Telia Lietuva maintained the growth momentum demonstrated at the beginning of 2025 into the second quarter.

Sales grew modestly by around 2% YoY, with the main contributors being revenue growth in IT services (+12% YoY) and mobile services (+7% YoY). Meanwhile, equipment sales showed a declining trend – dropping by 11% in Q2 compared to 2024.

Revenue by services, 2025 Q2

In the second quarter of 2025, operating profit increased by 24% compared to the same period last year. Improved profitability remained the main driver of this year’s performance growth. As in the first quarter, the operating margin rose significantly – from 18% in Q2 2024 to 22% in Q2 2025.

The impact of workforce reduction became more visible in Q2 – personnel expenses decreased by 4.6% YoY. Overall expenses declined by 3%, while revenue continued to grow.

Operating margin, Q2

Cash flow dynamics remained stable in the second quarter. Fund from operations (FFO) followed a smooth upward path, increasing by 4% YoY, slightly behind profit growth. However, working capital requirements rose by a similar amount, resulting in free cash flow remaining roughly unchanged compared to the same period last year. The annual level of free cash flow remains at a record high of €113M, with a yield of 11%.

Free cash flow

Telia Lietuva’s valuation metrics are still among the lowest in the past decade – with a P/E of 12.5x and an EV/EBITDA of 6.1x.

Valuation metrics