A premium Lithuanian telco with a fortress balance sheet and >40% EBITDA margins, leveraging unrivaled fiber/5G assets to become a higher-growth “TechCo” while paying a ~6.5% yield.
Overview
Telia Lietuva is Lithuania’s leading integrated telecom and digital-services provider, offering mobile, fixed broadband, TV, and IT solutions to both consumers and enterprises. Majority-owned by Telia Company AB (88.15%), it combines local market dominance with group scale advantages in procurement and partnerships. The company’s “Telia1” converged model is central: by bundling premium fiber, mobile data, and TV/streaming (e.g., HBO Max partnerships), it raises switching costs and reduces churn in a highly competitive market. Financial momentum is strong: Q1 2026 revenue rose 7.6% to €128.8m, Adjusted EBITDA rose 8.2% to €52.2m (40.6% margin), net profit grew 9.0% to €24.6m, and free cash flow jumped 28.6% to €40.2m. Growth is being led by higher-value segments—especially IT services (+23.1% YoY) and mobile services (+8.4% YoY)—while equipment sales remain soft. Telia’s investment case is anchored by an infrastructure moat (largest fiber network; leading 5G quality), a fortress balance sheet (net debt/EBITDA ~0.28x), and a high dividend yield (~6.5%), with upside tied to the “TechCo” shift and the €26m Tier III data-center build supporting higher-margin B2B/cloud demand.