Hakom Q1 2022 ICT Market Data

In Q1 2022, revenue from internet access services amounted to HRK 1.3bn, an increase of 5.9% YoY.

HAKOM has recently published its ICT market data for Q1 2022 in Croatia. According to the report, total revenue from fixed public communication networks amounted to HRK 257m, a decrease of -4.6% YoY. Of that, revenue from retail amounted to HRK 231.2m, decreasing by -2.2% YoY, while wholesale revenue amounted to HRK 25.8m, a decrease of app. -22% YoY. Meanwhile, the total number of subscribers amounted to 1.2m, a decrease of -1.5%. Of that, HT currently holds the largest market share of 45.3%, remaining at the same level YoY, while other participants on the market hold the remaining 44.7%.

Total revenue from telephone services in mobile public communications in Q1 2022 declined to HRK 877.5m, a decrease of -1.3% YoY. Such a decrease came both on the back of decreases in retail revenue, which decreased by -1.2% and amounted to HRK 727.3m, and the wholesale revenue, which decreased by -1.7% and amounted to 150.2m. In the retail segment, revenue from residential users, which constitutes 75% of the retail revenue, remained flat and amounted to HRK 542.9m, while at the same time, revenue from business users decreased by -4.8% and amounted to HRK 184.5m. Meanwhile, the total number of mobile active subscribers amounted to 4,403,111, a slight increase of 0.97% YoY.

Looking at the market share by subscribers, we can see that the situation remains mostly unchanged for the last couple of quarters, with HT maintaining the highest market share at 45.3% (a decrease of 0.2 p.p. QoQ but a decrease of -0.5 p.p. YoY), followed by A1, which currently holds 35.2% market share, a decrease of 0.2 p.p. QoQ and an increase of 0.4 p.p. YoY). Lastly, we have Telemach, which holds 19.5% of the current mobile market share, an increase of 0.3 p.p. QoQ, and 0.1 p.p. YoY.

Mobile Subscribers Market Share, Q4 2019 – Q1 2022 (%)

Total revenue from internet access services amounted to HRK 1.3bn, an increase of 5.9% YoY. The increase came solely on the back of mobile internet revenue increase, which increased by 12.8% and amounted to HRK 841.4m. Fixed internet revenue decreased slightly by 2.9%. The total number of internet subscriptions also increased, growing by 2.7% and amounting to 5,778,937.

Total revenue from television services increased by 3.2% to HRK 215m, with the total number of pay-TV subscribers amounting to 875.3k, an increase of a slight 0.3%. IPTV users were up 1.2% and amounted to 450.8k, while at the same time, satellite TV users decreased by -4.8% and amounted to 137.7k.

So, with all this data in mind, how did the two largest telecom companies in Croatia, Hrvatski Telekom and A1 perform during Q1 2022?

Hrvatski Telekom

The trends seen in the whole market are also quite reflective of the largest telecom company in Croatia. During the first quarter of 2022, HT recorded revenues of HRK 1.7bn, a decrease of 4.8 YoY. Nevertheless, HT increased its EBITDA and profitability margins, while maintaining its strategy course with a focus on consumer experience improvement. HT also remained a leading investor in digital infrastructure. Organic revenues, when adjusted for Optima contribution), decreased slightly by 0.7%, as still the growth in the basic telecommunication business did not fully compensate for a decrease in the System solution segment. HT Group revenues from mobile services increased by 4.6%, but growth was offset by lower prepaid revenue. Fixed services revenues remained mostly flat, increasing by a slight 0.6%.

Organic adjusted EBITDA after leases grew 5.1% YoY, representing a positive trend in the business model. Growth in EBITDA came on the back of lower consolidated cost, adjusted for Optima. OPEX decreased by HRK 60m, or 5.5% YoY. This decrease happened due to a lower material cost, which decreased by HRK 42m (7.7% YoY decrease). Also, employee costs decreased by HRK 10m (3.2% YoY). Organic bottom line was boosted by good results and a lower amortization cost, increasing by more than 3x YoY. Results came on the back of positive customer experience and leading 5G market spot.


Meanwhile, the 2nd largest telecom company in the Croatian market, A1, recorded revenue of HRK 1.16bn, an increase of 2.7% YoY. Services revenue grew by 3.4% and amounted to HRK 988m. Service revenues and EBITDA reported growth in all markets. The total mobile subscriber base was increased by as much as 4.5%, while internet home subscribers also grew by 4.5%. In Q1, EUR 750m bond was repaid from cash and new bank loans. Considering A1 Hrvatska is part of A1 Telekom Austria, the net profit is consolidated on the Company’s entire level, and thus cannot be taken as a separate for the Croatian market only.

Category : Flash News

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