Recession and special taxes continue to affect business but contribution of Combis and good growth in internet reduce revenue decline to 2.5%; strong growth in mobile subscribers, ADSL and IPTV build solid platform for recovery
28.4.2011
T-Hrvatski Telekom, Croatia’s leading telecommunications provider, announces unaudited results for the three months to 31 March 2011.
Group Highlights
- Revenue down 2.5% to HRK 1,894 million or EUR 256 million (Q1 2010: HRK 1,943 million, EUR 263 million)
- Combis contributes HRK 68 million (EUR 9 million) in Q1 2011 (consolidated from May 2010)
- Underlying revenue down 6.0% excluding Combis contribution
- Cost control initiatives continue
- EBITDA down 6.4% at HRK 767 million (EUR 104 million) and 40.5% margin (Q1 2010: HRK 819 million or EUR 111 million, 42.2%)
- Net profit 8.5% down at HRK 351 million (EUR 47 million)
- Operating cash flow fell 13.0% to HRK 471 million (EUR 64 million)
- General Assembly to vote on proposed dividend of HRK 22.76 per share on 4 May 2011
- New Residential and Business reporting structure implemented
Residential Segment - T-HT maintains leading position in all three markets (mobile, fixed line and IP)
- Mobile subscribers up 7.9% (up 4.2% on Q4 2010)
- 535,000 ADSL mainlines up 13.2% (up 2.1% on Q4 2010) and 299,000 TV customers up 23.4% (up 6.8% on Q4 2010)
- Revenue down 5.1% due to falling voice revenue
- Contribution to EBITDA of HRK 659 million (EUR 89 million), down 8.5%
Business Segment - Stable customer base across all segments and products/tariffs
- Mobile subscribers up 4.5% (up 0.5% on Q4 2010)
- 107,000 ADSL mainlines up 6.2% (up 1.9% on Q4 2010) and 18,000 TV customers up 24.4% (up 5.8% on Q4 2010)
- Revenue up 1.0%; excluding Combis contribution of HRK 68 million, revenue down 7.5%
- Contribution to EBITDA of HRK 493 million (EUR 67 million), down 6.4%
Ivica Mudrinić, President of the Management Board and CEO, said:"In the first quarter, the Croatian economy continued to be depressed with unemployment increasing and falling disposable income. The anticipated recovery has yet to materialise. Consequently, our revenue fell 2.5%, although our growing IP revenue and the acquisition of Combis last year made increasing contributions. Despite the unfavourable operating environment, we have maintained our leading position in all segments and have further increased our mobile subscriber base. We believe these will bear fruit once the economic situation improves.
Looking ahead, the strength of the coming tourist season as well as the anticipated recovery in the national economy will have a considerable impact on our performance. However, the current regulatory environment and tax imposed on the telecommunications sector continue to hold back our investments in the modern communications infrastructure that we believe would positively support the development of the Croatian economy.”