HT Revenue Decreased by 3.2 Percent in 2020
2020 was a very challenging year due to COVID-19 implications on the economic activity. Hrvatski telekom said that it was also a year of great milestone achievements for the company. In terms of finances, with the exception of visitor revenues that were hit by lower tourism contributions, we managed to close the year on a positive note with a set of solid financial results with investments remaining strong during the whole year.
As a direct result, total consolidated net revenue decreased by HRK 247 million or 3.2% in 2020 compared to 2019, better than the initial outlook. The revenue decrease was caused by lower realization in mobile revenue (HRK 139 million or 4.0%), fixed revenue (HRK 130 million or 3.9%) and miscellaneous revenue (HRK 16 million or 93.9%) but was partially offset by higher System Solutions (HRK 38 million or 4.3%) revenue hence continuing with the positive trends from Q3. In Q4 revenue decreased slightly due to lower ICT revenues.
EBITDA AL decreased by HRK 170 million or 5.9% in 2020 due to decreases at both HT Group in Croatia (HRK 152 million or 5.6%) and Crnogorski Telekom (HRK 18 million or 8.6%), mainly resulting from the COVID-19 effects, and missing positive one-timer from 2019. The EBITDA AL margin was 36.7%. After six quarters of decline, EBITDA AL in Q4 grew 1.2% compared to the same period the previous year. Net profit after non-controlling interests decreased by HRK 151 million or 20.5%.
Total CAPEX amounted to HRK 1,824 million driven by investments. HT continued to reinvest 25% of its revenue and invested three times more than the rest of the market combined. Overall, in 2020 the company returned HRK 737 million to its shareholders through a combination of dividend and share buybacks, which represents a total yield of 5.0% based on the last price in 2020.
“Our continuous investments in infrastructure, in our networks and our service quality played an essential role in enabling us to adapt to the unprecedented conditions, to confirm our leadership status and to ensure the best experience for our customers. We continued strongly investing in the infrastructure, we had a record year in terms of fiber-optics roll-out across Croatia, we signed a Partnership Agreement with local governments for bringing broadband network to rural areas, and we launched the first commercial 5G network in Croatia covering 17 cities and over 1.2 million people,” said Kostas Nebis, CEO of Hrvatski Telekom.