Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia’s leading telecommunications services provider, announces its unaudited consolidated results for the six months ended 30 June 2016.
In H1 2016, Hrvatski Telekom saw a 3% revenue increase to a HRK 3.4 billion compared to the same period 2015. The first two quarters also recorded a 1.4% growth in earnings before interest, tax, depreciation, and amortisation (EBITDA before exceptional items). EBITDA amounted to HRK 1.34 billion with a 39.3% EBITDA margin. H1 2016 net profit was HRK 417 million, which was 2.7% above H1 2015.
Continued investment cycle, increased investment in innovative services and infrastructure
H1 2016 was marked by intensive activities focusing on customer experience improvement, innovative service, and continued investment in infrastructure. The strong investment cycle was continued, leading to a 10% increase in CAPEX to HRK 645 million compared to H1 2015 with a focus on fixed and mobile network development, especially increase of the broadband Internet access capacity.
Access speeds in 4G network increased from 150 Mbit/s to 225 Mbit/s, in certain areas even to 262.5 Mbit/s. Indoor coverage increased from 65.2 per cent to 67.4 per cent of the population. In the fixed network, the possibility of fibre optic access was extended to more than 227 thousand households.
In H1 2016, Hrvatski Telekom presented a new, unique concept of service offering on the Croatian telecommunications market – Magenta 1. Innovative in its concept and the main idea, Magenta 1 integrates all fixed and mobile services in a single package. The fact that Magenta 1 has been accepted by more than 20,000 customers shows that with this innovation HT has recognised their needs.
The projects implemented in the first wave of the HorizonT programme have yielded the expected results in the areas of customer experience, business improvement, and financial performance.
Commenting on the half-year performance, Davor Tomašković, President of the Management Board of Hrvatski Telekom, pointed out: “We can be very satisfied with the financial performance for the first six months as it shows that customers have recognised all the benefits of our fixed and mobile offers. We have recorded an increase in the average revenue per customer, inflow of new customers in the mobile network, and a growth in the ICT and energy segments. Therefore, we will continue investing in network infrastructure and innovative services, in maintaining and strengthening our position of a technological leader on the Croatian market, and in improving customer experience.”