First quarter of 2012: rising consumption, lower spending

  • 5.4 million customers, of which 54% are contract customers
  • Consumption of telecommunications services is growing, while monthly spending is decreasing
  • Twice as much data transmitted in the Czech Republic’s fastest network compared with the previous year

Prague, 10 May 2012 – In the first quarter, T-Mobile continued the trend of the previous period, concentrating mainly on the development of data services. The operator further expanded its 3G network and increased its speed: according to independent measurements, T-Mobile’s 3G network has long been the fastest in the Czech Republic. Customers could start using new offers of data plans as well as subsidised terminal devices. This trend is also appreciated by customers: the volume of transmitted mobile data almost doubled as compared with the previous year. While the consumption of telecommunications services increased, the average amount spent per customer again dropped. Despite a number of factors hindering the development of the Czech telecommunications market, T‑Mobile succeeded in maintaining its leading position in the mobile segment and achieving satisfactory results.  

“We consider our results for the first quarter as very good, in spite of the prolonged downward trend on the market,” says Milan Vašina, T-Mobile’s Managing Director, adding: “What I find particularly pleasing is the growth of data services and also a less prominent, but more important parameter, which is the diminishing number of complaints. This is the result of our long-term efforts to achieve the greatest quality of services and customer care.” 

As compared with the previous year, the total number of customers using T-Mobile’s mobile services decreased slightly to approx. 5.4 million, while the number of contract customers increased by 3.6% to nearly 2.9 million. Total revenues for the first three months of the year declined year-on-year to just under CZK 6.4 billion, with EBITDA amounting to approx. CZK 3.1 billion. While the average revenue per user (ARPU) dropped by 3.2% to CZK 358 in relation to mobile services, the use of telecommunications services saw growth, with the largest increase reported in the use of data services.  

Customers
As of 31 March 2012, T-Mobile had approx. 5.4 million customers using mobile services. An ever increasing number of them use one or more of the tariff plans: the number of contract customers reached nearly 2.9 million, accounting for 54% of the customer base. Nearly 2.5 million customers used the prepaid Twist service as at the end of the first quarter. The average monthly churn rate (i.e. the share of customers who decided to stop using the operator’s services) declined to 1.2%.  

Users of T-Mobile’s mobile services called an average of 132 minutes per month during the first quarter of this year, 8.2% more as compared with the previous year. Consumption grew in all areas – the number of calling minutes and text messages, but above all in the volume of transmitted data which almost doubled as compared with the previous year.

´000 Q1/11 Q1/12 % y/y
Customers – mobile services 5,446 5,354 -1.7%
Contract customers 2,798 2,899 3.6%
Prepaid customers 2,648 2,455 -7.3%
Net adds -21 -27 -28.6%
Contract customers 27 26 -3.7%
Prepaid customers -48 -54 -12.5%
Average monthly churn – mobile services 1.3% 1.2% -0.1%p
Contract customers 0.5% 0.5% 0.0%p

Financial indicators
T-Mobile’s financial results strongly mirror two significant factors – steady reduction of prices of telecommunications services on one hand and the operator’s intensive efforts to compensate for this decline with increased emphasis on efficiency on the other. In the first quarter, the company reported total revenues of CZK 6.4 billion, with revenues from mobile services reaching nearly CZK 5.8 billion. The steady reduction of prices is reflected in yet another reduction in the average monthly revenue per user (ARPU) of mobile telecommunications services, which amounted to CZK 358 in the first quarter. The growing use of data services (the volume of transmitted data doubled against the previous year) translated to a year-on-year increase of the share of non-voice services in the revenues from mobile services to the record level of 27%. 

CZK Q1/11 Q1/12 % y/y
Total revenues (million) – integrated 6,537 6,397 -2.1%
Service revenues (million) – mobile services 6,043 5,766 -4.6%
EBITDA (million)  (integrated services) 3,314 3,095 -6.6%
EBITDA margin (total revenues) 50.7% 48.4% -2.3%p
ARPU – mobile services 370 358 -3.2%
Contract customers 579 538 -7.1%
Prepaid customers 146 141 -3.4%
Non-voice % of ARPU – mobile services 24% 27% 3%p

Information about T-Mobile’s other activities in the first months of this year is available here


 
About the Company

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, is with its more than 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.