Telia Lietuva (TEL1L) Q1 2025 earnings summary

Executive summary

• Service revenue increased by 3.3% year-over-year, driven by mobile, broadband, TV, and IT services growth.

• Adjusted EBITDA margin exceeded 40%, reflecting improved profitability.

• Number of mobile service users grew by 2.5% year-over-year, with post-paid subscriptions up 7.4% and pre-paid down 18.6%.

• Board proposed a EUR 0.11 dividend per share for 2024.

• Recognized for best customer care among Lithuanian telecoms and continued support for Ukraine.

Financial highlights

• Revenue for Q1 2025 was EUR 131.0 million, up 9.9% year-over-year; service revenue up 3.3%.

• Adjusted EBITDA reached EUR 48.3 million, up 9.9% year-over-year.

• Net profit for Q1 2025 was EUR 22.6 million, up 24.4% year-over-year.

• Free cash flow increased by 22.6%, reaching up to EUR 31.3 million.

• Operating expenses decreased by 6.8% to EUR 41.6 million.

Outlook and guidance

• Board proposed a dividend payout of EUR 64.1 million (EUR 0.11 per share) for 2024, subject to AGM approval.

• Dividend policy maintains net debt/EBITDA below 1.5 and payout not exceeding 80% of free cash flow.

• Focus remains on operational efficiency, customer-centricity, and technological leadership.