Croatia's Hrvatski Telekom boosts cons organic net profit 237% y/y in Q1 – SeeNews

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Apr 28, 2022 12:43 EEST
ZAGREB (Croatia), April 28 (SeeNews) – Croatia’s biggest telecommunication services provider, Hrvatski Telekom [ZSE:HT], said on Thursday its consolidated organic net profit rose 237.4% yera-on-year to 175 million kuna ($24 million/ 23 million euro) in the first quarter of 2022, supported by improved operating performance and lower depreciation.
“Hrvatski Telekom closed the Q1 2022 on a positive note with a good commercial performance, continuing to grow in core telco and increasing profitability, while maintaining the strong investment plan ensuring the continuation of positive trends and solid commercial momentum,” the company said in a filing to the Zagreb bourse.
Organic adjusted EBITDA after leases increased by 5.1% on the year to 650 million kuna. This is the sixth consecutive quarter of adjusted EBITDA AL growth demonstrating continuation of positive commercial momentum and positive impact of operating model transformation measures.
In the first three months of 2022, organic revenues contracted by 0.7% on the year to 1.711 billion kuna as the growth of the core telco revenues was not sufficient to fully offset contraction of System Solutions, it said.
Organic investments amounted to 356 million kuna in the first quarter, up 7% compared to the same period of last year.
A direct business impact from Russia-Ukraine crisis on HT is low, however the impact from the rise in energy prices, and disruptions throughout the entire supply chain is under observation and the company is making every effort to minimise this risk and to adapt to the new environment, it said.
“In 2022, we are aiming for stable revenues, around a mid-single digit increase in EBITDA AL, and a mid-single digit decrease in CAPEX AL compared to 2021. Our regional expansion outlook remains the same as we continue to monitor and evaluate potential M&A activities,” it added.
Deutsche Telekom Europe owns 52.17% of HT.
In July 2021, Hrvatski Telekom and lender Zagrebacka Banka signed an agreement to sell their shares of fixed Internet and pay-TV services provider OT-Optima Telekom [ZSE:OPTE] to Telemach Hrvatska, owned by Dutch-based multi-play and media provider United Group. The deal was finalised in January 2022.
HT’s shares traded 0.26% lower at 191 kuna on Thursday morning on the Zagreb bourse.
(1 euro=7.565 Croatian kuna)
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