HT achieved a revenue growth of 4.8 percent in the first quarter

Croatian Telekom achieved a revenue growth of 4.8 percent in the first quarter of 2024, thanks to positive business development in the segments of private and business users, as well as good results in the area of mobile and fixed services and system solutions, the company announced.

Operating expenses increased by 5.5 percent compared to the same period last year, driven by the transformation of the business model and efficiency enhancement initiatives. This contributed to a 6.9 percent growth in adjusted EBITDA after leases compared to last year. Net profit amounted to 26.6 million euros and, due to a one-off item, is down by 1.7 percent compared to the same period last year.

Investments in the first quarter amounted to 39.3 million euros, while in the second half of the year they will accelerate further and exceed the level from 2023, they state in the announcement. With new investments in network infrastructure across Croatia, in urban and rural areas, HT has continued to strengthen its status as the leading network.

During the first quarter, HT continued to expand its optical network (FTTH), resulting in an increase in coverage for an additional 21 percent of new households and businesses compared to last year. This marks an important step towards HT’s goal of covering over a million households with gigabit optical speeds, which is now available in more than 130 cities and municipalities.

The capital allocation strategy of Croatian Telekom clearly demonstrates the company’s strong focus on returns for shareholders and the intention to return value to shareholders. The Management Board and the Supervisory Board of Croatian Telekom proposed to the General Assembly of the Company on March 20 the distribution of net profit from 2023 in such a way that part of the net profit amounting to 119,340,000.00 euros is used for the payment of dividends to shareholders in the amount of 1.53 euros per share.

This is a proposal for the payment of the largest dividend in the last decade, with a dividend payout ratio relative to net profit of 95.3 percent and a growth of 39.1 percent compared to last year.

In the first quarter of 2024, Croatian Telekom, under the current Share Buyback Program, purchased an additional 54,725 shares of the Company on the Zagreb Stock Exchange, for which it paid an equivalent value of 1.6 million euros for the acquisition of shares of the Company in the reporting period.

Although the environment remains challenging, our primary goal is to continue growth. Our aim is to achieve low single-digit revenue growth and mid-single-digit growth in EBITDA after leases and capital expenditures compared to 2023. We have not changed our stance on regional expansion and are carefully assessing potential acquisition and takeover opportunities.

– In the first quarter, Croatian Telekom achieved good business results in all segments and despite the challenging macroeconomic environment and ongoing inflationary pressures on costs, recorded growth in revenue and EBITDA after leases. By increasing the coverage of the gigabit 5G network and the optical (FTTH) network across Croatia, we continued to strengthen our status as the leading network. Continuous investments in ICT infrastructure, along with ongoing improvements in network and service quality, and enhancements to our unique portfolio of services and content have resulted in a record level of customer experience, both in the private and business user segments. We remain committed to realizing our investment plans, which are crucial for the digitalization of Croatia. Through digitalization and new technologies, we aim to increase efficiency and mitigate inflationary pressures on our business. At the same time, we continue to focus on further improving customer experience and employee engagement. I am confident that with Nataša Rapaić, who will take over as CEO in July, Croatian Telekom will successfully continue to grow, said Kostas Nebis, CEO of Croatian Telekom.