H1 2008: T-Mobile is No1 in contract customers

  • Contract customers account for 44.6% of TMCZ´s customer base of 5.31 million
  • Year-on-year increase in revenues of 5.2%, EBITDA higher by 10.2%

Prague, 7 August 2008 − The results of T-Mobile Czech Republic in the first 6 months of 2008 again prove the Company´s strategy is successful. T-Mobile strengthens its market position, brings targeted offers and complex solutions of both residential and business customers´ voice and data needs.

The Company increased its leadership in the number of active SIM cards. Out of the total of 5.31 million customers, almost 2.4 million are contract customers representing 44.6% of the base. The financial results were also positive: The total revenues grew year-on-year by 5.2% to CZK 16.2 billion; EBITDA amounted to more than CZK 7.9 billion (higher by 10.2%) and EBITDA margin increased to more than 49%. Average revenue per user (ARPU) amounted to the level of CZK 496.

"To keep a leadership position is a great challenge, especially in such an innovative and quickly changing environment," says Roland Mahler, Managing Director of T-Mobile Czech Republic a.s, adding: "We take the achieved results for a great success; we particularly appreciate the increasing weight of our contract customers. The development of financial figures is also very favorable and proves that the customers value our services and the care provided to them."

During the first six months of the year, the Company introduced a number of innovative services and products: enhanced its data services portfolio by ADSL, launched T-Mobile Bonus, a new loyalty program or the complex business solution called T-Mobile Profinet. In May, the Company launched T-Mobile Rodina (Family) and T-Mobile Team propositions, tariff add-ons enabling free calling within a group of up to five people for single monthly fee.

T-Mobile´s long-term focus on environmental issues was reflected in a recycling support campaign which was based on offering customers a voucher for each obsolete mobile phone returned to T-Mobile shops. The value of each recycling voucher (Recyklistek in Czech) was CZK 200 incl. VAT and could be used when purchasing a new handset, Twist set or accessories at T-Mobile shops.  The 3-month activity resulted in excellent more than 50,000 discarded handsets collected.

Customers: The largest customer base, No 1 with regard to contract customers
The development of T-Mobile´s customer base reflects the overall situation in the saturated market: significantly lower net adds, stabilization and development of current customer base. The total number of customers increased by 3.4% year-on-year and reached 5.313 million. The contract-customer segment continued to grow − the number of contract customers reached 2.37 million which accounts for 44.6% of the total customer base. During the first six months of 2008, T-Mobile gained 42 thousand new customers.

The monthly churn (i.e., the number of customers who decided to stop using the operator´s services) remains more or less stable: based on a year-on-year comparison, this indicator increased by only 0.1 percentage point to 1.4%.

Financial results: increase in revenues and EBITDA
For the first half of 2008, T-Mobile Czech Republic a.s. reported total revenues in the amount of CZK 16.2 billion, which represents a year-on-year increase of 5.2%. EBITDA (earnings before interest, taxes, depreciation and amortization) reached CZK 7.9 billion, which represents a significant increase of 10.2% compared to the same period of last year. The EBITDA margin reached 49.1% and ARPU amounted to CZK 496.

The achieved results clearly show that T-Mobile can appeal to customers with favorable services, thanks to which they are no longer afraid to use mobile communications services to a larger extent: the examples of the most successful services are T-Mobile Family and T-Mobile Team, enabling free calling within the group of up to 5 people.

"The telecommunication market is getting more and more complex − diversification on one hand, convergence on the other one. IT, telco and media worlds are blending together, bringing very interesting, innovative ideas. We´re aware of it and ready to play a significant role in the development," says Roland Mahler, commenting on the Company´s plans.

H1 2008 results:

  Q2/07 Q2/08 % y.o.y. H1/07 H1/08 % y.o.y.
Customers('000) 5,140 5,313 3.4 5,140 5,313 3.4
Contract customers 2,014 2,372 17.8 2,014 2,372 17.8
Twist customers 3,125 2,941 -5.9 3,125 2,941 -5.9
Noví zákazníci ('000) 31 40 29.0 91 42 -53.8
Contract customers 99 79 -20.8 205 145 -29.3
Twist customers  -68 -39 -43.3 -114 -103 9.6
Average monthly churn (%) 1.3 1.3 0,0 pp 1.3 1.4 0.1pp
Total revenues (CZK million) 7,975 8,264 3,6 15,407 16,205 5.2
ARPU revenue (CZK million) 7,667 8,037 4,8 14,812 16,685 5.9
EBITDA (CZK million) 3,644 3,911 7,3 7,223 7,961 10.2
EBITDA margin - total revenues (%) 45.7 47.3 1.6 pp 46.9 49.1 2.2 pp
EBITDA margin - ARPU revenues 47.5 48.7 1.1 pp 48.8 50.8 2.0 pp
ARPU 499 507 1.5 484 496 2.5
Contract customers 950 874 -8.0 942 863 -8.4
Twist customers  218 217 -0.5 209 212 1.4
Non-voice % of ARPU 19 21 2 pp 19 21 2 pp

Services offered during the first half of 2008:

ADSL + further enhancement of data services 
New T-Mobile Bonus 
T-Mobile ProfiNet
T-Mobile Rodina 
T-Mobile Team 

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 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.