Resilient performance despite recession, new taxes and levies on mobile services
30.10.2009
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces its unaudited results for the first nine months of 2009.
Group Highlights
- Revenue down 1.7% despite significant decline in GDP and impact of new taxes
- Continuing strong growth in Internet services; revenue up 30.0%
- EBITDA* down 4.4%; EBITDA* margin remains robust at 46.8%
- Operating cash flow remains healthy at HRK 1, 659 million; cash strong at HRK 2,984 million
- Significant investment in network upgrades
Corporate reorganisation
- HT-Hrvatske telekomunikacije d.d. (HT d.d.) and T-Mobile Hrvatska d.o.o. signed their Merger Agreement yesterday, 29 October 2009, formally beginning the merger process, which is expected to become effective on 1 January 2010. The merger is intended to improve both customer service and internal efficiency by creating a single organisation with separate customer facing units for residential and business segments
T-Mobile
- Subscribers up 10.1% to 2.88 million
- Revenue down 3.5% mostly as prepaid customers tighten spending
- Postpaid subscribers up 16.0%, contributing 60.8% of T-Mobile revenue
T-Com
- Internet revenue up 30.1%; contributes 22.2% of T-Com revenue
- ADSL mainlines up 22.7% to nearly 527,000
- MAXtv reaches almost 190,000 subscribers
* before exceptional items
Ivica Mudrinić, President of the Management Board and CEO, said:
T-HT has proved its resilience in difficult times. Although our business was affected by the recession and the impact of recently introduced taxes, our revenue fell by 1.7% in a period when GDP fell significantly. We believe our continuing commitment to efficiency, along with our new corporate structure and ongoing investment, have laid solid foundations for the future.