Hrvatski Telekom’s Q1 net profit down 1.7%

As a result of positive business developments across consumer and business segments, revenue grew 4.8% year-on-year in the first quarter, driven by strong performance in mobile, fixed service and system solutions, the company said in a filing to the Zagreb bourse.

Revenue reached 252.7 million euro in January-March, while operating expenses totalled 154.8 million euro.

The exceptional item was mostly related to restructuring redundancy costs and legal cases.

"Despite continued inflationary pressures on our cost base, we have managed to contain operating expenses increase to 5.5% on the year, supported by operating model transformation and efficiency initiatives," Hrvatski Telekom added.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) after leases grew by 6.9% to 93.2 million euro.

Investments amounted to 39.3 million euro in the first quarter and will further accelerate in the second half of the year, above the level of 2023, excluding spectrum, it added.

Deutsche Telekom Europe owns 53.86% of Hrvatski Telekom.

Hrvatski Telekom shares traded flat at 30.50 euro by 0952 local time on Tuesday on the Zagreb bourse.

($ = 0.934 euro)