T-Hrvatski Nine-Month Profit Cut 30% as Revenue Dips on Crisis

T-Hrvatski Telekom d.d., the Croatian unit of Deutsche Telekom AG (DTE), said net income for the first nine months declined 30 percent to 964 million kuna ($174 million) as crisis continues in European Union’s newest member.

Revenue decreased 8 percent to 5.2 billion kuna, while earnings before interest, taxes, depreciation and amortization, or Ebitda, declined 19.5 percent to 2.1 billion kuna, the country’s biggest communications services provider said in a statement on the Regulatory News Service today.

“During the third quarter of 2013 there was again no improvement in Croatia’s national economy,” Chief Executive Officer Ivica Mudrinic said in the statement. EU accession and and the related adoption of the EU regulatory framework also impacted the company’s performance, forcing it to amend its full-year Ebitda, before exceptional items margin, to between 42 percent and 43 percent. The rest of the outlook is unchanged.

The phone company faces increased pressure on disposable income by rising unemployment and faster inflation, as the Adriatic nation struggles to revive foreign investment after four years of contraction or stagnation.

HTRA CZ <Equity> DTE GY <Equity>

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

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.