Last update: 26.11.2024 18:03 (GMT+2)
AS EESTI TELEKOM FINANCIAL RESULTS 22 APRIL 2005
FINANCIAL RESULTS FOR THE FIRST 3 MONTHS OF 2005, EEK
AS Eesti Telekom, the leading provider of telecommunications
services in Estonia, hereby announces its results for the
three-month period ending 31 March 2005.
Financial highlights
3 3 months Ch. 3 months Ch.
months 2004 % 2004, not %
2005 including
terminate
d
operation
s
Total revenues, 1,220 1,217 0.2 1,184 3.0
million EEK
EBITDA, million EEK 519 522 -0.4 522 -0.5
EBITDA margin, % 42.6 42.8 44.1
EBIT, million EEK 329 310 6.3 311 5.7
EBIT margin, % 27.0 25.4 26.3
Profit before taxes, 344 319 7.9 321 7.3
million EEK
Net profit for 344 319 7.9 321 7.3
period, million EEK
EPS, EEK 2.49 2.32 7.3 2.33 6.9
CAPEX, million EEK 51 107 -51.9 105 -48.5
Net gearing, % -43.0 -38.5
ROA, % 22.4 28.8
ROE, % 35.2 22.2
In commenting on the results of the Eesti Telekom Group,
Jaan Männik, Chairman of the Management Board, emphasised:
“The group’s consolidated total revenues increased 3%. The
net profit for the first quarter showed strong growth.”
For further information, please contact:
Jaan Männik, CEO +372 6311 212
Hille Võrk, CFO +372 6272 460
CHAIRMAN’S STATEMENT
Financial results
The Eesti Telekom Group’s total revenues in the first
quarter remained at the same level as in the first quarter
of 2004. The result of the first quarter of 2004, however,
includes the revenues of the Eltel Group (a group of
subsidiaries involved with network construction, sold in
December 2004). If one removes the said revenues from the
total revenues of the first quarter of 2004, total revenues
for the first quarter of 2005 show an increase of 3.0% in
comparison with the same period of the previous year.
Events in the area of mobile communications had a
significant influence on the Eesti Telekom Group’s revenues
in the first quarter of 2005. The mobile number portability
requirement was implemented as of the first quarter of 2005.
Mobile communications operators, including Eesti Telekom’s
subsidiary AS EMT, began preparations for the mobile number
portability at the end of 2004, when rates were adjusted,
several discount packages were introduced, and in November
EMT’s so-called discount operator Diil, which targets price-
sensitive mobile customers, entered the market. Thanks to
the preparations that began last year and the company’s
longstanding investment in quality, the result of the first
months of operations under the number portability was
positive for AS EMT in terms of customer numbers. The number
of customers who have moved from one network to another in
Estonia as a whole has been smaller than expected. According
to the Communications Board, only about 19,600 customers
have changed service providers during these three months. In
summing up the results of this period, AS EMT has acquired
more customers through number portability than it has lost
to other operators. At the same time, the intense price war
that has ensued from the number portability has led to an
extensive drop in rates, as a result of which the group’s
revenues growth in the area of mobile communications have
remained at the modest level of 4-5% for the second
successive quarter.
Positive developments took place in the area of fixed-line
communications, where growth from new areas of activity –
the Internet, IT and data communications – has almost
compensated for the reduction in revenue from voice
communications. The Kodulahendus and Ärilahendus packages
that combine Internet connections and voice communications,
which have been introduced since the end of 2004 and the
beginning of 2005 have helped to stabilise the number of
fixed lines and supported the growth in the number of
permanent connections. Since the beginning of 2005, Elion
has begun entering the market for television image
transmission. This year the company will restrict itself to
new buildings, and will concentrate mostly on the testing of
various technologies. In the coming years, however, service
packages incorporating voice communications, Internet
connection and TV image provision should become an important
competitive advantage for Elion in the eyes of households.
The Eesti Telekom Group’s EBITDA for the first quarter of
2005 was 2 million kroons lower than the corresponding
figure for the same period in 2004. The group has managed to
maintain the EBITDA margin at the same level. On the one
hand, the margin has been significantly influenced by events
in the mobile market and also by the growth in the turnover
of the group’s retail sales chain; while on the other hand,
the margin has been positively influenced by the sale of the
group’s construction activities, which had a low
profitability.
The group’s depreciation in the first quarter of 2005 was
10.2% lower than the result for the first quarter of 2004.
The reduction in depreciation came from the fixed-line
communications sector. The growth in the Eesti Telekom
Group’s EBIT reached 6.3%. Thanks to the group’s strong
financial position, net financial income has increased. Net
financial income for the first quarter of 2005 was 6 million
kroons greater than the corresponding figure for 2004.
The Eesti Telekom Group’s net profit for the first quarter
of 2005 was 344 million kroons, which is 7.9% more than in
the first quarter of 2004. Earnings per share in the first
quarter amounted to 2.49 kroons (2.32 kroons in the first
quarter of 2004).
As of the end of March 2005, the Eesti Telekom Group’s
balance sheet total was 4,824 million kroons (4,524 million
kroons in December 2004). During the first quarter, the
group’s fixed assets decreased by 125 million kroons, and
current assets increased by 424 million kroons. The
reduction in fixed assets is the result of the relatively
limited investments of recent years. The growth in current
assets was caused primarily by the 412 million kroon
increase in cash and cash equivalents.
The Eesti Telekom Group’s equity has increased by 344
million kroons during the first quarter (on account of the
first quarter’s net profit). As of the end of March 2005,
the group had 1 million kroons in long-term debt, and 3
million kroons in short-term debt (at the end of December
2004, 1 million and 19 million kroons respectively). The
group’s net debt at the end of March 2005 was –1,893 million
kroons, and net gearing was –43%. The group’s other payables
decreased by 29 million kroons during the first quarter of
2005.
The Eesti Telekom Group’s cash flows from operating
activities amounted to 491 million kroons in the first
quarter of 2005 (464 million kroons in the first quarter of
2004). Cash flows used in investing activities decreased –
in the first quarter of 2004, by 131 million kroons, but in
the first quarter of 2005, by 63 million kroons. Cash flow
used in financing activities was 17 million kroons in the
first quarter of 2005 (2 million kroons in the first quarter
of 2004).
Elion Group
3 mnth 3 m nth Ch. 3 mnth Ch.
2005 2004 , % 2004, , %
2005 not
including
terminated
operations
Total revenues, 624 651 -4.1 616 1.4
million EEK
EBITDA, million 222 225 -1.5 225 -1.3
EEK
EBITDA margin, % 35.5 34.6 36.4
EBIT, million EEK 119 99 21.0 99 20.3
EBIT margin, % 19.1 15.1 16.1
Profit before 129 101 27.7 99 29.7
taxes, million
EEK
Net profit for 129 101 27.7 99 29.7
period, million
EEK
CAPEX, million 40 52 -24.0 51 -22.6
EEK
ROA, % 17.0 18.4
ROE, % 25.6 22.3
The Elion Group’s total revenues for the first quarter of
2005 were 4.1% lower than the result for the first quarter
of 2004. The main factor that caused the reduction in total
revenues was the sale of the Eltel Group in December 2004.
The result for the first quarter of 2004 included the Eltel
Group’s revenues in the amount of 66 million kroons, of
which 37 million were revenues from outside the Eesti
Telekom Group. If we remove the Eltel Group’s total revenues
from consolidated total revenues for the first quarter of
2004, we obtain a 1.4% growth in total revenues in 2005.
The Elion Group’s operating costs decreased 5.5% in the
first quarter of 2005, in comparison with the same period in
2004. Once again, the main factor in the reduction in
operating costs was the Eltel Group. At the same time, the
operating costs of the group’s parent company, Elion
Enterprises AS, fell 1.5%. As a result of the increased
volume of sales, the operating costs of AS Elion Esindus,
the Elion Group’s retail sales chain, have increased
significantly.
The Elion Group’s EBITDA decreased 1.5% in comparison with
the first quarter of 2004. The EBITDA margin, however,
increased, reaching 35.5% in the first quarter of 2005. The
Eltel Group’s losses in the first quarter of 2004 were less
than one million kroons, and thus the sale of the Eltel
Group does not prevent the comparison of earnings in the
first quarter of 2004 and 2005. The Eltel Group’s EBITDA
margin was negative in the first quarter of 2004, and
remained below 10% for 2004 as a whole. The sale of the
Eltel Group has had a positive effect on the Elion Group’s
profit margins.
As a result of the moderate level of investment in recent
years, the fall in depreciation continued in the first
quarter of 2005. Depreciation in the first quarter of this
year was 19.0% lower than the corresponding indicator for
2004, amounting to 103 million kroons. Thanks to the fall in
depreciation, EBIT increased, and the result for the first
quarter of 2004 was exceeded by 21.0%. Thanks to the strong
positive cash flow, the Elion Group’s net financial income
has increased. In the first quarter of 2005, the group’s
financial income exceeded financial expenses by 9 million
kroons. The Elion Group’s net profit for the first quarter
increased 27.7% in comparison with the same period in 2004,
reaching 129 million kroons.
The Elion Group’s revenues from core activities were
characterised by the continuation of trends that developed
in previous quarters. The group’s revenues from voice
communication have decreased 9% during the year. As of 31
March 2005, Elion had 422 thousand main lines at its
disposal. During the last two quarters, the fall in the
number of main lines has slowed considerably, although the
number of main lines has decreased by only 18 thousand in
comparison with the end of March 2004. In October 2004,
Elion entered the market with innovative Kodulahendus
packages that permit customers to use a permanent Internet
connection, a telephone connection and 20 hours of free
calls within the network for one monthly rate. As of January
1st, analogous packages were also offered to corporate
customers. On the one hand, the introduction of such service
packages has helped to stabilise the number of main lines.
On the other hand, however, the offering of free call
minutes has led to a certain decrease in the revenue earned
per call minute. The rapid fall in mobile phone rates during
the last six months has encouraged the movement of call
minutes from the fixed-line network to mobile networks. In
comparison with the first quarter of 2004, 9.7% less call
minutes passed through the Elion network in the first
quarter of this year. At the same time, Elion has maintained
its market position among providers of fixed-line voice
communications. In March 2005 Elion Enterprises AS estimated
its market share in the fixed-line network to be 85%, based
on call minutes initiated in the fixed-line network (86% in
December 2004). Market share in the area of local call
minutes was 86% (87% in December 2004), 73% in call minutes
made to mobile phones (75% in December 2004), 67% of
international call minutes (69% in December 2004), and 96%
in dial-up minutes (96% in December 2004).
Revenues earned from the provision of Internet connections
continued to increase in the first quarter of 2005. In
comparison with the first quarter of 2004, the group’s
revenues in this area increased 13%. By the end of March
2005, the number of permanent connections offered by Elion
had increased to 81.7 thousand (76.8 thousand in December
2004; 55.0 thousand in March 2004). The increase in the
number of permanent Internet connections has been supported
by the above-mentioned introduction of the Kodulahendus and
Ärilahendus packages, but also by the diverse possibilities
offered to customers by the companies of the Elion Group in
computer sales. In order to cope with the increasing growth
in the number of permanent Internet connections, Elion
significantly increased the speed of its foreign connections
in the first quarter. Elion increased the volume of its
international connection to operator Teleglobe to 1 gigabit
per second. By doing so, Elion increased the total volume of
connections with foreign Internet networks to 4.35 gigabits
per second, which is the highest known rate of all Internet
service providers in Estonia. Elion has foreign Internet
connections with the United Kingdom, but also Finland,
Sweden and Latvia.
In the first quarter of 2005, the Elion Group’s revenues
from IT and data communications increased 7% in comparison
with the first quarter of 2004. In January 2005, Elion
completed the public procurement for the Tallinn Education
Authority, with which it installed 90 Microlink PCs with
monitors and software in 20 schools in Tallinn. In the
framework of the entire above-mentioned public procurement,
Elion has supplied over 1600 computers with servers,
printers, video projectors and high-speed Internet
connections to schools, hobby schools and kindergartens. In
addition, last year Elion connected the computers of 82
Tallinn schools with an ultra-high-speed fibre-optic
network. The volume of the public procurement for the
computers was 1.1 million kroons.
As of January 2005, Elion Enterprises AS is a certified gold
partner of Microsoft in the area of network infrastructure.
The above-mentioned status allows customers to be certain
that Microsoft’s partner fulfils all of the requirements
specified in the quality standards. Elion benefits from
advantages offered through the program that tie in with its
operations, and thus help the company raise its competence
in the area of products and services connected with
Microsoft software, and improve sales operations and
customer service. Elion has the highest number of IT
specialists possessing Microsoft Certified Professional
certificates, and the company continues to develop its
employees’ IT skills.
The Elion Group’s revenues from network services increased
7% during the first quarter. The growth in revenues in this
category is the result of a certain growth in the volume of
international network traffic through Estonia.
The Elion Group’s revenues from the retail sale of
communications and IT devices grew 31% in the first quarter.
Thanks to the introduction of the option of payment by
instalment, there was a dramatic increase in the volume of
computers sold by AS Elion Esindus, the Elion Group’s retail
sales chain, in the fourth quarter of 2004. The high level
of sales figures also continued in the first quarter of
2005.
In the first quarter of 2005, Elion also began to enter a
market that is entirely new to the company. Elion has
obtained a permit from the Communications Board for the
provision of cable television services. The company plans to
begin offering these services in April 2005. Elion plans to
use several technologies for the transmission of the
television image. In March an agreement was concluded with
Alcatel for the testing of a new FTTU (fiber-to-the-user)
solution for end users, permitting high bandwidth data and
voice communications and the transmission of an high-quality
digital television image. This is one of the first
applications of this new technology in Europe. Elion will
begin the testing of the solution in Merirahu and several
other new residential areas near Tallinn this year. In the
coming years Elion intends to offer this service to all
users of permanent Internet connections. This would make it
possible to variety of television channels to reach isolated
places where cable television is presently not available.
The objective of offering digital television has been to
bring an integral selection of communication and
entertainment services to homes: telephone communications,
high-speed Internet communications, IT services and high-
quality television image. Elion’s objective is to reach half
of Estonian homes with digital television by the year 2010.
In the first quarter of 2005, the Elion Group invested 40
million kroons (52 million kroons in the first quarter of
2004). The majority of investment has been in the
development of broadband services.
At the end of March 2005, the Elion Group had 1473 employees
(2029 in March 2004).
EMT Group
3 months 3 months Change,
2005 2004 %
Total revenues, 715 681 4,9
million EEK
EBITDA, million EEK 302 301 0,0
EBITDA margin, % 42,2 44,2
EBIT, million EEK 214 216 -1,1
EBIT margin, % 29,9 31,7
Profit before taxes, 216 220 -1,7
million EEK
Net profit for 216 220 -1,7
period, million EEK
CAPEX, million EEK 12 55 -78,9
ROA, % 35.3 50.9
ROE, % 61.8 64.9
In the first quarter of 2005, the EMT Group’s total revenues
were 715 million kroons, which is an increase of 4.9% in
comparison with the same period in 2004. The majority of the
increase in revenues was generated by the group’s parent
company, AS EMT. The most rapid growth continued to take
place in the group’s retail chain, EMT Esindused AS,
although the double-digit growth in that area has been
replaced with single digits.
The EMT Group’s operating costs increased 8.8% in the first
quarter, in comparison with the same period in 2004. The
majority of operating costs were also generated by the
parent company. The increase in expenses is a result of the
increase in customer base – per-minute interconnection
charges paid on calls customers make outside the EMT network
and roaming costs have increased. Costs connected with
retail operations have also increased, while the growth in
expenses in this particular area has been slower than the
increase in the revenue.
The EMT Group’s EBITDA was 302 million kroons, i.e. at the
same level as the results for the first quarter of 2004. The
EBITDA margin fell, as a result of developments that took
place in core activities, while margins from retail
activities have increased in comparison with the first
quarter of last year.
In comparison with the first quarter of 2004, depreciation
was 2 million kroons greater in the first quarter of 2005,
and net financial income was 1 million kroons smaller. The
EMT Group’s net profit in the first quarter was 1.7% lower
than the result for the same period in 2004.
The EMT Group’s results for the first quarter have been
influenced by the introduction of the mobile number
portability. The influence of this development on EMT’s
customer base was positive during the first quarter.
According to the Communications Board, 19,623 customers
changed communications operators in that three-month period
in Estonia (this includes movement between fixed-line
operators). The number of new customers obtained by EMT as a
result of the portability of mobile phone numbers has
exceeded the number of customers it has lost.
The growth in customer base through the addition of new
mobile telephone numbers also increased. As of the end of
March 2005, AS EMT had 601.4 thousand customers (595.4
thousand in December 2004; 507.5 thousand in March 2004).
The number of contractual customers as of the end of March
2005 was 377.8 thousand (363.4 thousand in December 2004;
318.9 thousand in March 2004). Operators’ special offers to
contractual customers have led to a reduction in the number
of pre-paid call cards. The number of pre-paid call cards at
AS EMT was 223.6 thousand at the end of March 2005 (232.0
thousand in December 2004; 188.6 thousand in March 2004).
EMT estimated that as of the end of March 2005, its market
share based on customer numbers continues to be 47%.
One of the most common discounts offered to new customers in
the Estonian market is the waiving of monthly payments. The
gradual reduction of monthly payments is also an effective
mean with which to guarantee the loyalty of existing
customers. Thus EMT’s revenues from monthly payments have,
despite the increase in customer base, been falling for some
time. The said trend also continued in the first quarter of
2005. As a result of the reduction in the number of users of
pre-paid call cards, revenues earned from pre-paid call
cards also fell in the first quarter.
Thanks to the growth in customer base, the number of call
minutes in the EMT network has increased. The majority of
the increase in revenue in the first quarter in comparison
with the same period in 2004 is the result of revenues
earned from local call minutes. Revenues from
interconnection charges also demonstrated strong growth. In
March and April 2005, all three mobile communications
operators reduced termination rates in their networks. In
the case of EMT, termination rates established for other
operators fell from 2.75 kroons per minute to 2.50 kroons
per minute. As a result of this, one can forecast a slowing
in the growth of EMT’s revenues from interconnection
services. At the same time, however, the growth in expenses
related to interconnection charges should also slow down.
The most rapid growth took place in EMT’s revenues from
roaming services. Revenues from SMSs also demonstrated
double-digit growth. At the same time, these revenue
categories represent a relatively modest proportion of the
total revenues of the EMT Group.
In March 2005, AS EMT earned an ARPU of 341 kroons per
active mobile telephone number (356 kroons in December 2004,
and 391 kroons in March 2004). During the year, the revenue
earned has decreased 12.8%. In comparison with December
2004, the fall in revenue has slowed somewhat (December 2004
compared with December 2003: -13.2%). The revenue earned per
mobile telephone number is influenced on the one hand by the
reduction in rates that has taken place in recent quarters,
and by discounts. The other significant factor that
influences this indicator is undoubtedly mobile penetration
in Estonia, which has risen to about 95%. This level of
penetration shows that an increasing number of customers are
using more than one mobile telephone number, which has
inevitably led to a reduction in the volume of services used
and revenue earned per number.
In the first quarter of 2005, the EMT Group invested 12
million kroons (55 million kroons in the first quarter of
2004). The majority of that investment was made in order to
ensure the quality of technological infrastructure.
As of the end of March 2005, the EMT Group had 500 employees
(445 in March 2004).
Relations with state regulator
EMT is declared operator with significant market power (SMP)
The ENCB declared AS EMT to be an SMP in the mobile
telephone services market for 2005. EMT was an SMP in 2002,
2003 and 2004. Based on the analysis of the financial
results for 2003, AS EMT possessed a market share of 59.39%
in the mobile telephone services market.
AS EMT submitted a complaint to the Tallinn Administrative
Court concerning the decision made by the ENCB. The first
hearing in the matter was set to take place on 19 April
2005.
Change in ownership structure
As of 13 January 2005, Baltic Tele AB made an offer to the
shareholders of AS Eesti Telekom to acquire all of the
shares of AS Eesti Telekom that did not belong to Baltic
Tele AB, at the offer price of 109.84 kroons per share. The
deadline for accepting the offer passed on 23 February 2005.
As a result of the offer, Baltic Tele AB’s holding in AS
Eesti Telekom increased by 352,857 shares, and as of 7 March
2005, Baltic Tele AB owned 69,330,171 shares in AS Eesti
Telekom, which represents 50.255814% of the total number of
AS Eesti Telekom shares. No other company in the TeliaSonera
Group possesses any AS Eesti Telekom shares.
General meeting of shareholders
AS Eesti Telekom’s regular general meeting of shareholders
will take place on 18 May 2005 beginning at 2 o’clock p.m.
at the National Library in Tallinn. One can familiarise
oneself with the annual accounts and draft decisions for the
general meeting as of 25 April 2005 at the Internet address
<a href='http://www.telekom.ee' target='_blank'>http://www.telekom.ee</a> and at Eesti Telekom, at 2
Roosikrantsi St. in Tallinn, from 10:00 a.m. – 2:00 p.m.
Monday to Friday. For enquiries related to the general
meeting, please call 6 311 212 or write an e-mail to the
address mailbox@telekom.ee.
Definitions
Net debt – long term and short term debt, less cash and cash
equivalents, and short term investments
ROA – Net profit for the rolling four quarters, expressed as
a percentage of average total assets
ROE – Pre-tax profit for rolling four quarters, expressed as
a percentage of average equity
All trends, margins and growth rates are calculated on the
basis of the Estonian kroon, and using data that is rounded
to the nearest kroon.
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
INCOME STATEMENT
Financial statements are prepared in thousands of EEK
I Quarter I Quarter 2004
2005 2004 Restated
Restated
Revenues
Net sales 1,217,304 1,212,950 5,116,109
Other operating income 2,318 4,522 22,133
Total revenues 1,219,622 1,217,472 5,138,242
Operating expenses
Materials, (443,871) (425,680)(1,896,398)
consumables, supplies
and services
Other operating (123,664) (112,605) (520,166)
expenses
Personnel expenses (128,995) (153,314) (579,316)
Other expenses (3,616) (4,335) (20,010)
Total operating (700,146) (695,934)(3,015,890)
expenses
Profit from operations 519,476 521,538 2,122,352
before depreciation
Depreciation, (190,207) (211,850) (816,472)
amortisation and
impairment of fixed
and intangible assets
Profit from operations 329,269 309,688 1,305,880
Net income / 2,973 (182) 45,183
(expenses) from
associates
Other net financing 11,895 9,498 30,315
items
Profit before tax 344,137 319,004 1,381,378
Income tax on - - (382,918)
dividends
Net profit for the 344,137 319,004 998,460
period
Attributable to:
Equity holders of the 344,137 319,351 993,568
parent
Minority interest - (347) 4,892
344,137 319,004 998,460
Earnings per share for
profit attributable to
the equity holders of
the parent during the
reporting period
(expressed in EEK per
share)
Basic earnings per 2.49 2.32 7.21
share
Diluted earnings per 2.49 2.32 7.21
share
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
BALANCE SHEET
Financial statements are prepared in thousands of EEK
31 March 31 31 March
2005 December 2004
2004
ASSETS
Non-current assets
Fixed assets 1,883,674 2,014,908 2,178,888
Goodwill 5,452 - 11,230
Licenses, patents and 85,310 91,190 107,767
trademarks
Investments in 21,777 18,804 16,457
subsidiaries and
associates
Non-current securities - - 2,700
Other non-current 23,926 19,985 7,122
receivables
Total non-current 2,020,139 2,144,887 2,324,164
assets
Current assets
Inventories 116,551 124,382 94,959
Trade receivables 607,606 577,481 526,852
Other receivables 182,372 192,648 246,261
Current securities 28,691 28,874 78,064
Cash and cash 1,868,560 1,456,225 1,651,701
equivalents
Total current assets 2,803,780 2,379,610 2,597,837
TOTAL ASSETS 4,823,919 4,524,497 4,922,001
EQUITY AND LIABILITIES
Equity
Equity attributable to
equity holders of the
parent
Issued capital 1,379,545 1,379,545 1,376,445
Reserves 493,663 493,663 468,410
Translation reserve - - 12
Retained earnings 2,182,349 1,188,781 2,290,218
Net profit for the 344,137 993,568 319,351
period
Total equity 4,399,694 4,055,557 4,454,436
attributable to equity
holders of the parent
Minority interest - - 13,194
Total equity 4,399,694 4,055,557 4,467,630
Non-current
liabilities
Interest-bearing loans 1,010 604 2,173
and borrowings
Provisions 7,571 8,006 8,602
Total non-current 8,581 8,610 10,775
liabilities
Current liabilities
Trade payables 182,346 264,702 174,387
Other current 155,567 139,181 190,421
liabilities
Tax liabilities 71,527 33,023 66,793
Interest-bearing loans 2,729 18,968 8,583
and borrowings
Provisions 3,475 4,456 3,412
Total current 415,644 460,330 443,596
liabilities
TOTAL EQUITY AND 4,823,919 4,524,497 4,922,001
LIABILITIES
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
CASH FLOW STATEMENT
Financial statements are prepared in thousands of EEK
I Quarter I Quarter
2005 2004
Operating activities
Profit from operations 329,269 309,688
Adjustments for:
Depreciation, amortisation and 190,207 211,850
impairment of fixed and
intangible assets
(Profit) / loss from sales and 924 (3,016)
write-off of fixed assets
Operating cash flow before 520,400 518,522
changes in working capital
Change in current receivables (5,322) (60,796)
Change in inventories 7,831 4,865
Change in current liabilities (30,947) 1,984
Cash generated by operations 491,962 464,575
Interest paid (900) (451)
Income tax on dividends paid (9) -
Net cash from operating 491,053 464,124
activities
Investing activities
Purchases of property, plant and (50,475) (105,058)
equipment
Purchases of licenses (876) (1,748)
Proceeds from sales of fixed 310 3,537
assets
Net cash outflow from (4,944) (3,872)
acquisition of subsidiaries
Purchases of current securities - (29,356)
Proceeds on disposal of current 284 -
securities
Loans granted (14,814) (1,283)
Repayment of loans granted 236 -
Interest received 7,583 6,416
Net cash used in investing (62,696) (131,364)
activities
Financing activities
Repayment of convertible debt - (8)
Proceeds from non-convertible 485 111
debt
Repayment of nonconvertible debt (1,972) (1,844)
Repayment of long-term (333) -
borrowings
Repayment of finance lease (14,732) (65)
liabilities
Repayment of short-term - (116)
borrowings
Dividends paid (45) -
Net cash used in financing (16,597) (1,922)
activities
Net change in cash and cash 411,760 330,838
equivalents
Cash and cash equivalents at 1,456,225 1,320,802
beginning of year
Effect of foreign exchange rate 575 61
changes
Cash and cash equivalents at end 1,868,560 1,651,701
of period
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