Hrvatski Telekom (HT) Q1 2025 earnings summary

Executive summary

• Revenue increased by 5.9% year-over-year in Q1 2025, with growth across all business segments and stable net profit at EUR 26.6 million.

• Adjusted EBITDA AL rose 3.0% year-over-year, supported by commercial performance despite inflationary and salary pressures.

• Investments reached EUR 60.1 million, up 52.8% year-over-year, supporting network expansion and digitalization.

• Proposed dividend of EUR 1.64 per share, up 7.2% year-over-year, with a payout ratio of 92.2%.

• Achieved full 3G network shutdown, reallocating spectrum to 4G/5G, and expanded FTTH network by 22%.

Financial highlights

• Q1 2025 revenue: EUR 267.6 million (+5.9% YoY); Adjusted EBITDA AL: EUR 95.9 million (+3.0% YoY); Net profit: EUR 26.6 million (flat YoY).

• EBITDA AL margin decreased to 35.9% from 36.9% YoY; EBIT margin: 12.6% (down 0.7 p.p. YoY).

• Operating expenses AL increased by 7.5% YoY, mainly due to higher material and employee expenses.

• Net cash flow from operations declined by 12.3% YoY to EUR 85.6 million.

• CAPEX AL (excluding spectrum) increased by 52.8% YoY to EUR 60.1 million, with CAPEX AL/Revenue at 22.5%.

Outlook and guidance

• 2025 outlook projects low single-digit increases in revenue, adjusted EBITDA AL, and CAPEX AL compared to 2024.

• Regional expansion strategy unchanged; M&A opportunities under evaluation.