Tougher economic climate, regulatory framework and competitive landscape drive revenue fall of 6.0%; lower costs protect margins; enhanced product range and innovative services build solid platform for future
26.7.2012
T-Hrvatski Telekom (Reuters: THTC.L, HT.ZA; Bloomberg: THTC LI, HTRA CZ), Croatia’s leading telecommunications provider, announces unaudited results for the six months to 30 June 2012.
Group Highlights
- Revenues down 6.0% to HRK 3,649 million or EUR 484 million (H1 2011: HRK 3,883 million, EUR 525 million)
- Non voice revenues show continued growth
- Fixed broadband ARPA up 4.9% to HRK 125
- Mobile data subscribers up 11.9% to 728,557
- Smartphone sales rose to 51% of total handsets sold
- EBITDA falls 2.9% to HRK 1,620 million (EUR 215 million), margin at 44.4% (H1 2011: HRK 1,669 million or EUR 226 million, 43.0%)
- Continued impact from cost controls
- Merchandise and telecommunication costs, along with other categories, lower against H1 2011
- Net profit down 2.5% at HRK 808 million (EUR 107 million)
- Operating cash flow up 15.9% to HRK 1,139 million (EUR 151 million)
- Capex down 31% to HRK 345 million
- 6% mobile fee abolished, effective 9 July 2012
Residential Segment
- T-HT maintained its leading position in all three markets (mobile, fixed line and IP)
- Mobile subscribers down 4.0% (up 1.8% on Q1 2012)
- 527,974 broadband retail access lines, down 2.0% (down 1.5% on Q1 2012), and 326,835 TV customers, up 7.5% (up 0.6% on Q1 2012)
- Revenues down 6.5%, due mainly to lower voice revenues in mobile and fixed
- Contribution to EBITDA of HRK 1,362 million, down 5.3%
- LTE network operational in March; promotions of 4G mobile internet tariffs in Q2
Business Segment
- Substantial customer base across all segments and products
- Mobile subscribers up 7.4% (down 1.1% on Q1 2012)
- 105,979 broadband retail access lines, down 1.6% (down 10.2% on Q1 2012) and 19,833 TV customers, up 7.5% (flat to Q1 2012)
- Revenues down 5.4%, due largely to lower voice revenues in mobile and fixed
- Contribution to EBITDA of HRK 1,000 million, up 0.6%
- Further development of Cloud services
Ivica Mudrinić, President of the Management Board (CEO), said:
T-HT has maintained its leading position in the Croatian telecommunications market, but has not been immune to the impact of both competitive pressures and the persistent economic slowdown in the Croatian economy, with no end to rising unemployment, wage deflation, lower investment and increasing payment arrears in the corporate sector. In light of these challenges, T-HT Group reported a decline in revenues but was nevertheless able to maintain cost discipline as result of effective management.
We continue to focus on innovation and the provision of premium quality services. To this end, we have further enhanced our product range to meet customers' ever evolving needs, most notably in the further development of 4G services following the launch earlier this year of the LTE mobile network, providing super-fast mobile broadband access.
The outlook for the Croatian economy, however, remains downbeat. We expect the relevant Croatian authorities to take their lead from recent EU initiatives that focus on development of the fiber network and are designed to create a regulatory environment that will facilitate accelerated investment in this all important infrastructure, given the key role it plays in stimulating economic growth. With a suitable regulatory framework in place, T-HT would also be keen to invest in developing the fiber network and, by doing so, promote growth in the Croatian economy as a whole.