HT Finished FY 2023 With Revenue Growth and Large Investments

As a result of strong commercial momentum and positive business developments, Hrvatski Telekom finished FY 2023 with a 5.7% revenue growth. The result was fueled by good performance across consumer and business segments.

Despite inflationary and competitive pressures, HT managed to contain the increase in operating expenses to 4.8%, supported by continued operating model transformation and cost-efficiency initiatives. This, alongside the strong commercial momentum, has contributed to 5.3% YoY adjusted EBITDA AL growth. Net Profit reached €132.0 million, primarily driven by non-recurring items, alongside solid EBITDA performance.

Investments further increased in 2023, up by 50.7%, reaching €361.4 million. Despite a challenging environment and economic uncertainty, HT has successfully delivered upon the most recent outlook, exceeding initial guidance for 2023. With investments and development of infrastructure across Croatia, the operator has additionally strengthened its mobile and fixed network leadership.

In the spectrum auction, HT secured the largest mobile spectrum share in the market, received OOKLA certification as the best and fastest mobile network in the country for the 5th year in a row, and was also recognized by HAKOM as the best mobile network in Croatia. By building fiber infrastructure not only in cities but also in suburban and rural areas across Croatia, HT has expanded already its fiber-to-the-home network in Croatia by more than, a significant step towards fulfilling the goal of covering more than 1 million households with gigabit fiber speeds.

In July 2023 HAKOM adopted the final decisions on market analysis of wholesale fixed network access, deregulating HT’s fiber in 72 administrative units in urban areas of Croatia, which are by HAKOM deemed as competitive. Deregulation of high-speed networks in competitive areas will enable equal market conditions for all market participants.

HT has accelerated the transformation of its operating model, raising efficiency levels, while at the same time delivering the best customer experience in the market. In January 2024, HT completed the integration of Iskon Internet and transferred the construction and maintenance unit of the HT network from Ericsson Nikola Tesla Servisi to a newly founded subsidiary - HT Servisi.

In December 2023, Kostas Nebis, Chief Executive Officer of HT resigned effective 1 July 2024 and will continue his career within Deutsche Telekom Group, taking over the role of Chairman and CEO of OTE Group in Greece. Nataša Rapaić, present Member of the Management Board and Chief Operating Officer Residential (COOR), has been appointed CEO of HT, effective 1 July 2024.

HT’s capital allocation strategy continues to demonstrate the Company’s strong focus on shareholder returns and intention to return value to shareholders. During 2023, HT has returned €107.8 million to the shareholders through dividends and share buybacks, representing the highest capital allocation since 2019. HT paid a dividend of €1.10 per share which represents a ratio of the dividend payment to the realized Company profit of 93.9%, and a 3.6% growth compared to the previous year.

Within the framework of the ongoing Share Buyback Program and through a successful Accelerated book-building auction process that took place in September, HT purchased an additional 808,252 Company shares on the Zagreb Stock Exchange. HT paid an equivalent value of €21.2 million for the acquisition of the Company’s shares in the reporting period. The dividend for 2023 will be announced on 20 March 2024, alongside the publication of audited financial statements for FY 2023.

Despite the persisting external challenges, the company's primary objective is to continue with our growth trajectory. It is aiming for a low single-digit revenue increase, considering the slowdown of mobile non-service revenue after the peak in 2023, and the reduced contribution of lower-margin transit traffic revenue. Additionally, HT anticipates mid-single-digit growth in both EBITDA AL and CAPEX AL compared to 2023.

“2023 was a successful year for Hrvatski Telekom marked by a very strong financial performance, revenue, and EBITDA growth across consumer and business segments on the back of mobile, fixed, and System Solutions profitable growth. As a result of the largest investments in the company’s history, we further strengthened our network leadership, securing the largest legacy spectrum share, again winning awards for the best mobile network. Looking into 2024, we will continue building on our solid foundations aiming to grow our company further, accelerating the digital transformation, investing in the essential ICT infrastructure, further improving customer experience and employee engagement, and creating even more value for our customers and shareholders while leading the digitization of the Croatian society,” said CEO Kostas Nebis.