Telia Lietuva (TEL1L) Q2 2024 earnings summary

Executive summary

• Revenue grew 3.5% year-over-year to €238.5 million in H1 2024, driven by double-digit growth in mobile and IT services, with mobile data usage up 38% and 5G usage up 2.8 times.

• Adjusted EBITDA margin increased by 1.2 p.p. to 37.2%, and net profit rose 14.4% to €36.4 million.

• Free cash flow surged 63.4% to €51.6 million for the period.

• Completed €12 million modernization of Lithuanian Railways' data network.

• Paid €0.09 per share dividend (total €52.4 million) for 2023 in May 2024.

Financial highlights

• Q2 2024 revenue up 5.7% year-over-year to €119.5 million; H1 2024 revenue at €238.5 million, up 3.5%.

• Adjusted EBITDA for H1 2024 was €88.7 million, up 6.8% year-over-year; margin at 37.2%.

• Operating profit (EBIT) for H1 2024 was €44.1 million, up 13.4% year-over-year.

• Earnings per share for H1 2024 increased to €0.063 from €0.055 in H1 2023.

• Capex decreased 4.6% to €29.2 million; capex-to-sales ratio at 12.2%.

Outlook and guidance

• Ongoing digital transformation with 90% of residential customers migrated to SAP CRM.

• Continued investment in 5G and fiber network expansion, with 976,000 households passed by fiber as of June 2024.

• Commitment to support Ukraine with special tariffs for calls and data at least until end of 2024.

• New data center planned near Vilnius to meet growing demand for cloud services.