Lietuvos Telekomas AB

Company event



Results for the Third Quarter of 2004



On 26 October 2004, the Board of AB Lietuvos Telekomas approved unaudited

consolidated financial statements of AB Lietuvos Telekomas’ Group for the third

quarter and nine months of 2004 prepared according to International Financial

Reporting Standards.



Revenue for the third quarter of 2004 amounted to 179 million litas (180 million

litas for the second quarter of 2004). The total revenue for the nine months of

2004 amounted to 544 million litas, a decrease by 10.2 per cent over the revenue

of 605 million litas a year ago.



During the third quarter of 2004 the number of main lines in service declined by

2.5 thousand to 821 thousand, while a year ago number of main lines in service

stood at 836 thousand. During the year number of DSL Takas users more than

double and by the end of September 2004 reached 37 thousand.



The total operating expenses for the nine months amounted to 286 million litas,

a decrease by 7 per cent over 308 million litas a year ago.



EBITDA for the nine months’ period of 2004 was 257 million litas (298 million in

the same period a year ago) and EBITDA margin amounted to 47.3 per cent (49.2

per cent in 2003).



Profit before profit tax for January - September of 2004 was 31 million litas

and net profit amounted to 25 million litas, while a year ago net result was a

loss of 27 million litas due to assets revaluation in the third quarter of 2003.



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

amounted to 146 million litas (233 million litas in 2003). During the period

cash and cash equivalents decreased by 72 million litas due to payout of

dividends (47 million litas) and repayment of loans (170 million litas).



Investments for the nine months of 2004 amounted to 45 million litas (40 million

litas in 2003).





Jan-Erik Elserius

Chief Financial Officer - Deputy General Manager

(+370 5) 236 76 03