Atnaujinta: 2024.11.25 11:25 (GMT+2)
AS EESTI TELEKOM FINANCIAL REPORT 15 July 2005
AS EESTI TELEKOM
FINANCIAL RESULTS FOR THE 2ND QUARTER OF 2005
AS Eesti Telekom, the leading provider of telecommunications
services in Estonia, hereby announces its results for the
second quarter ending 30 June 2005.
Q2 Q2 Change Q2 2004, Change
2005 2004 , % Eltel ,
Group %
excl.
Total revenues, 1,250 1,287 -2.8% 1,253 -0.2%
million EEK
EBITDA, million EEK 552 552 0.1% 551 0.2%
EBITDA margin, % 44.2% 42.9% 44.0%
EBIT, million EEK 367 347 5.8% 348 5.6%
EBIT margin, % 29.4% 27.0% 27.8%
Profit before taxes, 380 357 6.4% 358 6.2%
million EEK
Net profit for 32 -26 -25
period, million EEK
EPS, EEK 0.23 -0.19
CAPEX, million EEK 136 84 61.3% 82 65.2%
Net gearing, % -38.4% -32.5%
ROA, % 24.5% 19.7%
ROE, % 37.9% 32.8%
HY1 HY1 Change, HY1 Change,
2005 2004 % 2004, %
Eltel
Group
excl.
Total revenues, 2,470 2,505 -1.4% 2,437 1.4%
million EEK
EBITDA, million EEK 1,072 1,073 -0.1% 1,074 -0.2%
EBITDA margin, % 43.4% 42.9% 44.1%
EBIT, million EEK 697 657 6.0% 659 5.7%
EBIT margin, % 28.2% 26.2% 27.1%
Profit before taxes, 725 676 7.1% 679 6.8%
million EEK
Net profit for 376 293 28.1% 296 27.2%
period, million EEK
EPS, EEK 2.73 2.13
CAPEX, million EEK 187 191 -2.0% 187 0.0%
In commenting on the results of the Eesti Telekom Group,
Jaan Männik, Chairman of the Management Board, emphasised:
“We kept market shares and EBITDA margin. Profit before
taxes 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 for the second
quarter of 2005 were 1,250 million kroons, which is 2.8%
less than the result for the second quarter of 2004. In
December 2004, AS Eesti Telekom’s subsidiary, Elion
Enterprises Ltd., sold its majority holding in network
construction group Eltel. If one were to eliminate the
influence of the Eltel Group from total revenues for the
second quarter of 2004, the reduction in total revenues for
this year would be 0.2%.
Revenues in the second quarter of 2005 were positively
influenced by the increasingly rapid growth in revenues
earned from Internet connections, IT and data
communications. At the same time, the reduction in revenues
earned from fixed-line voice communications also slowed
somewhat. Eesti Telekom’s total out-of-group revenues from
fixed-line communications as a whole fell by roughly 5
million kroons in the second quarter of this year, in
comparison with the same period in 2004.
In the area of mobile communications, the continuing stiff
competition between service providers influenced total
revenues in the second quarter of 2005. The Eesti Telekom
Group’s mobile operator EMT has been able to maintain its 47-
percent market share despite the competition, and the ended
quarter has also been characterised by a strong increase in
the company’s customer base. At the same time, falling rates
and discount offers have slowed growth in revenues. In
addition, the revenue earned from the retail and wholesale
sale of telephones by the EMT Group fell significantly in
the second quarter. The Eesti Telekom Group’s total out-of-
group revenues from mobile segment increased in the second
quarter of 2005 by roughly 5 million kroons.
The Eesti Telekom Group’s operating expenses for the second
quarter were 698 million kroons, which was also at the same
level as the second quarter of 2004 (excluding the Eltel
Group). In the second quarter, the most important factors
influencing operating expenses were the increase in the EMT
Group’s domestic and international interconnection charges
caused by the rapid increase in the number of call minutes
initiated from mobile phones (including minutes dialled
outside the EMT network). The growth of the EMT Group’s
operating expenses was compensated by a decrease in
operating expenses in the area of fixed-line communications.
AS Eesti Telekom’s operating expenses decreased by 4.5
million kroons.
The Eesti Telekom Group’s EBITDA was 552 million kroons,
which was also at the same level as in the second quarter of
2004. The EBITDA margin was 44.2% in the second quarter of
2005 (44.0 in the second quarter of 2004, excluding Eltel
Group).
Depreciation fell 9.0% in the second quarter in comparison
with the same period in 2004. This decrease mainly comes
from Elion Enterprises Ltd., and is connected with the
company’s relatively small investments in recent years. In
the second quarter of 2005, the Eesti Telekom Group’s EBIT
increased 5.6% in comparison with the same period in 2004
(excluding the Eltel Group).
By decision of the general meeting of shareholders, in June
AS Eesti Telekom paid its shareholders dividends of 8.00
kroons per share for the financial year 2004. Although the
amount of dividends per share remained the same as before,
the total amount of the dividends increased thanks to the
increasing of share capital that took place in June 2004.
Whereas 1,101 million kroons in dividends were paid out in
2004, this year that amount reached 1,104 million kroons. At
the same, however, the rate of income tax to be paid on
dividends has decreased – in 2004 26/74 of the amount of the
dividends, but in 2005 24/76 of the amount of the dividends.
AS Eesti Telekom’s income tax expenditures on dividends were
34 million kroons less than at the same time last year,
amounting to 349 million kroons.
In the second quarter of 2005, the Eesti Telekom Group
earned a net profit of 32 million kroons (the loss for the
second quarter of 2004 was 25 million kroons), i.e. 0.23
kroons per share.
The balance sheet total of the Eesti Telekom Group was 4,131
million kroons as of the end of June 2005 (4,524 million
kroons as of December 2004). During the first half of the
year, the group’s fixed assets decreased 176 million kroons
and current assets decreased 218 million kroons. The fall in
fixed assets is the result of relatively small investments
in recent years. The reduction in current assets is the
result of the payment of dividends amounting to 1,104
million kroons in June.
The equity of the Eesti Telekom Group has decreased 728
million kroons during the first half of the year. The reason
for this decrease was the above-mentioned dividend payment,
while equity capital was increased by the net profit of the
first half of the year, in the amount of 376 million kroons.
As of June 2005, the group had 1 million kroons in long-term
interest bearing liabilities, and 3 million kroons in short-
term interest bearing liabilities (at the end of December
2004, one million kroons and 19 million kroons
respectively). The group’s net debt at the end of June 2005
was –1,278 million kroons, and net gearing was –38.4%. The
group’s taxes payable had increased 414 million kroons in
comparison with the beginning of the year, 349 million
kroons of which was income tax liability on the dividends,
which is to be paid in July.
In the first half of 2005, the Eesti Telekom Group’s cash
flows from operating activities was 1,098 million kroons
(997 million kroons in the first half of 2004). Cash flows
used in investing activities increased – in the first half
of 2004 this figure was 146 million kroons, and in the first
half of 2005 it was 185 million kroons. Cash flows used in
financing activities amounted to 1,120 million in the first
half of 2005 (1,077 million kroons in the first half of
2004). The total cash flows of the Eesti Telekom Group were
–207 million kroons in the first half of 2005 (-226 million
kroons in the first half of 2004).
Elion Group
Q2 Q2 Chang Q2 2004, Change
2005 2004 e, % Eltel ,
Group %
excl.
Total revenues, 622 666 -6.6% 630 -1.2%
million EEK
EBITDA, million 224 211 6.0% 210 6.3%
EEK
EBITDA margin, % 36.0% 31.7% 33.4%
EBIT, million EEK 125 93 34.5% 94 33.9%
EBIT margin, % 20.1% 14.0% 14.9%
Profit before 131 96 36.7% 97 36.1%
taxes, million EEK
Net profit for 5 -5 -5
period, million
EEK
CAPEX, million EEK 99 42 135.1 40 146.9%
%
ROA, % 18.0% 11.0%
ROE, % 28.5% 18.9%
HY1 HY1 Change, HY1 Change
2005 2004 % 2004, ,
Eltel %
Group
excl.
Total revenues, 1,246 1,317 -5.4% 1,245 0.1%
million EEK
EBITDA, million EEK 446 436 2.1% 436 2.2%
EBITDA margin, % 35.8% 33.1% 35.0%
EBIT, million EEK 245 192 27.5% 194 26.3%
EBIT margin, % 19.6% 14.6% 15.5%
Profit before taxes, 260 197 32.1% 199 30.8%
million EEK
Net profit for 134 95 40.1% 97 37.4%
period, million EEK
CAPEX, million EEK 138 94 46.7% 90 53.27%
The Elion group’s total revenues in the second quarter were
6.6% smaller than the result for the second quarter of 2004.
The reduction in revenues was mainly caused by the sale of
the Eltel Group in December 2004. In the second quarter of
2004, the Eltel Group’s total revenues outside the Elion
Group reached 36.2 million kroons. The elimination of the
Eltel Group’s result from total revenues for 2004 would
yield a 1.2% decrease in total revenues for the second
quarter of this year.
As concerns the main revenue categories of the Elion Group,
trends characteristic of previous quarters continued.
Revenues from voice communication decreased 6.8%. The main
factor that caused the reduction in voice communication
revenues was the continuing competition from mobile
operators. The price war that developed as a result of the
implementation of the portability of mobile phone numbers
has further reduced the price difference between calls
initiated from the fixed-line network or mobile network, and
has led to a reduction in the number of calls initiated from
the local fixed network. The fall in the number of call
minutes has been slowed by the extensive use of the
Kodulahendus (Home Solution) and Ärilahendus (Business
Solution) packages by customers. Kodulahendus and
Ärilahendus are service packages intended for private and
corporate customers respectively, which contain a voice and
data communications connection, and Kodulahendus also offers
free calls each month for a fixed monthly fee. The above-
mentioned packages have on the one hand increased the number
of call minutes initiated by customers, while at the same
time they have reduced the amount of revenue earned per call
minute.
Elion estimates its market share of call minutes initiated
in the fixed-line network to be 85% (June 2004: 87%). The
market share in local call minutes is 86% (June 2004: 87%),
in international call minutes 68% (June 2004: 68%), in call
minutes made from mobile phones 73% (June 2004: 75%), and in
dial-up minutes 96% (June 2004: 96%).
The number of main lines in use fell by 4 thousand during
the second quarter of 2005, reaching 418 thousand lines by
30 June (432 thousand as of 30 June 2004). From the middle
of June to the end of August, customers will again be able
to acquire an Elion voice connection without paying a
subscription fee.
In the second quarter, the Elion Group’s most rapidly
growing revenue group was revenue from the Internet. In
comparison with the second quarter of 2004, revenues earned
from Internet connections and services increased 18.5%. The
growth was largely caused by the increase in the number of
permanent Internet connections. By the end of June 2005, the
number of Elion permanent connections had increased to 89.9
thousand (in December 2004: 76.8 thousand; in June 2004:
58.7 thousand). The increase in the number of permanent
connections has been supported by the introduction of
Kodulahendus and Ärilahendus packages and the diverse
possibilities offered to customers by Elion for the
purchasing of computers. In April Elion also launched
versions of Ärilahendus that would be suitable to medium-
sized companies, enabling them to use a permanent Internet
connection, e-mail, web hosting and a telephone connection
for one monthly fee. In addition, Elion continues to develop
its product portfolio, offering customers an increasingly
broad variety of content services. In the second quarter,
Elion brought a new product onto the market – Digi TV – thus
making it possible to offer customers a triple solution
(Internet connection, television picture, voice
communication). In private residential areas, Elion began
offering fibre optic solutions in co-operation with Alcatel,
thus permitting ultra-high-speed Internet connections, voice
communications and also the transmission of an ultra-high-
quality digital television picture. This is one of the first
applications of passive optical network (PON) technology in
Europe. In the quarter that has just ended, these new
services have not yet generated considerable revenue.
Elion’s revenues from IT and data communications increased
12.0% in comparison with the second quarter of 2004. The
majority of the growth in this area came from IT services,
while revenues from data communication services remained at
the same level as in the second quarter of 2004.
Revenues from network services fell 4.4% in the second
quarter of 2005 in comparison with the same period in 2004.
This decrease was caused by the fall in interconnection
charges, which reduced termination and origination costs.
The Elion Group’s other revenues remained at the same level
as in the same period in 2004.
The Elion Group’s operating expenses decreased a total of
12.4% in the second quarter of 2005 in comparison with the
same period in 2004. The main circumstance that led to a
decrease in operating expenses was once again the sale of
the Eltel Group. The elimination of the Eltel Group from the
results for the second quarter of 2004 would yield a fall of
5.0% in operating expenses in the second quarter of this
year. The main reduced expenses articles were both domestic
and international interconnection charges (in connection
with the reduction in rates) and the purchase costs of goods
sold.
The Elion group’s second quarter EBITDA increased 6.0% in
comparison with the previous year. If one excludes the Eltel
Group, that growth would be 6.3%. EBITDA margin also rose –
in the second quarter of 2004 it was 33.4% (without the
Eltel Group), and in the second quarter of 2005 it was
36.0%.
As a result of the limited volume of investments in recent
years, the Elion Group’s depreciation and amortisation
decreased 15.7 in the second quarter of 2005 in comparison
with the second quarter of 2004 (excluding the Eltel Group).
EBIT increased 33.9%, and the EBIT margin rose 14.9%
(excluding the Eltel Group) to 20.1%.
Whereas in 2004 the Elion Group’s parent company, Elion
Enterprises Ltd., paid 300 million kroons in dividends to AS
Eesti Telekom, in 2005 one hundred million kroons more were
paid in dividends – 400 million kroons. Thus the income tax
burden from dividends calculated by Elion Enterprises also
increased, reaching 126 million kroons this year (in 2004:
101 million kroons). The Elion Group’s second quarter net
profit was 5 million kroons (in the second quarter of 2004,
without the Eltel group: -5 million kroons).
The Elion Group invested 98.5 million kroons in the second
quarter of 2005 (41.9 million kroons in the second quarter
of 2004). The majority of the said investments went into the
development of the DSL network.
The Elion Group’s six month total revenues were 1,246
million kroons, remaining at the same level as the first
half of 2004 (excluding the Eltel Group). During the first
half of 2005, the rate at which voice communication revenues
have fallen has slowed somewhat, while the growth rate of
Internet revenues and revenues from IT and data
communications has accelerated. The Elion Group’s operating
costs fell 1.1% over the first half of the year, and EBITDA
increased 2.2%. The EBITDA margin has also improved – 35.0%
in the first half of 2004 (excluding the Eltel Group), and
35.8% in the first half of 2005. The depreciation and
amortisation for the first half of this year was 17.1% less
than the result for the same period in 2004. EBIT for the
half year grew 26.3%, and net profits increased 37.4%.
As of the end of June 2005, the Elion Group had 1,507
employees (in June 2004: 2,065 employees, including 596 in
the Eltel Group; in December 2004: 1,454 employees).
EMT Group
Q2 Q2 Change HY1 HY1 Change
2005 2004 , % 2005 2004 , %
Total revenues, 755 763 -1.0% 1,470 1,444 1.8%
million EEK
EBITDA, million 334 351 -4.8% 635 652 -2.5%
EEK
EBITDA margin, % 44.2% 46.0% 43.2% 45.1%
EBIT, million 247 264 -6.3% 461 480 -3.9%
EEK
EBIT margin, % 32.7% 34.6% 31.4% 33.2%
Profit before 251 267 -6.3% 466 487 -4.3%
taxes, million
EEK
Net profit for 30 -14 245 206 19.1%
period, million
EEK
CAPEX, million 37 42 -12.2% 49 97 -49.8%
EEK
ROA, % 39.9% 37.3%
ROE, % 67.8% 64.5%
The EMT Group’s total revenue during the second quarter of
2005 were 755 million kroons, which is a fall of 1.0%, i.e.
8 million kroons. The decrease in total revenue was the
result of the fall in the sale of telephones by the EMT
Group.
The total revenues of the EMT Group’s parent company, AS
EMT, increased 1.6%, reaching 676 million kroons. In
comparison with the previous quarter, the rate of increase
of the company’s total revenues has decelerated. At the same
time, the second quarter of 2004 was a period of very rapid
increase in total revenues. In the second quarter of 2005,
the main sources of the growth in AS EMT’s total revenues
were revenues earned from local call minutes and revenues
from interconnection charges. The growth of both categories
of revenues was assisted by the growth in customer base. As
of the end of June 2005, AS EMT had 625.9 thousand customers
(in December 2004: 595.4 thousand; in June 2004: 530.6
thousand). The number of contractual customers was 385.2 at
the end of June 2005 (in December 2004: 363.4 thousand; in
June 2004: 335.7 thousand). In the second quarter, the
growth in the number of prepaid cards accelerated again. As
of the end of June, AS EMT had 240.7 thousand active prepaid
cards (in December 2004: 232.0 thousand; in June 2004: 194.9
thousand). The net effect of the portability of mobile
telephone numbers, which was implemented from the 1st of
January, had a positive influence on AS EMT’s customer base.
On the basis of the number of active SIM cards, EMT
estimates its market share as of the end of June at 47%.
Another factor that supported the increase in revenues was
the continuing rapid increase in the number of call minutes
initiated from and to the EMT network. A negative influence
on the revenue earned from AS EMT’s customers has been
exerted by the continuing fall in call rates and various
discount packages, which have primarily reduced revenues
earned from monthly fees. In March and April 2005, all three
mobile operators lowered 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 low interconnection charges, the
growth in total revenues earned by AS EMT from
interconnection charges slowed in the second quarter. AS
EMT’s revenues from roaming services and revenues from SMSs
increased most rapidly in the second quarter. The proportion
of both of the above-mentioned categories in AS EMT’s total
revenues remains modest, however.
In June 2005, AS EMT earned an average of 348 kroons of
revenue from each active mobile phone number (ARPU) (in
December 2004: 356 kroons; in June 2004: 393 kroons), which
is 7 kroons more than at the end of the first quarter of
2005. Whereas the annual fall in ARPU was 13.2% in December
2004, and 12.8% in March 2005, ARPU in June 2005 had fallen
11.5% in comparison with June 2004.
The EMT Group’s operating expenses increased 2.1% in the
second quarter of 2005, i.e. by 9 million kroons.
The EMT Group’s second quarter EBITDA fell 4.8% in
comparison with the previous year. The main factor in the
fall in EBITDA was the increase in operating costs. The
EBITDA margin was 44.2% in the second quarter of 2005, which
is somewhat lower than the 46.0% margin of the second
quarter of 2004.
The EMT Group’s depreciation in the second quarter of 2005
remained at the level of the second quarter of 2004. The
group’s EBIT decreased 6.3% The EBIT margin for 2005 was
32.7% (34.6% in the second quarter of 2004).
This year AS EMT paid the parent company, AS Eesti Telekom,
dividends of 700 million kroons, which is 100 million kroons
less than in 2004. As a result of the smaller amount of
dividends and the reduction in the rate of taxation on the
dividends, i.e. from 26/74 to 24/76, AS EMT’s tax burden
from the payment of the dividends decreased by 60 million
kroons.
In the second quarter of 2005, the EMT Group earned a net
profit of 30 million kroons (-14 million kroons in the
second quarter of 2004).
The EMT Group invested 37 million kroons in the second
quarter of 2005 (42 million kroons in the second quarter of
2004). The majority of the investments went into securing
the quality of technological infrastructure.
The EMT Group’s six month total revenues were 1,470 million
kroons, which is 1.8% higher than in the first half of the
year. In the half-year as a whole, the main growth factors
were the parent company’s revenues from local calls and
interconnection charges, while at the same time, revenues
from retail and wholesale decreased. The group’s operating
costs increased 5.4% in the first half of the year, and
EBITDA fell 2.8%. The EMT Group’s EBITDA for the first half
of 2005 was 43.2%, which is lower than the 45.1% margin for
the first half of 2004. Nevertheless, the margin has
improved by the end of the second quarter of 2005 in
comparison with the beginning of 2005. The depreciation and
amortisation of the first half of this year increased 1.3%.
The half-year EBIT fell 3.9% in comparison with the first
half of 2004.
At the end of June 2005, 509 persons were employed at the
EMT Group (498 in December 2004; 472 in June 2004).
Strengthening of market position in the area of IT services
On 17 May, Elion Enterprises, together with Latvia’s
Lattelekom and Lithuania’s Lietuvos Telekomas, which also
belong to the TeliaSonera Group, made public their intention
to purchase MicroLink, the leading IT company in the Baltic
States, in order to offer their customers the broadest
possible selection of IT and telecommunications services and
complete solutions. The agreement for the purchase and sale
of the shares was signed by the parties on 16 May.
The transaction will enter into effect once the Estonian,
Latvian and Lithuanian Competition Boards grant their
permission for the transaction to take place (presumably
within 3 to 5 months). Until then, the companies will
continue to operate independently. By agreement between the
parties, the precise value of the transaction will not be
disclosed. The cost of MicroLink Estonia to Elion was less
than 100 million kroons.
After the entry into effect of the transaction, Elion will
acquire the holding company MicroLink, whose subsidiary
MicroLink Eesti AS will continue to operate independently
within the Elion Group. The activities of MicroLink Latvia
will be sold to Lattelekom, and MicroLink Lithuania to
Lietuvos Telekomas. Elion’s IT services area will go to
MicroLink, but MicroLink’s Internet and data communications
area will go to Elion. MicroLink will become responsible for
providing IT services for the entire Elion Group, and Elion
will in turn become responsible for the sale of complete
solutions and IT services to small and medium sized
companies and for customer management for major clients.
MicroLink will also remain an IT services brand throughout
the Baltic States. After the merger, Elion and MicroLink
will together become the undisputed leader in the Estonian
IT and communications market. The consolidation of the
knowledge of the employees of MicroLink and Elion and the
combination of the resources of both companies will enable
the Eesti Telekom Group to offer customers in Estonia the
broadest selection of IT and communications services, the
highest quality and the best customer service.
All of Elion’s and MicroLink’s customer agreements will
remain valid on the same conditions as before, and no
redundancies or closures of business lines are planned in
either company in connection with the transaction.
MicroLink (www.microlink.ee) is the largest IT company in
the Baltic States, offering software solutions, business and
financial information systems, infrastructure solutions,
computer workplace and information system administration,
data communications and private networks, central systems
management and monitoring, and customer support services.
The MicroLink Group has 553 employees in the three Baltic
States, 167 of whom are in Estonia. The consolidated net
turnover of MicroLink in the 2003/2004 financial year was
820 million kroons, and its consolidated net profit was 351
million kroons.
Relations with regulator
EMT is declared operator with significant market power (SMP)
The Estonian National Communications Board (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, although the hearing did not take place at the
appointed time. The court has not yet set a date for a new
hearing.
Estonian National Communications Board’s precepts to Elion
In the opinion of the ENCB, the Elion Friend Number and Call
Time Bonus price schemes contained inacceptable discounts,
which harmed other companies’ competitiveness in the
corresponding telecommunications market.
The Estonian National Communications Board issued Elion two
precepts, which were to be executed by 9 May of this year.
Elion brought an action against the precepts, and also
applied for the suspension of the execution of the precepts,
but both the Tallinn Administrative Court and the Tallinn
Circuit Court denied these actions. The court found that in
this matter, Elion’s interest in suspending the execution of
the precepts did not outweigh the public interest and
competitors’ interest in the immediate execution of the
precepts. Elion cannot appeal the decision of the circuit
court, and thus Elion had to execute the precepts.
Elion partly lowered interconnection charges in order to
fulfil the precepts, and reduced the amount of call time
offered within the Call Time Bonus price scheme by 25%.
General meeting of shareholders
The general meeting of shareholders held on 18 May 2005
confirmed the company’s Annual Report for 2004 and the
proposal for the allocation of net profits. AS Eesti
Telekom’s statutory legal reserves were increased by 0.3
million kroons, in order to bring them to the level provided
for by law, after the increase of share capital that took
place in June 2004. It was decided to pay the company’s
shareholders 8 kroons per share. In total, it was decided to
pay out 1104 million kroons in dividends. The list of
shareholders entitled to receive dividends was set as of
8:00 a.m. on 2 June 2005. The dividends were paid out on 16
June 2005.
The general meeting of shareholders decided to permit AS
Eesti Telekom to acquire, within one year (i.e. until 18 May
2006), shares of AS Eesti Telekom, provided that the total
nominal value of own shares held by AS Eesti Telekom does
not exceed the Estonian statutory limits; and provided that
the price payable per share does not exceed the highest
price paid for an AS Eesti Telekom share on the Tallinn
Stock Exchange on the day of the acquisition of the shares.
The number of shares to be acquired shall be designated by
resolution of the Supervisory Board of AS Eesti Telekom
before each purchase transaction.
AS Eesti Telekom’s Supervisory Board continues to have seven
members. The following were elected as members of the
Supervisory Board: Bengt Andersson, Erik Hallberg, Alo
Kelder, Tomas Lenke, Tarmo Porgand, Mats Salomonsson and
Raivo Vare.
AS Eesti Telekom Supervisory Board on its meeting on 8 June
2005 elected Erik Hallberg to be Chairman of the Supervisory
Board.
AS PricewaterhouseCoopers was selected as AS Eesti Telekom’s
auditor for the financial year 2005.
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.
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