Recession, regulatory initiatives and special tax continue to impact business; revenue fall of 3.6%, limited by Combis contribution and strong IP revenue growth; solid margins on effective cost management
28.10.2011
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces unaudited results for the nine months to 30 September 2011.
Group Highlights
- Revenues down 3.6% to HRK 6,092 million or EUR 822 million (Jan-Sep 2010: HRK 6,321 million, EUR 871 million)
- Combis contributes HRK 281 million or EUR 38 million (Jan-Sep 2010: HRK 110 million, EUR 15 million. Consolidated from May 2010)
- Underlying revenues down 7.6%, excluding both Combis contribution and revenue recognition after change in useful life of customer relationship as outlined on page 7
- IP and ICT revenues show continued growth
- Cost control initiatives continue
- EBITDA down 2.1% at HRK 2,799 million (EUR 378 million) and 46.0% margin (Jan-Sep 2010: HRK 2,858 million or EUR 394 million, 45.2%)
- Net profit almost flat at HRK 1,483 million (EUR 200 million)
- Operating cash flow down 14.8% to HRK 1,894 million (EUR 256 million)
- T-HT has reviewed its continued participation in the privatisation process; unconfirmed media reports suggest Government of Kosovo has cancelled process
Residential Segment
- T-HT maintained its leading position in all three markets (mobile, fixed line and IP)
- Introduced new mobile tariffs targeting a range of customer segments
- Mobile subscribers up 3.5% (up 2.9% on Q2 2011), following change in definition of prepaid subscribers as outlined on page 7
- 538,443 ADSL mainlines, up 8.3% from Q3 2010 (flat to Q2 2011), and 317,847 TV customers, up 21.7% (up 4.6% on Q2 2011)
- Revenues down 5.0%, due largely to lower voice revenues in the mobile and fixed network and lower non voice revenue in mobile
Business Segment
- Stable customer base across all segments and products/tariffs
- Mobile subscribers up 5.6% (up 1.1% on Q2 2011)
- 109,342 ADSL mainlines up 6.0% (up 0.9% on Q2 2011) and 18,919 TV customers, up 17.0% (up 2.6% on Q2 2011)
- Revenues down 1.9%
- IP and ICT revenues showing further growth with new ICT services launched
Ivica Mudrinić, President of the Management Board and CEO, said:
“T-HT has released another robust set of results against the backdrop of a difficult economic environment and our revenue was 3.6% lower in the period. However, we have maintained our strict cost control initiatives and we are reporting a solid EBITDA margin, whilst ICT services provider Combis has made a positive contribution to our business. Despite further downward pressure from regulation and intense competition across all our operations, we have maintained our number one position across all areas of business.
Furthermore, the Government of Croatia is proposing to abolish the 6% fee on mobile network services introduced in 2009 and this should have a positive impact on the Croatian telecoms sector. Nevertheless, the existing regulatory regime continues to deter investment in a next generation communications/fiber infrastructure that would help to stimulate economic growth in Croatia.”