T-Hrvatski Telekom, Croatia’s leading telecommunications provider, announces unaudited results for the nine months to 30 September 2013.
Ivica Mudrinić, President of the Management Board (CEO), said: “During the third quarter of 2013 there was again no improvement in Croatia’s national economy and in the absence of any signs of recovery, a third credit ratings agency downgraded Croatia to sub-investment grade. On 1 July 2013, Croatia became a member of the EU and in light of the country’s fiscal challenges Croatia will enter the EU’s Excessive Deficit Procedure (EDP). EU accession and the related adoption of the EU regulatory framework has impacted the Group’s performance, with a greater fall in visitor revenue than had been expected. Consequently, revenue for the third quarter of 2013 fell 12% and EBITDA before exceptional items was 21.6% lower.
Whilst the imminent move into EDP may hasten the implementation of structural reforms in Croatia’s economy over the medium term, given the Group’s third quarter results we have amended our Outlook for the full year. We now expect an EBITDA before exceptional items margin of between 42% to 43%. However, the remainder of the Outlook is unchanged.
Despite the current economic challenges, the Group has nevertheless held on to its leading market position. We continue to focus on developing new products and innovative services in line with the business transformation strategy currently underway. The Group will endeavour to remain at the forefront of technological development to ensure we provide services that both anticipate and meet our customers ever evolving requirements, and maintain our position as the leading provider in our markets.“