T-Hrvatski 1st-Quarter Profit Rises 3.7% as Revenue Falls

T-Hrvatski Telekom d.d., the Croatian unit of Deutsche Telekom AG (DTE), said profit rose 3.7 percent in the first quarter as the company battles recession and special tax with cost-control measures.

Net income increased to 364 million kuna ($64 million) from 351 million kuna a year earlier, the Zagreb-based company said today in a Regulatory News Service statement. Revenue declined 4.7 percent to 1.8 billion kuna, while earnings before interest, taxes, depreciation and amortization fell to 762 million kuna from 767 million kuna.

“Economic climate, regulatory framework and competitive landscape are getting tougher,” the company said, adding that “rigorous cost-cutting measures continue to protect margins.”

Croatia’s economy is struggling to exit a two-year recession, while the government in January reintroduced a 6 percent tax on mobile phone services after a brief respite.

To contact the reporter on this story: Jasmina Kuzmanovic at jkuzmanovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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