Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), the Croatia's leading telecommunications provider, announces its unaudited results for the six months to 30 June 2015.
Hrvatski Telekom’s first-half performance was characterized by stabilization of all its key financial indicators, reversing the trends seen in previous years. In the first six months, HT revenue grew by 0.5 percent year on year to total HRK 3.3 billion. The first two quarters were also characterised by growth in earnings before interest, taxation, depreciation and amortization (EBITDA before exceptional items) of 2.1 percent in comparison to H1 2014. EBITDA totaled HRK 1.3 billion, for an EBITDA margin of 39.6 percent. Net profit for the first half amounted to HRK 406 million, an increase of 1.2 percent over H1 2014.
Increased investment activities focus on development of innovative services and high speed Internet access infrastructure
During the first half of 2015, Hrvatski Telekom’s operational performance also featured growth in investment, which increased by 12.3 percent in comparison to H1 2014. By the end of 2015, investment is expected to exceed HRK 1.3 billion, marking a 25 percent increase over 2014.
Investment has been primarily focused on the development of mobile and fixed line infrastructure, increased broadband access capacity and the completion of the IP transformation process. By the end of June 2015, 92 percent of customers had been migrated to IP technology.
Increased investment also enabled the buildout of 4G network coverage in H1 2015, with HT providing access speeds of up to 150 Mbps to 54 percent of the population. The Group continues to make progress in expanding its 4G network coverage. As testament to the improvements the Group has already undertaken, in July HT was awarded the P3 “Best in test” certificate. This is an internationally recognized endorsement of network quality, which confirms that HT provides the fastest mobile Internet and the best mobile voice services amongst all networks in Croatia.
Comment on the Group’s results for the first six months of 2015, President of Management Board of Hrvatski Telekom, Davor Tomašković, said:
“Despite a decline in the overall telecommunications market, the first half of the year was characterized by the stabilization of all Hrvatski Telekom’s key financial indicators, which reversed the downward trends seen in previous years.
This year, we have significantly increased our investment, which we are primarily directing towards the development of a high speed Internet infrastructure. HT is the technology leader on the Croatian market, and this enables us to provide market-leading customer experience and the highest-quality, fastest services.”