RESULTS FOR THE 9 MONTHS OF 2017
Telia Lietuva, AB Group
2017
FEBRUARY
1
Teo, Omnitel & Baltic Data Center united their efforts and became Telia Lietuva, AB #visakotinklas
TELIA LIETUVA PROVIDES TELECOMMUNICATION, IT & TV SERVICES IN LITHUANIA FROM A SINGLE POINT
TELIA LIETUVA MEANS:
Wide range of services
The most developed networks
Modern data centres
Everything from a single point
TELIA LIETUVA MEANS:
Customer care 24/7/365
IT Management and Information Security Management ISO certificates
Team of more than 3,000 professionals
Sustainable and responsible business
WE ARE PART OF TELIA COMPANY GROUP
OUR PURPOSE: BRINGING THE WORLD CLOSER – ON THE CUSTOMER'S TERMS
We dare to: We care for: We simplify:
- our customers
- each other
-
our world
-
execution
- teamwork
- our operations
TELIA LIETUVA GROUP
| TELIA LIETUVA, AB |
|
|
| $100\% +$ |
Telia Customer Service LT, UAB |
|
| $100\% +$ |
UAB Verslo Investicijos |
|
| $100\% +$ |
UAB Kompetencijos Ugdymo Centras |
|
| 50% |
VšJ Numerio Perkėlimas |
|
- On 1 February 2017, subsidiaries AB Omnitel and AB Baltic Data Center were merged into the Company, and the Company changed its name to Telia Lietuva, AB
- On 1 February 2017, subsidiary UAB Lintel (Contact Centre) changed its name to Telia Customer Service LT, UAB
- UAB Verslo Investicijos implements an investment project, while UAB Kompetencijos Ugdymo Centras is a dormant subsidiary
- VšĮ Numerio Perkėlimas administers the central database to ensure telephone number portability in Lithuania (Tele2 and Bitė Lietuva owns 25% each)
Q3 2017 HIGHLIGHTS
- In July, three Lithuanian telco operators Bitė, Tele2 and Telia Lietuva – received a permit from the European Commission for the creation of a common platform for provision of instant payments
- In August, the Company signed an agreement for acquisition of UAB Duomenų Logistikos Centras
- From August, in 70 non-EU countries Telia Lietuva customers are paying 98% less for mobile Internet
- In September, CyberGym, the first in Lithuania and Northern Europe remote cyber security training centre, was opened
- During the two auction the Company sold real estate objects for the total value of EUR 6.3 million
OPERATING FIGURES
NUMBER OF EMPLOYEES
ELECTRONIC COMMUNICATIONS MARKET OF LITHUANIA
WE ARE OPERATING IN GROWING TELCO MARKET (EUR MILLION)
+5.8%
BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q2 2017 (%)
SEGMENTS: WE HAVE 1/3 OR MORE OF THE MARKET (%)
FAST GROWING USAGE OF DATA
Increasing usage of mobile data
(uploaded/downloaded 42,878 million TB of data per quarter)
Growing number of FTTH/B connections
(accounts for 69% of all fixed Internet connections)
Growing number of IPTV users
(accounts for 31% of all pay-TV service users)
MARKET PENETRATION PER 100 INHABITANTS
mobile communications subscribers
fixed telephony lines
broadband Internet access
pay-TV subscribers (households)
OPERATING AND FINANCIAL RESULTS
CONTINOUS GROWTH IN NUMBER OF IPTV AND FTTH USERS
Number of TV service users (thousands)
Number of broadband Internet users (thousands)
NUMBER OF MOBILE POST-PAID SERVICE USERS IS GROWING
Mobile communication users (thousands)
Number of fixed telephone lines (thousands)
REVENUE, EBITDA & NET PROFIT (EUR millions)
DYNAMICS OF MAIN FINANCIAL INDICATORS (EUR million)
9 MONTHS OF 2017 REVENUE BREAKDOWN
REVENUE BY SERVICES (EUR million)
- During 9 months of 2017, total assets decreased by 7.7%
- Non-current assets amounted to 76.8% of total assets (30-09-2017)
- Cash alone amounted to 4.3%
- Return on capital employed: 11.4%
- Return on average assets: 9.4%
EQUITY AND LIABILITIES (EUR million)
Share capital
- Shareholders' equity amounted to 53.1% of the total assets (30-09-2017)
- During 9 months of 2017, the Company repaid EUR 45 million of the long-term loan of EUR 150 million taken to finance Omnitel acquisition
- In May, the Company signed EUR 60 million 5 yearsterm loan agreement to refinance the loan previously extended by Telia Company to Omnitel
- Total borrowings amounted to EUR 179.8 million (30-09-2017)
- Gearing ration: 54.1%
- Debt to equity: 62.1%
- Return on equity: 16.8%
- In May, following the AGM decision the Company paid EUR 17.5 million of dividends for the year 2016, and EUR 50.6 million as not distributed profit was carried forwards to the next financial year
CASH FLOW
| (thousand EUR) |
9 months of 2017 |
9 months of 2016 |
| Net cash from operating activities |
79,433 |
81,572 |
| Net cash used in investing activities |
(48,148) |
(174,285) |
| Net cash used in financing activities |
(64,679) |
129,113 |
| Increase (decrease) in cash and cash equivalents |
(33,394) |
36,400 |
- Free Cash Flow during 9 months of 2017 was EUR 31.3 million (EUR 36.9 million a year ago)
- Investments during 9 months of 2017 amounted to EUR 42.1 million (EUR 36.6 million a year ago)
- EUR 15.5 million invested into expansion of the fixed network, EUR 10.2 million to development of mobile network and EUR 13 million – into IT systems
- In January 2016, the Company took a long-term loan of EUR 150 million to finance acquisition of Omnitel, and by the end of September 2017, it had repaid in total EUR 45 million
- In May 2017, the Company took a 5-years term loan of EUR 60 million from the banks to refinance the loan previously extended by Telia Company to Omnitel
DIVIDENDS
- Earnings and dividends till 2014 are allocated to 776,817,518 shares, from 2014 – to 582,613,138 shares
- On 17 November 2014 shareholders got 0.072 euro per share payment due to reduction of authorized capital
- On 27 April 2017, the AGM of Shareholders decided to pay EUR 0.03 dividend per share for the year 2016
- The Board set a target to maintain the Company's net debt to EBITDA ratio not higher than 1.5 and to pay out up to 80 per cent of free cash flow as dividend
SHARES AND SHAREHOLDERS
SHAREHOLDERS
- Telia Company AB (Sweden) is the largest shareholder of Telia Lietuva, AB
- The Company's share capital consist of 582,613,138 ordinary registered shares of EUR 0.29 nominal value each
- On 24 October 2014, authorized capital was reduced by LTL 194 million (EUR 56.2 million) and accordingly number of voting shares was reduced from 776,817,518 to 582,613,138
- The total number of Telia Lietuva shareholders is 11,344 (as of 20-04-2017)
Shareholders as of 30-09-2017
|
Part
of shares and votes |
| Telia Company AB |
88.15% |
| Other |
11.85% |
SHARES
- Since June 2000, the Company's shares are listed on Nasdaq Vilnius stock exchange (ticker: TEL1L)
- Since January 2011, the Company's shares were included into the trading lists of a few German stock exchanges (ticker: ZWS)
- Turnover on Nasdaq Vilnius stock exchange during January–September 2017: 5.3 million of shares or EUR 5 million
- Share price on Nasdaq Vilnius:
|
EUR |
| 01-01-2017 |
0.933 |
| High |
0.979 |
| Low |
0.888 |
| 30-09-2017 |
0.928 |
Market capitalization (EUR million)
TRADING IN THE COMPANY'S SHARES ON NASDAQ VILNIUS STOCK EXCHANGE IN 2017
THE COMPANY SHARE PRICE AND NASDAQ VILNIUS INDEXES COMPARISON
CORPORATE GOVERNANCE
GOVERNING BODIES
- The Annual General Meeting of Shareholders was held on 27 April 2017
- The Board consist of 6 members elected for the 2 year term
- Upon termination of the 2 year term of the Board, the AGM re-elect Stefan Block, Claes Nycander, Inga Skisaker and Rolandas Viršilas (the last both as independent member of the Board) and instead of Robert Andersson and Hannu-Matti Mäkinen elected Henriette Wendt and Ole Stenkil to the Board
- 3 members of the Board comprise Audit and Remuneration Committees
- UAB Deloitte Lietuva is the Company's independent auditor for the year 2017
- The Board elects and recalls CEO
BOARD
Henriette Wendt (born in 1969), Chairwoman of the Board, represents Telia Company AB, Chairwoman of the Remuneration Committee
Ole Stenkil (born in 1973) Member of the Board, represents Telia Company AB, Member of the Audit Committee
Stefan Block (born in 1967), Member of the Board, represents Telia Company AB, Chairman of the Audit Committee
Inga Skisaker (born in 1971), Independent member of the Board, Member of the Audit Committee
Claes Nycander (born in 1963), Member of the Board, represents Telia Company AB, Member of the Audit Committee
Rolandas Viršilas (born in 1963) Independent member of the Board, Member of the Remuneration Committee
• Rolandas Viršilas has 75,000 shares of Telia Lietuva, other members of the Board have no direct interest in the share capital of Telia Lietuva
GOVERNING STRUCTURE VALID FROM 4 OCTOBER 2017
CEO
Business to Business (B2B)
Business to Consumer (B2C)
Technology
Finance
Human Resources
Legal and Corporate Affairs
Marketing and Communication
Business Development
Competitive Customer Operations
Risk
MANAGEMENT TEAM
On the picture from the top left to the right: Mindaugas Ubartas, Head of B2B, Laimonas Devyžis, Head of Finance, Andrius Šemeškevičius, Head of Technology (owns 8,761 shares of Telia Lietuva), Vytautas Bučinskas, Head of Risk, Norbertas Žioba, Head of B2C (owns 3,601 shares of Telia Lietuva), Andrius Byčkovas, Head of Competitive Customer Operations, Audronė Mažeikaitė, Head of Corporate Affairs (till 18 August 2017), Kęstutis Šliužas, CEO, Ramūnas Bagdonas, Head of Human Resources, Giedrė Kaminskaitė-Salters, Head of Legal, Mantas Goštautas, Head of Business Development
RESPONSIBLE BUSINESS
Anti-bribery and corruption Freedom of
expression
Customer privacy Occupational health and safety
Responsible procurement
Environmental responsibility
Children online
#VISAKOTINKLAS