Economic climate, regulatory framework and competitive landscape getting tougher; revenues fall 4.7%; rigorous cost cutting measures continue to protect margins; innovative services building solid platform for the future
27.4.2012
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces unaudited results for the three months to 31 March 2012.
Group Highlights
- Revenues down 4.7% to HRK 1,806 million or EUR 239 million (Q1 2011: HRK 1,894 million, EUR 256 million
)
- IP and ICT revenues show continued growth
- EBITDA slightly below Q1 2011 level at HRK 762 million (EUR 101 million) and 42.2% margin (Q1 2011: HRK 767 million or EUR 104 million, 40.5%)
- Number of cost control initiatives across the Group continue to protect margins
- Lower merchandise costs against Q1 2011
- Net profit 3.7% up at HRK 364 million (EUR 48 million)
- Operating cash flow up 15.9% to HRK 546 million (EUR 72 million)
- General Assembly approved dividend of HRK 22.14 per share; residual part of HRK 11.07 to be paid on 21 May 2012
- Advance dividend payment of HRK 11.07 paid on 27 February 2012
Residential Segment
- T-HT maintained its leading position in all three markets (mobile, fixed line and IP)
- Mobile subscribers down 6.5% (down 5.2% on Q4 2011)
- 535,970 ADSL mainlines, up 0.2% (down 0.6% on Q4 2011), and 325,014 TV customers, up 8.9% (up 1.2% on Q4 2011)
- Revenues down 5.3%, due mainly to lower voice revenues in mobile and fixed
- Contribution to EBITDA of HRK 691 million, up 4.1%
- LTE network put into operation in March
Business Segment
- Substantial customer base across all segments and products
- Mobile subscribers up 11.7% (up 7.5% on Q4 2011)
- 118,411 ADSL mainlines, up 11.0% (up 6.2% on Q4 2011) and 19,720 TV customers, up 8.5% (up 1.2% on Q4 2011)
- Revenues down 3.9%, due largely to lower voice revenues in mobile and fixed
- Contribution to EBITDA of HRK 481 million, up 2.3%
- ICT focus on further development and monetisation of Cloud services portfolio
Ivica Mudrinić, President of the Management Board (CEO), said: “The recession in the Croatian economy persists and the country still faces rising unemployment, wage deflation, lower investment and increasing payment arrears in the corporate sector. Against this backdrop, T-HT reported lower revenue, but our business is demonstrating the positive impact of the ongoing transformation program.
At the same time, we have retained our position as market leading provider across all areas of business, introducing a range of innovative products and services during the first quarter. T-HT has now become one of the first European telecoms providers to give its customers access to super-fast mobile internet services with the recent commercial launch of its LTE network.
Nevertheless, the regulatory regime continues to hamper any meaningful investment by the Group in the fibre network and accelerated development of mass market broadband services. A solution to this issue would represent a significant step towards the development of the Croatian telecommunications sector and contribute to the recovery of the domestic economy.”