First quarter 2007: Strong position confirmed, both in terms of financial and customer results

Public 10.05.2007 in category Press News / Financial and Operational

Expected financial results reached - significant growth in both revenues and EBITDA
The customer base counts more than 5.1 million customers
The number of contract customers amounts to 1.9 million, making up more than 37% of the customer base

Prague, 10 May 2007 - T-Mobile's long-term focus on the contract-customer segment and effort to meet customer needs became fully reflected in the Company's results for the first quarter of 2007. The reported results show outstanding achievements in the highly competitive market environment. T-Mobile reports the highest number of active SIM cards. Out of the total of 5.109 million customers, 1.9 million (37.4%) are contract customers. Customer additions totaled 60,000 in the first quarter 2007. The financial results were also positive: The key financial indicators such as revenues (higher by 8.1% compared to Q1 2006) and EBITDA (higher by 16.1%) improved. The ARPU indicator remains on more or less the same level as in the respective period of 2006, amounting to CZK 469.

"We highly value our success, especially with regard to the tough competition in the mobile telecoms market where penetration has exceeded 120 percent," says Roland Mahler, Managing Director of T-Mobile, adding: "Our effort to focus on customer needs and wishes results in their long-term confidence and loyalty. These qualities are vital prerequisites for achieving convincing results and strengthening our leading position."

Financial results: total revenues up by 8.1%, EBITDA by 16.1%
The financial results achieved by T-Mobile in the first quarter of 2007 show strong performance in the extremely competitive market. Total revenues amounted to CZK 7.4 billion, which represents a year-on-year increase of 8.1%. EBITDA (earnings before taxes, interest, depreciation and amortization) increased by 16.1% year-on-year, EBITDA margin was 48.3%, net profit rose to almost CZK 1.8 billion (increase by 48.3%), and ARPU (average revenue per user) reached the value of CZK 469.

Customers: Nearly 48% y/y increase in the number of new contract customers
The total number of customers grew by 9.9% year-on-year, the number of contract customers even by almost 41% to 1.9 million. This figure represents more than 37.5% of the total customer base. The business customers that T-Mobile gained in Q1 2007 included, for example, Zetor Tractors, Dalkia Ostrava, State Agricultural Intervention Fund (Statni zemedelsky intervencni fond).

"In the coming months, we will continue to adhere to our strategy of focusing on the introduction of a larger number of segment-targeted offers," says Roland Mahler. "As an example, let me mention Girls Talk - the tariff add-on offering free calls after the third minute - and an extension of our roaming 'flagship' Cestovatel to all networks in all the eleven T-Mobile countries, including the most popular holiday destinations. This offer will simply make our customers' holidays more pleasant and trouble-free," adds Mahler.

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

	Q1 2007	Q2 2006	Change in %
Number of customers ('000)	5,109	4,648	9.9
Contract customers	1,915	1,359	40.9
Twist customers	3,194	3,289	(2.9)
New customers ('000)	60	14	328.6
Contract customers	106	72	47.7
Twist customers	-46	-57	19.3
Average monthly churn (%)	1.3	1.6	(0.3 p.p.)
Total revenues (CZK mil.)	7,432	6,876	8.1
ARPU revenues incl. visitors	7,145	6,529	9.4
Net profit (CZK mil.)	1,788	1,205	48.3
EBITDA (CZK mil.)	3,579	3,082	16.1
EBITDA margin - total revenues (%)	48.3	45.0	3.3 p.p.
EBITDA margin - revenues from services (%)	50.2	47.4	2.8 p.p.
ARPU including foreign visitors (CZK)	469	470	(0.2)
Share in non-voice services in ARPU (%)	20	21	(1 p.p.)

Non-audited financial results in accordance with IFRS.

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About the Company
T-Mobile Czech Republic has been operating in the Czech market since 1996. As of 30 September 2011, almost 5.4 million customers were using T-Mobile services.

T-Mobile operates a public mobile communications network on the GSM and UMTS standards. Since 1 January 2008, T-Mobile has been offering fixed data and voice telecommunications services. In 2009, T-Mobile extended its portfolio to include ICT services and, since November 2010, the operator also offers the T-Mobile TV satellite television service.

T-Mobile has always focused on the quality of offered services. Independent tests have repeatedly confirmed that T-Mobile is the quality leader in 2G and 3G (UMTS FDD) data services, as well as in GSM voice services.

Since its establishment, the company has placed emphasis on excellent customer service and proper conduct towards business partners, employees and the environment. T-Mobile has received, among other awards, the VIA Bona 2009 award for the involvement of its employees in philanthropic and volunteer activities.

T-Mobile is a member of the international telecommunications group Deutsche Telekom. Thanks to the group’s international presence, customers can count on the worldwide availability of their favourite services and enjoy uniform, favourable prices of calls when abroad.

For more information about the company, please visit t-press.cz or www.t-mobile.cz.