Solid Performance for Croatian Telekom in fiscal 2016 With Revenue and EBITDA Growth
Foto: Davor Tomašković
In 2016, Hrvatski Telekom generated revenue amounting to HRK 6.97 billion, which is by 0.7% better than in 2015. HT maintained its leading position in all segments of the telecommunications market, the main contributors being mobile and wholesale revenues, growth of the ICT segment, and the electricity business.
EBITDA amounts to HRK 2.82 billion, which increased 1.4% compared to 2015, along with a strong EBITDA margin of 40.5%, which is 0.3 percentage points above the previous year. 2016 net profit amounts to HRK 934 million, which is HRK 9 million or 1.0 % more than in 2015. The investment in infrastructure and innovative services was over HRK 1.6 billion.
Last year, Hrvatski Telekom increased investment to HRK 1.61 billion, or 9.1% compared to the previous year. Investment was focused on increase of the broadband Internet access capacity, customer experience improvement, and increase of competitiveness.
Investment in the fixed network resulted in fibre optic access for 295 thousand households, representing a 68% increase compared to 2015. Broadband access speeds were increased by two to five times as compared to the previous ones, free of charge, for more than 50% of customers.
NGA speeds above 30 Mbit/s were enabled for 800 thousand Croatian households in total, thus bringing Croatia closer to the European Digital Agenda targets.
In the mobile segment, 4G network coverage for download speeds of up to 225 Mbit/s increased to 51% of the population compared to 31% coverage at the end of 2015. 4G mobile network outdoor coverage increased from 93.1% to 96.9% compared to the previous year.
The new, unique concept of service offering on the Croatian telecommunications market, Magenta 1, launched in H1 2016, was accepted by more than 53 thousand households, and this number is steadily rising.
The Management Board and the Supervisory Board have made a proposal to the General Assembly that dividend be distributed in the amount of HRK 6 per share, to be paid out of the 2016 net profit, which is a total amount of HRK 491.3 million (54% of net profit) earmarked for dividend payment, and that the remaining part of net profit amounting to HRK 417.5 million be allocated to retained earnings.
Furthermore, Hrvatski Telekom also announces its intention to launch a company’s Share Buyback Programme at the Zagreb Stock Exchange, in line with the decision of the General Assembly of 21 April 2016 granting the Management Board authority to acquire Company's shares. Upon completion of all internal procedures and provided that market circumstances are satisfactory, the Company will announce the scope, volume, and duration of the Company’s Share Buyback Programme in accordance with the applicable legislative framework.
As previously announced, HT will, at the beginning of the year, announce a minimum target dividend for each year, which will be within the Dividend Policy range. For the financial year 2017, the Management Board currently expects the payment of dividend to a minimum amount of HRK 6.00 per share.
In early January 2017, Hrvatski Telekom acquired a 76.53% stake in Crnogorski Telekom, for a purchase price of EUR 123.5 million. This transaction is part of the HT's growth strategy through expansion into regional markets. With this acquisition, HT expects to generate additional value for its shareholders and customers through substantial synergy effects.
"We have fully reversed the falling trends and laid the foundations for growth and, by acquiring a majority stake in Crnogorski Telekom, we have expanded onto the regional market at the beginning of 2017. We will continue monitoring opportunities for regional expansion. Also, we will keep our focus on the strategy of growth of the company as a leader on the national and regional telecommunications and digital services market”, said Davor Tomašković, President of the Management Board of Hrvatski Telekom.