Increased LVRTC Share Capital
With changes to the accounting policy of SJCS Latvian State Radio and Television Center (hereinafter – LVRTC), related to the company’s transition to International Financial Reporting Standards, the company’s 2022 Financial Statement has significantly increased the retained earnings from previous years. Recognizing that this profit lacks financial coverage in terms of cash flow and the undistributed profit resulted from changes in accounting policy, and to ensure LVRTC’s liquidity and capital stability for future projects, the shareholder of LVRTC – the Ministry of Transport of the Republic of Latvia has decided to allocate the increase in retained profit from previous years to LVRTC to increase the share capital.
Up until now, the registered and paid-up capital of LVRTC was EUR 78,454,705. The share capital will be increased by slightly more than 33 million, bringing the total to EUR 111,719,404 after the increase.
The share capital increase is taking place in accordance with Article 91, Part Two, Clause 2 of the Law on Governance of Capital Shares of a Public Person and Capital Companies. This article stipulates that share capital can be increased after the approval of the annual report by partially or fully including in the share capital the positive difference between equity capital and the amount formed by the share capital and reserves, which, according to the law, may not be credited to the increase of the share capital, and receiving a corresponding number of new shares in return.
Starting from 2022, the LVRTC annual report is prepared in accordance with the International Financial Reporting Standards (IFRS). The undistributed profit from previous years is mainly related to changes in the accounting of capital shares of investment SIA Latvijas Mobilais Telefons.
LVRTC is one of the leading providers of electronic communication services in Latvia. Its mode of operation includes broadcasting radio and television programs, providing reliability and electronic identification services, data transmission, cybersecurity solutions, data centers, cloud computing, and infrastructure rental services.
The strategic goal of LVRTC is to provide and develop high availability, integrity, and security in information and communication technology infrastructure and services, strengthening effective state administration, security, and promoting the growth of the national economy. LVRTC’s customer base is diversified and includes broadcasters, local and international electronic communications operators, ministries of various sectors, and other state institutions, as well as eSignature users – Latvian companies and residents.