T-Mobile reports good third quarter of 2012

• Contract customers accounted for over 55% of all 5.4 million customers
• Non-voice data volume increased by over 111% 
• Financial indicators in line with expectations 

Prague, 8 November 2012 – T-Mobile Czech Republic asserted its position in the third quarter of 2012 despite the difficult market environment. A sustainable focus on efficiency and discipline on the cost side hand in hand with an efficient marketing strategy contributed to satisfactory results. The operator stabilized its customer base and saw an increase in contract customers who now account for over 55% of all 5.4 million customers. Reported total revenues for the first 9 months remained almost stable and reached CZK 19.8 billion. The average monthly revenue per user (ARPU) decreased in comparison to the same period of 2011 by 2.6%, following the trend of previous years, proving a stable increase of value-money ratio for customers. Non-voice data traffic grew by over 111% in the first nine months of the year compared to the same period last year, highlighting its increasing importance to consumers. 

"We are pleased with the development in the third quarter of 2012. The results present a positive sign in a challenging environment and show that we are on the right track to achieving our targets for 2012," said Milan Vašina, T-Mobile’s Managing Director. 

Customers: higher usage, lower expenses and churn
T-Mobile Czech Republic was serving over 5.4 million mobile customers at the end of the third quarter of 2012. The number of contract customers reached over 3 million, which accounts for over 55% of the total customer base and represents an increase by 5.6% year-over-year. The already very low average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) declined further to the level of 1.1%.

Mobile customers called an average of 132 minutes per month, which corresponds to a growth of 5.6% compared year-over-year. Data volume in the third quarter increased by over 111% compared to the same period of last year. The number of accesses in data fixed-line services (voice & data) grew by 12.9% to 105,000 year-over-year.

Customers

Mobile only customers	Note	30.09.12	30.09.11	% y/y (rounded)
Customers	(’000)	5,415	5,399	0.3%
Contract customers	(’000)	3,003	2,844	5.6%
Prepaid customers	(’000)	2,412	2,554	-5.6%
Net adds	(’000)	38	-27	n/a
Contract customers	(’000)	55	21	n/a
Prepaid customers	(’000)	-16	-48	-66.7%
Average monthly churn	(%)	1.1%	1.3%	-0.2%p

Financial results
From January to September 2012, T-Mobile’s reported total revenues of CZK 19.8 billion declined by 1.1% compared with the same period last year, while mobile service revenues totalled CZK 17.9 billion. The EBITDA indicator reported at CZK 9.4 billion was comparable to the result of 2011. The financial results were positively influenced particularly by enhanced efficiency and an effective marketing strategy.

In the third quarter, T-Mobile made a change in the accounting methodology, resulting in a positive effect of CZK 355 million on service revenues and EBITDA as well. 

ARPU in the first nine months of the year again decreased (by 2.6%) year-over-year. Higher usage of data services resulted in a significant increase (by 2 p.p. to 27%) of the contribution of non-voice data revenues to ARPU.

Financial indicators (in CZK)

	Note	Q1 – Q3/12	Q1 – Q3/11	% y/y (rounded)
Total revenues – integrated	(million)	19,793	20,020	-1.1%
Service revenues – mobile	(million)	17,910	18,577	-3.6%
Adj. EBITDA - integrated	(million)	9,439	9,506	-0.7%
Adj. EBITDA margin (total revenues)	(%)	47.7%	47.5%	0.2%p
ARPU – mobile	CZK	370	380	-2.6%
Contract customers	CZK	552	586	-5.8%
Prepaid customers	CZK	146	152	-3.9%
Non-voice % of ARPU – mobile	(%)	27%	25%	2%p
MoU per customer/month	(minutes)	132	125	5.6%

Note: Excluding the impact of the change in the accounting methodology, total revenues – integrated decreased by 2.9% Y/Y and ARPU – mobile by 4.5% Y/Y. 

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.