HRT generated 1.38 billion kuna, using 100 million kuna profit to cover losses

The management of Croatian Radiotelevision (HRT) reported on Wednesday that last year HRT achieved total revenue of 1.38 billion kuna, while expenses amounted to 1.29 billion kuna, resulting in a total profit after tax of 100 million kuna, which will be used to cover old losses.

As HRT states in the announcement, the profit achieved for 2017 in the amount of 100 million kuna will be used exclusively to cover losses carried over from previous periods, which at the end of last year amounted to 550 million kuna, representing 68 percent of the equity capital.

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“The business result of HRT is a confirmation of HRT’s seriousness in implementing the conclusions of the Government expressed in the proposed measures, such as reducing credit indebtedness, rationalizing operating costs, reducing costs of external collaborators, increasing the efficiency of permanent employees, and implementing restructuring,” the announcement states.

HRT intends to reduce the carried-over loss to an expected level below 50 percent of the equity capital, and through careful cash flow management, ensure necessary liquidity and reduce obligations to suppliers, i.e., to keep all payments within agreed deadlines, which, as they state, has already been achieved in 2017.

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In addition, activities are being undertaken to reduce HRT’s credit indebtedness. At the end of last year, HRT reduced its obligations to banks by 78 million kuna compared to 2016, and obligations to suppliers by 56 million kuna, the announcement states.