HT Reports Higher Revenue and a Slight Drop in Profits in 1Q24

As a result of positive business developments across consumer and business segments, Hrvatski Telekom has recorded a 4.8% revenue growth in the first quarter of 2024. It was driven by strong performance in mobile, fixed service, and system solutions.

Despite continued inflationary pressures, HT managed to contain operating expenses increase to 5.5%, supported by operating model transformation and efficiency initiatives. This, alongside the strong commercial momentum, has helped adjusted EBITDA AL grow by 6.9%.

Net Profit reached €26.6 million with a 1.7% decrease due to an exceptional item. In 1Q24 HT invested €39.3 million and will further accelerate in the second half of the year, above the level of 2023, excluding spectrum, confirming the company's dedication to providing the platform for the country’s digitalization. 

The incumbent continued to invest in network infrastructure across Croatia, in both urban and rural areas. Their networks recorded improvements across key parameters, as evidenced by recent umlaut 'Best in Test' recognition. During Q1, HT continued to expand the FTTH network in the country, increasing its footprint by an additional 21% in new households and businesses. This brings the company closer to its goal of covering over 1 million households with gigabit fiber speeds.

Hrvatski Telekom said it will remain focused on shareholder returns and intention to return value to shareholders. The company proposed the distribution of net profit from 2023 with €119,34 million for the pay-out of dividends to shareholders (€1.53 per share). This represents the highest dividend in over a decade, with a ratio of the payment concerning realized profit of 95.3% and growth of 39.1% compared to the previous year. In 1Q24, HT purchased an additional 54,725 company shares on the Zagreb Stock Exchange, paying an equivalent value of €1.6 million.

“In the first quarter of 2024, Hrvatski Telekom demonstrated strong commercial performance across all segments, achieving growth in revenue and EBITDA AL despite a challenging macroeconomic environment and persistent high inflationary pressures on our cost base. We continued to strengthen our network leadership by expanding our gigabit 5G coverage and FTTH footprint across Croatia. Our continuous investments in ICT infrastructure, coupled with ongoing improvements in network and service quality, as well as enhancements to our unique content portfolio, have led to historically high levels of customer experience across both consumer and business segments. Looking ahead, we remain committed to our investment plans, which are crucial for the country's digitalization. We also aim to leverage digitization and new technologies to improve efficiencies and mitigate the inflationary pressures on our business operations. At the same time, we are focused on further enhancing customer experience and employee engagement. I am confident that with Nataša Rapaić taking over as CEO in July, Hrvatski Telekom will successfully continue its growth journey," said Kostas Nebis, CEO of Hrvatski Telekom.