The Lithuanian monopoly fixed-line operator Lietuvos Telekomas announced Sept. 24 that its 2002 net profit would be 30 percent lower and that it would significantly reduce investment.
"The new forecast for the end of this year is on the level of 70 million litas (20.27 million euros) net profit after taxes," read a company statement.
"The new forecast is based on unexpected changes in revenue streams and also on certain developments concerning cost elements," the statement added.
An earlier forecast for this year's net profit was 100 million litas.
The company said it had taken all possible measures to improve the situation "including actions concerning significant reduction of investment."
In the first half of 2002 the company's unaudited net profit shrank by 37.4 percent compared with 2001 to 38.5 million litas.
Lietuvos Telekomas' sales between January and June dropped by 8.2 percent, to 491.5 million litas.
The drop in income this year stemmed largely from a 10.1 percent decrease in subscribers to 1,06 million.
A consortium of Swedish operator Telia and Sonera of Finland holds 60 percent of Lietuvos Telekomas shares, while the Lithuanian government owns 10 percent.
The company has a monopoly for fixed-line services in Lithuania until 2003.
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