Hrvatski Telekom Had Another Successful Quarter

Hrvatski Telekom, Croatia’s leading telecommunications provider, announces its unaudited consolidated results for the three months ended 31 March 2019. In Q1 2019, EBITDA before exceptional items AL (after leases) increased by HRK 22 million, or 3.4%, to HRK 673 million in comparison with Q1 2018.

EBITDA AL margin is at the level of 37.9%. Strong increase in EBITDA in Q1 is partially influenced by one-time effects such as Evo TV transaction and other. Net profit after NCI (non-controlling interest) amounts to HRK 190 million, an increase of 14.1% in comparison with the same period a year ago. Total consolidated revenue generated in the first three months of 2019 amounts to HRK 1,775 million, which is 1.3% below the realization of the same period last year.

The core proposition of Hrvatski Telekom remains the convergent offer under the name Magenta 1 with more than 230 thousand customers and the number of customers grew by 10.2% from previous quarter. As of 1 March, following the approval by the National Regulatory Agency (HAKOM), Hrvatski Telekom acquired Evo TV business from Hrvatska Pošta. With Evo TV, Hrvatski Telekom pay TV customer base grew from Q1 2018 by 17.8%, reaching 488 thousand pay TV customers.

In Q1 2019, capital expenditure realization amounts to HRK 386 million and is below Q1 2018 as a result of seasonal effects. Outlook on capital expenditures for 2019 remains the same as announced, i.e. around 2018 level. HT continued with investments into fiber infrastructure, modernizing fixed access network to a new generation (NGA), achieving coverage for 59% households with a speed beyond 30 Mbps and 22% households with a speed beyond 100 Mbps.

HT participated in tender procedure organized by HAKOM for spectrum at 2,600 MHz. The company successfully acquired 2 x 20 MHz. In March 2019, Hrvatski Telekom was the first operator in Croatia and among the first in Europe to pilot and demonstrate a 5G network.

In the first quarter of 2019, Hrvatski Telekom and Zagrebačka banka partnered up for new digital banking service - Telekom Banking. This is the first cooperation of this type between a telecommunications operator and a bank on the Croatian market. The service, currently in the pilot phase, and commercial launch is expected in next few months. of customer experience and Company’s operations to be faster and more agile, and on strong investments in high speed fixed and mobile networks, enabling our customers and Croatian citizens to connect to the opportunities of digitization, all leading to a sustainable growth of Hrvatski Telekom.“