- The operator invested heavily in the high-speed network
- The customers´ consumption of services is growing, while prices are falling
Prague, 23 February 2012 – The year 2011 was marked primarily by rapid development of data services. T-Mobile intensively expanded its 3G network and offered data plans at attractive prices and smart phones at substantially discounted prices. And customers kept up with the operator – the volume of transmitted mobile data increased by almost 34%. Consumption of telecommunications services increased in general, while the average amount spent by each customer dropped significantly. Despite a number of factors hindering development of the Czech telecommunications market, T-Mobile succeeded in maintaining its leading position in the mobile segment and achieving satisfactory results.
As compared with the previous year, the number of T-Mobile customers using mobile services decreased slightly to approx. 5.4 million, while the number of contract customers increased by 3.4% to 2.9 million. Total revenues declined year-on-year to CZK 26.8 billion, with EBITDA amounting to approximately CZK 12.5 billion. While the average revenue per user (ARPU) dropped to CZK 380 in relation to mobile services, the use of telecommunications services saw growth, the largest increase being reported in the use of data services.
Customers
As at 31 December 2011, T-Mobile had nearly 5.4 million customers using mobile services. An ever growing number of customers use one or more of the tariff plans: the number of contract customers reached nearly 2.9 million, which accounts for 53% of the customer base. The number of users of prepaid Twist cards totalled 2.5 million at the end of last year. The monthly churn rate (i.e. the share of customers who stopped using the operator's services) remained at the low level of 1.3%.
New business customers that T-Mobile won in 2011 include KPMG, Škoda Power, Barum Continental, and Bramac, among others.
Users of T-Mobile's mobile services called an average of 126 minutes per month, 2.4% more compared to the previous year. In addition that, growing consumption is reflected primarily in the use of mobile data services: the volume of transmitted data soared by nearly 34%.
| ‘000 | 31. 12. 2011 | 31. 12. 2010 | Change* |
| Customers – mobile | 5,381 | 5,475 | -1.7% |
| Contract | 2,872 | 2,778 | 3.4% |
| Prepaid | 2,509 | 2,696 | -6.9% |
| Net adds – mobile | -86 | 19 | N/A |
| Contract | 101 | 126 | -19.8% |
| Prepaid | -188 | -108 | 74.1% |
| Average monthly churn – mobile | 1.3% | 1.3% | -0.0 p. p. |
| Contract | 0.5% | 0.5% | 0.0 p. p. |
Note: *rounded
Financial indicators
T-Mobile’s financial results mirror the steady reduction of prices of telecommunications services. The operator has been compensating for lost revenues with increased emphasis on efficiency. In 2011, T-Mobile's total revenues reached CZK 26.8 billion and service revenues totalled CZK 24.7 billion. The significant drop in prices is reflected in the average monthly revenue per user (ARPU) of mobile services: last year, ARPU amounted to CZK 380, which is 8.9% less compared to the previous year. The growing use of data services is reflected in the share of non-voice services in the revenues from mobile services, which increased to 25.5%.
| CZK | 31. 12. 2011 | 31. 12. 2010 | Change* |
| Total revenues (million) – integrated | 26,836 | 29,246 | -8.2% |
| Services revenues (million) – mobile | 24,727 | 27,316 | -9.5% |
| Adj. EBITDA – integrated | 12,510 | 13,937 | -10.2% |
| EBITDA margin (total rev.) | 46.6% | 47.7% | -1.0 p. p. |
| ARPU – mobile | 380 | 417 | -8.9% |
| Contract | 584 | 666 | -12.3% |
| Prepaid | 151 | 169 | -10.7% |
| Non-voice % of ARPU – mobile | 25.5% | 23.6% | 2 p. p. |
Note: *rounded
Services: the fastest network, half-price internet and HD Voice
In 2011, T-Mobile introduced a number of new products and services, mainly involving data services. These included, for example, the ever expanding portfolio of smart phones for reduced prices offered throughout the year, time-limited mobile internet bundles, introduction of VDSL and a shared data plan for the whole family for one monthly fee. T‑Mobile was the first operator to implement the HD Voice service in its network and launched HSPA+ 42 and LTE technologies in trial operation. The operator also continued to expand its 3G network, which is now available to more than 80% of the population of the Czech Republic. According to repeated independent measurements performed by the dsl.cz web portal, T-Mobile’s mobile data network enables the fastest wireless internet access.
More information about services and developments in 2011 is available here.
2012: focus on what is important for customers
T-Mobile is aware that in the coming years it will be necessary to concentrate on the retention and development of existing customers. “It is clear to us that the customers’ experience and their satisfaction with it are key,” says Milan Vašina, T-Mobile’s Managing Director, adding: “In the years of our presence on the market, we have introduced a huge number of services, and the complexity of our offer grew. We now want to focus on what is really relevant for customers. This should result, among other things, in a simpler structure of services and products which customers can easily navigate.”