26.2.2025
Unaudited interim report for the HT Group (January - December 2024)
Growth momentum continues: revenue up by 6.0%, adjusted EBITDA AL up by 4.7%
- Growth momentum continues: revenue up by 6.0%, offsetting 7.3% operating expenses increase, adjusted EBITDA AL up by 4.7%
- Market leading investments of EUR 242.9 million, up by 9.9%
- The largest FTTH network, expanded by over 150k new households, the largest fiber rollout in a single year
- Net Profit reached EUR 141.9 million
Hrvatski Telekom achieved strong results in 2024 with 6.0% YoY revenue growth, driven by robust performance in mobile, fixed services and system solutions, while consistently providing the best customer experience on the market.
Strong top-line growth resulted in 4.7% YoY increase in adjusted EBITDA AL and a 7.5% rise in Net Profit. Positive commercial performance and sustained revenue growth, coupled with transformation and efficiency initiatives, enabled HT to effectively manage rising operating costs due to workforce salary increases and persistent inflationary pressures.
In 2024 HT accelerated the market leading investments, amounting EUR 242.9 million, reflecting a 9.9% YoY increase. This underscores Hrvatski Telekom’s commitment to accelerating Croatia’s digitalization, building essential infrastructure across Croatia.
Despite challenging environment and economic uncertainty, Hrvatski Telekom successfully delivered on its’ revised Outlook, exceeding the initial guidance for 2024. Our strategic initiatives and strong financial performance position us well for continued growth and value creation for our shareholders.
Strengthened network leadership
In 2024, we significantly expanded our already the largest fiber network in the country, increasing FTTH coverage by additional 20% YoY. The expansion to 150,000 new households marks the largest fiber rollout in a single year in HT’s history. This brings us step closer to our ambition of covering over 1.1 million households with gigabit fiber speeds.
Our mobile network also achieved substantial improvements across all performance metrics, earning key industry recognitions. For the sixth consecutive year, we received Ookla's award for the best and fastest mobile network in Croatia. Additionally, we were recognized by the regulator HAKOM for the second year in a row and by umlaut for the fourth time in five years for having the best mobile network.
Market leading customer experience in consumer and business segment
Consistent investments, dedication to innovation, service quality, and high employee engagement have resulted with improvements across all areas. These efforts confirm our product and network superiority, enabling Hrvatski Telekom to deliver again the best customer experience in the market, both in residential and business segment, as evidenced by industry benchmark TRI*M.
#1 Telco Brand on the market
Our best customer experience is testament to our brand strength and solidifies our reputation as the leading and the most trusted telecommunications brand in Croatia. This achievement underscores our commitment to service quality, product innovation, network leadership and customer satisfaction.
Driving the ESG agenda
Living up to our sustainability strategy and delivering on ambitious ESG commitments, Hrvatski Telekom received the Croatian Sustainability Index award for the fourth year in a row and is again the only Croatian company to make the World's Most Ethical Companies list, according to Ethisphere. These recognitions, along with our corporate social responsibility programs and practices, underscore our unwavering commitment to positively impact the environment and society, while driving our company’s sustainable future. By ensuring crucial digital infrastructure and building it across Croatia, we are enabling economy, businesses and society to operate and develop more sustainably.
Since 2021, Hrvatski Telekom has been using 100% renewable energy sources for its electricity needs. In October 2024, we achieved a significant milestone in our energy strategy with the commencement of the first virtual Power Purchase Agreement (vPPA).
Aligned with our comprehensive environmental protection programs, with a special focus on resource efficiency through the platform “Call you have to take”, Hrvatski Telekom has recorded a record high year, with 28% YoY increase in collected electronic devices.
Continued operating model transformation
Hrvatski Telekom continued to transform its operating model, enhancing efficiency levels, while consistently delivering the best customer experience in the market. In January 2025, Hrvatski Telekom completed the merger of HT Servisi Ltd. into HT Inc., further streamlining operations and boosting organizational efficiency. Another significant milestone for Hrvatski Telekom was the 3G network retirement, which was concluded in Q1 2025. The full transition to 4G and 5G networks enables even better connectivity, improved customer experiences and energy-efficient solutions, aligning with our commitment to innovation and sustainability.
The highest capital allocation in over decade
In 2024, Hrvatski Telekom paid a dividend of EUR 119.2 million, or EUR 1.53 per share, marking the highest dividend payout in over a decade. In addition, Hrvatski Telekom acquired 803,360 shares on the Zagreb Stock Exchange, investing EUR 28.4 million in these buybacks. This further demonstrates our dedication to enhancing shareholder value. In September 2024, Hrvatski Telekom updated its Share Buyback Program. While the purpose of the Program remains unchanged, the amendments enable a more efficient acquisition of Company shares and Program execution. The share purchase limit increased from 3 million to 5 million, and the budget grew from EUR 79.6 million to EUR 135 million.
Overall, in 2024, Hrvatski Telekom delivered total shareholder return (TSR) of 52.9%, a record high since its IPO, reflecting the company's strong commitment to maximizing shareholder value.
Outlook for 2025
Despite ongoing uncertainties, persistent inflationary and salaries pressures, our objective remains to continue on our growth trajectory. We expect revenue to increase at a low single-digit rate, with slightly higher growth in service revenues. Adjusted EBITDA AL is also expected to grow at a low single-digit rate. At the same time, we are maintaining our investment pace in fiber infrastructure and digitalization, with anticipated low-single-digit growth in CAPEX AL compared to 2024. Our stance on regional expansion remains unchanged, as we diligently assess potential M&A opportunities.
Commenting on the business results for FY 2024, Nataša Rapaić, CEO of Hrvatski Telekom, stated:
"The past year was marked by further development and strong business results, which, despite a challenging environment and ongoing pressures such as rising costs and inflation, confirmed our ability to adapt and drive growth across all key areas.
We recorded growth in the residential and business customer segments, as well as in mobile, fixed, and ICT services. This growth is the result of the dedication and hard work of our employees and is reflected in the increase in revenue, EBITDA AL, and net profit.
We strengthened our leadership position as the best mobile and fiber network and reaffirmed our commitment to providing the best customer experience in both residential and business segments. Our customers continue to recognize us as the leading and most trusted telecom brand, a trust we honour by continuously enhancing our service and product offerings and developing innovative, reliable digital solutions that meet evolving customer demands. At the same time, we developed numerous innovative projects, raising existing industry standards and setting new ones. With the highest market investments exceeding EUR 242 million, we achieved the largest annual fiber network rollout in the history of Hrvatski Telekom, and improved network performance across all key segments. Our commitment to sustainable development has never been stronger - our programs have become more extensive, and our contributions to society, digital inclusion, and environmental protection increasingly impactful."
Our results confirm the quality of our strategic direction. With the dedication and engagement of our employees, we will continue to enhance customer experience, expand and develop our network, accelerate digitalization and business transformation, and ensure sustainable growth in the years ahead."