Hrvatski Telekom achieved remarkable business results in the first six months of 2024, recording a revenue growth of 6.1% compared to the same period last year. This growth was driven by results in the mobile and fixed services segments and system solutions.

The positive commercial momentum led to an increase in adjusted EBITDA AL by 6.0% and a net profit growth of 7.0% compared to the previous year. Revenue growth managed to offset the increase in operating costs caused by market trends, mobile device costs, investments in employee salaries, and inflationary pressures. These costs were mitigated by transformation and efficiency improvement initiatives.

Investments accelerated significantly in the second quarter of 2024, reaching 101.5 million euros at the end of the first half of the year, representing an increase of 8.9% compared to the same period last year. This confirms Hrvatski Telekom's commitment to providing a platform for the digitalization of Croatia.

Strengthened leadership network status
Investments in network infrastructure continued throughout Croatia, in urban and rural areas. Hrvatski Telekom further strengthened its status as the leading network through the construction and expansion of the optical network (FTTH). Coverage increased by an additional 25% of new households and businesses compared to the same period last year. With this step, Hrvatski Telekom achieved an important goal - covering more than a million households with gigabit optical speeds.

Hrvatski Telekom's mobile network was once again recognized as the best in Croatia, according to an independent mobile network quality measurement conducted by HAKOM. The network achieved the highest ratings in all categories.

Best content portfolio taken to an even higher level
Since April, Hrvatski Telekom users have been able to enjoy Netflix integrated into MAXtv, along with already available exclusive content such as MAXSport. With this addition, the content offering has been significantly enhanced.

Best customer experience on the market
Hrvatski Telekom is dedicated to improving the quality of the network, product offerings, and customer experience across all channels, resulting in maintaining the highest level of customer experience (CX) according to the industry standard TRI*M.

New management board organization
The Supervisory Board of Hrvatski Telekom approved two changes in the Management Board effective from July 1, 2024. Krešimir Madunović was appointed as a new member of the Management Board and Chief Operating Officer for Private Customers (COOR). The function of the current member of the Management Board and Chief Human Resources Officer (CHRO) Ivan Bartulović has been expanded, and he will now be a member of the Management Board and Chief Operating Officer for Human Resources and Customer Support (COO).

Capital allocation
In May 2024, Hrvatski Telekom paid a dividend of 1.53 euros per share, the highest dividend payout in more than a decade, with a payout ratio of 95.3% of realized profit and an increase of 39.1% compared to the previous year. Additionally, in the first six months of 2024, as part of the share buyback program, Hrvatski Telekom repurchased an additional 123,393 shares on the Zagreb Stock Exchange, investing 3.6 million euros in these buybacks, confirming its commitment to increasing shareholder value.

Revised outlook for 2024
Hrvatski Telekom revised its outlook for 2024, targeting mid-single-digit revenue growth with high-single-digit capital expenditure growth. Expectations for adjusted EBITDA AL and regional expansion remain unchanged.

Further optimization of the business model
HT accelerated the transformation of its operational model, raising efficiency levels while providing the best customer experience on the market. In January 2024, HT completed the integration of Iskon Internet into HT d.d. and transferred the network construction and maintenance unit from Ericsson Nikola Tesla Servisi to the newly established company - HT Servisi d.o.o. Additionally, HT began preparations for phasing out 3G technology. This will further accelerate the transition to more energy-efficient 4G and 5G technologies, enabling faster, more advanced, and secure services while strengthening the contribution to sustainable digital transformation of society.

Promoting ESG programs
Sustainability is an integral part of HT's strategy as a socially responsible company, which continued to systematically implement all three pillars of ESG in 2023, focusing on climate change, resource efficiency, and digital inclusion. HT reduced energy consumption by 3% compared to the previous year, and CO2 emissions by 4% compared to the previous year. HT concluded the first virtual PPA agreement in the country, marking an important milestone in the company's energy strategy. Furthermore, HT launched a comprehensive environmental protection platform "The Call You Don't Miss" and had a record year in terms of collected old electronic devices. HT's efforts were recognized by winning the national sustainability award for the third year in a row.

Signed new Collective Agreement
The new Collective Agreement was signed in December and came into effect in January 2024, valid for three years. With this, HT once again confirmed that it is the most desirable employer in the telecommunications industry and one of the best employers in Croatia in general.

Announcement of the appointment of the new President of the Management Board
In December 2023, Kostas Nebis, the CEO of HT, resigned effective from July 1, 2024, and will continue his career at Deutsche Telekom Group as Chairman of the Management Board and CEO of OTE Group in Greece. Nataša Rapaić, the current member of the Management Board and Chief Operating Officer for Private Customers (COOR), has been appointed President of the Management Board of Hrvatski Telekom effective from July 1, 2024.