Croatian Telecom (HT), the leading provider of telecommunication services in. Croatia has recorded a 3.7 per cent profit increase in the first quarter of 2012, according to the companies latest financial report.

Profits reached 364 million kuna (50 million Euros) in the first three months of the year whilst income dropped by 4.7 per cent to 1,806 billion kuna (240 million Euros). The profit growth was affected by the reduction of total consolidated costs before depreciation and amortisation by 10.2 per cent, primarily due to reduced material costs, reported portal Tportal.

HT has maintained a leading position in all three business segments, the market for mobile communications, fixed communications and IP.

"The Croatian economy remains in recession, and the country is still faced with growing unemployment, salary reduction, less investment and increasing outstanding debt in the corporate sector. Considering these circumstances, HT reported lower revenues, but our business has seen a positive effect of the transformation that is underway, "says CEO of HT Ivica Mudrinic in the commentary of the business results.