T-Hrvatski Nine-Month Profit Cut 30% as Revenue Dips on CrisisJasmina Kuzmanovic
T-Hrvatski Telekom d.d., the Croatian unit of Deutsche Telekom AG, 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.