Atnaujinta: 2024.11.23 04:35 (GMT+2)
AS Eesti Telekom Financial Results 21 October 2005
FINANCIAL RESULTS FOR THE 3ND QUARTER OF 2005, EUR
AS Eesti Telekom, the leading provider of telecommunications
services in Estonia, hereby announces its results for the
second quarter ending 30 September 2005.
Q3 Q3 Change, Q3 2004, Change,
2005 2004 % Eltel %
Group
excl.
Total revenues, 82.9 84.6 -2.0% 81.5 1.6%
million EUR
EBITDA, million 36.4 35.9 1.4% 35.5 2.7%
EUR
EBITDA margin, % 44.0% 42.5% 43.5%
EBIT, million EUR 25.0 23.3 7.3% 22.8 9.3%
EBIT margin, % 30.1% 27.5% 28.0%
Profit before 25.4 23.6 7.8% 23.1 10.0%
taxes, million
EUR
Net profit for 25.4 23.6 7.8% 23.1 10.0%
period, million
EUR
EPS, EUR 0.18 0.17 8.8%
CAPEX, million 10.0 6.6 50.5% 6.3 58.9%
EUR
Net gearing, % - -29.7%
36.2%
ROA, % 25.3% 20.2%
ROE, % 37.9% 32.9%
9M 9M Change, 9M 2004, Change,
2005 2004 % Eltel %
Group
excl.
Total revenues, 240.7 244.6 -1.6% 237.3 1.4%
million EUR
EBITDA, million 105.0 104.5 0.4% 104.1 0.8%
EUR
EBITDA margin, % 43.6% 42.7% 43.9%
EBIT, million EUR 69.5 65.3 6.5% 65.0 6.9%
EBIT margin, % 28.8% 26.7% 27.4%
Profit before 71.7 66.8 7.4% 66.5 7.9%
taxes, million
EUR
Net profit for 49.5 42.3 16.8% 42.0 17.7%
period, million
EUR
EPS, EUR 0.36 0.31 17.2%
CAPEX, million 21.9 18.8 16.4% 18.2 18.7%
EUR
For further information, please contact:
Jaan Männik, CEO +372 6311 212
Hille Võrk, CFO +372 6272 460
CHAIRMAN’S STATEMENT
Financial results
I would like to begin my commentary on the results for the
third quarter of 2005 by mentioning two positive facts.
First, the quarter that has just ended was successful for
the revenue of the companies of the group. The small
contraction in the second quarter was followed by renewed
growth (the Eltel Group, which was sold in December 2004,
eliminated). Second, profit margins in both mobile and fixed-
line communications improved in comparison with the same
period in 2004.
Revenues increased 1.6% in comparison with the same period
in 2004, reaching 82.9 million euros. The increase in
revenue came primarily from the mobile sector. The majority
of the growth in the mobile sector continued to come from
growth in customer base, and the increase in the volume of
incoming and outgoing call minutes that is connected
therewith. One positive trend that should be noted is the
growth in the number of users of mobile data communications
and the growth in user activity in recent quarters. In the
area of fixed communications, it was able to balance the
continuing decrease in voice communication revenues with
increasing revenues from new areas of operation – Internet
connections, data communication and IT, but also the retail
sale of telecommunications and IT devices.
The operating costs of the Eesti Telekom Group in the third
quarter were 46.4 million euros, which was an increase of
0.8% in comparison with the same quarter of 2004 (not
including the Eltel Group). The most important factor that
influenced operating costs continued to be the growth in the
number of call minutes out of the EMT network, and the
resulting higher expenditures on interconnection charges.
The operating costs of both AS EMT and Elion Ettevõtted AS
have been positively influenced by the fall in mobile
telephone operators’ termination rates from 0.176 euros to
0.160 euros in March-April 2005.
The Eesti Telekom Group’s EBITDA was 36.4 million euros,
having risen 2.7% in comparison with the third quarter of
2004. EBITDA margin was 44.0% (in the third quarter of 2004
it had been 43.5%, not including the Eltel Group).
Third quarter depreciation fell 9.8% in comparison with the
same period in 2004. The Eesti Telekom Group’s EBIT
increased 9.6% in the third quarter of 2005 in comparison
with the same period in 2004 (not including Eltel Group).
Thanks to this strong financial position, third quarter net
financial item increased to 0.6 million euros. In the third
quarter of 2005, the Eesti Telekom Group earned a net profit
of 25.4 million euros, which is 10.0% more than in the same
period in 2004. The company earned a profit per share of
0.18 euros in the quarter.
The Eesti Telekom Group’s total revenues for the first nine
months of the year reached 240.7 million euros, having
increased 1.4% in comparison with the same period in 2004
(not including the Eltel Group). The cumulative increase in
operating costs was somewhat more rapid than the growth in
total revenues, reaching 1.9%. EBITDA increased 0.8% in
comparison with the first nine months of 2004, reaching
105.0 million euros. Thanks to the fact that depreciation
was 9.5% lower than in the same period in 2004, EBIT
increased 7.0%, reaching 69.5 million euros. A net income of
2.2 million euros has been earned in the first nine months.
By decision of the general meeting of shareholders, in June
AS Eesti Telekom paid its shareholders dividends of 0.51
euros per share for the year of 2004. Although the amount of
dividends per share remained the same, the total amount of
dividends increased thanks to the increase in share capital
that took place in June 2004. Whereas 70.4 million euros in
dividends were paid out in 2004, this year that amount was
70.5 million euros. At the same time, the rate of income tax
payable on the dividends has decreased – in 2004 it was
26/74 of the sum of the dividends, but in 2005 it was 24/76
of the sum of the dividends. AS Eesti Telekom’s income tax
expenditure on dividends was 2.2 million euros less this
year than last year, reaching 22.3 million euros. The Eesti
Telekom Group earned a net profit of 49.5 million euros in
the first nine months of this year, which is 17.7% more than
the result for the same period in 2004. The company earned
0.36 euros of revenue per share.
As of the end of September 2005, the Eesti Telekom Group’s
balance sheet total was 268.1 million euros (289.2 million
euros in December 2004). In nine months, the group’s fixed
assets decreased by 13.3 million euros, and current assets
by 7.8 million euros. The fall in fixed assets was due to
the relatively small amount of investments. As concerns
current assets, the net balance of cash and cash equivalents
fell (as a result of the 70.7 million euro dividend payment
and the 22.3 million euros in income tax on the dividends,
paid in July).
The equity capital of the Eesti Telekom Group has fallen by
21.1 million euros. The reason for this fall is the above-
mentioned dividend payment, while at the same time, equity
capital was increased by the none-month net profit in the
amount of 49.5 million euros. As of the end of September
2005, the Group had long-term interest bearing liabilities
worth 0.4 million euros and short-term interest bearing
liabilities amounting to 0.2 million euros (as of the end of
December 2004 these figures were 0.04 million and 1.2
million euros respectively). At the end of September 2005,
the group’s net debt was –86.5 million euros, and net
gearing was -36.2%.
The Eesti Telekom Group’s cash flow from operating
activities was 84.5 million euros in the first nine months
of 2005 (70.8 million euros in the first nine months of
2004). Due to this year’s larger investments, cash outflow
into investment activities grew – 15.3 million euros in the
first nine months of 2004, and 23.5 million euros in the
first nine months of 2005. Cash outflow into financing
activities was 71.7 million (69.5 million euros in the first
9 months of 2004). In the first nine months of 2005, the
total cash flow of the Eesti Telekom Group was –10.8 million
euros (-14.0 million euros in the first nine months of
2004).
Elion Group
Q3 Q3 Change, Q3 2004, Change
2005 2004 % Eltel ,
Group %
excl.
Total revenues, 39.3 43.3 -9.3% 40.1 -1.9%
million EUR
EBITDA, million 13.7 14.1 -2.9% 13.7 0.5%
EUR
EBITDA margin, % 34.9% 32.6% 34.1%
EBIT, million EUR 7.8 7.0 10.5% 6.6 18.3%
EBIT margin, % 19.8% 16.2% 16.4%
Profit before 8.0 7.1 11.8% 6.6 20.1%
taxes, million
EUR
Net profit for 8.0 7.1 11.8% 6.6 20.1%
period, million
EUR
CAPEX, million 5.4 3.6 49.2% 3.1 71.9%
EUR
ROA, % 18.9% 12.0%
ROE, % 28.9% 19.9%
9M 9M Change, 9M 2004, Change
2005 2004 % Eltel ,
Group %
excl.
Total revenues, 119.0 127.5 -6.7% 119.7 -0.6%
million EUR
EBITDA, million 42.2 42.0 0.4% 41.5 1.6%
EUR
EBITDA margin, % 35.5% 33.0% 34.7%
EBIT, million EUR 23.4 19.3 21.3% 18.9 23.5%
EBIT margin, % 19.7% 15.1% 15.8%
Profit before 24.6 19.7 24.7% 19.3 25.3%
taxes, million
EUR
Net profit for 16.5 13.2 24.8% 12.9 25.6%
period, million
EUR
CAPEX, million 14.3 9.7 47.6% 9.1 51.6%
EUR
The total revenues of the Elion Group in the third quarter
were 9.3% smaller than the result for the third quarter of
2004. The majority of the decreased in revenues was,
however, caused by the sale of the Eltel group in December
2004. The Eltel Group’s total revenues outside the Elion
Group reached 3.3 million euros in the third quarter of
2004. If one eliminates the results of the Eltel Group,
total revenues are at the same level as in the previous
year.
In the Elion Group’s main revenue areas, the revenues from
the Internet grew 17.2% in the third quarter. This growth is
mostly due to the increase in the number of permanent
Internet connections. By the end of September 2005, the
number of Elion permanent connections had increased to 97.5
thousand (76.8 thousand in December 2004; 65.0 thousand in
September 2004). Thus the annual increase in the number of
permanent connections was 50%. 7.6 thousand new connections
were added during the third quarter of 2005. September and
the beginning of the school year have traditionally been a
time when many families find that they need a quick and
secure Internet connection. From the 13th of August to the
30th of September, Elion offered a discount that consisted
of offering a half-price monthly rate until the end of 2005
to those who subscribed during the above-mentioned period.
In addition to regular customers, the offer also extended to
those living in apartment buildings, to whom a special
solution called Korrusmaja was offered until the end of the
year, also at half price. In the third quarter the Digi TV
service, which was launched on the market in April 2005,
expanded from Tallinn into several new residential areas in
Harju County and to Estonia’s second largest city, Tartu.
The Group’s revenues from data communications and IT
increased 13.1% in comparison with the third quarter of
2004. From one quarter to another, the growth in revenues in
this category has accelerated.
In order to acquire more customers who are interested in
complex services, at the end of September Elion brought onto
the market a new offer for beginning companies. In co-
operation with Estonia’s largest commercial bank, Hansabank,
Elion offered companies that were just starting their
business a start-up package, including banking services,
training and reasonably priced IT and communications
solutions. Companies that were entered in the Commercial
Register during the last 12 months can use a telephone
connection, high-speed Internet connection, e-mail, home
page hosting, virus protection, personal firewall and voice
and fax mailbox at a 50% discount, with free subscription
and setup, and the option of buying a computer for up to 64
euros below the regular price. The start-up package also
contains a special offer from EMT.
The fall in voice communication revenues continued also in
the third quarter of 2005. The Group’s revenues from voice
communications fell 9.5% in comparison with the third
quarter of 2004. The acceleration of the downward trend in
voice communication revenues in comparison with previous
quarters is due to the discount campaign that targets
elderly customers and those who may be liable to give up
their fixed-line telephones, which temporarily offers
customers voice communications connections for half of the
regular monthly rate. As a result of this, the Elion Group’s
revenues from monthly fees for voice communications fell
8.2% in the third quarter of 2005 in comparison with the
same period in 2004. This is considerably more than the 3-4%
decrease that has been characteristic of previous quarters.
During the third quarter of 2005, the number of main lines
used by Elion fell by 7 thousand, reaching 411 thousand
lines as of 30 September (428 thousand lines on 30 September
2004).
Elion estimates its market share of call minutes initiated
from the fixed-line network to be 85% (87% in September
2004). The market share of local call minutes is 86% (87% in
September 2004), of international calls 67% (70% in
September 2004), of calls to mobile phones 72% (75% in
September 2004) and of dial-up minutes 96% (96% in September
2004).
Revenues from network services fell 4.4% during the third
quarter of 2005 in comparison with the same period in 2004.
This decrease was caused by the fall in interconnection
charges, reducing termination and initiation costs.
The other revenues earned by the Elion Group in the third
quarter increased 3.5% in comparison with 2004. The growth
in this category comes from the increase in the retail sales
of telecommunications and IT devices.
The Elion Group’s operating costs decreased 12.4% in the
third quarter of 2005 in comparison with the same period in
2004. The main circumstance that caused the decrease in
operating costs was, once again, the sale of the Eltel
Group. If one subtracts the Eltel group from the results for
the third quarter of 2004, the fall in operating costs this
year would be 3.1%. The main cost components that fell were
domestic and international interconnection charges. As a
result of the increase in the volume of the retail sale of
goods, expenditures for the purchase of goods have also
increased. There has been also certain increase in personnel
expenditures.
The Elion Group’s EBITDA in the third quarter remained at
the same level as in 2004, reaching 13.7 million euros (not
including the Eltel Group). The EBITDA margin rose – in the
third quarter of 2004 it was 34.1% (not including the Eltel
Group), and 34.9% in the third quarter of 2005.
The group’s depreciation decreased 16.9% in comparison with
the same period in 2004. The Elion Group’s EBIT amounted to
7.7 million euros, an increase of 19.2% during the year. The
EBIT margin increased to 19.8%, from 16.4% in the third
quarter of 2004 (not including the Eltel Group). In the
quarter that just ended, the Elion Group earned a net profit
of 8.0 million euros, which is 20.1% more than in the third
quarter of 2004.
The Elion Group invested 5.4 million euros in the third
quarter of 2005 (3.1 million euros in the third quarter of
2004). Most of the investment has gone towards the
development of the DSL network.
The Elion Group’s total revenues for the first nine months
of 2005 were 119.0 million euros, which was at the level of
the same period in 2004 (not including the Eltel Group). The
nine-month summary also points out that growth has come from
Internet connections, data communication and IT and retail
trade. The Elion Group’s operating costs decreased 1.8% over
the nine months, and EBITDA increased 1.6%. The EBITDA
margin has also improved – during the first nine months of
2004, it was 34.7% (not including the Eltel Group), and
35.5% during the first nine months of 2005. The depreciation
during the first nine months of 2005 was 16.7% less than
that of the previous year. The group’s EBIT increased
23.58%, and the net profit for the nine months was up by
28.4%. Net profit increased despite the 1.6-million-euro
higher income tax expenditure on dividends, which resulted
from the payment of 25.6 million euros in dividends made by
Elion Ettevõtted AS to its parent company, AS Eesti Telekom
(in 2004 the company paid 19.2 million euros in dividends).
As of the end of September 2005, the Elion Group employed
1515 people (2041 people in September 2004, including 592
people in the Eltel Group; 1454 people in December 2004).
EMT Group
Q3 Q3 Change 9M 9M1 Change
2005 2004 , % 2005 2004 , %
Total 51.7 50.5 2.5% 145.7 142.7 2.1%
revenues,
million EUR
EBITDA, 23.0 22.2 3.7% 63.6 63.9 -0.4%
million EUR
EBITDA 44.5% 44.0% 43.7% 44.8%
margin, %
EBIT, million 17.5 16.6 5.2% 47.0 47.3 -0.7%
EUR
EBIT margin, 33.8% 33.0% 32.2% 33.1%
%
Profit before 17.6 16.6 5.6% 47.4 47.8 -0.8%
taxes,
million EUR
Net profit 17.6 16.6 5.6% 33.2 29.8 11.5%
for period,
million EUR
CAPEX, 4.5 3.0 51.5% 7.7 9.2 -16.7%
million EUR
ROA, % 40.5% 36.7% 38.3% 34.0%
ROE, % 66.2% 62.8% 68.7% 66.4%
The total revenues of the EMT Group reached 51.7 million
euros in the third quarter of 2005. The fall in total
revenues (in comparison with the same period in 2004) that
characterised the second quarter was followed by a renewed
increase in the third quarter. In comparison with the third
quarter of 2004, total revenues increased 2.5%.
The total revenues of the group’s parent company, AS EMT,
increased 3.6% in the third quarter, reaching 45.2 million
euros. Increase in customer base has traditionally been one
of the sources of growth in revenues. On the basis of the
number of active SIM cards, AS EMT had 650.5 thousand
customers (595.4 thousand in December 2004, 557.3 thousand
in September 2004). The company had 394.8 thousand
contractual customers at the end of September 2005 (363.4
thousand in December 2004, 349.6 thousand in September
2004). The number of active pre-paid cards was 255.7
thousand at the end of September (232.0 thousand in December
2004; 207.7 thousand in September 2004). The mobile number
portability requirement, which was initiated on 1 January
2005, is losing importance for customers, and the number of
customers who changed operators in the third quarter was
smaller than the number of transfers in the second quarter.
In the case of AS EMT, the balance of customers leaving and
joining the operator in the third quarter remained nearly
even, but was still positive. In the third quarter, AS EMT
with its subsidiary Elion Ettevõtted AS was able to win two
state procurements – for the provision of communications
services to the Ministry of Economic Affairs and
Communications and the Ministry of Internal Affairs during
the next 12 months. On the basis of active SIM cards, AS EMT
estimated its market share to be 47% as of the end of
September 2005.
The most rapid growth in the third quarter was demonstrated
by AS EMT’s revenues from interconnection fees. The number
of SIM cards has rapidly increased in the Estonian market as
a whole, and thus the number of call minutes dialled into
the EMT network has also increased as a result, as well as
the revenues earned therefrom. Revenues from SMSs and mobile
data communications have also increased rapidly. The growth
of this revenue category is increasingly fuelled by the
number of users of WAP and GPRS, and the growth in their
use. Mobile communication is increasingly used for data
communication while working with a laptop computer. Devices
guided using a mobile phone are also gathering popularity –
gates, heating systems, etc. Revenues from local calls and
pre-paid cards also rose in the third quarter. AS EMT’s
revenues from roaming services remained at the level they
were at in 2004, although they rose compared to the previous
quarters as a result of seasonal factors. Despite the
increase in customer base, revenues from monthly fees fell,
mostly as a result of discounts offered to both new and
existing, loyal customers.
In September 2005, AS EMT earned an average revenue per
mobile phone user (ARPU) of 21.60 euros (22.75 euros in
December 2004; 24.16 euros in September 2004). Whereas as of
March 2005, ARPU was 12.8%, and 11.5% as of June 2005, ARPU
for September 2005 had fallen 10.6% in comparison with the
figure for September 2004.
In the third quarter, retail sales also contributed to the
increase in the EMT Group’s revenues. The group’s retail
chain, EMT Esindused AS, has expanded its selection of
products, and thus achieved an increase in sales revenues
despite continued discounts on mobile phones.
The EMT Group’s operating costs increased during the first
quarter of 2005, namely 1.6% in comparison with the same
period in 2004, reaching 28.7 million euros. AS EMT’s
operating costs increased 2.6% in the third quarter. During
the past quarters, the rate of growth of the company’s
operating costs has slowed noticeably. The growth in
operating costs mainly arises from domestic interconnection
fees and roaming, and is connected with the growth in
customer base and the volume of services. At the same time,
the company’s expenses related to bad debt (non-receipt of
payments) were down as a result of more efficient credit
control.
The EMT Group’s third quarter EBITDA increased 3.7% in
comparison with the same quarter in 2004, reaching 23.0
million euros. The EBITDA margin has remained stable, and
was 44.5% in the third quarter of 2005 (44.2% in the second
quarter of 2005, 44.0% in the third quarter of 2004).
The EMT Group’s third quarter depreciation was somewhat
smaller than the figure for the third quarter of 2004,
reaching 5.5 million euros. The group’s EBIT was 17.5
million euros, and the EBIT margin 33.8%. In the third
quarter of 2005, the EMT Group earned a net profit of 17.6
million euros, which is 5.6% more than in the same period in
2004.
In the third quarter of 2005, the EMT Group invested 4.5
million euros (3.0 million euros in the third quarter of
2004). The majority of investments have gone towards
ensuring the quality of technological infrastructure.
The total revenues of the EMT Group in the first nine months
of 2005 were 145.7 million euros, which is an increase of
2.1% in comparison with the first nine months of 2004. The
nine month summary identified the main growth factors to be
the parent company’s revenues from local calls and
interconnection fees. The group’s operating costs increased
4.0% in the first nine months. The group’s EBITDA remained
at the same level as in 2004, reaching 63.6 million euros
(63.9 million euros in the first nine months of 2004). The
EMT Group’s EBITDA margin for the first nine months of 2005
was 43.7%, which is lower than the 44.8% margin for the same
period in 2004. At the same time, the margin has improved
from quarter to quarter during 2005. In the first nine
months of this year, the EMT Group’s depreciation was 0.6%
greater than that of the previous year. The group earned a
net profit of 33.2 million euros in the first nine months,
which is 11.5% more than in the same period in 2004. The
growth in net profit came from the 3.8 million euros
reduction in the income tax on the dividends as a result of
the 6.4 million euros less dividend payment, and also that
the rate of taxation on the dividends had fallen from 26/74
to 24/76.
At the end of September 2005 there were 512 people employed
in the EMT Group (498 in December 2004; 484 in September
2004).
Changes in group’s structure (Intergate)
On 20 September, Elion Ettevõtted AS sold its 50% holding in
associated company AS Intergate. Like Elion, SEB Eesti
Ühispank also sold its holding in AS Intergate. AS Intergate
was bought out by the company’s management. By agreement
between the parties, the price is not to be disclosed.
The sale of the holding in AS Intergate was caused by the
change in Elion’s strategic focus, as a result of which it
was considered most expedient to sell the holding. The
transition of the ownership of the shares has now taken
place.
AS Intergate (www.intergate.ee) was established in 2000 with
the objective of developing widely used Internet
environments for both the private and business sectors. The
best known projects developed by Intergate were the
insurance broker E-insurance, the City24.ee real estate
portal and the software development company Webmedia. AS
Intergate’s share capital is 1.9 million euros, and its net
profit in 2004 was 0.4 million euros.
Relations with state regulator
Estonian National Communications Board precepts to Elion
In the opinion of the Communications Board, the price
systems of the Elion Sõbranumber [Friend number] and Kõneaja
boonus [Call time bonus] packages contained impermissible
discounts. The Communications Board issued two precepts to
Elion, and the date for complying with these was 9 May of
this year. Elion challenged the precepts in court, as well
as applying for the suspension of the deadline for the
performance of the precepts, which Tallinn Administrative
Court and Tallinn Circuit Court did not satisfy. Elion
cannot appeal the decision of the Circuit Court any further,
and thus Elion must comply with the precepts. In order to
comply with the precepts, Elion partially lowered
interconnection charges and reduced the amount of call time
offered in the Kõneaja boonus price system by 25%. At the
same time, Elion considers the Communications Board’s
precepts to be unjust and harmful to customers, and will
thus continue the litigation, in order to restore the
original situation.
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
3rd QUARTER INCOME STATEMENT
Financial statements are prepared in thousands of EUR
Q3 2005 Q3 2004
Restated
Revenues
Net sales 82,703 84,123
Other operating income 150 458
Total revenues 82,853 84,581
Operating expenses
Materials, consumables, (30,882) (32,025)
supplies and services
Other operating expenses (7,783) (8,034)
Personnel expenses (7,538) (8,317)
Other expenses (201) (262)
Total operating expenses (46,404) (48,638)
Profit from operations 36,449 35,943
before depreciation
Depreciation, (11,480) (12,664)
amortisation and
impairment of fixed and
intangible assets
Profit from operations 24,969 23,279
Net income / (expenses) (100) (30)
from associates
Other net financing items 565 342
Profit before tax 25,434 23,591
Net profit / (loss) for 25,434 23,591
the period
Attributable to:
Equity holders of the 25,434 23,371
parent
Minority interest - 220
25,434 23,591
Earnings per share for
profit attributable to
the equity holders of the
parent during the
reporting period
(expressed in EUR per
share)
Basic earnings per share 0.18 0.17
Diluted earnings per 0.18 0.17
share
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
THE FIRST NINE MONTHS INCOME STATEMENT
Financial statements are prepared in thousands of EUR
9 months to 9 months 2004
30 to Restated
September 30
2005 September
2004
Restated
Revenues
Net sales 240,043 243,493 326,980
Other operating 675 1,157 1,415
income
Total revenues 240,718 244,650 328,395
Operating expenses
Materials, (86,788) (88,061)(121,202)
consumables,
supplies and
services
Other operating (24,158) (23,628) (33,245)
expenses
Personnel expenses (24,082) (27,524) (37,025)
Other expenses (733) (894) (1,278)
Total operating (135,761) (140,107)(192,750)
expenses
Profit from 104,957 104,543 135,645
operations before
depreciation
Depreciation, (35,469) (39,278) (52,182)
amortisation and
impairment of fixed
and intangible
assets
Profit from 69,488 65,265 83,463
operations
Net income / 35 (54) 2,888
(expenses) from
associates
Other net financing 2,215 1,606 1,937
items
Profit before tax 71,738 66,817 88,288
Income tax on (22,274) (24,473) (24,473)
dividends
Net profit for the 49,464 42,344 63,815
period
Attributable to:
Equity holders of 49,464 42,143 63,502
the parent
Minority interest - 201 313
49,464 42,344 63,815
Earnings per share
for profit
attributable to the
equity holders of
the parent during
the reporting period
(expressed in EUR
per share)
Basic earnings per 0.36 0.31 0.46
share
Diluted earnings per 0.36 0.31 0.46
share
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
BALANCE SHEET
Financial statements are prepared in thousands of EUR
30 31 30
September December September
2005 2004 2004
ASSETS
Non-current
assets
Fixed assets 116,259 128,776 127,335
Goodwill 348 - 614
Licenses, patents 5,133 5,828 6,433
and trademarks
Investments in 195 1,202 1,010
subsidiaries and
associates
Non-current - - 173
securities
Other non-current 1,866 1,277 693
receivables
Total non-current 123,801 137,083 136,258
assets
Current assets
Inventories 5,656 7,949 7,016
Trade receivables 38,012 36,908 35,824
Other receivables 13,941 12,313 16,389
Current 4,384 1,845 1,825
securities
Cash and cash 82,338 93,070 70,425
equivalents
Total current 144,331 152,085 131,479
assets
TOTAL ASSETS 268,132 289,168 267,737
EQUITY AND
LIABILITIES
Equity
Equity
attributable to
equity holders of
the parent
Issued capital 88,169 88,169 88,169
Reserves 31,571 31,550 31,550
Translation - - -
reserve
Retained earnings 68,922 75,976 75,977
Net profit for 49,464 63,502 42,143
the period
Total equity 238,126 259,197 237,839
attributable to
equity holders of
the parent
Minority interest - - 1,066
Total equity 238,126 259,197 238,905
Non-current
liabilities
Interest-bearing 384 38 177
loans and
borrowings
Provisions 457 512 524
Total non-current 841 550 701
liabilities
Current
liabilities
Trade payables 14,815 16,918 11,117
Other current 10,391 8,895 11,378
liabilities
Tax liabilities 3,496 2,111 4,021
Interest-bearing 180 1,212 1,330
loans and
borrowings
Provisions 283 285 285
Total current 29,165 29,421 28,131
liabilities
TOTAL EQUITY AND 268,132 289,168 267,737
LIABILITIES
AS EESTI TELEKOM AND SUBSIDIARY COMPANIES
CASH FLOW STATEMENT
Financial statements are prepared in thousands of EUR
9 months to 9 months
30 September to
2005 30
September
2004
Operating activities
Profit from operations 69,488 65,265
Adjustments for:
Depreciation, 35,469 39,278
amortisation and
impairment of fixed and
intangible assets
(Profit) / loss from (303) (522)
sales and write-off of
fixed assets
Operating cash flow 104,654 104,021
before changes in
working capital
Change in current (731) (7,133)
receivables
Change in inventories 2,293 (636)
Change in current 506 (1,009)
liabilities
Cash generated by 106,722 95,243
operations
Interest paid 27 57
Income tax on dividends (22,277) (24,473)
paid
Net cash from operating 84,472 70,827
activities
Investing activities
Purchases of property, (21,376) (18,207)
plant and equipment
Purchases of licenses (536) (612)
Proceeds from sales of 610 928
fixed assets
Net cash outflow from (316) (247)
acquisition of
subsidiaries
Net cash outflow from 1,042 -
purchases of associates
Purchases of current (3,864) (1,876)
securities
Proceeds on disposal of 1,329 3,164
current securities
Loans granted (3,005) (762)
Repayment of loans 83 4
granted
Interest received 2,515 2,308
Net cash used in (23,518) (15,300)
investing activities
Financing activities
Repayment of - (3)
convertible debt
Proceeds from non- 76 32
convertible debt
Repayment of (275) (354)
nonconvertible debt
Repayment of long-term (21) -
borrowings
Repayment of finance (974) (560)
lease liabilities
Repayment of short-term - (11)
borrowings
Shares issuance - 1,776
Dividends paid (70,544) (70,377)
Net cash used in (71,738) (69,497)
financing activities
Net change in cash and (10,784) (13,970)
cash equivalents
Cash and cash 93,070 84,414
equivalents at
beginning of year
Effect of foreign 52 (19)
exchange rate changes
Cash and cash 82,338 70,425
equivalents at end of
period
Schema