Hrvatski Telekom (Reuters: HT.ZA; Bloomberg: HTRA CZ), Croatia’s leading telecommunications provider, announces its unaudited consolidated results for the first six months of 2018 ended 30 June 2018.
In the first six months of 2018, Hrvatski Telekom achieved growth of key financial indicators – EBITDA, net profit, and investments.
In the first six months of 2018, EBITDA before exceptional items increased by HRK 13 million, or 0.9%, compared to the same period of the previous year, to HRK 1,471 million. The EBITDA margin is at a level of 40%, which is an increase by 0.5 percentage points compared to H1 2017. Crnogorski Telekom also contributed to the profitability growth by realising EBITDA in the amount of HRK 109 million, which is by HRK 5 million more than EBITDA realised in H1 2017. Excluding Crnogorski Telekom's contribution, HT Group's EBITDA in Croatia increased by 0.6% compared to the same period of the previous year, amounting to HRK 1,362 million, along with an EBITDA margin at a level of 40.3%.
Compared to the same period in 2017, net profit increased by HRK 37 million, or 9.1%, to HRK 447 million.
Total consolidated revenue generated in H1 2018 amounts to HRK 3,681 million, representing a 0.3% decrease compared to the same period of the previous year.
Continued investment in network infrastructure, advanced technology, and innovative services
Realisation of capital expenditures increased by 8.7% compared to H1 2017, amounting to HRK 895 million, including the contribution by Crnogorski Telekom. Without this effect, capital expenditures of the HT Group in Croatia increased by 8.3% to HRK 822 million.
The next generation access network (NGA) covers 58.1% of households, while optical access coverage is available to 388 thousand households.
In the mobile network, investments provided 4G mobile network indoor coverage at a level of 77.6%, while outdoor coverage reached 98.4%. HT continued with the implementation of the high speed 4G network providing 350 Mbit/s in download.
Q1 2018 saw the start of a major investment programme to modernise the mobile network with a view to increasing the capacity for higher data traffic and improving the customer experience, including even faster internet access and laying the groundwork for the implementation of 5G technology. By the end of June, phase 1 was successfully completed in Istria, resulting in the modernisation of 137 locations of the mobile radio and transport networks and an increase in the capacity of the mobile access network at 250 locations along the coast. Since the beginning of July, activities have continued on the territory of the City of Zagreb. The main prerequisites have been created for the implementation of 5G technology as soon as the respective required radio frequency spectrum is allocated.
Magenta 1, the unique concept of service offering on the telecommunications market, which marked its second anniversary, has been accepted by more than 150 thousand households, and this figure is continuously rising.
The increase of the TV customer base to a level of 415 thousand confirms that the offer by Hrvatski Telekom is a standard for a premium TV service, recognising the needs of our customers.
For additional improvement of customer experience and as an important step towards intensified digitalisation, HT offered its customers the new One App application. It has been implemented on a new technology concept and features faster response time, user-friendliness, and a range of new functionalities – easier to use by customers for activation of tariff options, one-click payment of invoices etc.
In 2018, continued focus on growth, new technology concepts, and improved customer experience
Commenting on the business results achieved in H1 2018, Davor Tomašković, President of the Management Board of Hrvatski Telekom, pointed out:
“At the end of the first semester, Hrvatski Telekom saw an increase of EBITDA and net profit, and ensured the continuation of major capital expenditures. We just completed one of the biggest investments in Croatia. By modernising the mobile network in Istria, we have provided its inhabitants and tourists with a state-of-the-art mobile network in Croatia and the region and created the prerequisites for the implementation of the 5G network. We will continue with the programme to implement the currently cutting-edge equipment in other parts of Croatia too, as well as with increasing speed in the fixed network and constructing fibre-optic infrastructure.
I am also extremely proud of the increase in the number of Magenta 1 users who enjoy top-class experience and benefits of the integrated Internet, mobile, and TV offering. Our focus is on further growth and maintaining of our technological superiority due to the best network and the best TV content offer, particularly in the sports section. For the seventh year already, HT have been supporting Croatian football, enabling MAXtv users to watch exclusive broadcasts of the Hrvatski Telekom First Football League, the league where most of our Fiery Ones have started their careers.”