T-MOBILE Q3 2016: RETURN TO MOBILE SERVICE REVENUE GROWTH AFTER 8 YEARS, CUSTOMER LEADERSHIP RETAINED

Mobile service revenues grew after 8 years of decline
Stable customer base
Usage of services increased again, especially in area of data

In the third quarter of this year, T-Mobile Czech Republic stayed on track and achieved very good results. Compared to the same period last year, the company’s customer base increased slightly and remained above the six million mark. TMCZ´s total revenues reached CZK 19.4 billion, service revenues amounted to CZK 13.7 billion and the EBITDA indicator increased by 3.8% to CZK 8.3 billion. Consumption of services grew again, most significantly in the area of mobile data. Data usage in the T-Mobile network nearly doubled compared to the same period in 2015, reaching 22,831 terabytes.
“I am happy to say we can see mobile service growth after 8 years of decline,” says Milan Vašina, Managing Director at T-Mobile Czech Republic and Slovak Telekom, adding: “The first nine months of this year brought an increase not only in the mobile area, but also in the fixed-line business. Moreover, we achieved a double digit growth in ICT services. Our customers also welcomed this year's launch of T-Mobile TV.” 

Customers

As of 30 September 2016, T-Mobile’s mobile services were used by more than 6 million customers, comprising 3.6 million contract customers (61% of the customer base) and nearly 2.4 million customers using the prepaid service. The average monthly churn rate (i.e. the share of customers who decided to stop using the operator’s services) decreased to 1.4%.

´000	Q1–Q3/2015	Q1–Q3/2016	% y/y (rounded)
Number of customers – mobile services	5,981	6,002	0.4%
Contract customers	3,556	3,646	2.5%
Prepaid customers	2,425	2,356	-2.8%
Net adds	-20	-16	n/a
Contract customers	56	50	-10.7%
Prepaid customers	-75	-66	12%
Average monthly churn – mobile services	1.5%	1.4%	-0.1%p

Customers of T-Mobile’s mobile services used an average of 156 minutes per month during the first three quarters of this year, an increase of 0.6% compared to the same period of the previous year. Consumption grew in all areas, especially data, with the volume of transmitted data increasing by 95.4% compared to the same period of the previous year, reaching 22,831 terabytes. 

Financial indicators

In the first nine months of 2016, total revenues from mobile and fixed-line services reached CZK 19.4 billion, with revenues from mobile services totalling CZK 13.7 billion. Excluding international wholesale and CE Colo businesses, the decline in total revenues in three quarters of 2016 was only 0.7%, caused by the decrease of one time sales of products. The average monthly revenue per user (ARPU) increased year-on-year to CZK 254. The trend of fast growing use of data services is mirrored in the share of non-voice services in ARPU from mobile services, which increased year-on-year by four percentage points to 48%.

CZK	Q1–Q3/2015	Q1–Q3/2016	% y/y (rounded)
Total revenues (million)	19,918	19,372	-2.7%
Service revenues (million) – mobile services	13,611	13,727	0.9%
EBITDA (million) (integrated services)	8,035	8,343	3.8%
EBITDA margin (EBITDA/total revenues)	40.3%	43.1%	2.7%p
ARPU - mobile services	253	254	0.4%
Contract customers	363	359	-1.1%
Prepaid customers	94	93	-1.1%
Non-voice % of ARPU – mobile services	44%	48%	4%p

More information on T-Mobile’s activities in 2016 is available here.

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.