Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia’s leading telecommunications provider, announces its unaudited results for the three months ended 31 March 2017.
The consolidation of Montenegro's Crnogorski Telekom in January of this year had a positive impact on the results of Hrvatski Telekom; in the first three months of 2017, total revenue increased by 8.7% compared to the same period of the previous year and amounts to HRK 1,818 million. In addition to the contribution of Crnogorski Telekom, revenue shows an increase in the key segments: mobile operations, broadband access and television, wholesale and energy. Taking into account the various project dynamics in comparison to the first quarter of 2016, this year's first quarter saw certain deviation in system solutions revenue achievement.
EBITDA before exceptional items increased by 7.4% to HRK 674 million compared to the previous year, along with an EBITDA margin at a level of 37.1%, which is a decrease by 0.4 percentage points compared to the same period of the previous year. Excepting the contribution by Crnogorski Telekom, EBITDA before exceptional items increased by 0.2% and amounts to HRK 628 million with a 37.6% EBITDA margin.
In the first quarter, net profit increased by 9.5% and amounts to HRK 149 million. Excepting the contribution by Crnogorski Telekom, net profit increased by 6.8% and amounts to HRK 145 million.
Significant investment in optical infrastructure and the 4G mobile network
Hrvatski Telekom continues to make substantial investments, and capital investments increased by 16.6%, including the contribution by Crnogorski Telekom. Without this effect, realisation of capital investments in the first quarter increased by 9.7% compared to the same period of the previous year and amounts to HRK 344 million, which continues to be twice as much as all other operators combined.
4G mobile network indoor coverage is 71.8% of the population, which is an increase by 3.6 percentage points, while outdoor coverage reached 97.6% - an increase by 0.7 percentage points compared to the end of 2016. 4G mobile network coverage at a download speed of up to 225 Mbit/s has been increased by a further 2 percentage points, to 52% compared to the end of 2016.
Until the end of the first quarter of 2017, fibre optic access in the fixed network was enabled for an additional 15,000 households, meaning that a total of 825,000 Croatian households are now covered by the new generation access.
The new, unique concept of service offering on the telecommunications market, Magenta 1, launched in H1 2016, was accepted by more than 67 thousand households, which is a testimony to the value of this concept of top-notch customer experience and benefits.
Commenting on the business results of the first quarter of 2017, Davor Tomašković, President of the Management Board of Hrvatski Telekom, said: “In the first quarter of 2017, Hrvatski Telekom continues with the trend of increasing key financial indicators and is on a stable path of growth. In the next months, we will focus on further investment in our infrastructure. This way, we will ensure HT’s technological superiority and innovative services as the basic prerequisites to the best customer experience and premium position on the market.
Furthermore, together with Crnogorski Telekom, we are creating the prerequisites to changes in this company, which is the first step of HT to the regional market. In the first quarter, Crnogorski Telekom has already taken steps that are necessary for transformation of the company and for stabilisation of financial indicators. We believe that the redesign of the organisation and the action plan for realisation of synergy effects in the areas of procurement, wholesale and market appearance will substantially contribute to positive changes and to the fastest possible return of Crnogorski Telekom to the path of growth.”