H1 results of T-Mobile Czech Republic

  • The number of contract customers is nearly 2.6 million, making up almost 48% of the customer base
  • Service revenues exceed CZK 15.3 billion

Prague, 6 August 2009 - In H1 2009, T-Mobile Czech Republic achieved satisfactory results despite the slowdown in the Czech economy. T-Mobile has more than 5.4 million customers by the end of June 2009, which represents a year-on-year increase of 2.3%.  Nearly 2.6 million customers are contract customers, accounting for nearly 48% of the customer base. Total revenue reached CZK 15.9 billion; EBITDA amounted to CZK 8.4 billion. The ARPU indicator reached the level of CZK 472.

"Although the economic slowdown influenced the results in the first half of this year, we managed to maintain a positive trend. Our ability to achieve growth in all important indicators proves the company's drive and stable performance," says Roland Mahler, Managing Director of T-Mobile Czech Republic.

During the first six months of the year, the Company introduced a number of innovative services and products, such as the new community tariff plans, the Firma tariff plan for businesses and the T-Mobile G1 handset, and enhanced its popular services including the Family tariff plan and the Cestovatel roaming add-on. The Company successfully piloted new forms of mobile advertising and digital music distribution. 

Financial results
The company reported total revenue of CZK 15.9 billion in the first half of the year, which represents a year-on-year decrease of only 2.0%. ARPU revenue (service revenue) reached CZK 15.3 billion. EBITDA (earnings before taxes, interest, depreciation and amortization) reached CZK 8.4 billion, which indicates a year‑on‑year increase of 4.9%. The financial results were positively influenced by the increase of the Company's efficiency and by the settlement of the interconnection dispute with TO2 (EBITDA effect: CZK + 950 million; ARPU revenues effect: CZK + roughly 500 million). ARPU (average revenue per user) decreased by 4.8% year-on-year to CZK 472 by the end of June 2009 in spite of the increased share of contract customers, and was affected by the launch of new tariff-plan generations, ongoing transfers to prepaid services and the regulation impacts. Non-voice services account for 22% of ARPU revenues in the first half of the year.

The total number of customers grew by 2.3% year-on-year to 5.43 million. The number of contract customers increased by 9.5% to 2.59 million, representing 47.8% of the total customer base.

"In the following months, we intend to strengthen our focus on data services and further develop our current communities-targeted strategy," says Roland Mahler.

In 2009, the Company focuses on offering favorable services and tariff plans which contribute to optimization of customers' telecommunications expenses. For example, T-Mobile has introduced the Firma tariff plans to answer the needs of VSE/SME clients, 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 text and multimedia messages among themselves for a lower flat fee. Moreover, the popular Cestovatel (Traveler) roaming add-on is extended to Greece and Bulgaria.

(For more information on the offers mentioned above, please see www.en.t-press.cz)

H1 2009 results:

  Q2/08 Q2/09 H1/08 H1/09 Change y.o.y. %
Number of customers ('000) 5,313 5,433 5,313 5,433 2.3
Contract customers 2,372 2,599 2,372 2,599 9.5
Twist customers 2,941 2,834 2,941 2,834 -3.6
New customers ('000) 40 22 42 11 -73.8
Contract customers 79 55 145 99 -31.4
Twist customers -39 -33 -103 -88 -14.0
Average monthly churn (%) 1.3 1.2 1.4 1.4 0.0  pp
Contract customers 0.4 0.4 0.4 0.5 0.1 pp
Total revenue (CZK million) 8,264 8,283 16,205 15,878 -2.0
ARPU revenue (CZK million) 8,037 7,993 15,685 15,316 -2.4
EBITDA (CZK million) 3,911 4,834 7,961 8,352 4.9
EBITDA margin (total rev. %) 47.3 58.4 49.1 52.6 3.5 pp
EBITDA margin (ARPU rev. %) 48.7 60.5 50.8 54.5 3.8 pp
ARPU 507 492 496 472 -4.8
Contract customers 874 807 863 781 -9.5
Twist customers 217 207 212 197 -6.9
Non-Voice % of ARPU 21 21 21 22 1 pp

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.