First quarter 2009: Satisfactory results despite economic recession

  • The number of contract customers exceeds 2.5 million, making up more than 47% of the customer base 
  • Service revenues exceed CZK 7.3 billion
  • The share of non-voice services in ARPU revenues is growing

Prague, 7 May 2009 - In Q1 2009, T-Mobile Czech Republic achieved satisfactory results despite challenging economic recession, new regulations and accounting methodology changes. T-Mobile reports the highest number of SIM cards in the Czech market: more than 5.4 million customers, which represents year-on-year growth of 2.6%. More than 2.5 million customers are contract customers, accounting for more than 47% of the customer base. The revenues reached almost CZK 7.6 billion, service revenues CZK 7.3 billion; EBITDA amounted to more than CZK 3.5 billion. The ARPU indicator decreased to the level of CZK 452.

"The world is facing economic recession in many sectors. Even though the telecommunications are in a better position than the other industries, the Q1 results were influenced by the overall financial mood to a certain extent. Nevertheless, the achieved results prove the company's stable performance," says Roland Mahler, Managing Director, T-Mobile Czech Republic.

Financial results
Total revenues amounted to CZK 7.6 billion, which represents a year-on-year decrease of 4.4%, EBITDA (earnings before taxes, interest, depreciation and amortization) reached CZK 3.5 billion, which indicates a decrease by 13.1% year-on-year. The financial results were influenced by new regulations (EU roaming regulation and interconnection rate decrease) and several accounting methodology changes. ARPU (average revenue per user) amounted to CZK 452 and decreased by 6.8% year-on-year - in spite of the increase if the contract customer base share, affected by the launch of new tariff-plan generations, ongoing migrations to prepaid services and the already mentioned regulation impacts. Non-voice services account for 23% of ARPU revenues.

Customers: strengthening No.1 position
The total number of customers grew by 2.6% year-on-year to 5.41 million. The number of contract customers increased even by 10.9% to 2.54 million, representing more than 47% of the total customer base.

T-Mobile remained active in the business segment: new customers won in Q1 2009 included, for example, Puma Czech Republic, ThyssenKrupp Industrial Services, Pražská botanická zahrada (Prague Botanical Garden), Správa Národního parku a chráněné krajinné oblasti Šumava (National Park Šumava Administration) and ALPINE PRO.

"In the following months, we will continue to adhere to our strategy of focusing on retention activities, data services development and communities-targeted offers," says Roland Mahler.

In 2009, the Company focuses on offering favorable services and tariff plans which contribute to optimization of customers´ telco expenses. For example, T-Mobile has recently introduced Firma tariff plans to answer the VSE/SME clients´ needs, offering one credit-based tariff plan for the whole company, and the enhanced version of the Rodina add-on, enabling a group of up to five people to make free calls and send free SMS and MMS among themselves for a lower flat fee. Moreover, the Cestovatel (Traveler) roaming add-on will be also extended to Greece and Bulgaria and will offer free incoming calls to all users during the summer holiday period.

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

Q1 2009 Results

?000  Q1/09 Q1/08 % y. o. y.
Customers (end of period) 5,411 5,273 2.6
Contract 2,544 2,293 10.9
Prepaid 2,867 2,980 -3.8
Net adds -11 2 -645.2
Contract 45 66 -32.3
Prepaid -55 -64 -13.3
Average monthly churn 1.5 1.4 0.0pp
Contract 0.6 0.5 0.1pp
CZK Q1/09 Q1/08 % y. o. y.
Total revenues (million) 7,594 7,941 -4.4
Service revenues (million) 7,323 7,649 -4.3
EBITDA (million) 3,518 4,050 -13.1
EBITDA margin - total revenues 46.3 51.0 -4.7pp
EBITDA margin - ARPU revenues 48.0 53.0 -4.9pp
ARPU 452 484 -6.8
Contract 754 853 -11.5
Prepaid 188 207 -9.2
Non-voice % of ARPU 23 21 2pp
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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