2006) in terms of: - total customers: 93.7%- total traffic: 96.4%- local calls minutes: 99.5%- domestic long distance calls minutes: 89.1%- international calls minutes: 72.3% Source: Report of Communications Regulatory Authority

  14. INTERNET ACCESS MARKET IN LITHUANIA (YEAR 2006) • Total revenue: LTL 265 million (LTL 213 million in 2005) • TEO share of broadband internet market in terms of revenue – 48,5% • 115 internet service providers • 418 thousand internet users: - DSL: 179 thousand- via CATV networks: 66 thousand - wireless access: 53 thousand - LAN: 46 thousand - via mobile network: 37 thousand- fiber optics: 24 thousand- dial-up: 11 thousand Source: Report of Communications Regulatory Authority

  15. TEO COMPETES IN ALL AREAS EXCEPT MOBILE VOICE • CATV market is very fragmented: 50 players, market revenue LTL 66 million, only 2 operators with market share above 10%. • Radio and TV program transmission is dominated by one player. Market revenue LTL 21 million. Source: Report of Communications Regulatory Authority

  16. MAJOR FINANCIAL INDICATORS BY YEARS Revenue, EBITDA and Net Profit (LTL million) • 2006 vs 2005 (restated):- revenue: +0.7%- expenses: +0.4%- EBITDA: -1.0%- EBITDA margin: 47.7% (48.5%)- EBIT: +49.8%- net profit: +55.3%- net profit margin: 17.8% (11.5%)- investments: +32.9%- investments: LTL 98 million

  17. REVENUE AND EXPENSES

  18. EMPLOYEES • During Q1 2006 UAB Comliet (175 employees), UAB MicroLink Lietuva (89) and UAB Baltijos Kompiuteriu Akademija (5) were sold.

  19. BALANCE SHEET AND CASH FLOW(YEAR 2006) • Total assets: LTL 1,249 million (-0.8%) • Cash and short term financial investments: LTL 307 million (+1.9%) • Loan granted: LTL 150 million • Borrowings: LTL 8.6 million (-46.6%) • Net debt: LTL -299 million • Gearing ratio: -26.9% • Equity to assets ratio: 89% • ROA: 12.3% • ROE: 11.8% • Paid-out dividends: LTL 124 million

  20. DIVIDEND PAYOUT • Following the Lithuanian Law on Company dividends should be paid from the Parent company’s retained earnings • TEO LT, AB retained earnings 2006: LTL 211 million • Consolidated TEO Group retained earnings 2006 : LTL 333 million • The Board proposed to the meeting of shareholders to pay from distributable profit 0.26 litas dividend for the year 2006.

  21. SHAREHOLDERS OF TEO • Amber Teleholding A/S is a subsidiary of TeliaSonera AB, Sweden. • During 2006 State of Lithuania reduced its stake from 2.05% to 1.66% • The last (eight) stage of State of Lithuania giving TEO shares to the citizens of Lithuania as a compensation for realty redeemable by (realty seized during the Soviet times) started in February 2007 • UAB Lintel, a member of TEO Group, holds the treasury stocks. • Total number of shareholders: 12,872

  22. TEO MARKET CAPITALISATION • Shares listed on Vilnius Stock Exchange (VSE ticker: TEO1L) • 10.5% of shares are represented by GDRs (1 GDR = 10 shares) • GDRs are listed on London Stock Exchange (LSE ticker: TEOL). • Share price on VSE in 2006 (in Litas): - start of the year:2.71 - year low: 2.10 - year high: 2.80 - end of the year: 2.76 • Shares turnover on VSE in 2006: 132.8 million (+59%) or LTL 318 million (+58%) TEO Market Capitalisation at the end of period (LTL million)

  23. TRADING IN TEO SHARES ON VSE IN 2006

  24. OUTLOOK - YEAR 2007 • Maintain leadership position on voice services market • Stop the customers’ churn and maintain the same traffic levels • Active acquisition of new internet and IP TV customers • Increase of ARPU by selling additional services • Finding a new sources of revenue by entering new markets and through M&A • Extension of IT services portfolio • Rapid development of WiFi network (up to 4,800 new hot spots during 2007) • Continued revenue and net profit growth • EBITDA at the same level • Capital investments: LTL 164 million

  25. NEWTEO HEAD OFFICEBUILDING • On 8 February 2006 the Board approved construction of a new head office building in Vilnius at Lvovo str. 21A • Value of the project – LTL 84 million • Maincontractor – AB YIT Kausta • 14storey building with bulkhead and 3-4 storey for underground parking • Customer care halls will be on 1st floor, meeting rooms and Technical museum on 2nd floor, office premises on the other floors • Total area – about 16thousand sq. m • Beginning of construction in Q1 2007 • Duration – 18 months

  26. THANK YOUFOR YOUR ATTENTION WWW.TEO.LT

More Related