HT: Revenues increased by 3.4 percent, net profit 132 million kuna, and here is what they expect by the end of the year…

Hrvatski Telekom (HT) achieved a net profit after non-controlling interests of 136 million kuna in the first quarter of this year, which is 15 million kuna or 10.1 percent less than in the same period last year, while revenues increased, according to the consolidated financial report published on Thursday at the group level.

Net profit amounted to 132 million kuna, which is 7 percent lower than in the same period last year.

In the first three months of this year, HT’s revenues increased by 3.4 percent compared to the same period last year, reaching 1.67 billion kuna, primarily as a result of increased revenues in the ICT segment, good results in electricity sales, and increased sales of mobile devices, the report states.

EBITDA before one-off items is stable at 627 million kuna, which is 0.1 percent lower than last year, with an EBITDA margin of 37.5 percent. The EBITDA margin is lower than in the same period last year by 1.3 percentage points due to increased revenues from low-margin segments and increased investments in market activities.

After investing 1.46 billion kuna in infrastructure development in 2015, HT continues with significant investments focused on three key areas – the development of mobile and fixed infrastructure and increasing capacity for broadband internet access. Compared to the first quarter of last year, capital expenditures are higher by 41 million kuna, or 15.2 percent, according to the financial report.

In 2016, HT continues the strategic program HorizonT, whose main goal is to increase efficiency, improve the company’s operations, and further grow and develop the business. In the first quarter, the program for employee restructuring was completed, resulting in 240 employees leaving the company.

“We are satisfied with the results achieved, marked by revenue growth and stable EBITDA in the first quarter, and we maintain our published financial outlook for the entire year of 2016. In the remainder of the year, we will continue to focus on investments, improving customer experience, and innovation in our product and service offerings, as well as strict cost discipline,” emphasized Davor Tomašković, CEO of HT, in a comment on the financial results achieved.

The management estimates that there will be a slight decline in revenues this year, in the range of 0 to 2 percent, that the EBITDA margin will be around 40 percent, and that planned investments will be moderately lower than in 2015, but above HT’s long-term average of approximately 1.1 billion kuna.