February 24 (SeeNews) - Croatia's biggest telecommunication services provider, Hrvatski Telekom [ZSE:HT], said on Thursday its consolidated net profit rose 4.5% to 615 million kuna ($92 million/ 82million euro) last year, as its operating profit (EBIT) added 0.8% to 831 million kuna.
EBITDA before exceptional items after leases increased by 145 million kuna or 5.3% year-on-year, mostly driven by HT Group in Croatia (136 million kuna or 5.3%), supported by stronger commercial momentum and transformation measures, the company said in a filing to the Zagreb bourse.
Total consolidated net revenue decreased by 64 million kuna or 0.9% compared to 2020, to 7.3 billion kuna. The decrease was driven by HT Group in Croatia (78 million kuna or 1.1%), while its unit in Montenegro, Crnogorski Telekom reported an increase of 14 million kuna or 2.5%.
In terms of business segments, the decline of revenue was driven by lower system solutions revenue (221 million kuna or 24.1%) and fixed revenue (121 million kuna or 3.8%), partially offset by better mobile revenue (277 million kuna or 8.3%).
Total consolidated operating expenses decreased by 165 million kuna or 3.7% last year compared to 2020.
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.
Excluding Optima Telekom contribution in the second quarter of 2020, EBITDA before exceptional items after leases increase would amount to 210 million kuna or 7.9%.
Investments amounted to over 9 billion kuna over the last five years with Hrvatski Telekom again investing more than the rest of the market combined, the company noted.
“In 2022, we are aiming for stable revenues, a mid-single digit increase in EBITDA after leases, and a mid-single digit decrease in CAPEX after leases compared to 2021. Our regional expansion outlook remains the same as we continue to monitor and evaluate potential M&A activities,” Hrvatski Telekom said.
Deutsche Telekom Europe owns 52.17% of HT.
HT's shares traded 1.86% lower at 184.5 kuna on Thursday morning on the Zagreb bourse where the main equity index Crobex dropped 7% as global stock markets plunged after Russian forces fired missiles at several Ukrainian cities and landed troops on Ukraine's Black Sea coast.
(1 euro=7.539 Croatian kuna)