Friday, February 29, 2008

Record revenue, earnings dip for Lattelecom

Lattelecom, the incumbent Latvian fixed network operator posted record revenue of 153.5 million LVL in 2007, up 5 %, while earnings dropped 2.4 % to LVL 38 million.
Revenues were the highest amount posted since the company was founded in 1994.
A preliminary report released by the company said Lattelecom's revenues from internet and data transmission services rose 22 %, but did not give exact figures. IT services and the network building business increased revenues by 17 %, while revenues from customer care services provided to third parties (outsourcing) were also up 22 %.

The financial results, despite a small drop in earnings, are not such as would normally merit the resignation of the CEO (Nils Melngailis announced his departure effective April 1 for what was widely seen as political pressure from the government, which owns 51 % of Lattelecom.) Companies such as Ericsson have suffered far more severe financial turbulence without losing their top management.

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