First half of 2015: T-Mobile’s integrated operator strategy on a successful path

Ten percent increase in total revenues
Fast LTE rollout and 44% increase in data consumption
Stable customer base

In the first half of this year, T-Mobile Czech Republic confirmed that its integrated operator strategy is proving effective. Compared to the same period last year, its total revenues have increased by almost ten percent. This is due to the merger with GTS Czech Republic which improved the position in the B2B segment. The company’s customer base has remained stable compared to the previous year, with new customers added due to the merger. The long-term trends evident on the Czech telecommunications market have again been confirmed: steep growth in data consumption and
a decrease in the average monthly revenue per user.

In 2015, T-Mobile has continued to expand its LTE coverage and became the first operator in the Czech Republic and the fourth in Europe to commercially launch Voice over LTE (VoLTE) technology, allowing standard IP calls in the LTE network.

“Our key priority is to offer the best mobile LTE network, which we have been rolling out according to the international qualitative and security standards of the Deutsche Telekom Group to as many of our customers as possible,” says Milan Vašina, Managing Director at T-Mobile Czech Republic.

CUSTOMERS

As of June 30, 2015, nearly six million customers were using T-Mobile’s mobile services, with 3.5 million contract customers (59% of the customer base) and 2.5 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) increased to 1.5%.

´000  H1/2014 H1/2015 % y/y
Number of customers – mobile services 5,946 5,996 0.8%
Contract customers 3,437 3,532 2.8%
Prepaid customers 2,509 2,464 -1.8%
Net adds 115 -4 n/a
Contract customers 108 32 -70.4%
Prepaid customers 7 -36 n/a
Average monthly churn – mobile services 1.3% 1.5% 0.2%p

Users of T-Mobile’s mobile services called an average of 156 minutes per month during the first half of this year – an increase of 4% compared to the previous year. Consumption grew in all areas and especially with regard to data, with the volume of transmitted data increasing by 43.8% compared to the same period of the previous year, reaching 6,913 terabytes.

FINANCIAL INDICATORS

Total revenues from mobile and fixed-line services increased by 10%, reaching CZK 13.2 billion. Revenues from mobile services decreased by 5% to CZK nine billion and the average monthly revenue per user (ARPU) decreased by 5.7% to CZK 249. The continuously 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 6 percentage points to the record level of 43%. 

CZKH1/2014H1/2015% y/y
Total revenues (million) 11,977 13,160 9.9%
Service revenues (million) – mobile services 9,442 8,961 -5.1%
EBITDA (million) (integrated services) 5,081 5,257 3.5%
EBITDA margin (EBITDA/total revenues) 42.4% 39.9% -2.5%p
ARPU – mobile services 264 249 -5.7%
Contract customers 386 360 -6.7%
Prepaid customers 99 92 -7.1%
Non-voice % of ARPU – mobile services

37%

43%

6%p

Figures published from Q1/2015 are consolidated figures with GTS.

More information on T-Mobile’s activities in H1 2015 is available here


 
About the Company

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, is with its almost 6.2 million customers the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to converged telecommunications services, it offers TV and comprehensive ICT solutions. 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), www.t-mobile.cz/pomahame (information on the company’s CSR activities) and www.rozjezdy.cz (T-Mobile Takeoffs of the Year – a program to support small businesses).

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