Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia's leading telecommunications provider, announces its audited results for the year ended 31 December 2015.
In 2015, Hrvatski Telekom has generated revenue amounting to HRK 6,92 billion, which is by 0.2% above the results of 2014, when a decline of 1.9 % was recorded. HT maintained its leading position in all segments of the
telecommunications market; revenue stabilisation was impacted by the growth in ICT segment and electricity business.
EBITDA before exceptional items was also stable as compared to 2014, amounting to HRK 2.78 billion, along with a strong EBIDTA margin at 40.2 per cent.
The net profit in 2015 amounts to HRK 925 million.
Cash flow from operations in 2015 amounts to HRK 2.37 billion and was up 3.1%.
Value of investment 35 per cent above last year
Last year, Hrvatski Telekom substantially increased the value of investment. A total of HRK 1.46 billion, or 34.8 per cent more than in the previous year, has been invested in three key areas – development of the mobile and
fixed line infrastructure, increased broadband access capacity, and completion of the IP migration process.
HT is the third telecommunications operator in the European Union to have completed the migration of all its customers and services to an ALL-IP environment; the project value over the last five years exceeds HRK 400 million.
4G network indoor coverage increased by 20 per cent and reached 65 per cent of the population, as compared to 45 per cent in 2014 (population outdoor coverage – 2015: 93% vs. 2014: 73%). In urban areas, speeds were increased to
up to 225 Mbit/s, which is three times higher than last year. Moreover, Hrvatski Telekom received the P3 “Best in Test” Certificate, an internationally accepted proof of the highest mobile network quality.
In the fixed network, fibre optic access was enabled for 171 thousand households. Broadband access at bitrates of a minimum of 30 Mbp/s was made available to 50% of households, in comparison to 34% of households in 2014. Also,
Internet speeds of 400 Mbps were tested, employing G.fast technology, which will enable a large step forward in further development of services.
Moreover, HT is actively participating in the Deutsche Telekom's PAN IP programme used for development of a unique service production platform. The first Pan-European service, Cloud VPN, was developed by HT's experts; the service was
launched concurrently in three countries: Croatia, Hungary, and Slovakia.
More than half of the revenue for dividend distribution
For the financial year 2015, the Management Board and the Supervisory Board have made a proposal to the General Assembly that dividend be paid out in the amount of HRK 6 per share. The total amount is HRK 491.3 million, representing
55% of the net profit of HT d.d., an increase of 4.3 percentage points over the last year's rate.
As previously announced, HT will, at the beginning of the year, announce a minimum target dividend for each year, within the Dividend Policy range. For the financial year 2016, the Management Board currently expects the payment of
dividends to a minimum amount of HRK 6.00 per share.
In 2016, we will continue with investments and further development
Commenting on the business results of 2015 and plans for 2016, Davor Tomašković, President of the Management Board of Hrvatski Telekom, said: “We look back at a very successful year, in which we
stabilised all financial indicators and laid the foundations for further growth and development of our business. Investment in infrastructure development for fast mobile and fixed Internet and completion of the IP migration project has
positioned us alongside Europe’s top telecommunications operators; once more, we have reaffirmed our position of the absolute technology leader in the Croatian market. Furthermore, we significantly increased customer satisfaction
in all areas, from the first line of communication, over network quality, to the final product. In 2016, we will continue to invest in infrastructure development and business transformation, and we will focus our technological know-how
and expertise on innovation and further improvement of customer experience. This will enable us to continue offering our customers the best quality and fastest service. Also, we will continue eyeing opportunities for potential expansion
of HT’s operations in Croatia and the region”.