First three quarters of 2007: Significant growth of financial indicators
Public 08.11.2007 in category Press News / Financial and Operational
- Year-on-year increase in revenues of 9.8%, EBITDA higher by 13.5%
- ARPU increase to CZK 494
- Contract customers account for almost 41% of T-Mobile's customer base of 5.2 million
Prague, 8 November 2007 - The third quarter of 2007 confirmed T-Mobile's leading position in the Czech market in terms of the number of customers and saw further growth of financial indicators. The total number of customers who were using T-Mobile services at the end of September reached 5.2 million, which means an increase of 8% compared to the same period last year. Contract customers accounted for 40.9% of the total customer base. Total revenues grew year-on-year by 9.8% to CZK 23.75 billion. EBITDA reached approximately CZK 10.9 billion and the EBITDA margin reached an excellent 46%. Average revenue per user (ARPU) amounted to CZK 494 in the first nine months of the year.
"We are satisfied with our results for the third quarter. The market development surprises us - in a positive way - by the dynamics of its growth," says Otakar Kral, Executive Vice President Finance adding: "As we predicted, the market has entered a new phase of extensive growth. Net adds have significantly slowed down, whereas the consumption of telecommunication services is growing. Our financial results clearly reflect our investment in customers and the level of care provided to them."
In the third quarter, the Company's effort to offer favorable services tailored to customers' needs was demonstrated, for example, by the offer of calling within the T-Mobile network for CZK 1.19/min. and the offers targeted at data users (e.g. free internet access for up to six months etc.).
Increase in revenues, EBITDA and ARPUIn the first three quarters of 2007, T-Mobile Czech Republic a.s. recorded total revenues in the amount of CZK 23.75 billion, which represents a year-on-year increase of 9.8%. The growth of the customer base and greater usage of services substantially contributed to this very good result. EBITDA (earnings before interest, taxes, depreciation and amortization) reached approx. CZK 10.9 billion. The EBITDA margin amounted to an outstanding 46%. Blended ARPU, incl. visitors, reached CZK 494.
The achieved results clearly show that T-Mobile can appeal to customers with favorable services, thanks to which they are no longer afraid to use mobile communications services to a larger extent. T-Mobile, for example, introduced not only the EU roaming tariff prior to the deadline stipulated by the European Commission in August but also advantageous offers with respect to voice and data tariffs. Thirty thousand customers signed up for the roaming tariff in the first month.
More than 2.1 million contract customersThe total number of customers increased year-on-year by 8.0% to 5.207 million. The result confirms the operator's No. 1 position in terms of the number of active SIM cards. The primary role in this development was played by the contract-customer segment - the number of contract customers reached 2.13 million, which accounts for almost 41% of the total customer base of 5.2 million and represents a year-on-year increase of 30.3%. Growth of the customer base has slowed down: during the third quarter of 2007, T-Mobile gained 68,000 new customers (158,000 in the first nine months of the year).
Monthly churn (i.e., the number of customers who decided to stop using the operator's services) remains more or less stable: based on a year-on-year comparison, this indicator dropped by 0.1 percentage point to 1.3%.
| All financial figures are according to IFRS | 1-9/2007 | 1-9/2006 | Change y/y (%) |
| Number of customers ('000) | 5,207 | 4,823 | 8.0 |
| Contract customers | 2,132 | 1,636 | 30.3 |
| Twist customers | 3,075 | 3,187 | (3.5) |
| New customers ('000) | 159 | 188 | (15.8) |
| Contract customers | 323 | 348 | (7.3) |
| Twist customers | -164 | -160 | (2.7) |
| Average monthly churn (%) | 1.3 | 1.4 | (0.1p) |
| Total revenues (CZK mil.) | 23,751 | 21,632 | 9.8 |
| ARPU revenues incl. visitors | 22,766 | 20,729 | 9.8 |
| EBITDA (CZK mil) | 10,929 | 9,632 | 13.5 |
| EBITDA margin - total revenues (%) | 46.0 | 44.5 | 1.5p |
| EBITDA margin - ARPU revenues | 48.0 | 46.5 | 1.5p |
| ARPU incl. vistors | 494 | 490 | 0.8 |
| Share of non-voice services in ARPU (%) | 20 | 21 | (1p) |
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.
