Further growth of the customer base
Strengthened position in B2B and fast mobile data
Satisfactory financial results

Prague, May 8 2014 – The first quarter of 2014 confirmed the trends of previous periods: further development of data services and the ongoing decrease of the average amount spent per customer, while the consumption of telecommunications services increased again. In the first three months after the merger with T-Systems, the operator managed to integrate processes and activities and introduced its strategy and services in B2B segment. T-Mobile focused also on the development of mobile data services: the operator started the LTE roll-out in rural areas, boosted its fast internet and launched shared internet, as the first operator in the Czech Republic.

As compared with the same period of the previous year, the number of T-Mobile mobile customers increased by 6.1% to more than 5.9 million. The use of telecommunications services saw growth again, while the average revenue per user dropped significantly. 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 financial results.

“We managed to strengthen our position in the mobile market and fully integrate the B2B business,“ says Milan Vašina, T-Mobile’s Managing Director, adding: “We managed to cope with intense competition and I find particularly pleasing the growth of data services and the positive development of the customer base. This is the result of our long-term efforts to achieve the best price:value ratio for our customers.”

As of 31 March 2014, the number of T-Mobile´s mobile customers exceeded 5.9 million. Nearly 3.4 million customers (57% of the customer base) were using one of the contract tariff plans, more than 2.5 million opted for a prepaid service. T-Mobile attracted 81,000 new customers. The average monthly churn rate (i.e. the share of customers who decided to stop using the operator’s services) slightly increased to 1.3%.

‘000  Q1 2013 Q1 2014 % y/y
Number of customers – mobile services 5,570 5,912 6.1%
Contract customers 3,137 3,393 8.2%
Prepaid customers 2,434 2,520 3.5%
Net adds 72 81 12.5%
Contract customers 65 64 -1.5%
Prepaid customers 7 18 n/a
Average monthly churn – mobile services 1.1% 1.3% 0.2%p
Contract customers 0.4% 0.5% 0.1%p

Users of T-Mobile’s mobile services called an average of 147 minutes per month during the first quarter of this year, 9.7% more as compared with the previous year. Consumption grew in all areas – the number of calling minutes and text messages, but above all the volume of transmitted data which increased by 78.6% as compared with the previous year, reaching nearly 2,334 terabytes.

Financial indicators
Despite the fact that prices of telecommunications services dropped significantly in the last 12 months, while consumption has been rising, T-Mobile succeeded in achieving satisfactory financial results. The operator has been partly compensating declining mobile revenues with a strong emphasis on the efficiency of all its activities, though without reducing investments in technologies and services provided to customers. Total revenues from mobile and fixed-line services exceeded CZK 5.9 billion, with revenues from mobile services totalling CZK 4.7 billion. The average monthly revenue per user (ARPU) decreased year-on-year by 15% to CZK 256. The continuously growing use of data services is mirrored in the share of non-voice services in ARPU from mobile services, which increased by more than 7 percentage points to the record level of 37.9%.

CZK Q1 2013 Q1 2014 % y/y
Total revenue (CZK mio) 5,786 5,931 2.5%
EBITDA (million) (integrated services) 2,651 2,533 -4.5%
EBITDA margin (EBITDA/total revenue) 45.8% 42.7% -3.1%p
Service Revenue (CZK mio) 5,051 4,709 -6.8%
ARPU  301 256 -15.0%
Contract customers 443  376 -15.1%
Prepaid customers 119 96 -19.3%
Non-voice % of ARPU – mobile services 30.7% 37.9% 7.2%p

Results for 2013 BEFORE integration with T-Systems;

More information about T-Mobile’s activities in 2014 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.