30.10.2024
Business results for the nine months of 2024
Revenue up by 5.5%, EBITDA AL by 5.0%, net profit reached EUR 106.7 million
- Growth momentum continues: revenue up by 5.5%, EBITDA AL by 5.0%, net profit reached EUR 106.7 million
- Market leading investments of EUR 161.0 million, up by 14%
- Confirmed the best and the fastest mobile network
Hrvatski Telekom delivered strong results in 9M 2024 with 5.5% YoY revenue growth, driven by robust performance in mobile, fixed services, and system solutions.
Strong top-line growth has led to a 5.0% YoY increase in adjusted EBITDA AL and a 10.8% rise in net profit. Positive commercial performance and growing revenue, combined with transformation and efficiency initiatives, enabled HT to mitigate the impact of rising operating costs due to workforce cost increase and still persisting inflationary pressures.
In the 9M 2024, investments accelerated, amounting to EUR 161.0 million, reflecting a 14% YoY increase and confirming Hrvatski Telekom’s dedication to accelerating Croatia’s digitalization, building essential infrastructure across Croatia.
Strengthened network leadership
The network leadership has been further strengthened with Hrvatski Telekom's market-leading investments. During 9M, we expanded our already the largest FTTH network in the country, increasing our FTTH coverage by additional 23% YoY. This brings us an important step closer to our goal of covering over 1.1 million households with gigabit fiber speeds.
With significant improvements made in all network performance metrics, HT’s mobile network has once again earned another industry benchmark recognition, winning Ookla's award for the best and fastest mobile network in Croatia, which marks the sixth consecutive year of this achievement. Earlier this year, HT was also recognized by the regulator HAKOM and umlaut for having the best mobile network, meaning that all independent research consistently confirm Hrvatski Telekom’s network as the leading in the country.
Our focus continues to be on advancing 5G and fiber technologies while phasing out legacy systems. We are leading with innovative developments, including the establishment of Croatia's first campus networks and open network APIs, marking the next phase of 5G development and monetization. Hrvatski Telekom has equipped the new container terminal in Rijeka with a 5G network, marking a significant advancement in the implementation of 5G technology in the maritime industry. This project, for which Rijeka Gateway selected Hrvatski Telekom, additionally strengthens HT’s leadership in providing Managed 5G Services for the port terminal. The migration to advanced 5G SA architecture is the next step, pioneering the use of a dedicated Network Slice for industrial applications in Croatia over Hrvatski Telekom’s public mobile network.
The highest CX on the market based on TRI*M
Our commitment to providing the best-in-class network quality, innovative product offerings, and superior customer experience has again resulted with us providing the best customer experience. This is evident from our consistently high satisfaction scores, as measured by the industry-standard TRI*M benchmark, where Hrvatski Telekom maintains the market leader position.
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 9M 2024, as part of its ongoing Share Buyback Program, Hrvatski Telekom acquired an additional 177,315 shares on the Zagreb Stock Exchange. The Company invested EUR 5.3 million in these buybacks, further demonstrating its dedication to enhancing shareholder value.
In September, Hrvatski Telekom adopted amendments to the Share Buyback Program initiated in April 2021. The purpose of the Program remains unchanged, while the amendments enable a more efficient acquisition of Company shares and Program execution. The number of shares intended for purchase during the Program's duration is increased from 3,000,000 to 5,000,000, with the maximum monetary amount allocated to the Program is increased from EUR 79,633,685.05 to EUR 135,000,000.
Maintained Outlook for the year-end
Although the environment remains challenging, our outlook remains unchanged. We expect a mid-single digit growth in revenue and EBITDA AL and a high-single digit increase in CAPEX AL compared to 2023. Our regional expansion outlook remains the same as we continue to monitor and evaluate potential M&A activities.
Commenting on the business results for 9M 2024, Nataša Rapaić, CEO of Hrvatski Telekom, stated:
“In the first nine months of 2024, Hrvatski Telekom has maintained its growth momentum by delivering strong commercial and financial results. Our growth across both residential and business segments is reflected in increased revenue, EBITDA AL, and net profit, and this despite challenging labor market conditions and ongoing pressures from rising costs and inflation.
With again market-leading investments we have achieved further improvements in all key network performance parameters and are particularly proud that our mobile network has once again, proven to be the best. This is also valid for our fiber network which we have since the beginning of the year, expanded by over 100,000 new households, which is an all-time high 9-month HT rollout. At the same time, as a result of our efforts across all our business operations we continue to lead the market in customer experience.
Our commitment to delivering top-quality network services, innovative products, and an exceptional customer experience is made possible by our highly dedicated employees whose professionalism and engagement is the cornerstone of our success."