Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia’s leading telecommunications provider, announces its unaudited consolidated results for the nine months of 2017. The results for the nine months of 2017 also include the impact of H1 Telekom d.d. upon completion of the merger process of H1 Telekom d.d. into OT - Optima Telekom d.d.
Compared to the nine months of 2016, total consolidated revenue has increased by 11.6% to HRK 5,785 million. Excluding Crnogorski Telekom’s contribution, revenue has increased by 2.4% compared to the same period in 2016. Excluding the impact of H1 Telekom, revenue has grown by 2.1%. Hrvatski Telekom continues achieving growth in mobile, broadband and TV, wholesale, energy business, system solutions, and other fixed revenue.
EBITDA before exceptional items has increased by 11% to HRK 2,345 million compared to the same period in 2016. EBITDA margin is at a 40.5% level. Excluding Crnogorski Telekom’s contribution, EBITDA before exceptional items has increased by 3% to HRK 2,177 million, with EBITDA margin of 41%. Excluding the impact of H1 Telekom, EBITDA before exceptional items has increased by 2.7 %.
For the nine months of 2017, realised net profit amounts to HRK 735 million. Compared to the same period in 2016, net profit has decreased by HRK 17 million, i.e. by 2.2%. Excluding Crnogorski Telekom’s contribution, realised net profit amounts to HRK 709 million, which is a 5.7% decrease. Net profit realisation is influenced by higher depreciation and amortisation driven by increased infrastructure investments, increased asset value adjustment primarily related to increased value adjustment of receivables as a result of market influences and financial expenses related to foreign exchange differences.
Continued investment in network infrastructure and innovative services
Compared to the same period in 2016, Capex realisation in the nine months of 2017 has increased by 28%, including Crnogorski Telekom’s contribution. Excluding the latter, Capex realisation has increased by 18.1% compared to the same period in 2016, amounting to HRK 1,155 million.
Successful business operation of Hrvatski Telekom has allowed for significant investments in network infrastructure, resulting in increased speeds and higher capacities in the fixed and mobile networks.
By the end of September 2017, a total of 345 thousand Croatian households were provided with optical access in the fixed network, which resulted in a 17% increase of optical access coverage compared to the end of 2016. Next generation access coverage is now available in 57% of Croatian households, which have been provided with possible speeds above 30 Mbit/s, while speeds above 100 Mbit/s are available in 18% of households.
At the same time, along with a strong 79% increase in the total traffic volume during the tourist season and a 328% increase in data traffic, increased speeds have been made available in the mobile network. Compared to the same period in the previous year, indoor 4G population coverage reached 75% by the end of September 2017 (up by 7 p.p. compared to the end of 2016), whilst outdoor coverage reached 98% vs. 96,9% at the end of 2016. High speed of 4G network with a download speed of 262.5 Mbit/s has been enabled for 47% of customers.
On the fixed network broadband services and TV market, HT has achieved a 3% growth of the broadband services customer base and a 5% growth of the TV services customer base compared to the same period in 2016.
The number of Magenta1 customers has been continuously rising and currently amounts to 92 thousand households, thus confirming the value of the concept of premium customer experience and benefits.
Commenting on the business results in the nine months of 2017, Davor Tomašković, President of the Management Board of Hrvatski Telekom, pointed out: “I am more than satisfied with the results achieved in the nine months of 2017. The strong financial results will allow us to continue investing and thus build firm foundations for next generation services and premium customer experience. The growth of the TV services customer base shows that, by means of our new TV platform introduced in the second half of this year, which includes top picture quality, interactivity, a new interface, and full integration with mobile devices, we have provided our customers with a unique service fully adjusted to their expectations. We successfully supported strong growth of data traffic during the tourist season and at the same time provided increased speeds in the mobile and fixed networks.
In the periods to come, we will continue investing into the network and into the digital transformation of our Company as prerequisites for the best customer experience and a premium position in the local and regional market.”