Results for the first three months of 2025

• Solid business development: Revenue up by 5.9%, adjusted EBITDA AL up by 3.0%, Net profit reached EUR 26.6m
• Market leading investments EUR 60.1m
• EUR 1.64 dividend proposed, 7.2% YoY growth

In Q1 2025, Hrvatski Telekom has maintained its growth trajectory, delivering a 5.9% YoY revenue growth, a result of positive business developments across consumer and business segment.

Adjusted EBITDA AL grew by 3.0%, driven by steady top line performance, offsetting persisting inflationary and salary pressures. Net profit after non-controlling interests remained stable in Q1 2025, at EUR 26.6 million as growth in adjusted EBITDA AL was counterbalanced by depreciation, net financial result and exceptional items.

In Q1 2025 investments reached EUR 60.1 million, up by 52.8% YoY, underlining HT’s dedication to provide the platform for the country’s digitalization and building fiber and mobile infrastructure across Croatia.

Strengthened network leadership

During Q1, we continued to expand the largest FTTH network in Croatia, increasing our footprint by additional 22% in new households and businesses YoY. Along with our own, market leading investments, we recently signed the latest four contracts for development of broadband access infrastructure, that are cofinanced via EU funds, with which we are building Very High-Capacity networks and bringing ultra-high speed internet to parts of Croatia where it does not exist, playing a vital role in bridging the digital divide across the country. This marks a step toward our goal of bringing gigabit fiber speeds to over 1.1 million households.

In Q1 2025, we achieved a major milestone in our mobile network evolution by becoming the first operator in Croatia to fully shut down the legacy 3G network. This move enabled the reallocation of 3G spectrum to faster, more advanced and sustainable 4G and 5G networks, ensuring enhanced experience for our customers.

Maintained market leadership in customer experience

Through our continuous commitment to enhance service quality across all customer touchpoints, we have once again delivered the best customer experience on the market, as confirmed by the industry benchmark TRI*M.

As part of our commitment to provide the exceptional value to our customers, we continued to enhance our “Magenta Moments” benefits program, through exclusive partnerships. A standout example of our innovative efforts is our partnership with Perplexity AI, one of the world’s the most exciting AI companies, through which we have provided free access to Perplexity Pro, the most advanced AI assistant, making AI accessible to everyone. The initiative generated exceptional interest and overwhelmingly positive user feedback, allowing us to exceed expectations by delivering Perplexity Pro licenses to 40,000 users, double the initial goal. Moreover, we have recently partnered with Wolt, bringing added value for our customers by offering 12-months of unlimited zero fee deliveries through the Wolt+ subscription.

Attractive capital return for shareholders

The Management Board and Supervisory Board of Hrvatski Telekom Inc. have proposed to the General Assembly a dividend of EUR 1.64 per share, directly benefiting nearly 150,000 shareholders, private individuals and institutional investors, who directly participate in the company’s success.

The amount of EUR 1.64 per share represents a ratio of the dividend payment in relation to the realized profit of the Company of 92.2% and growth of 7.2% compared to the previous year.

In Q1 2025 Hrvatski Telekom, within the framework of ongoing Share Buyback Program has purchased additional 395,150 Company shares on the Zagreb Stock Exchange. The total number of acquired Company shares on 31 March 2025 amounted to 1,207,513, representing 1.55% of the Company’s issued share capital.

Unchanged Outlook for 2025

Although the environment remains challenging and increasingly volatile, our primary objective is to continue with our growth trajectory. We are keeping our Outlook from February aiming for a low single-digit growth in revenue, EBITDA AL, and CAPEX AL compared to 2024. Our stance on regional expansion remains unchanged, as we diligently assess potential M&A opportunities.

Commenting on the business results for Q1 2025, Nataša Rapaić, CEO of Hrvatski Telekom, stated:

“In the first quarter of 2025, we maintained our growth momentum, remaining committed to our mission of connecting people and ideas, the economy, and society with the most advanced network infrastructure, despite challenging market environment.

With the market leading investments, we further strengthened our network leadership by expanding our FTTH network, the largest in the country by an additional 22%. We successfully completed the shutdown of the 3G network, replacing it with faster, more advanced, and sustainable 4G and 5G technologies. We are proud to be the first operator in Croatia to reach this important milestone in mobile network development.

We are particularly pleased that our customers once again recognized our commitment to providing an exceptional customer experience. Through the Magenta Moments benefits program and partnerships with global leaders such as Perplexity AI and Wolt, we enriched our offering by bringing world-class innovations closer to our customers and providing additional value to them.

Our employees are the foundation of our success. Their expertise, dedication, and energy enable us to continue developing, which is why we have continued to invest in their knowledge and skills.

In 2025, we are clearly focused on further investments in innovation, building strong and modern infrastructure, delivering an outstanding customer experience, and contributing to the sustainable economic and social development of Croatia.”