Hrvatski Telekom (HT) Q2 2024 earnings summary

Executive summary

• Revenue increased by 6.1% year-over-year in H1 2024, driven by strong commercial performance across mobile, fixed, and system solutions segments.

• Adjusted EBITDA AL rose 6.0% year-over-year, reflecting robust top-line growth despite inflationary pressures and higher employee investments.

• Net profit after non-controlling interests grew by 7.0% year-over-year to EUR 57.1 million, supported by EBITDA growth.

• Dividend payout reached EUR 1.53 per share, the highest in over a decade, and share buybacks continued in H1 2024.

• Investments accelerated, with CAPEX after leases up 8.9% year-over-year, supporting FTTH expansion and network leadership.

Financial highlights

• H1 2024 revenue: EUR 521.6 million (+6.1% YoY); adjusted EBITDA AL: EUR 188.1 million (+6.0% YoY); net profit: EUR 57.1 million (+7.0% YoY).

• Q2 2024 revenue: EUR 268.9 million (+7.4% YoY); adjusted EBITDA AL: EUR 95.0 million (+5.0% YoY); net profit: EUR 30.5 million (+15.9% YoY).

• CAPEX after leases: EUR 101.5 million (+8.9% YoY); total assets at EUR 2,003.8 million (-2.8% vs. 2023 year-end).

• Net cash flow from operations rose 6.5% YoY to EUR 189.8 million, supporting increased investments.

• Cash and cash equivalents at period end: EUR 163.8 million, down 20.8% from H1 2023.

Outlook and guidance

• 2024 revenue outlook revised to mid-single-digit increase; CAPEX AL guidance raised to high-single-digit increase; adjusted EBITDA AL guidance maintained at mid-single-digit increase.

• Monitoring and evaluating potential M&A opportunities in the region; regional expansion outlook unchanged.