First quarter 2008: Convincing results
Public 08.05.2008 in category Press News / Financial and Operational
- Significant growth in both revenues and EBITDA
- The number of contract customers exceeds 2.2 million, making up more than 43 % of the customer base
Prague, 8 May 2008 - The extreme penetration of Czech mobile market and T-Mobile's effort to achieve leading position in financial indicators are the key factors influencing in the Company's results for the first quarter of 2008. T-Mobile reports the highest number of active SIM cards: out of the total of 5.273 million customers which represents year on year growth by 3.2%. Almost 2.3 million are contract customers which represents 43.5% of the customer base. The financial results were also positive: the revenues reached CZK 7.9 billion which represents improvement by 6.8% compared to Q1 2007; EBITDA amounted to more than CZK 4 billion (higher by 13.2%). The ARPU indicator improved to the level of CZK 484.
"The results achieved by T-Mobile in the first quarter of 2008 show strong performance in the extremely competitive market. The penetration exceeds 126% which means it's hardly possible to gain new customers. We're aware of the fact the focus on current customers is vital for future development," says Otakar Kral, Executive Vice-president, Finance T-Mobile, adding: "It can be proved by the recent launch of the new complex loyalty program T-Mobile Bonus offered to all customers, regardless to whether they use a prepaid card or a tariff."
Financial results: total revenues up by 6.8%, EBITDA by 13.2%
Total revenues amounted to CZK 7.941 billion, which represents a year-on-year increase of 6.8%. EBITDA (earnings before taxes, interest, depreciation and amortization) increased by 13.2% year-on-year, EBITDA margin reached outstanding 51.0%. ARPU (average revenue per user) reached the value of CZK 484.
Customers: strengthening No.1 position
The total number of customers grew by 3.2% year-on-year, the number of contract customers even by 19.8% to 2.293 million. This figure represents more than 43% of the total customer base. The fact almost all the customers are divided among three operators is proven by the achieved net adds - they totaled 2,000.
T-Mobile stayed active in the business segment: the customers gained in Q1 2008 included, for example, AXA Assistance CZ, Hornbach Baumarkt CS, Raiffeisenbank, Ceska zbrojovka or Danone.
"In the coming months, we will continue to adhere to our strategy of focusing on the retention activities, data services development and the communities-targeted offers," says Otakar Kral: "Of course, the second quarter will be strongly influenced by EURO 2008. As the general partner of the Czech National Football Team, T-Mobile has prepared an exclusive football-related offer for all customers including special gifts, special SMS or MMS bundles with football news or a special ME 2008 section on wap site, where all fans can find free information and the football festival, including live broadcasts. In addition, the popular Cestovatel roaming add‑on will be available in Switzerland during the entire month of June," adds Kral.
(For more information on the offers mentioned above, please see http://en.t-press.cz/)
Q1 2008 Results
| Q1/08 | Q1/07 | Change y/y | |
| Number of customers('000) | 5,273 | 5,109 | 3.2 % |
| Contract customers | 2,293 | 1,915 | 19.8 % |
| Twist customers | 2,980 | 3,194 | -6.7 % |
| New customers('000) | 2 | 60 | -96.7 % |
| Contract customers | 66 | 106 | -37.8 % |
| Twist customers | -64 | -46 | - |
| Average monthly churn | 1.4 % | 1.3 % | 0.1p |
| Contract customers | 0.5 % | 0.6 % | -0.1p |
| Total revenues (CZK mil.) | 7,941 | 7,432 | 6.8 % |
| ARPU revenues | 7,649 | 7,145 | 7.1 % |
| EBITDA (CZK mil.) | 4,050 | 3,579 | 13.2 % |
| EBITDA margin (total revenues) | 51.0 % | 48.2 | 2.8p |
| EBITDA margin (ARPU revenues) | 53.0 % | 50.1 | 2.9p |
| ARPU incl. visitors (CZK) | 484 | 469 | 3.3 % |
| Contract customers | 853 | 934 | -8.7 % |
| Twist customers | 207 | 200 | 3.6 % |
| Share of non-voice services in ARPU (%) | 22.0 % | 20.0 % | 2p |
Non-audited financial results in accordance with IFRS.
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.
