T-HT’s sales down 4.7% in tough climate; pushes new LTE data packages

27 Apr 2012

T-Hrvatski Telekom (T-HT), Croatia’s dominant telecoms group, has reported its results for the three months to 31 March 2012, in which it said that the economic climate, regulatory framework and competitive landscape all ‘got tougher’, leading to a consolidated revenue fall of 4.7% year-on-year to HRK1.806 billion (USD316 million), while it continued applying rigorous cost cutting measures to protect margins. In the residential segment, T-HT’s mobile subscribers decreased by 6.5% year-on-year and 5.2% quarter-on-quarter, while ADSL users increased by 0.2% (to 536,000) and pay-TV customers reached a total of 325,000, up by 8.9% in twelve months. Residential segment revenues were down 5.3% y-o-y, due mainly to lower voice revenues in both mobile and fixed divisions; the residential contribution to EBITDA was HRK691 million in the quarter, up 4.1%.

Business segment results told a slightly different story, with 11.7% (y-o-y) and 7.5% (q-o-q) rises in mobile subscribers, and corresponding 11.0% and 6.2% increase in ADSL customers (reaching 118,000), although enterprise revenues dropped by a similar percentage to the consumer unit, by 3.9%, whilst business services contributed HRK481 million to EBITDA, up 2.3%.

As part of its strategy to plough new revenue streams with innovative new cutting-edge services, T-HT launched its commercial 4G LTE mobile broadband network last month. As flagged up in a press release this week from Nokia Siemens Networks (NSN), the Finnish technology provider has provided the radio access infrastructure for the Croatian operator’s LTE network in the cities of Zagreb, Rijeka, Osijek and Split, and is also modernising and expanding T-HT’s nationwide GSM and 3G networks. It has launched two new LTE data tariffs, ‘Extreme Mobile net L’ which includes 3GB of data traffic for HRK175 per month and ‘Extreme Mobile net XL’ which includes 20GB of data traffic for HRK250 per month. During a promotional period, until 1 October 2012, customers can use unlimited surfing on both Extreme Mobile net tariffs.

NSN has provided its Single RAN (radio access network) solution based on its Flexi Multiradio Base Station, providing GSM, 3G and LTE services to users. LTE services are delivered using the operator’s existing 1800MHz band, with 900MHz spectrum used for GSM and also for 3G coverage expansion in rural areas.

Croatia, Hrvatski Telekom (HT), Nokia Networks (formerly NSN)