Telia Lietuva's AI-Driven Growth Sets New Records in Q1 2026

VILNIUS, LITHUANIA – April 24, 2026 – Telia Lietuva has posted a robust first quarter for 2026, demonstrating significant financial growth fueled by an aggressive digital transformation strategy that includes the adoption of artificial intelligence and a major new investment in sustainable infrastructure. The Lithuanian telecommunications leader reported substantial gains in revenue, profit, and cash flow, signaling strong execution in a competitive European market.

Financial Strength Outpaces Market Trends

Telia Lietuva announced first-quarter revenue of EUR 128.8 million, a 7.6% increase compared to the same period in 2025. This top-line growth translated into even stronger bottom-line results, with adjusted EBITDA climbing 8.2% to EUR 52.2 million and net profit for the period rising by 9.0% to EUR 24.6 million. These figures notably outperform the broader performance of its parent, Telia Company Group, which reported a more modest 2.1% like-for-like service revenue growth for the quarter.

The company's performance also stands out within the regional context. While competitors like Tele2 also show strong growth in the Baltics, Telia Lietuva's results underscore its successful market penetration and operational efficiency. This financial health is further evidenced by a remarkable 28.6% surge in free cash flow, which reached EUR 40.2 million. Buoyed by this strong position, the company's Board has proposed a record-high dividend of EUR 0.14 per share for the 2025 fiscal year, a clear signal of confidence to its investors.

"Our focus on our core connectivity business is showing results," stated Giedrė Kaminskaitė-Salters, CEO of Telia Lietuva, in the company's official announcement. The numbers reflect a strategy that is not just maintaining but actively accelerating its financial momentum.

A Strategic Shift to AI and Efficiency

The engine behind these impressive financial results is a deep-seated strategic pivot towards a more streamlined and technologically advanced operating model. In late 2025, the company merged its Technology Infrastructure and Digital Transformation departments into a single, cohesive "Technology & Digital" unit. This reorganization, part of a broader digital shift across the Telia Company Group, came to fruition in the first quarter of 2026.

A key component of this new model is the deployment of artificial intelligence and digital solutions aimed at enhancing efficiency. This technological advancement has had a direct impact on the company's structure, leading to the reduction of approximately 60 positions. The move, which incurred one-time redundancy costs of EUR 1.1 million, reflects a wider trend in the telecommunications industry where automation is reshaping the workforce. Kaminskaitė-Salters described the initiative as part of the company's "journey to a simpler, faster and more efficient company." This mirrors actions at the group level, where the parent company also reduced its headcount while touting AI's role in improving customer service quality.

Pioneering Green Infrastructure for the Baltics

While optimizing its current operations, Telia Lietuva is also making significant long-term investments in its physical infrastructure. The company has laid the cornerstone for a new EUR 26 million data center near Vilnius, a project set to redefine sustainable digital infrastructure in the region.

Scheduled for completion by the end of 2027, the facility is poised to be the first data center in the Baltic States and Central Europe to receive an international BREEAM sustainability certificate. This certification represents a rigorous standard for environmentally conscious construction and operation. The data center will be powered exclusively by renewable electricity, with an initial capacity of up to 8 megawatts. Furthermore, an on-site solar power installation is projected to generate an additional 1 GWh of clean energy annually.

This investment is a direct response to soaring regional demand for secure and sustainable data solutions. The new center will initially house over 400 server racks and will be connected via an optical ring to two of Telia's existing data centers in Vilnius, creating a highly resilient and powerful network. This strategic expansion solidifies the company's role as a key pillar of the Baltic region's digital economy.

Beyond Connectivity: Curating the Digital Lifestyle

Telia Lietuva is increasingly looking beyond its traditional role as a connectivity provider, aiming to become an integrated digital lifestyle enabler. A key move in this direction is a new partnership between its Telia Play service and the global content platform HBO Max. The collaboration aims to provide viewers with a seamless entertainment experience, consolidating high-quality films, HBO original series, Warner Bros. movies, and sports content into a single environment.

This content strategy is complemented by an unwavering focus on customer experience. According to a 2026 survey of Lithuanian residents, Telia Lietuva provides the best customer care among all telecommunication companies. This was reinforced by a 2025 "secret shopper" study that also recognized its superior service. By pairing premium content with award-winning support, the company is building a powerful value proposition that fosters customer loyalty.

A Commitment to Corporate and Regional Resilience

Alongside its commercial and technological pursuits, Telia Lietuva maintains a strong commitment to corporate social responsibility. The company continues its steadfast support for Ukraine, recently allocating EUR 100,000 to the national "Radarom!" aid campaign. This is part of what the company describes as a consistent, long-term strategy of support.

This recent donation follows previous practical assistance, including the transfer of over half a ton of used computers and network equipment to help restore communication networks in Ukraine. The company also played a key role in maintaining affordable communication links between Lithuania and Ukraine since the beginning of the war, a policy now standardized across the EU, allowing travelers to use mobile services under the same conditions as at home. This dedication to both its customers and the wider community demonstrates a holistic approach to its role in the region.