HT achieved 27.4 million euros in net profit in the first quarter

Croatian Telekom (HT) achieved 27.4 million euros in net profit in the first quarter of this year, which is an increase of 16.7 percent or approximately four million euros compared to the same period last year, according to HT’s financial report.

At the same time, total revenues exceeded 244 million euros, which is an increase of 6.3 percent or 12.5 million euros compared to the same period last year.

The growth in profit, in addition to revenue growth, was also contributed by lower total expenses in the first quarter compared to the same period last year, decreasing by 7.7 million euros to 202.4 million euros.

HT assessed these business results as good, emphasizing that their revenues grew by 6.3 percent, and EBITDA after leases increased by 1 percent compared to last year’s first quarter, which they attribute to good business results and further transformation of the operational business model, which mitigated inflationary pressures, primarily the rise in energy prices.

They state that net profit increased mainly due to lower depreciation, a positive net financial result, and better EBITDA.

HT’s investments in the first quarter reached 45.6 million euros, which is 3.5 percent less than in the same period last year, but they add that they remain high and represent “far the largest investments in the market and a significant contribution of HT to the digitalization of Croatia.”

They also remind that they ‘purchased’ the largest share in the radio frequency spectrum for mobile networks at the public auction of HAKOM for 135.5 million euros, thereby maintaining HT’s leading position in terms of shares in the mobile network spectrum.

– HT remains committed to investment plans in network quality, the development of the 5G network, and the introduction of optical infrastructure, and accordingly is focused on building its optical infrastructure throughout Croatia – they emphasize from HT.

They state that they have further increased FTTH (fiber-to-the-home) coverage by almost 20 percent compared to last year and that “HT’s optical gigabit infrastructure is already significantly larger than that of the closest competitor.”

The proposed dividend of 1.10 euros represents a payout ratio of 94 percent.

The Management Board and the Supervisory Board of HT proposed to the General Assembly on March 23 of this year the distribution of net profit from 2022, so that part of 86.6 million euros is used for the payment of dividends to shareholders in the amount of 1.10 euros per share.

They emphasize that this represents a dividend payout ratio relative to the achieved profit of 94 percent, which is an increase of 3.6 percent compared to last year.

They also state that the management currently expects a minimum dividend of 0.80 euros per share for 2023, in which their goal is “low single-digit revenue and EBITDA growth after leases, with mid-single-digit reductions in capital expenditures after leases compared to 2022.”

Commenting on the results, HT’s CEO Kostas Nebis emphasized that they had positive business development in the first quarter and that the revenue increase in all key categories reflects their commitment to continuous business improvement and achieving the goal of profitable and sustainable growth.

– We have continued to expand our already far largest optical infrastructure in the country, which we are building not only in cities but also in suburban and rural areas, ensuring that everyone has the opportunity to advance and develop thanks to digitalization – Nebis stated.