In Q3 2022, revenue from internet access services amounted to EUR 215.6m, an increase of 4.4% YoY.
HAKOM has recently published its ICT market data for Q3 2022 in Croatia. According to the report, total revenue from fixed public communication networks amounted to EUR 34.2, noting a decrease of 7.5% YoY. Of that, revenue from retail amounted to EUR 30.5m, decreasing by 3.3% YoY, while wholesale revenue amounted to EUR 3.6m, a decrease of app. 33% YoY. Meanwhile, the total number of subscribers amounted to 1.2m, a decrease of -1.4%. Of that, HT currently holds the largest market share of 44.9%, remaining at the same level YoY, while other participants in the market hold the remaining 55%.
Total revenue from telephone services in mobile public communications in Q3 2022 grew to EUR 134m, an increase of 10.4% YoY. Such an increase came both on the back of increases in retail revenue, which increased by 12% and amounted to EUR 106.4m, and the wholesale revenue, which increased by 4.8% and amounted to EUR 27.6m. In the retail segment, revenue from residential users, which constitutes 77% of the retail revenue, increased by as much as 14% and amounted to EUR 81.4m. At the same time, revenue from business users also increased by 6.1% YoY and amounted to EUR 27.6m. Meanwhile, the total number of active mobile subscribers amounted to 4,645,059, a slight increase of 1.6% 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% (a slight decrease from Q2), followed by A1, which currently holds a 35.2% market share. Lastly, we have Telemach, which holds 19.9% of the current mobile market share, an increase of 0.2 p.p. QoQ, and 0.1 p.p. YoY.
Mobile subscribers market share (Q4 2019 – Q3 2022, %)
Total revenue from internet access services amounted to EUR 215.6m, an increase of 4.4% YoY. The increase came solely on the back of mobile internet revenue increase, which increased by 6.2% and amounted to EUR 153.1m. Fixed internet revenue reamained flat. The total number of internet subscriptions also increased, growing by 4.8% and amounted to 6.190.857.
Total revenue from television services increased by 4.3% to EUR 29.6m, with the total number of pay-TV subscribers amounting to 877k, an increase of 0.4% YoY. IPTV users were up by 2% and amounted to 457k, while at the same time, satellite TV users decreased by -4.8% and amounted to 137k.
So, with all this data in mind, how did the two largest telecom companies in Croatia, Hrvatski Telekom and A1 perform during Q3 2022?
Hrvatski Telekom
The trends seen in the whole market are also quite reflective of the largest telecom company in Croatia. During the third quarter of 2022, HT recorded revenues of EUR 277.8m, an increase of 7.8% QoQ. Compared to Q2 2022, HT’s EBITDA margin decreased, translating also in the lower profit margin by 520bps. Overall decrease in profitability occurred due to higher material costs. Further, HT also remained a leading investor in digital infrastructure. Looking at 9M 2022 organic revenues, (when adjusted for Optima Telekom’s contribution), increased by 2.8%, driven by continued growth momentum in core fixed and mobile services, both in Croatia and Montenegro.
Organic adjusted EBITDA after leases grew 1.1% YoY, representing a positive trend in the business model. This decrease happened due to a overall strong performance in the first half of 2022. Finally, organic net profit increased by 19.7% YoY.
A1
Meanwhile, the 2nd largest telecom company in the Croatian market, A1, recorded revenue growth of 4.5% in Q3 on the back of solid mobile and mixed-line revenue growth, combined with a higher equipment revenues. Overall, growth in revenues was able to mitigate A1’s cost increase, resulting in a 3.5% YoY higher EBITDA in Q3. It should be noted that A1 Hrvatska is a part of A1 Telekom Austria, which besides these two countries has several other countries as a part of the Group.
