HT achieved slight revenue growth, proposed dividend of six kuna per share

Hrvatski Telekom achieved revenues of 6.9 billion kuna in 2015, which is 0.2 percent higher than the previous year, and a dividend of 6 kuna per share has been proposed.

According to a report published on Wednesday, the net profit of Hrvatski Telekom amounted to 925 million kuna last year, which is 19 percent less than the previous year. Along with revenues, operating profit (EBITDA before one-off items) was also stable compared to 2014, amounting to 2.78 billion kuna, with a strong EBITDA margin of 40.2 percent. Net cash flow from operating activities amounts to 2.37 billion kuna, having increased by 3.1 percent.

– We have had a very successful year in which we stabilized all financial indicators and laid the foundations for further growth and development of our business, stated Davor Tomašković, CEO of Hrvatski Telekom, in the report.

The company invested a total of 1.46 billion kuna in the past year, which is 34.8 percent more than the previous year. Investments were directed towards three key areas – the development of mobile and fixed infrastructure, increasing capacity for broadband internet access, and completing IP migration. HT is the third telecom in the European Union to transfer all its users and services to an ALL-IP network environment, and the value of the project over the past five years has exceeded 400 million kuna. Additionally, HT is implementing transformation for the second consecutive year through the strategic program HorizonT, aimed at increasing efficiency and improving operations. The results of the first wave of HorizonT are visible, as noted, in achieved cost savings, improved customer experience, defined capital investment strategy, changes in service offerings, and better utilization of technology.

For the year 2015, the Management and Supervisory Board proposed to the General Assembly the payment of a dividend of 6 kuna per share, totaling 491.3 million kuna and representing 55 percent of net profit.

As previously announced, HT will announce a minimum targeted dividend for each year at the beginning of the year, which will be within the range specified in the Dividend Policy. For the financial year 2016, the Management currently expects a dividend payment of at least 6 kuna per share.

HT also states that it will continue with investments and further development in 2016.

– In 2016, we will continue investing in infrastructure development and transforming our business, and we will direct our technological knowledge and expertise towards innovations and further improving the customer experience. Thus, we will continue to offer our customers the highest quality and fastest service. We are also continuing to observe opportunities for potential expansion of Hrvatski Telekom’s business in Croatia and the region, concludes Tomašković.