Lietuvos Telekomas AB

Company event



Results for the First Half of 2004



On 27 July 2004, the Board of AB Lietuvos Telekomas approved unaudited

consolidated financial statements of Lietuvos Telekomas’ Group for the second

quarter and six months of 2004 prepared according to International Financial

Reporting Standards and appointed Gintautas Zintelis as a Deputy Chairman of the

Board.



- Revenue for the six months of 2004 amounted to 365 million litas, a decrease

by 10.6 per cent over the revenue of 408 million litas for the same period a

year ago.



- During the second quarter of 2004 the number of main lines in service declined

by 2.3 thousand to

823.5 thousand, while a year ago number of main lines in service stood at 859.2

thousand.



- In the first half of 2004 Lietuvos Telekomas reorganised its management

structure and reduced the total number of employees by 379, and incurred

additional redundancy costs of 9 million litas, but nevertheless operating

expenses, year-on-year, went down by 8.5 per cent from 210 million litas to 192

million litas.



- EBITDA for the six months’ period was 172 million litas (198 million in the

same period a year ago) and EBITDA margin amounted to 47.2 per cent (48.4 per

cent in 2003).



- Profit before profit tax for the first half of 2004 was 17 million litas and

net profit amounted to 13 million litas, while a year ago net profit amounted to

1.2 million litas.



- Net cash flow after investment activities for the six months’ period of 2004

amounted to 116 million litas

(161 million litas in 2003). Due to payout of dividends and repayment of loans,

during the first half of 2004 cash and cash equivalents decreased by 53 million

litas.



- Investments for the six months of 2004 amounted to 22 million litas (30

million litas in 2003).





Egle Gudelyte-Harvey

Director of Corporate and Legal Affairs Unit

(+370 5) 236 72 92