Croatian Telecom’s Profits Grow Again

Total Croatia News

Croatian Telecom is by far the largest telecommunication company in Croatia.

In 2016, Croatian Telecom (HT) had net profits in the amount of 934 million kuna, which was 1 percent more than in 2015. HT had revenues in the amount of 6.97 billion kuna, which was 0.7 percent more than in 2015. The board of directors has therefore proposed that shareholders should receive a dividend of 6 kuna per share, the same as a year ago, announced the company on Thursday, reports on February 23, 2017.

The company has kept the leading position in all segments of the telecommunications market, and the revenue growth was explained by good results in the segments of mobile communications and wholesale sales, by growth in the ICT field, and by the results of the electricity distribution business.

In the past year, HT increased the value of investments to 1.608 billion kuna, which was 9.1 percent more than the year before. Investments were aimed at increasing the capacity for broadband Internet access, improving user experience and increasing competitiveness.

Shareholders will receive divided in the amount of 6 kuna per share, which gives the total amount of dividend payment of 491.3 million kuna, or 54 percent of profits, while 417.5 million kuna will be retained by the company.

“Behind us is a very successful year in which we recorded an increase in all financial indicators and continued with significant investments in infrastructure and the transformation of the company. We have completely reversed a downward trend and created conditions for further growth. We purchased a majority stake in Montenegrin Telecom in early 2017, which is step towards expansion to the regional markets, and we will continue to monitor possible opportunities for further regional expansion. The company remains focused on growth strategy as the leader in the national and regional market of telecommunications and digital services”, noted Davor Tomašković, the CEO of HT.

In early January 2017, HT has gained 76.53 percent stake in Montenegrin Telekom for the purchase price of 123.5 million euros. “Despite increased investments and acquisition of Montenegrin Telecom, we have kept the shareholders’ dividend stable”, said Tomašković.

“This is the first step in regional expansion of Croatian Telecom. We will continue to look for opportunities, but we are currently very happy because this process has brought us one good acquisition”, concluded Tomašković.


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