Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia’s leading telecommunications provider, announces its results for the three months ended 31 March 2016.
In the first three months, Hrvatski Telekom saw revenue increase by 3.4 % compared to the same period of the previous year; revenue amounted to HRK 1.67 billion, which is mainly the result of increased revenue from the ICT business segment, of good results in the energy business, as well as of increased sales of mobile handsets. EBITDA before exceptional items is stable at HRK 627 million, which is a decline by 0.1 per cent year-on-year, at an EBITDA margin of 37.5 per cent. The EBITDA margin declined by 1.3 p.p. in comparison to the same period last year, due to increased revenue from segments with a lower profit margin and increased investment in market activities. Net profit in the first quarter of 2016 amounts to HRK 136 million.
Customer orientation and innovative service offerings
At Hrvatski Telekom, the first quarter of the current year was marked by customer-oriented activities, innovative service offerings, and continued investment in infrastructure.
After having invested HRK 1.47 billion in infrastructure development in the year 2015, Hrvatski Telekom continues to make substantial investments in three key areas – development of the mobile and fixed infrastructure and increased broadband Internet access capacity. In comparison to the first quarter of last year, capital investment increased by HRK 41 million, or 15.2 per cent.
By the end of Q1 2016, 4G network indoor coverage reached 66 per cent of the population, while population outdoor coverage was 94 per cent. Moreover, in urban areas, speeds were increased from up to 225 Mbit/s to up to 262.5 Mbit/s. In the fixed network, fibre optic access was enabled for more than 184 thousand households.
The first quarter of 2016 of Hrvatski Telekom's business also saw the launch of a new, unique concept of service offering on the Croatian telecommunications market – Magenta 1. The offer aims to reward the loyalty of existing customers and to attract new ones, while highlighting the advantages of integration of all services at Hrvatski Telekom. This offer includes a premium customer experience paired with a range of unique benefits, which has met with great interest both of business and residential customers.
In 2016 as well, the HorizonT strategic programme continues at HT, which is mainly aimed at increased efficiency, improved business operations of the Company, and further growth and development of business. The first quarter also saw the completion of the surplus management programme resulting in 240 employees leaving the Company.
Commenting on the business results of the first quarter, Davor Tomašković, President of the Management Board of Hrvatski Telekom, pointed out: “We are satisfied with the results achieved in the first quarter that was marked by increased revenue and stable EBITDA, and we maintain our announced financial outlook for the entire year 2016. In the forthcoming months of the year, we will continue to focus on investment, improvement of customer experience, and innovation in our product and service offerings, as well as on a strict cost discipline. The recently launched, new service concept Magenta 1 is unique on the Croatian market; thanks to its innovative nature, it was very well received by our customers. Along with the further development of such innovative products, we will also continue to further invest in infrastructure development and in our technological superiority, which forms the basis for premium service offers and the best customer experience.”