RESULTS FOR THE 6 MONTHS OF 2020
Telia Lietuva, AB Group
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
Quality of operations' management confirmed by ISO certificates
Team of 2,200 professionals
Sustainable and responsible business
WE ARE PART OF TELIA COMPANY GROUP
OUR PURPOSE: BRINGING THE WORLD CLOSER
We dare to: We care for: We simplify:
- our customers
- each other
-
our world
-
execution
- teamwork
- our operations
TELIA LIETUVA GROUP
| Telia Customer Service LT, AB |
100% |
| Všļ Numerio Perkėlimas |
50 % |
- Telia Lietuva provides integrated mobile and fixed communication and IT services
- Telia Customer Service LT, a Contact Centre that remotely served customers of Telia Lietuva and provided Directory Inquiry services 118, on 1 July 2020 was merged into Telia Lietuva
- Numerio Perkėlimas administers the central database to ensure telephone number portability in Lithuania (Tele2 and Bitė Lietuva owns 25% each)
- On 18 June 2020, the Company and other two shareholders (Tele2 and Bitė Lietuva) disposed their 33.3 per cent stakes in UAB Mobilieji Mokėjimai, a provider of mobile payment till 18 May 2020 under the brand MoQ
QUARANTINE IMPACT ON OUR ACTIVITIES IN Q2 2020
- The Covid-19 virus caused quarantine in Lithuania was officially over on 17 June 2020
- Telia Lietuva shops were reopened earlier in April
- Employees were gradually returning to the office starting from May
- For employees convenience we set up the first outdoor office at Telia Lietuva headquarters
- Equipment sales (including mobile devices) are back to pre-quarantine level
- Business customers reordering suspended services
- Restrictions on cross-boarder travel had a negative impact on revenue from roaming charges
MAJOR EVENTS DURING Q2 2020
- AGM of shareholders was held on 28 April 2020 by shareholders' voting in advance in writing
- Shareholders decided to pay out EUR 0.09 dividend per share for the year 2019
- On 16 June 2020, the Company celebrated 20th anniversary of listing on Nasdaq stock exchange
- On 18 June 2020, the Company disposed a 33.3 per cent stake in loss generating UAB Mobilieji Mokėjimai
- On 1 July 2020, the Company's subsidiary Telia Customer Service LT was merged into Telia Lietuva
- 5 flagships shops were refurbished during the quarantine
- The Company signed agreement for implement of national cloud computing services infrastructure
NUMBER OF CUSTOMERS
IPTV service users
thousand of mobile service users
thousand of broadband Internet (excl. Wi-Fi) connections
thousand of fixed telephone lines in service
NUMBER OF EMPLOYEES
ELECTRONIC COMMUNICATIONS MARKET OF LITHUANIA
INTERNET & PAY TV DRIVE TELCO MARKET GROWTH (EUR million)
Source: Report of the Communications Regulatory Authority
BREAKDOWN OF THE TELECOMMUNICATIONS MARKET REVENUE BY OPERATORS FOR Q1 2020 (%)
TELIA LIETUVA MARKET SHARES IN TERMS OF REVENUE (%)
MARKET: THE FASTEST GROWTH IN USAGE OF DATA
Increasing usage of mobile data
(uploaded/downloaded 161,298 million MB of data per quarter)
Growing number of FTTH/B connections
(accounts for 75.4% of all fixed Internet connections)
Growing number of IPTV users
(accounts for 43% of all pay-TV service users)
MARKET PENETRATION
131.6
mobile communications subscribers (per 100 inhabitants)
fixed telephony lines (per 100 households)
51.1
broadband Internet
access
(per 100 inhabitants)
51.7
pay-TV subscribers (per 100 households)
Source: Report of the Communications Regulatory Authority
OPERATING AND FINANCIAL RESULTS
NUMBER OF IPTV AND BROADBAND INTERNET USERS
30-06-2019 30-09-2019 31-12-2019 31-03-2020 30-06-2020 IPTV +5.1%
Number of TV service users (thousands)
NUMBER OF MOBILE AND FIXED VOICE SERVICE USERS
Mobile communication users (thousands)
Number of fixed telephone lines (thousands)
REVENUE, EBITDA & NET PROFIT (EUR million)
DYNAMICS OF MAIN FINANCIAL INDICATORS (EUR million)
6 MONTHS OF 2020 REVENUE BREAKDOWN
REVENUE BY SERVICES (EUR million)
OPERATING EXPENSES (EUR million)
- During January-June 2020, total assets decreased by 8%
- Non-current assets amounted to 79.3% of total assets (30-06-2020)
- Cash alone amounted to 4%
- Return on capital employed: 14.2%
- Return on average assets: 10.4%
EQUITY AND LIABILITIES (EUR million)
- During H1 2020 shareholders' equity decreased by 8.7% due dividend payout and amounted to 53% of the total assets (30-06-2020)
- Total borrowings (30-06-2020) amounted to EUR 125.9 million: EUR 82.5 million – bank loans, EUR 8 million – loan from Telia Company, EUR 33.6 million – vendor financing and EUR 1.8 – financial lease.
- Gearing ration: 34.5%
- Debt to equity: 42%
- Return on equity: 16.9%
CASH FLOW & NET DEBT (EUR million)
CAPEX & CAPEX BREAKDOWN FOR H1 2020 (EUR million)
DIVIDENDS
Consolidated earnings per share (EUR) Dividend per share (EUR)
- Earnings and dividends are allocated to 582,613,138 shares
- The Board set a target to maintain the Company's net debt to EBITDA ratio not higher than 1.5 and to pay 80 per cent of free cash flow as dividend
- According to the Law, dividends should be paid from retained earnings of the Parent company
- As of 31 December 2019, retained earnings of the Parent company amounted to EUR 140.1 million
- The Annual General Meeting of Shareholders held on 28 April 2020 decided to pay-out EUR 0.09 dividend per share for the year 2019
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 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 more than 11 thousand
Shareholders as of 30-06-2020
|
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-June 2020: 5.2 million of shares or EUR 6.8 million
- Share price on Nasdaq Vilnius:
|
EUR |
| 01-01-2020 |
1.275 |
| High |
1.420 |
| Low |
1.135 |
| 30-06-2020 |
1.410 |
Market capitalization (EUR million)
TRADING IN THE COMPANY'S SHARES ON NASDAQ VILNIUS STOCK EXCHANGE IN 2020
THE COMPANY SHARE PRICE AND NASDAQ VILNIUS INDEXES COMPARISON
| INDEX EQUITY |
OPENING VALUE |
CLOSING VALUE |
CHANGE % |
| ■ OMX Baltic Benchmark Gl |
992.83 |
947.82 |
$-4.53$ |
| OMX Vilnius |
712.14 |
737.71 |
$+3.59$ |
| TEL1L - Telia Lietuva |
1.27 |
1.41 |
$+10.59$ |
Source: Nasdaq Vilnius
CORPORATE GOVERNANCE
GOVERNING BODIES
- The Annual General Meeting of Shareholders by voting in writing in advance was held on 28 April 2020
- The Board consist of 6 members elected for the 2 year term
- The Board for a new 2 year term was re-elected in 2019
- 3 members of the Board comprise Audit and Remuneration Committees
- UAB Deloitte Lietuva was elected the Company's independent auditor for the year 2020
- The Board elects and recalls CEO
- New Digitization & Analytics unit was established from 1 January 2020
BOARD
Emil Nilsson (born in 1971), Chair of the Board, represents Telia Company AB, Chair of the Remuneration Committee
Hannu-Matti Mäkinen (born in 1970), Member of the Board, represents Telia Company AB
Agneta Wallmark (born in 1960), Member of the Board, represents Telia Company AB, Chair of the Audit Committee
Tomas Balžekas (born in 1977), 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 Remuneration Committee
Mindaugas Glodas (born in 1972), Independent member of the Board, Member of the Audit and Remuneration Committees
• Members of the Board have no direct interest in the share capital of Telia Lietuva
GOVERNING STRUCTURE OF TELIA LIETUVA VALID FROM 1 JANUARY 2020
| CEO |
|
|
Consumer |
|
Enterprise |
|
Digitalization & Analytics |
|
Sales & Customer Care |
|
Technology Infrastructure |
|
Finance |
|
People & Engagement |
|
Legal & Corporate Affairs |
|
Communication |
|
Business Assurance & Transformation |
MANAGEMENT TEAM
Dan Strömberg, CEO
Daniel Karpovič, Head of Enperprise
Andrius Šemeškevičius, Head of Technology Infrastructure
Arūnas Lingė, Head of Finance
Ramūnas Bagdonas, Head of People & Engagement
Daiva Kasperavičienė, Head of Legal & Corporate Affairs
Birutė Eimontaitė, Head of Communication
Vytautas Bučinskas, Head of Business Assurance & Transformation
RESPONSIBLE BUSINESS PRINCIPLES THAT WE FOLLOW
Anti-bribery and corruption Freedom of
expression
Customer privacy Occupational health and safety
Responsible procurement
Environmental responsibility
Children safety online