T-Mobile International - Bonn, November 15, 2002

  • Third quarter produces highest customer growth this year
  • T-Mobile International continues on profitable growth course
  • EBITDA growth of over 76 percent compared to the first three quarters last year
  • Market leader: T-Mobile records the strongest customer growth
    of all US providers; T-Mobile remains Germanyâ??s undisputed number one
  •  Revenue exceeds five billion Euros in a single quarter for the
    first time

The third quarter saw T-Mobile International emphatically continue the growth story of 2002. "We have been able to link seamlessly to the outstanding results of the first half-year and once again proven that it is possible to combine strong customer growth and an increase in EBITDA", commented Kai-Uwe Ricke, Chief Executive Officer (CEO) of Deutsche Telekom AG and CEO of T-Mobile International AG.

Customers â?" largest increase in 2002
Having gained 2.2 million new subscribers in its majority-owned affiliates,
T-Mobile International AG recorded its best customer growth so far for 2002, improving the growth in the second-quarter by 77 percent. On September 30, 2002, Deutsche Telekomâ??s mobile holding was serving over 61 million customers. Of these, around 51.2 million are customers of subsidiaries and majority-owned affiliates in Germany, the USA, Britain, Austria, the Netherlands and the Czech Republic. "The introduction of the umbrella brand T-Mobile has given us added momentum", stated
René Obermann, Member of the Board of T-Mobile International, responsible for European Operations.

The minority-stake affiliated companies in Poland and Russia had approximately 9.9 million customers by September 30, around four million more than at the same time last year.

T-Mobile USA was once again the main growth driver. Customer growth of 869,000 in the third quarter means that the fully-owned subsidiary of
T-Mobile International is not only market leader for new business for the first time, but has also won over more new customers in the whole of 2002 to date than any other US network operator.

EBITDA â?" Profitable growth continues
Earnings before interest, tax, depreciation and amortization (EBITDA) increased to EUR 1.3 billion in the third quarter â?" representing growth of
60 percent compared to the same period last year. EBITDA in the T-Mobile Group overall increased to almost EUR 3.9 billion in the first nine months of 2002, an increase of over 76 percent from the previous year. European majority-owned affiliates once again posted record quarterly EBITDA totaling EUR 1.2 billion. With the high growth in the particularly profitable contract subscriber segment â?" the increase was double that achieved in the first quarter â?" T-Mobile USA was able to keep EBITDA at the same level of EUR 106 million (according to German GAAP). T-Mobile USA made a positive EBITDA contribution to Group results for the third quarter in a row. "This, along with the other key performance indicators, shows that we are not buying our way to growth", said T-Mobile Chief Financial Officer Thomas G. Winkler.

The Groupâ??s EBITDA margin increased in the first three quarters of 2002 by 5.5 percentage points compared with the same period last year to
27.0 percent. The European majority-owned affiliates recorded a growth of almost 7.7 percentage points to 35.0 percent.

Revenue exceeds five billion Euros in a single quarter for the first time
Recording an increase in revenue of nearly 22 percent compared to the third quarter of 2001 to EUR 5.1 billion (3rd quarter of 2001: EUR 4.2 billion), the Group passed the EUR 5 billion mark within one quarter for the first time. Excluding T-Mobile USA, revenue increased by 16 percent in the third quarter compared to the same period in 2001. From January to September 2002, T-Mobile International generated total revenue of more than EUR 14.2 billion, up 40 percent compared to the same period in 2001 (approximately EUR 10.2 billion). Excluding the results achieved by the
US operations, the revenue growth rate would have been 14 percent.

Considerable cuts of capital expenditure
At approximately EUR 2.0 billion, capital expenditure (capex) in the first three quarters of 2002 was at the same level as in the same period in 2001 â?" despite the first-time consolidation of T-Mobile USA. T-Mobile USA was only fully consolidated for four months in the first three quarters of 2001. Capital expenditure in the European majority shareholdings decreased by approximately 39 percent.

T-Mobile USA â?" no. 1 in terms of customer growth
In the third quarter of this year, T-Mobile USA continued to be one of the main drivers of customer growth. T-Mobileâ??s U.S. subsidiary has been the only nationwide GSM provider in the United States since the launch of the mobile communications networks in California and Nevada in July. In September, VoiceStream was renamed to the global brand T-Mobile throughout the USA. With its digital network, T-Mobile USA now reaches 211 million inhabitants (covered population), bringing it up to the same level as its main competitors.

In terms of customer growth T-Mobile became market leader in the U.S., recording an increase of 869,000 subscribers in the third quarter â?" despite an elimination of 190,000 inactive prepay customers. Four out of tena) new mobile communications customers opted for T-Mobile USA. As a result, customer growth compared to the second quarter of 2002 increased by almost 65 percent. T-Mobile USA also had a leading position throughout the first three quarters of 2002, as it accounted for approximately one quartera) of total customer growth in the U.S. Altogether, T-Mobile USA increased its subscriber base to 8.9 million. This is an increase of approximately
1.9 million (27 percent) compared to the beginning of the year, or almost
2.6 million (almost 41 percent) compared to the end of the third quarter
of 2001.

In addition to the absolute figures, T-Mobile USA improved the customer mix. The proportion of contract customers has now reached 84 percent (third quarter of 2001: almost 73 per cent).

The monthly average revenue per userb) (ARPU) increased from USD 46.3 in the second quarter to USD 47.3 (according to German GAAP). T-Mobile USA generated revenues of EUR 1.6 billion in the third quarter of 2002
(Q1 â?" Q3: EUR 4.4 billion).

Despite high customer growth, T-Mobile USA once more recorded positive EBITDA of EUR 106 million. Notwithstanding, the company recorded around twice as many net additions compared to the first quarter, with EBITDA remaining almost at similar levels (according to German GAAP). In addition to further progress in cost management, this is also attributable to the acquisition costs of USD 322 per gross addition (US-GAAP, CPGA Costs per gross addition) â?" the lowest among its competitors. Furthermore, the churn rate of contract customers was reduced in the third quarter by one percentage point to 2.6 percent compared to the same period of 2001. At September 30, 2001, the churn rate was still 3.6 percent.

T-Mobile Deutschland â?" extending market leadership
In the third quarter of 2002, T-Mobile Deutschland increased its overall customer base by 536,000 to 23.8 million â?" this represents an increase of 139 percent compared with the net increase in the second quarter. With a market share of more than 41 percent, T-Mobile managed to further expand its leading position in Germany. The share of contract customers in the overall customer base was approximately 47 percent on September 30, 2002.

Revenues of T-Mobile Deutschland increased by over 15 percent to approximately EUR 2.1 billion in the third quarter compared with the same period in 2001 (Q3 2001: 1.8 billion). ARPU b) in the third quarter was
EUR 25.7 per month, an improvement of EUR 1.7 compared with the same quarter in 2001. T-Mobile Deutschland reported revenues of EUR 5.8 billion (previous year: EUR 5.2 billion) for the first nine months of 2002 at 30 September. The third-quarter EBITDA margin was 41.3 percent, which leads to an average of over 41 percent in the first nine months.

T-Mobile UK â?" fastest growing operator in the UK
Between June 30 and September 30, 2002, the customer base of T-Mobile UK rose by 659,000 to 11.8 million. Revenue increased to just under
EUR 1.1 billion in the third quarter. In total, T-Mobile UK increased its revenue in the first three quarters by just under 21 percent to EUR 2.9 billion compared to the same period last year.

The average (monthly) revenue per user (ARPU) b) has increased for
six consecutive quarters and in 2002 it has grown from EUR 27.7 in the first quarter to EUR 28.2 in the second quarter and to EUR 29.3 in the third quarter. The revenue growth (which was due to the strong increase in subscriber figures and the rise in ARPU) and the cost controls led to a positive EBITDA contribution of EUR 663 million in the first three quarters. This represents an increase of over 80 percent compared to the same period last year and an average EBITDA margin of 22.8 percent for the first three quarters of 2002.

T-Mobile Austria â?" Position asserted
Despite ever fiercer competition, T-Mobile Austria slightly increased the number of its customers to 2.0 million in the third quarter of 2002. The slight decrease compared to the same period last year is due to adjustments in the prepaid customer base at the beginning of the year.

Revenue increased just under 7 percent to EUR 258 million compared with the previous quarter, which approximately corresponds to the level achieved in the third quarter of 2001 (EUR 260 million). This year, T-Mobile Austria has generated a total of EUR 754 million to date, which is roughly
3 percent less than in the same period in 2001. This is due to the decrease in subscriber figures which, however, was nearly compensated by the higher ARPU b) of EUR 29.7 per month in the first quarters of 2002
(EUR 27.4 average monthly ARPU in the same period last year). The EBITDA margin decreased to 20.3 percent in the third quarter as a result of special influences. At 29.3 percent for the financial year to date, the EBITDA margin nevertheless is approximately 7 percentage points higher than in the same period last year.

T-Mobile CZ â?" continuously high EBITDA margin
On September 30, T-Mobile increased its customer base in the Czech Republic by over 800,000 to approximately 3.3 million compared with the previous year. Revenue in the third quarter was EUR 186 million which corresponds to an increase of just under 18 percent against the previous year.

EBITDA in the third quarter was EUR 95 million, i.e. 79 percent higher than in the third quarter of 2001. In the first three quarters of 2002 in the Czech Republic, T-Mobile achieved total revenues of EUR 511 million with an average EBITDA margin of more than 48.0 percent (EUR 247 million EBITDA).

Ben â?" already no. 3
Effective September 30, T-Mobile International AG increased its share in the Dutch network operator Ben from 50 percent minus one share to 100 percent. Consequently, Ben will be fully consolidated in the fourth quarter 2002.

With over 1.4 million customers and revenues of EUR 381 million in the first nine months of 2002 (not included in the Group revenue because full consolidation will only take place in the fourth quarter), Ben has risen to become number 3 among the five providers in the Dutch mobile communications market. Boasting a share of 43 percent contract customers in the overall customer base, Ben also shows the best ratio between contract and prepaid customers among all providers in the Dutch market.

Joint ventures in Poland and Russia
Customer figures in the minority holdings in Poland (PTC) and Russia (MTS) also developed extremely favorably. PTC, for instance, managed to further expand its position as market leader in Poland with a customer growth of 305,000 in the third quarter to 4.5 million as at September 30. MTS increased the number of its customers by roughly one million to
5.4 million subscribers in the third quarter.


a) The total market is defined by net additions in the third quarter published by Verizon,
   Cingular, AT&T-Wireless, Sprint PCS and Nextel.

b) ARPU contains monthly service fee, as well as voice-, non-voice- and roaming revenues.
  In contrast to the reporting of some competitors, visitor revenues are not included.

 

Key figures of the T-Mobile Group for the 3rd quarter of 2002

(Financial figures of T-Mobile including consolidation effect)

Customers (000.).

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %

T-Mobile International

51,1753)

43,357

7,818

18.0%

T-Mobile Deutschland

23,798

22,555

1,243

5.5%

T-Mobile UK

11,758

9,929

1,829

18.4%

T-Mobile Austria

2,011

2,093

-82

-3.9%

T-Mobile CZ 1)

3,283

2,455

828

33.7%

T-Mobile USA 2)

8,996

6,325

2,671

42.2%

Sales (Mio. EUR)

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %

T-Mobile International

14,245

10,167

4,078

40.1%

T-Mobile Deutschland

5,790

5,198

592

11.4%

T-Mobile UK

2,903

2,406

497

20.7%

T-Mobile Austria

754

777

-23

-3.0%

T-Mobile CZ 1)

511

306

205

67.0%

T-Mobile USA 2)

4,361

1,515

2,846

187.9%

EBITDA (Mio. EUR)

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %

T-Mobile International

3,8504)

2,182

1,668

76.4%

T-Mobile Deutschland

2,395

1,783

612

34.3%

T-Mobile UK

663

368

295

80.2%

T-Mobile Austria

221

173

48

27.7%

T-Mobile CZ 1)

247

121

126

104.1%

T-Mobile USA 2)

388

-187

575

n.m.

ARPU (EUR)6)

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %5)

T-Mobile Deutschland

25

24

1

1.7%

T-Mobile UK

28

27

1

6.0%

T-Mobile Austria

30

27

3

8.4%

T-Mobile CZ 1)

16

19

-3

-15.7%

T-Mobile USA 2)

50

54

-4

-6.5%

SACs per gross add

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %

T-Mobile Deutschland

95

126

-31

-24.6%

T-Mobile UK

145

85

60

70.6%

T-Mobile Austria

88

129

-41

-31.8%

T-Mobile CZ 1)

29

20

9

45.0%

T-Mobile USA 2)

226

274

-48

-17.5%

Blended Churn (in %)

1st - 3rd Q./02

1st - 3rd Q./01

Delta

Delta %

T-Mobile Deutschland

1.5

1.1

0.4

T-Mobile UK

2.0

1.6

0.4

T-Mobile Austria

2.4

1.6

0.8

T-Mobile CZ 1)

0.8

0.6

0.2

T-Mobile USA 2)

4.2

5.0

-0.8

1) First consolidation of RadioMobil, April 1, 2001; financial figures recognized in

accordance with German Commercial Code

2) First consolidation of T-Mobile USA, June 1, 2001; financial figures recognized in

accordance with German Commercial Code

3) Inc. Ben (1.429.000 Customers at the end of 3rd Q./02)

4) Contains a one-time special effect of EUR 47 million from sale of Westel shares

from Media One to Matav from the first quarter of 2002

5) Calculated on precise numbers

6) ARPU contains monthly service fee, as well as voice-, non-voice- and roaming

revenues. In contrast to the reporting of some competitors, visitor revenues are

not included.


 
About the Company

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. 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) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.