T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces audited results for the year ended 31 December 2012.
Ivica Mudrinić, President of the Management Board (CEO), said: "We witnessed a very challenging year in 2012, with the economic environment deteriorating more than previously anticipated; GDP for 2012 is expected to contract again, down 1.8%, whilst all major economic issues remained unresolved and no meaningful far-reaching structural reforms have been initiated. The residential and corporate sectors tightened spending still further and the public sector delayed investments in IT. All these factors are reflected in our financial performance; revenue is down 7.6% while EBITDA before exceptional items declined 8.1%. However, we have maintained our leading position in all segments, including ICT, and have managed to maintain healthy margins. I’m very glad to be able to announce a proposed dividend per share of HRK 20.51 to the General Assembly.
Operationally, we have recently outlined our Transformation Program, with the key themes of the e-transformation of the business and migration to an all-IP network. These initiatives also target an improvement in the cost structure across the Group. I am pleased to report that T-HT is one of the leading companies in the broader region with regard to the extent of its migration to all-IP networks. In addition, we have introduced a broad range of products for residential and corporate customers, including for example integrated telecommunications-IT offerings.
With regard to innovation, alongside our achievements in developing new Cloud-based services, investment in LTE and our NFC-based mobile payments pilot, in December 2012 we presented the cutting edge TeraStream technology, which is currently being piloted. TeraStream, the network of the future, is an extremely simplified IP network concept that combines network technology, data center technology, and fiber infrastructure.
Looking ahead to 2013, we remain highly cautious and expect the difficult economic environment to continue, with the latest GDP 2013 growth forecasts now lowered from slightly positive to around -0.2%. We have set our 2013 outlook to reflect this sentiment and will focus on further cost discipline. In light of this, I’m very proud that we have recently agreed and signed a new collective agreement with trade unions, and this will remain in force until 30 June 2014."