Hrvatski Telekom boosts net profit 52% in 2023

As a result of strong commercial momentum and positive business developments Hrvatski Telekom in 2023 recorded 5.7% annual revenue growth, to 1.039 billion euro, fueled by good performance across consumer and business segments, the company said in a filing to the Zagreb bourse.

Despite inflationary and competitive pressures, Hrvatski Telekom managed to contain the increase of operating expenses to 4.8% on the year, supported by continued operating model transformation and cost efficiency initiatives. This, alongside the strong commercial momentum has contributed to a 5.3% annual adjusted EBITDA after leases (EBITDA AL) growth. EBITDA AL reached 397.5 million euro, while operating expenses stood at 615.6 million euro last year.

The company said that last year it made the largest investments in its history - of 361.4 million euro, up 50.7% on the year, including spectrum.

In 2024, Hrvatski Telekom is aiming for a low single-digit revenue increase, considering slowdown of mobile non-service revenue after their peak in 2023 and reduced contribution of lower margin transit traffic revenue.

"Additionally, we anticipate a mid-single-digit growth in both EBITDA AL and CAPEX AL compared to 2023," it added.

"Our stance on regional expansion remains unchanged, as we diligently assess potential M&A opportunities," Hrvatski Telekom also said.

Deutsche Telekom Europe owns 53.82% of Hrvatski Telekom.

Its shares traded flat at 27.37 euro by 1018 local time on Friday on the Zagreb bourse.

($ = 0.924 euro)