HT Posts Solid Business Results in the Third Quarter

Despite macroeconomic challenges, inflationary pressures, and energy prices, Hrvatski Telekom recorded solid business results. In the first nine months of 2022, Organic revenue increased by 2.8% to HRK5.5 billion, driven by continued growth momentum in core fixed and mobile services, both in Croatia and Montenegro.

In the third quarter, organic EBITDA AL decreased by 2.2% due to higher energy costs and inflationary pressures on operating expenses. Still, in the first nine months, organic EBITDA AL increased by 1.1% to HRK2.2 billion, due to strong performance in the first half of 2022. Net Profit decreased in 3Q22 by 17.6%, as a result of lower EBITDA AL and increased depreciation, compared to the same period last year. In the nine months, Net Profit grew by 19.7% to HRK525 million, primarily reflecting depreciation returning to usual levels after a peak in the first half of 2021.

Organic investments reached HRK1.1 billion, down 4.6% compared to the same period last year. This was mainly due to the different seasonality of network rollout, still representing by far the largest industrial investments. In its earnings release, HT said it remains focused on investments in the development of network infrastructure, especially in fiber and 5G. The company achieved a 17% growth rate of its FTTH network, providing fiber connectivity for a half million households.

Although the environment remains uncertain, HT confirmed its 2022 outlook. It expects a stable revenue and EBITDA AL and a mid-single-digit decrease in CAPEX AL compared to 2021. Their regional expansion outlook remains the same as they continue to monitor and evaluate potential M&A activities.

“In the first nine months of 2022, we strengthened further our customer experience and network leadership and remained committed to our investments, building our fiber and 5G networks across Croatia, supporting the country's and businesses' growing need for digitization. Looking ahead, we expect the challenging environment and inflation pressures to persist in the last quarter of the year, and to have an effect on our profitability, with us closing the year at similar levels to those from 2021. However, based on our strong foundations we will navigate through this turbulent and volatile environment, creating value for the economy, the society, and our shareholders,“ said Kostas Nebis, CEO of Hrvatski Telekom.