HT Reports Solid Business Results for 2022

In 2022, Hrvatski Telekom’s Organic revenue increased by 2.2%. The company stated that the rise was driven by continued growth momentum in core fixed and mobile services, both in Croatia and Montenegro. Despite a volatile environment, the operator managed to exceed revenue and organic EBITDA AL guidance. CAPEX AL exceeded the initial plan for 2022, as solid business results allowed them to accelerate investments.

Due to strong performance in the first half of 2022 organic EBITDA AL increased by 0.8% in 2022. Organic Net Profit grew in 2022 by 10.5%, primarily driven by the normalization of depreciation expenses, which peaked during the first half of 2021. Despite the challenging economic environment, Organic investments remained at the same level as the previous year, totaling HRK 1.7 billion (€231 million), representing by far the leading investments on the market and HT’s strong contribution to the country’s digitalization.

Throughout 2022, HT has put a strong focus on building the fiber-optic infrastructure and implementing the next-generation fixed access network (NGA). As a result of these efforts, HT has achieved a 21% YoY growth rate of its FTTH network, by far the largest in the country, providing fiber connectivity for over a half million households. At the same time, HT remained focused on investments in the development of the 5G network which currently covers around 100 cities throughout Croatia and more than 2 million people.

In 2023, the company expects challenges from 2022 to remain present. The inflationary pressures will continue putting pressure on costs and the consumers' disposable income, the energy market remains volatile, while Croatian GDP growth is projected to slow down. To keep on winning in the market and growing the company further, HT will continue with the implementation of the strategy based on key strategic pillars, while pushing faster with the operating model transformation. Therefore, in 2023, HT is aiming for a low-single-digit increase in revenues and EBITDA AL, and a mid-single-digit decrease in CAPEX AL compared to 2022. The regional expansion outlook remains the same as the company continues to monitor and evaluate potential M&A activities.

“In a very demanding year and despite the growing challenges in the macroeconomic environment, with inflationary pressures and unprecedented energy prices, we managed to deliver solid business results, allowing us to keep our investments on the same level as in the previous year. Our commitment to investments, expanding our fiber infrastructure further covering 100,000 new households, and strengthening our 5G network leadership ensured our customers enjoy the best customer experience. The macroeconomic challenges of 2022 will remain present in 2023. However, we remain committed to our plans, and investments and supporting the country’s goals, with the digital infrastructure and services we are providing being the key growth levers,“ said Kostats Nebis, HT CEO.