First quarter 2008: Convincing results

  • Significant growth in both revenues and EBITDA
  • The number of contract customers exceeds 2.2 million, making up more than 43 % of the customer base

Prague, 8 May 2008 - The extreme penetration of Czech mobile market and T-Mobile's effort to achieve leading position in financial indicators are the key factors influencing in the Company's results for the first quarter of 2008. T-Mobile reports the highest number of active SIM cards: out of the total of 5.273 million customers which represents year on year growth by 3.2%. Almost 2.3 million are contract customers which represents 43.5% of the customer base. The financial results were also positive: the revenues reached CZK 7.9 billion which represents improvement by 6.8% compared to Q1 2007; EBITDA amounted to more than CZK 4 billion (higher by 13.2%). The ARPU indicator improved to the level of CZK 484.

"The results achieved by T-Mobile in the first quarter of 2008 show strong performance in the extremely competitive market. The penetration exceeds 126% which means it's hardly possible to gain new customers. We're aware of the fact the focus on current customers is vital for future development," says Otakar Král, Executive Vice-president, Finance T-Mobile, adding: "It can be proved by the recent launch of the new complex loyalty program T-Mobile Bonus offered to all customers, regardless to whether they use a prepaid card or a tariff."

Financial results: total revenues up by 6.8%, EBITDA by 13.2%
Total revenues amounted to CZK 7.941 billion, which represents a year-on-year increase of 6.8%. EBITDA (earnings before taxes, interest, depreciation and amortization) increased by 13.2% year-on-year, EBITDA margin reached outstanding 51.0%. ARPU (average revenue per user) reached the value of CZK 484.

Customers: strengthening No.1 position
The total number of customers grew by 3.2% year-on-year, the number of contract customers even by 19.8% to 2.293 million. This figure represents more than 43% of the total customer base. The fact almost all the customers are divided among three operators is proven by the achieved net adds - they totaled 2,000.

T-Mobile stayed active in the business segment: the customers gained in Q1 2008 included, for example, AXA Assistance CZ, Hornbach Baumarkt CS, Raiffeisenbank, Česká zbrojovka or Danone.

"In the coming months, we will continue to adhere to our strategy of focusing on the retention activities, data services development and the communities-targeted offers," says Otakar Král: "Of course, the second quarter will be strongly influenced by EURO 2008. As the general partner of the Czech National Football Team, T-Mobile has prepared an exclusive football-related offer for all customers including special gifts, special SMS or MMS bundles with football news or a special ME 2008 section on wap site, where all fans can find free information and the football festival, including live broadcasts. In addition, the popular Cestovatel roaming add‑on will be available in Switzerland during the entire month of June," adds Král.

(For more information on the offers mentioned above, please see

Q1 2008 Results

  Q1/08 Q1/07 Change y/y
Number of customers('000) 5,273 5,109 3.2 %
Contract customers 2,293 1,915 19.8 %
Twist customers 2,980 3,194 -6.7 %
New customers('000) 2 60 -96.7 %
Contract customers 66 106 -37.8 %
Twist customers -64 -46 -
Average monthly churn 1.4 % 1.3 % 0.1p
Contract customers 0.5 % 0.6 % -0.1p
Total revenues (CZK mil.) 7,941 7,432 6.8 %
ARPU revenues 7,649 7,145 7.1 %
EBITDA (CZK mil.) 4,050 3,579 13.2 %
EBITDA margin (total revenues) 51.0 % 48.2 2.8p
EBITDA margin (ARPU revenues) 53.0 % 50.1 2.9p
ARPU incl. visitors (CZK) 484 469 3.3 %
Contract customers 853 934 -8.7 %
Twist customers 207 200 3.6 %
Share of non-voice services in ARPU  (%) 22.0 % 20.0 % 2p

Non-audited financial results in accordance with IFRS.

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, (the portal for journalists), (information on the company’s CSR activities) and (T-Mobile Takeoffs of the Year – a program to support small businesses).

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