Q3 2008: Leadership in active SIM cards confirmed, further growth of financial indicators

  • Contract customers account nearly 46% of T-Mobile's customer base of 5.39 million
  • In Q1 - 3 increase in revenues of 4.5%
  • ARPU in Q3 reached CZK 519

Prague, 6 November 2008 - The results of T-Mobile Czech Republic in the first 3 quarters of 2008 show success of the Company's strategy. T-Mobile Czech Republic strengthened its leadership 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 reached 5.39 million, which means growth by 3.5% compared to the same period last year. The total revenues grew year-on-year by 4.5% to CZK 24.8 billion in the first nine months of the year (8.6 billion in Q3). EBITDA reached approximately CZK 12.2 billion and the EBITDA margin exceeded 49%. Average revenue per user (ARPU) amounted to the level of CZK 519 in Q3 and CZK 503 in the first nine months.

"We are very proud of the achieved results. They prove how stable the Czech telecommunication market is and that our strategy of targeted, advantageous offers works, "says Otakar Král, Executive Vice president Finance, T-Mobile Czech Republic adding: ?I want to thank all of our customers whose favor we greatly value. And, of course, also to our employees for their determination and enthusiasm."

During the first three quarters of 2008 the Company introduced a number of innovative services and products: the BAV SE tariff plan with Mych5 (the cheapest monthly fee tariff plan), or T-Mobile Combi (a prepaid card with all the benefits of a tariff plan), business customers were addressed by a new acquisition campaign offering free calling within T-Mobile Czech Republic network.

For data users, T-Mobile Czech Republic introduced advantageous data bundles (notebook + mobile data terminal + data tariff) and unlimited ADSL service. The "hit of the season" was the iPhone handset launch on August 23 introduced together with a special data tariff for heavy data users.

Increase in revenues, EBITDA and ARPU
In the first three quarters of 2008, T-Mobile Czech Republic a.s. recorded total revenues in the amount of CZK 24.8 billion, which represents a year-on-year increase of 4.5%. The growth of contract customer base and higher usage of the services provided substantially contributed to this positive result. EBITDA (earnings before interest, taxes, depreciation and amortization) reached CZK 12.2 billion, the EBITDA margin amounted 49%. ARPU indicator showed out to CZK 503 which represents year-on-year growth by 2%.

Nearly 2.5 million of contract customers
The total number of customers increased year-on-year by 3.5% to 5.39 million. The result confirms the leading position of T-Mobile Czech Republic in number of active SIM cards. The driver role is played by the contract-customer segment - the number of contract customers reached almost 2.47 million, which accounts for nearly 46% of the total customer base and represents a year-on-year increase of 15.7%.

Customer net additions however slowed down: during the first three quarters of 2008, T-Mobile Czech Republic gained 120 thousand new customers, in comparison to 159 thousand in 2007. The monthly churn (i.e., the number of customers who decided to stop using an operator's services) remains stable at 1.3%.

  Q3/07 Q3/08 % y.o.y. Q1-3/07 Q1-3/08 % y.o.y.
Customers ('000) 5,207 5,392 3.5 5,207 5,392 3.6
Contract customers 2,132 2,467 15.7 2,132 2,467 15.7
Prepaid customers - Twist 3,075 2,925 -4.9 3,075 2,925 -4.9
Net adds ('000) 68 79 15.9 159 120 -24.5
Contract customers 118 95 -19.6 323 239 -26.0
Prepaid customers - Twist -50 -16 -67.7 -164 -119 27.4
Average monthly churn (%) 1.3 1.2 -0.1 pp 1.3 1.3 0.0pp
Total revenues (CZK million) 8,345 8,605 3,1 23,751 24,810 4.5
ARPU Revenues (CZK million) 7,954 8,334 4,8 22,766 24,019 5.5
EBITDA (CZK million) 3,706 4,225 14,0 10,929 12,186 11.5
EBITDA margin (total rev.) 44.4 49.1 4.7 pp 46.0 49.1 3.1pp
EBITDA margin (ARPU rev.) 46.6 50.7 4.1 pp 48.0 50.7 2.7pp
ARPU (incl. visitors) 513 519 1,3 494 503 1.8
Contract customers 952 877 -7.8 945 868 -8.1
Prepaid customers - Twist 219 223 2,0 212 216 1.9
Non-Voice % of ARPU 20% 22 % 1pp 20% 21% 1pp

Information on the services introduced in 3Q of 2008:

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.