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Published: 1 february 2013 10:47

Sales seen as weak point of Lithuania's mobile operator Omnitel

BFL nuotr. / „Omnitel“

Lithuania's largest mobile phone operator, Omnitel, last year posted a decline in revenue and profits, with sales being singled out by analysts as the company's weak point, the business daily Verslo Žinios reports.

"Sales remain Omnitel's key problem. Low revenue per customer, at over 15 litas (EUR 4.35) monthly in 2012, is an indication of this. This compares to over 22 litas for Tele2 and around 25 litas for Bite. In the future, this should bring new colors to the discussion about which operator is the "cheapest" one and which is the "biggest" one," said Vytautas Plunksnis, the chairman of the board of the Lithuanian Investors' Association.

"Omnitel's EBITDA has dropped by around 40 percent since 2010," he noted.

Plunksnis said that recent changes in Omnitel's management show that its shareholders are not happy with the company's performance results.

The analyst said that Tele2 most probably outperformed its rivals in terms of the absolute EBITDA result last year, with anticipated EBITDA of around 180 million litas. He estimates that Bite's EBITDA in Lithuania came in at around 150 million litas, which is also higher than Omnitel's result.

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