Q2 2011 Financial Results

The total revenue was EUR 16.1 million (EUR 14.6 million in 2010 Q2), increasing by 11% over Q2 2010. As the domestic transmission volumes were up by 1.7%, then most of the increase in revenues are attributable to the new transmission tariffs.

Operating expenses were EUR 15.5 million (EUR 15.6 million in 2010 Q2), the decrease is mainly caused by the extraordinary write-off of certain transmission lines in 2010 at the course of replacing them by new transmission equipment.

Net loss was EUR 1.2 million (EUR 2.8 million in 2010 Q2) which was according to the budget. Due to the cyclical nature of the transmission business (both electricity consumption and transmission tariffs are lower in summer period), Q1 and Q4 results are much better than the summer quarters.

A significant increase in the investment activity occurred in Q2 – cash flow from investing activities was EUR 25.1 million (EUR 8.9 million in 2010 Q2). The biggest investment project was the new interconnector between Estonia and Finland – EstLink 2.