T-HT: Revenue Growth, Decline in Net Profit and Dividend of 29.99 Kuna

The largest domestic telecommunications operator T-HT has announced its business results for 2008, which show a slight revenue growth and a decline in profit and profit margins, along with the announcement of a dividend of 29.99 kuna per share.

T-HT recorded a revenue growth of 2.7 percent to 8.8 billion kuna, primarily based on the growth of internet and wholesale services as well as mobile communication services. The results explanation states that net profit increased by 3.2 percent to 2.3 billion kuna without the impact of one-time gains from 2007, but when considering the impact of one-time gains, it is down 6.6 percent compared to last year. The EBITDA margin remains strong at 45.5 percent, but shows a slight decline from last year’s 47.2 percent, as does the cash flow from operating activities, which fell by 1.4 percent to 3.1 billion kuna.  Cash equivalents and time deposits decreased by 7.9 percent to 5.4 billion kuna.
T-Mobile recorded a subscriber growth of 12.8 percent and revenue growth of 6.1 percent to 4.4 billion kuna. The number of postpaid subscribers increased by 18.4 percent and now accounts for 59.7 percent of T-Mobile’s revenue. On the other hand, the market share of subscribers fell from 47.4 to 45.9 percent, as did the market share by revenue from 52.2 to 50.4 percent.

In fixed telephony, T-HT also saw a decline in total traffic (-10.5 percent) and the number of telephone lines (-4 percent), but strong development of internet and wholesale services resulted in a revenue decline of only one percent. Revenues from internet services increased by 33.2 percent, the number of ADSL lines rose by 37 percent to 472,653, while the number of MAXtv subscribers increased by 210 percent to 135,573. – Despite the economic turmoil in 2008, T-Hrvatski Telekom delivered on its promise: solid revenue growth, protection of operating margins, strong cash generation, and a significant dividend for shareholders. We achieved this by focusing on continuous investment in quality and expanding our network, with strict cost control and, at the same time, offering innovative products at competitive prices, such as MAXtv and the 3G iPhone. Facing the challenges of 2009, we will continue to focus on these core priorities – stated CEO Ivica Mudrinić.  (M. B.)