Telia Lietuva's results continue to improve – in the second quarter of 2026, the company reported growth in both revenue and profitability compared with the same period last year.

Second-quarter revenue reached €130M, up 7% (€8.4M) YoY. As in the first quarter, the IT services segment delivered the strongest growth, with revenue increasing by 25% (€2M) compared with the same period last year. In absolute terms, billed services made the largest contribution to overall revenue growth, with revenue increasing by €3.6M (+8% YoY). Equipment sales also performed strongly, increasing by €2.5M (+12% YoY) compared with a year earlier.

Revenue by services, Q2 2026

Another positive highlight of the quarter was profitability. Although the operating margin had already reached a record level last year, it improved further in the second quarter of this year. The operating margin reached 25% in the second quarter, compared with 22% a year earlier.

Q2 operating margin

The improvement in profitability was driven by the fact that growth in the company's key cost categories remained well below revenue growth. The cost of goods and services increased by 1% YoY, employee expenses rose by 2% YoY, and depreciation and amortization expenses increased by 1% YoY. As in the first quarter, other operating expenses recorded the fastest growth, increasing by 14% YoY.

As a result, in the second quarter of 2026, the company reported net profit of €26.7M, up 21% YoY. Net profit for the first half of 2026 increased by 15% YoY to €51.3M.

Net profit

Annual free cash flow stands at €113M and the free cash flow yield remains at around 9%. Free cash flow generated in the second quarter of 2026 was €2.8M lower than a year earlier, as higher capital expenditure (+€5M) more than offset the increase in funds from operations (+€2.2M).

Free cash folw