HT’s Competitors Publish H1 2019 Results

As HT’s competitors, A1 and Tele2, published their H1 2019 results, we are bringing you some key takes from them.

The parent companies of HT’s largest competitors, Tele2 and Telekom Austria (A1) published their H1 2019 results and we are bringing you some key takes regarding their performance on the Croatian market. To make the results comparable we transferred Tele2’s results into EUR.


In Croatia, the market continued to be shaped by a competitive mobile market and convergent solutions with highly discounted offers. In April 2019, A1 Hrvatska launched an unlimited data option, additionally available against a surcharge for its high-value mobile tariffs, while Hrvatski Telekom also introduced an unlimited mobile proposition in the premium segment. In the fixed-line business, the demand for TV content remained strong.

In Q2, total revenues in the Croatian segment rose slightly by 0.3% YoY, amounting to EUR 106.5m, which was driven by higher service revenues. Meanwhile, in H1, Revenues amounted to 208.6m (+1.4% YoY).  Mobile service revenues in Q2 grew by 2.5% YoY (to EUR 59.8m) due to higher subscriber numbers driven by the demand for mobile WiFi routers and successful promotional activities. Meanwhile, in H1 mobile service revenues amounted to EUR 113.6m (+2.1%).

Fixed-line service revenues showed a slight growth in Q2 of 1%, amounting to EUR 31.6m. When observing the 6-month period, fixed-line service revenues amounted to EUR 63.3m (+2.4%). The growth was driven by higher solutions & connectivity revenues due to a higher number of satellite RGUs, which were able to offset a slight decline in retail fixed-line revenues.

Costs and expenses decreased as higher market investments, reflected in content costs and commissions, as well as higher bad debt were more than offset by lower frequency usage fees following the cut as of November 2018. As a result, Q2 EBITDA increased by 7.2% YoY, amounting to EUR 34.9m, while for H1 EBITDA amounted to EUR 66.6m (6.8%).

It is worth noting that capital expenditures amounted to EUR 21.6m, representing a decrease of 4.2%, of which EUR 7.2m was used for acquired frequency 2.1 GHz.

Tele 2

On 31 May 2019, Tele2 announced the agreement to sell its Croatian business to United Group for the value of EUR 220m. To put things into perspective, the value of the deal would account for 7.2x adjusted T12 EBITDA of the company (excluding IFRS 16 effect) The mentioned transaction is subject to regulatory approval, whose closing is expected before the end of 2019.

United Group is a provider of telecommunication services and international media content, which already in Croatia owns Nova TV, N1 and Sport klub. With the approval of the sale, United Group would become the biggest competitor of HT and A1.

In H1, revenues in the Croatian segment amounted to EUR 94.9m, representing an increase of 9% YoY. When observing the company’s EBITDA, it amounted to EUR 24.2m, while EBITDA (excluding IFRS 16) amounted to EUR 18.6m, representing an increase of 106%. Such an increase came as a result of higher end-user service revenue and lower spectrum fees.

Note that capital expenditures in H1 amounted to EUR 15.4m.

Category : Flash News

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