Recession and special taxes continue to affect business, EBITDA margin protected at 45.2%
Launch of new mobile brand
29.10.2010
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces unaudited results for the nine months to 30 September 2010.
Group Highlights
- Revenue down 3.2% to HRK 6,320 million (EUR 867 million); business still affected by taxes and recession
- Combis contributes HRK 110 million (EUR 15 million); performing as expected
- Underlying revenues down 4.8% excluding Combis
- Successful cost controls across business helped to mitigate margin erosion
- EBITDA* down 6.4% to HRK 2,858 million (EUR 392 million) at 45.2% margin
- Net profit down 15.0% to HRK 1,484 million (EUR 204 million)
- Cash flow from operations up 34.0% to HRK 2,223 million (EUR 305 million)
- Launch of prepaid brand bonbon on 1 October
- New Apple iPhone 4 and Dell Streak tablet offer from September 2010.
T-Mobile - Revenue down 8.9% to HRK 2,944 million (EUR 404 million)
- Subscribers down 3.8%
- Postpaid subscribers up 9.6%
- Prepaid subscribers down 9.9%; hit by recession as well as churn of SIM-only customers acquired in H1 2009 promotions
T-Com - Continuing strong internet growth, up 19.9% to HRK 1,016 million (EUR 139 million)
- ADSL lines up 13.9% to 600,182
- IPTV continues to grow strongly, up 43.3% to 271,382 customers
* before exceptional items
Ivica Mudrinić, President of the Management Board and CEO, said:“The recession is still affecting revenue but the rate of decline is slowing and we have been helped by a good performance from Combis and strong growth in broadband and IPTV .
We continue to make good progress in margin protection with a range of cost-cutting measures including, for example, lowering subscriber acquisition costs. As a result of these savings and other developments like higher-than-expected roaming revenues, the Group now expects full-year EBITDA to be at about the 2009 level. ”