Croatia’s internet traffic up almost 50% in 2Q20 but revenues fall

Croatia’s internet traffic up almost 50% in 2Q20 but revenues fall
By bne IntelliNews September 14, 2020

Internet traffic in Croatia increased by almost 50% in the second quarter of 2020, according to the Croatian Regulatory Authority for Network Industries (HAKOM). 

The increase in traffic was clearly linked to the shift of many activities online during the coronavirus (COVID-19) pandemic; Croatia had a full month of lockdown in April and restrictions were gradually lifted during the quarter. 

“In the second quarter of 2020, special working conditions continued in the electronic communications market caused by the COVID-19 pandemic. Primary and secondary schools and institutions of higher education taught online and many companies in the Republic of Croatia introduced home work,” said the report from HAKOM. 

However, this did not translate into an increase in revenues in the electronic communications market; there was a 5.4% year-on-year decrease in revenues during the quarter, which HAKOM mainly attributed to the 14.2% decrease in revenues from fixed and mobile telephone services. This was attributed to the fall in roaming fees for both Croatians and foreigners when taking their holidays. 

“Compared to the same period last year, the total number of outgoing minutes in the mobile network increased by 18%,” the report explained. “At the same time, total mobile phone service revenues fell 17%. Also, the second quarter shows the impact of the pandemic and travel ban so that the roaming minutes of its own users fell by 20%, as well as the duration of calls by foreigners in roaming national networks, 52% compared to the same period in 2019.”

On the other hand, there was a 2.8% growth of revenues in the broadband internet access market and 2.6% growth in the pay-TV market.