Q1 - Q3 2009: Stable results despite challenging economic situation

  • Total revenues amount to CZK 23.9 billion
  • EBITDA increases by 3.2% to CZK 12.6 billion
  • Number of customers has further increased to almost 5.5 million

Prague 5 November 2009 - In the first nine months of 2009, T-Mobile Czech Republic achieved satisfactory results despite the slowdown in the Czech economy, following the trend of previous months. The operator strengthened its position in the number of customers and recorded further growth of key financial indicators. The total number of customers who were using T-Mobile services as of the end of September 2009 reached almost 5.5 million, an increase of 1.2% compared to the same period last year. Total revenues reached CZK 23.9 billion in the first nine months of the year, of which CZK 8.0 billion was generated in the third quarter of 2009.  EBITDA reached approximately CZK 12.6 billion, increasing by 3.2% compared to the same period in 2008, and the EBITDA margin reached 52.6%. The average revenue per user (ARPU) amounted to CZK 471 in Q3 2009 and CZK 472 in the first nine months of this year.

"We are satisfied with the results achieved in the first nine months of 2009. Our ability to achieve growth in key performance indicators even in the challenging economic situation proves the company's drive and stable performance," says Roland Mahler, Managing Director of T-Mobile Czech Republic.

During the first nine months of the year, the company introduced a number of innovative services and products such as mobile advertising, naked DSL, free music downloads included in the Bav se tariff plan or iPhone 3GS, T-Mobile Pulse and CPA Halo terminals. Moreover, T-Mobile started crucial technological and strategic projects: 2G network modernization and building of an optical and 3G network. In September, T‑Mobile became the second largest DSL provider in the Czech Republic by acquiring the retail business of České Radiokomunikace.

Financial results
In the first three quarters of 2009, T-Mobile Czech Republic reported total revenues of CZK 23.9 billion, which represents a year-on-year decrease of 3.7%. Service revenues totalled CZK 23.0 billion. EBITDA (earnings before interest, taxes, depreciation and amortization) reached CZK 12.6 billion, an increase of 3.2% year-on-year, the EBITDA margin amounted to 52.6%.

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: roughly CZK + 500 million). ARPU (average revenue per user) decreased by 6.2% year-on-year to CZK 472 as of the end of September 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 accounted for 22% of ARPU revenues in the first nine months of this year.

The total number of customers increased by 1.2% year-on-year to 5.46 million. The result confirms the leading position of T-Mobile Czech Republic in the number of active SIM cards. The driver role is played by the contract-customer segment - the number of contract customers reached almost 2.63 million, which accounts for more than 48% of the total customer base and represents a year-on-year increase of 6.6%. In the first nine months, the average monthly churn (i.e. the number of customers who decided to stop using an operator's services) remains stable at 1.3%.

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, T-Mobile started offering the first tariff plan which includes free music downloads.

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

'000  Q3/09  Q3/08   % y.o.y. Q1-3/09  Q1-3/08  % y.o.y. 
Customers  5,458  5,392  1.2  5,458  5,392  1,2
- Contract  2,630 2,467 6.6   2,630  2,467  6.6
- Prepay  2,828  2,295  -3.3  2,828  2,925  -3.3
New customers  25  79  -68.4  36  120  -70.0
- Contract  32  95  -66.4  131  239  -45.2
- Prepay  -6  -16  62.5  -95  119  -20.2
Average monthly churn  1.3%  1.2%  0.1%p  1.3%  1.3%  0.0 %p
- Contract  0.5%  0.2%  0.3%p  0.5%  0.4%  0.1 %p
CZK  Q3/09  Q3/08  % y.o.y.  Q1-3/09  Q1-/08  % y.o.y.
Total revenue (milion)  8,009  8,605  -6.9  23,887  24,810  -3.7
ARPU revenue (milion)  7,691  8,334  -7.7  23,008  24,019  -4.2
EBITDA (milion)  4,218  4,225  -0.2  12,570  12,186  3.2
EBITDA margin (total revenue)  52.7%  49.1%  3.6%p  52.6%  49.1%  3.5%p
EBITDA margin (ARPU rev.)  54.8%  50.7%  4.1%p  54.6%  50.7%  3.9%p
 ARPU  471  519  -9.2  472  503  -6.2
- Contract  779  877  -11.2  780  868  -10.1
- Prepay  186  223  -16.6  194  216  -10.2
Non-Voice % of ARPU  23%  22%  1%p  22%  21%  1%p

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.