In 2019, we managed to achieve good business results with a significant acceleration of the company's transformation and an increase in investment to the highest level in the last ten years. Consolidated net revenue amounted to HRK 7,704 million, 1 percent lower than the year before. Revenue growth was achieved in mobile communications, TV services, and system solutions. EBITDA before one-off items after leases in 2019 amounted to HRK 2,908 million and was 4.1 percent lower compared to the year before, mainly due to increased material and roaming costs and employee costs. A high EBITDA margin was maintained after leases at 37.7 percent.
- HRK 7,704 million net revenue in 2019.
- the largest investment in the last ten years
- 45 percent market share of users
- successfully completed mobile network modernization, fully ready for 5G
- doubling the speed of fiber optics introduction, with improved fixed network and significant progress in optical speed penetration
- significantly reduced number of customer complaints and unproductive calls to agents with a simultaneous decrease in the number of technical errors
- excellent acceptance of the Group's digital channels and increased number of Magenta 1 users
- growth in the mobile segment, TV segment, and system solutions after leaving the energy business and the reduction of fixed voice service
- through a four-year share repurchase program launched in June 2017, HT acquired 453,318 shares of the Company in the amount of HRK 73 million.
In cooperation with the Zagreb Institute of Economics, HT also publishes analyses of its contribution to Croatia's digital transformation. HT’s Economic Atlas, as the first analysis of socio-economic impacts, was published in 2015. In September 2019 ,Digital Atlas was published, an analysis of the impact that companies from HT are already having on the digital transformation of Croatian society and economy. The analysis of the Institute of Economics showed that the HT Group is the largest private investor in digital infrastructure in Croatia, and in 2018 it directly contributed to Croatia's GDP with 3 percent. Direct and indirect contributions are even more significant: HRK 11.3 billion of induced GDP, HRK 30,200 of employees and HRK 3.26 billion of taxes and contributions. By investing in digital infrastructure, HT has increased the company's gross value added from HRK 8.95 to HRK 9.77 billion in three years. In 2019, we continued activities that have proven to be the most effective for GDP growth. These are a strong investment cycle, the company's digital transformation, and increasing the speed of fixed and mobile internet. HT is continuously facing numerous challenges, and among the most significant are still parafiscal fees related to electronic communications infrastructure, the reduction of which would open opportunities for additional investments. Releasing investment potential would generate new jobs and GDP growth, along with new tax revenues that would offset the decline in budget revenues due to fee cuts.
Since 2015, HT Group and all its members apply the Social Responsibility Policy, which is the basis upon which the Group continually establishes, maintains, monitors, and develops activities related to corporate responsibility. Compliance with laws and other regulations, compliance with internal rules and the Code of Conduct are the basis of responsible corporate governance.
The company regularly checks organization and conducts education on compliance rules and corruption prevention. All employees are familiar with anti-corruption policies and procedures. There were no confirmed incidents of corruption in 2019. HT has a certified Compliance Management System (CMS) whose efficiency is confirmed by a certificate. The anti-corruption clause is, without exception, an integral part of all contracts of Hrvatski Telekom and affiliated companies with third parties, to ensure transparent operations and acquaint business partners with anti-corruption policies and procedures. In everyday business, we emphasize that ethical business is critical to success and extremely important for further strengthening trust among our customers and partners. The Management Board of HT is also committed to the principles of clean business. Personal interests are never and should not be a stimulus for business decisions.
We expect all our partners, suppliers, and customers to follow the highest international standards and established good business practices regarding harmonized, ethical and anti-corruption behavior. HT avoids doing business with those suppliers that may endanger our reputation or pose any other risk to company’s operations. In 2019, approximately two-thirds of the total procurement budget was spent on local suppliers.
The Dt’s audit conducted in August 2019 confirmed the integration of environmental care into all relevant work processes and high environmental awareness of employees and showed that HT's Integrated System functions on a professional level. HT has established a certified environmental management system according to the ISO 140001 international standard, which requires that all those who work for and on behalf of the company be familiar with the principles of environmental protection. This includes all suppliers of goods and services, as well as other contractual partners.