T-MOBILE 2013: A TURNING POINT

Dramatic changes in Czech mobile market
Acquisition of T-Systems CZ
Increase in service usage and decrease in prices
The fastest network, investment in LTE

It is no exaggeration to say that 2013 was the year of substantial changes: a significant price reduction in the mobile sector, tens of virtual operators entering the market, the auction of LTE frequencies, acquisitions which will most likely change the balance of power. Nevertheless, T-Mobile satisfactory results, both in customer related and financial indicators. Uptake of services continued to grow, particularly in the area of data services. T-Mobile signed 333,000 new mobile customers bringing its customer base to over 5.8 million. The fixed-line services also increased their reach year-on-year with data 120,000 fixed network access lines in total. The use of telecommunications services again saw growth, while the average revenue per user declined.

“I perceive the year 2013 as a difficult, but successful one. We kept our leadership in the mobile segment and gained  broadband frequencies which enable us a development of our fastest network in the future,” says Milan Vasina, T-Mobile’s Managing Director, adding: “Last year brought us also a great opportunity in the B2B sector; the acquisition of T-Systems Czech Republic will enhance our competence in the segment. And, our pressure on internal efficiency helped us in achieving satisfactory financial results.“

In 2013, T-Mobile extended and increased the speed of its mobile data network, launching commercially LTE in Prague and Mladá Boleslav. The operator´s network has been long evaluated as the fastest one by independent measurements. T-Mobile’s portfolio was extended to include attractively priced tariff plans combining voice and data services, some of them including roaming and international calls, as well. In May, T-Mobile CZ announced an acquisition of 100% stake in T-Systems CZ. In the second half of the year, a merger of the two companies was taking place. This period was successfully closed on December 31, so T-Mobile could enter the New Year as a stronger, integrated ICT company.

Customers
As at 31 December 2013, T-Mobile had more than 5.8 million customers using mobile services, having added 333,000 new customers, mainly in the segment of contract customers, since the previous year. The proportion of contract customers reached 56.4%. The number of users of prepaid Twist cards totaled 2.5 million. The monthly churn rate (i.e. the share of customers who stopped using the operator’s services) stayed at the low level of 1.1%.

‘000 Q1 – Q4 2012 Q1 – Q4 2013 % y/y
(rounded)
Number of customers – mobile services* 5,498 5,831 6.1%
Contract customers 3,072 3,289 7.1%
Prepaid customers 2,426 2,502 3.1%
Net adds* 117 333 n/a
Contract customers 199 217 9.0%
Prepaid customers -83 76 n/a
Average monthly churn – mobile services   1.1%   1.1%   0.0%p
Contract customers 0.4% 0.4%  0.0%p

* Q4/2013: Due to technical reasons one of our service provider is currently available on total customer level only.

In 2013, users of T-Mobile’s mobile services called on average of 145 minutes per month, 9% more compared to the previous year. The overall growth of consumption is reflected in all areas, i.e. in the number of minutes called and text messages sent and, above all, in the volume of transmitted data, which increased by 88.3% as compared to the previous year, reaching more than 6,600 terabyte.

Financial indicators
Despite the fact that prices of telecommunications services have been dropping significantly in real terms while consumption has been rising, T-Mobile succeeded in achieving satisfactory financial results. The operator has been partly compensating declining revenues with a strong emphasis on the efficiency of all its activities, though without reducing investments in technologies or services to customers.

Total revenues for fixed-line and mobile services reached nearly CZK 23.8 billion, with revenues from mobile services totalling almost CZK 19.8 billion. The average monthly revenue per user (ARPU) of mobile services dropped to CZK 288, which is 20.4% less compared to the previous year. The growing use of data services is mirrored in the share of non-voice services in the revenues from mobile services, which increased by seven percentage points to the record level of 34%.

CZK Q1 – Q4 2012 Q1 – Q4 2013  Změna meziročně (zaokrouhleno)
Total revenues (CZK million)  26,254 23,756 -9.5%
Service revenues (CZK million) – mobile services 23,498 19,754 -15.9% 
EBITDA (million) (integrated services) 12,203  10,483 -14.1%
EBITDA margin (EBITDA/total revenues)   46.5% 44.1% -2.4%p
ARPU – mobile services 362 288 -20.4%
Contract customers 538  419 -22.1%
Prepaid customers 143 117   -18.2%
Non-voice % of ARPU – mobile services   27%   34% 7%p

More information about T-Mobile’s activities in 2013 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.