T-Hrvatski Telekom’s ADSL lines up 22%; announces formal fixed/mobile merger

4 Nov 2009

Croatia’s dominant fixed line provider T-Hrvatski Telekom (T-HT) has reported that its total ADSL broadband subscriber lines in service increased by 22.7% year-on-year to reach 527,000 at the end of September 2009, whilst its ‘MAXtv’ ADSL-based IPTV service reached 190,000 subscribers at the same date, up from 92,000 a year earlier. IP-based revenue rose 30.1% year-on-year in the first nine months of 2009 to contribute 22.2% of turnover at the telco’s ‘T-Com’ fixed line/broadband unit. Meanwhile, overall group revenue fell 1.7%, although the company claimed this as a good result in light of Croatia’s significantly declining GDP and the impact of new taxes. EBITDA, however was down 4.4%, although the operator’s EBITDA margin stayed ‘robust’ at 46.8%.

T-HT also announced the formal start of a corporate reorganisation with the signing of a merger agreement between T-HT and its mobile subsidiary T-Mobile Croatia, which is expected to become effective on 1 January 2010. The merger is intended to improve both customer service and internal efficiency by creating a single organisation with separate customer facing units for residential and business segments. T-Mobile posted a 10.1% year-on-year increase in subscribers to 2.88 million at end-September 2009, although its sales slumped 3.5%, largely attributed to lower spending by pre-paid users in the tough economic climate; post-paid subscriptions were up by 16.0%, and contributed 60.8% of T-Mobile’s revenues in the first three quarters of the year.

Croatia, Hrvatski Telekom (HT)