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Croatia's T-HT net profit drops 30% y/y to EUR 52.5mn in H1

July 31, 2014



Croatia telecommunication company T-Hrvatski Telekom (T-HT) said on July 30 its net profit fell 29.5% y/y to HRK 401mn (EUR 52.5mn) in the first half of 2014, impacted by the ongoing economic crisis, regulatory changes and market deterioration.

T-HT group's revenues declined by 5.2% y/y to HRK 3.3bn in January-June. Revenues decreased mainly in the voice segment, but the drop was partially offset by increased non-voice revenue and higher ICT and terminal equipment revenues.

The company's capital expenditure amounted to HRK 492mn in the first six months of 2014, with investments mainly directed to network development, broadband access enhancement and IP transformation. T-HT also invested HRK 62.5mn in a new data centre.

However, the recent rise in the annual radiofrequency fee will force the company to reduce investments in new networks, services and technology development. The Croatian government decided earlier this year to increase three times the annual fee for spectrum usage in the public mobile communications network. T-HT estimated in May the new fee will increase its annual costs by HRK 138mn.

As Croatia's leading telecommunications provider, at the end of June, T-HT had almost 2.31mn mobile subscribers. However their number dropped by 1.8% y/y in January-June. It also served 1.1mn fixed-line customers, 620,508 broadband retail access lines and provided TV services to 393,525 customers.

The company is 51%-owned by Deutsche Telekom, with the Croatian War Veterans' Fund owning 7%, and country's restructuring and sales centre CERP 3.5%. The remainder is owned by private and institutional investors. The government has announced recently it will sell on the regulated capital market a 3.49% stake in T-HT.


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Source: IntelliNews - Weekly Reports


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