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Croatia's T-HT 6-mths profit hit by recession, tax

ZAGREB, July 30 (Reuters) - Croatia's biggest telecoms operator, T-Hrvatski Telekom HT.ZATHTCq.L, said on Friday its half-year results were hurt by recession and a special tax on mobile services.

Revenue in the first six months was down 3.9 percent to 4.04 billion kuna ($729.6 million), while the company’s net profit fell 24.7 percent to 822 million kuna.

“T-HT has reported a commendable set of results given the challenges we faced from the continuing fall in gross domestic product and consumer spending, as well as the impact of the 6-percent tax on mobile services,” Chief Executive Ivica Mudrinic said in a statement.

Earlier this year T-HT said it expected a slight to moderate decline in revenues this year due to Croatia’s continuing recession. Last year T-HT posted net profit of 2.02 billion kuna on revenus of 8.5 billion kuna.

Croatia’s economy shrank 5.8 percent last year and is expected to contract between one and two percent this year.

A special tax on mobile telephony was introduced last year as part of a higher taxation package to help bolster the public finances.

T-HT is 51-percent owned by Deutsche Telekom DTEGn.DE and serves more than 1.5 million fixed-line and more than 2.8 million mobile subscribers in the European Union candidate country of 4.5 million people.

The company’s shares closed at 257.98 kuna on Thursday. Their peak this year was 332.84 kuna, set in early April. ($1=5.537 Croatian Kuna) (Reporting by Igor Ilic; editing by Simon Jessop)

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