Recession and special taxes continue to affect business, succesful cost controls preserve solid EBITDA* margin of 44.1%, mobile customers growing and decline in mobile revenue easing in Q4
14.2.2011
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces audited results for the year ended 31 December 2010.
Group Highlights
- Revenue down 1.7% to HRK 8,375 million or EUR 1,149 million (2009: HRK 8,517 million, EUR 1,160 million)
- Combis contributes HRK 232 million (EUR 32 million) since May
- Underlying revenues down 3.2% excluding impact of 6% tax and Combis
- Cost controls continue to protect margins
- Reported EBITDA slightly below 2009 level at HRK 3,662 million (EUR 502 million) and 43.7% margin (2009: HRK 3,695 million or EUR 503 million, 43.4%)
- EBITDA before exceptional items of HRK 3,694 million (EUR 507 million) at 44.1% margin (2009: HRK 3,859 million or EUR 526 million, 45.3%)
- Net profit 9.5% down at HRK 1,831 million (EUR 251 million) owing mostly to lower financial income
- Operating cash flow increases strongly, up 19.3% to HRK 3,268 million (EUR 448 million)
- Proposed dividend of HRK 22.76 per share; payout ratio equals 100% of net profits of Hrvatski Telekom d.d.
- Launch of prepaid brand bonbon on 1 October
- Successful LTE trials demonstrating high-speed mobile internet
T-Mobile - Revenue down 9.1% to HRK 3,807 million or EUR 522 million (2009: HRK 4,189 million or EUR 571 million)
- Total subscribers up 1.5% to 2.9million
- Postpaid subscribers break through 1 million, up 9.0% on 2009
- Prepaid subscribers down 2.1% on year, but rising strongly in Q4, up 6.0%
T-Com - Continuing strong growth in internet and IPTV
- Internet revenue up 19.1% to HRK 1,368 million or EUR 188 million (2009: HRK 1,149 million or EUR 156 million)
- ADSL lines up 13.4% to 629,228
- IPTV subscribers up 26.1% to 297,496
* before exceptional items
Ivica Mudrinić, President of the Management Board and CEO, said: “The recession in Croatia continued into 2010 impacting consumer spending and business sector revenues. Our strategy which we have been pursuing for a number of years has helped us to remain competitive and protect margins. Our performance is very creditable, given the poor economic climate, reduced spending and increased competition.
The acquisition of Combis has strengthened our position in IT services complementing our leadership in communications. The reorganisation of T-HT has created a more efficient and more customer-focused organisation, our internet business continues to grow strongly and we are optimistic that mobile revenues will improve as the country comes out of recession.
“With signs of economic improvement emerging, we believe that Croatia’s fragile recovery will be hampered if regulatory and tax burdens unfairly penalise our investment in the modern communications infrastructure that Croatia needs for its future prosperity.”