The total consolidated revenue of TEO Group (hereinafter - "the Company"), the largest provider of integrated telecommunication, IT and TV services in Lithuania, during 2013 amounted to LTL 720.6 million. The Company's EBITDA margin for the year 2013 increased up to 40.6 per cent, and net profit amounted to LTL 149.2 million.

The strongest growth was in TEO revenue from Internet, IT and TV services as well as in the number of customers using these services. Revenue from IT services went up by 8.8 per cent, from television services - 8.1 per cent, and Internet - 3.7 per cent.

In 2012, TEO revenue amounted to LTL 760.2 million. EBITDA margin for 2012 was 40.4 per cent, and net profit - LTL 159.1 million.

As a result of TEO launching its new generation internet TV service for smart devices "Interneto.tv", more and more customers were choosing IPTV services. The number of customers using this service was by 12.2 per cent higher in 2013 than a year ago. By the end of the year 2013, the total number of TEO TV service users reached 172.3 thousand.

The number of TEO Internet access service users also grew rapidly. Including wireless Internet "TEO Wi-Fi" users, over the year their number increased by 11.7 per cent and by the end of 2013 reached 431 thousand.

"TEO revenue from most areas of activities continued to grow despite a decline in the telecommunications market. We increased our investment to improve our services and their exclusive features and that was appreciated by our customers. This year, we will pay more attention to the convenience and simplicity of use of our services and will further develop innovations in Internet and TV services", - Kęstutis Šliužas, General Manager of TEO, said when commenting on the activity results.

In 2013 TEO allocated more funds for investments, they amounted to LTL 154 million. The majority of these investments went to further expansion of the core network and development of the next-generation fiber-optic access network: these investments amounted to LTL 122 million. As a result, by the end of 2013, TEO had 804 thousand households passed, or 67 per cent of the country's households, by the FTTH network.

The expansion of the fiber-optic (FTTH) Internet access network of TEO resulted in an increase in the amount of data downloaded by TEO customers. In 2013, the amount of data downloaded by TEO customers increased by almost a fifth (19 per cent) compared with year 2012. For comparison, in Western European countries the Internet data traffic increased by 17 per cent.

Last year, the Company's share of revenue from Internet services from total amount of revenue amounted to 24.7 per cent, data communication services and network capacity sales - 11.7 per cent, IT services - 9.7 per cent, and from television services - 8.6 per cent. Share of revenue from voice telephony services from total amount of revenue for 2013 shrank and amounted to 42.2 per cent, and from other services - 3.2 per cent.

According to the data of the Communications Regulatory Authority of the Republic of Lithuania, in the third quarter of 2013 TEO market share of the Internet access services market in terms of revenue amounted to 43.3 per cent, while in terms of revenue from digital television services - 42.1 per cent. TEO market share in terms of revenue from fixed telephony services was 94.4 per cent.

TEO Group consists of the parent company, TEO LT, AB and its subsidiaries: Lintel, Baltic Data Center, Hostex, Hosting, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of VšĮ Ryšių Istorijos Muziejus (The Communications History Museum).

More information about the results of TEO Group for 2013 is available on the Company's website at http://www.teo.lt/node/4674.

About TEO LT, AB
TEO provides integrated telecommunication, IT and TV services to residential and business customers in Lithuania. Having the largest experience in the telecommunications business in Lithuania, the Company pays exclusive attention to high quality of services and satisfaction of customer needs. More than 88 per cent of the Company's shares are owned by TeliaSonera AB. TEO LT, AB shares are traded on NASDAQ OMX Vilnius Stock Exchange.

For more information, please contact:
Lina Rimkutė-Žičkė, Head of External Communication Group at TEO
Tel. (8 5) 236 71 03, mob. tel. 8 686 42 57 8, e-mail: lina.rimkute-zicke@teo.lt

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