Recession and special taxes continue to affect business, but rate of revenue decline eases, especially in mobile
30.7.2010
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces unaudited results for the six months to 30 June 2010.
Group Highlights
- Revenue down 3.9% to HRK 4,042 million (EUR 556 million) as special taxes and recession continue to affect business
Combis contributes HRK 53 million (EUR 7 million) revenue after consolidation in May 2010
Underlying revenues down 5.2% excluding Combis
Q2 Group revenue decline slows to 4.4% yoy (excl. Combis) helped mainly by lower Q2 fall in mobile
- Focus on cost controls continues to mitigate margin erosion
- EBITDA* down 10.5% to HRK 1,721 million (EUR 237 million)
- Net profit down 24.7% to HRK 822 million (EUR 113 million), significantly lower financial income
- Strong operating cash flow, up 28.3% to HRK 1,119 million (EUR 154 million) following working capital improvements
- Combis performing as expected; integration progressing well
- Dividends totalling HRK 2.8 billion (EUR 385 million) paid in May
T-Mobile
- Revenue down 9.8% on H1 2009 but declining at slower rate than in Q1 2010
- Subscribers down 0.7% on Q1 2010
- Postpaid subscribers up 2.3% on Q1 2010, now 34.8% of T-Mobile subscribers
- Prepaid hit by recession and special taxes as well as churn of SIM-only customers acquired in H1 2009 promotion
T-Com
- Strong Internet growth continues to offset expected decline in voice
- Internet revenue up 20.4% to HRK 668 million (EUR 92 million), ADSL subscribers up 14.5% to 583,556 (up 1.8% qoq)
- IPTV subscribers up 50.6% to 256,846 (up 2.4% qoq)
* before exceptional items
Ivica Mudrinić, President of the Management Bord and CEO, said:
"T-HT has reported a commendable set of results, given the challenges we faced from the continuing fall in GDP and consumer spending, as well as the impact of the 6% tax on mobile services.
Our efforts to mitigate the effects of the recession helped to slow the revenue decline in the second quarter and we remain focused on retaining and gaining customers while at the same time reducing costs.
Combis made a good first-time contribution to Group revenues and we intend to grow and develop the ICT business to serve the needs of Croatia’s business customers.
We welcome the decision to cancel the Special Tax on Salary, Pensions and Other Income and urge the Government to abandon the Special Tax on Mobile Services in the interests of renewed investment in Croatia that will improve the economic climate for the entire country."