T-Hrvatski Telekom d.d., the Croatian unit of Deutsche Telekom AG, said its profit fell 30 percent in the first half of 2014 as the European Union’s newest member struggles through a sixth year of recession.
Net income dropped to 401 million kuna ($70 million), the Zagreb-based company said in a Regulatory News Service statement today. Revenue declined 5.2 percent to 3.3 billion kuna, while earnings before interest, taxes, depreciation and amortization, or Ebitda, was at 1.2 billion kuna.
“Despite the continued deterioration of our operating environment and the imposition of a new tax, we are maintaining the outlook for 2014,” Chief Executive Officer Davor Tomaskovic said in a statement. He said efforts will continue to make the company “more agile and efficient.”
Croatia’s biggest phone company, 51 percent owned by Deutsche Telekom AG, is looking to expand beyond its traditional business to Internet, pay television, and mobile-phone services after profit shrank for a sixth year in 2013 because of the recession.
The Adriatic nation’s gross domestic product may contract 0.6 percent this year, according to a Bloomberg survey of 10 economists published July 24. The central bank earlier this month forecast a 0.2 percent contraction.
Foreign direct investment in 2013 dropped 55 percent from a year earlier. Unemployment in June was 18.3 percent, while retail trade in May declined 1.8 percent from a year-ago.