In 9M 2021 A1 Croatia revenues were up 7.7% YoY, EBITDAaL up 14.6% and EBIT increased 41% YoY to EUR 51.3m.
The parent company of HT’s largest competitors, Telekom Austria (A1) published their 9M 2021 results and we are bringing you some key takes regarding their performance on the Croatian market. Note that Tele2 is the third largest provider of telephony services in Croatia and also one of HT’s competitors. It was acquired by United Group which is not listed, so we are unable to obtain their quarterly results.
Q3 was marked by the acquisition of 5G spectrum in July 2021 for all mobile network operators in Croatia. Therefore, A1 also acquired spectrum for 700 MHz, 3.6 GHz and 26 GHz frequencies for the amount of EUR 14.0m ( HRK 107m). So from July A1 has included 5G propositions in its portfolios. In the mobile business, A1 Croatia recorded a strong growth in Q3 2021, owing to a newly redesigned portfolio with attractive hardware and increased subsidies, supported by roaming rebound resulting from exceptionally strong tourist season and almost record number of visitors during summer months. In the fixed-line business, successful up-selling to high-bandwidth products bundled with exclusive TV content remained in focus.
In 9M 2021 A1 Croatia recorded EUR 336.2m in revenues which represents a 7.7% YoY growth. Revenue growth seen is 9M comes from a strong performance in Q3 when total revenues increased by 8.7% YoY, following a strong service revenue growth while equipment revenues remained at the level of the previous year. Mobile service revenues grew due to solid performance in the mobile core, continued strong performance of mobile Wi-Fi routers and increased visitor roaming. Retail fixed-line service revenues remained stable as the successful up-selling activities to high-bandwidth products compensated for the ongoing shift of customers from the fixed-line bistream access to mobile Wi-Fi routers.
EBITDA is up 13.1% YoY, amounting to EUR 125.8m. Meanwhile EBITDA after leases amounted to EUR 114.6m which represents a 14.6% YoY increase. However, one should note that the growth seen is 9M comes from a strong performance in Q3 when successful translation of service revenues has resulted in strong EBITDA growth of 15.1 % YoY. Operating expenses were up mainly due to positive one-off effect of EUR 2.6m in the comparison period (reimbursement of frequency fees) as well as higher advertising and commission costs in the reporting period. As a result of sales growth and lower depreciation stemming for lower investments during pandemic times, 41% YoY growth in EBIT to EUR 51.3m was realized.
Meanwhile CAPEX expenditures are measured on the level of whole Group and they increased by 41.1% YoY. Investments in the reporting period are back to normal levels after their cuts in the Group’s entire footprint taken in the comparison period as a precautionary measure in the course of the COVID-19 pandemic.
A1 Revenue & EBITDA (9M 2019- 9M 2021 EURm)
*EBITDA after leases is defined as EBITDA plus depreciation of right-of-use assets and interest expense on lease liabilities
