H1 results published

25.7.2024

Strong commercial results, revenue up by 6.1%, net profit reached EUR 57.1 million

• Market leading investments, up by 8.9%
• HAKOM recognition for the best mobile network in Croatia for the 2nd consecutive year

Hrvatski Telekom achieved strong commercial results in H1 2024 with 6.1% YoY revenue growth, driven by robust performance in mobile, fixed services, and system solutions.

Positive commercial momentum has driven a 6.0% YoY growth in adjusted EBITDA AL and a 7.0% increase in Net Profit. Strong top line growth has offset increased operating costs driven by handset market activity, salary investments and persisting inflationary pressures, which were partially mitigated by transformation and efficiency initiatives. 

In the Q2 2024, investments accelerated, amounting to EUR 101.5 million in the H1 2024, reflecting an 8.9% YoY increase and confirming Hrvatski Telekom’s dedication to provide the platform for Croatia’s digitalization.

Strengthened network leadership

Our investments in network infrastructure across Croatia, in both urban and rural areas, have continued to strengthen our network leadership. During H1, we expanded our already the largest FTTH network in the country, increasing our FTTH coverage to 25% more new households and businesses YoY. This brings us an important step closer to our goal of covering over 1 million households with gigabit fiber speeds.

Our mobile network has once again been recognized as the best in Croatia. This is confirmed by the independent quality measurement of mobile networks in Croatia, conducted by national regulator HAKOM, with Hrvatski Telekom's network achieved the highest scores in all categories.

The best content portfolio raised to a new level

Starting with April, along with the already available exclusive and high in demand content such as our MAXSport, our customers are able to enjoy Netflix integrated into their MAXtv, by which we have additionally improved our already the best content portfolio.

Maintained the highest CX on the market based on TRI*M

Our commitment to enhancing network quality, product offerings, and channel experiences has led us to maintain the highest customer experience (CX) in the market, as measured by industry benchmark TRI*M.

New organization of the Management Board

The Supervisory Board of Hrvatski Telekom approved two changes in Hrvatski Telekom's Management Board, both effective as of 1 July 2024.

Krešimir Madunović was appointed as a new member of the Management Board and Chief Operating Officer Residential (COOR).

The role of the present member of the Management Board and Chief Human Resources Officer (CHRO) Ivan Bartulović, will have a broader scope of responsibilities, as under the new role he will be member of the Management Board and Chief Operating Officer for Human Resources and Customer Operations (COO).

Capital allocation

In May 2024, Hrvatski Telekom paid a dividend of EUR 1.53 per share, marking the highest dividend payout in over a decade. This represents a payout ratio of 95.3% of the realized profit and 39.1% increase compared to the previous year.

In the first half of 2024, as part of its ongoing Share Buyback Program, Hrvatski Telekom acquired an additional 123,393 shares on the Zagreb Stock Exchange. The Company invested EUR 3.6 million in these buybacks, further demonstrating its dedication to enhancing shareholder value.

Revised Outlook for the FY2024

Hrvatski Telekom has revised its outlook for year 2024. We are upgrading revenue expectations to mid-single-digit growth and are accelerating our investment plans, aiming for a high-single-digit growth of CAPEX AL. Outlook for both adjusted EBITDA AL and regional expansion remain unchanged.

Commenting on the business results for Q2 2024, Nataša Rapaić, CEO of Hrvatski Telekom, stated:

“In the first half of 2024, Hrvatski Telekom has continued consistently strong commercial performance across consumer and business segments, growing revenue, and EBITDA AL by a respectable rate.  We have accelerated our market leading investments, expanding our FTTH coverage across Croatia by additional 25 percent, while our mobile network once again recognized as the best one in the country.

Despite the belief that telecommunications services are becoming increasingly commoditized, the premium service we provide at Hrvatski Telekom is not a commodity. Quite the contrary, it is far above the local benchmark. I am proud that we have maintained the best customer experience levels in the market. We intend to continue enhancing this experience, creating value for our customers and, in the process, also for other stakeholders.

In the next period, our strategic vision is to transform into a leading digital company with highly engaged employees, providing seamless and effortless connectivity and relevant digital opportunities for everyone in Croatia, elevating sustainable and responsible growth to the next level.”