Q3 2008: Leadership in active SIM cards confirmed, further growth of financial indicators
Public 06.11.2008 in category Press News / Financial and Operational
- Contract customers account nearly 46% of T-Mobile's customer base of 5.39 million
- In Q1 - 3 increase in revenues of 4.5%
- ARPU in Q3 reached CZK 519
Prague, 6 November 2008 - The results of T-Mobile Czech Republic in the first 3 quarters of 2008 show success of the Company's strategy. T-Mobile Czech Republic strengthened its leadership in the number of customers and recorded further growth of key financial indicators. The total number of customers who were using T-Mobile services as of the end of September reached 5.39 million, which means growth by 3.5% compared to the same period last year. The total revenues grew year-on-year by 4.5% to CZK 24.8 billion in the first nine months of the year (8.6 billion in Q3). EBITDA reached approximately CZK 12.2 billion and the EBITDA margin exceeded 49%. Average revenue per user (ARPU) amounted to the level of CZK 519 in Q3 and CZK 503 in the first nine months.
"We are very proud of the achieved results. They prove how stable the Czech telecommunication market is and that our strategy of targeted, advantageous offers works, "says Otakar Kral, Executive Vice president Finance, T-Mobile Czech Republic adding: ?I want to thank all of our customers whose favor we greatly value. And, of course, also to our employees for their determination and enthusiasm."
During the first three quarters of 2008 the Company introduced a number of innovative services and products: the BAV SE tariff plan with Mych5 (the cheapest monthly fee tariff plan), or T-Mobile Combi (a prepaid card with all the benefits of a tariff plan), business customers were addressed by a new acquisition campaign offering free calling within T-Mobile Czech Republic network.
For data users, T-Mobile Czech Republic introduced advantageous data bundles (notebook + mobile data terminal + data tariff) and unlimited ADSL service. The "hit of the season" was the iPhone handset launch on August 23 introduced together with a special data tariff for heavy data users.
Increase in revenues, EBITDA and ARPU
In the first three quarters of 2008, T-Mobile Czech Republic a.s. recorded total revenues in the amount of CZK 24.8 billion, which represents a year-on-year increase of 4.5%. The growth of contract customer base and higher usage of the services provided substantially contributed to this positive result. EBITDA (earnings before interest, taxes, depreciation and amortization) reached CZK 12.2 billion, the EBITDA margin amounted 49%. ARPU indicator showed out to CZK 503 which represents year-on-year growth by 2%.
Nearly 2.5 million of contract customers
The total number of customers increased year-on-year by 3.5% to 5.39 million. The result confirms the leading position of T-Mobile Czech Republic in number of active SIM cards. The driver role is played by the contract-customer segment - the number of contract customers reached almost 2.47 million, which accounts for nearly 46% of the total customer base and represents a year-on-year increase of 15.7%.
Customer net additions however slowed down: during the first three quarters of 2008, T-Mobile Czech Republic gained 120 thousand new customers, in comparison to 159 thousand in 2007. The monthly churn (i.e., the number of customers who decided to stop using an operator's services) remains stable at 1.3%.
| Q3/07 | Q3/08 | % y.o.y. | Q1-3/07 | Q1-3/08 | % y.o.y. | |
| Customers ('000) | 5,207 | 5,392 | 3.5 | 5,207 | 5,392 | 3.6 |
| Contract customers | 2,132 | 2,467 | 15.7 | 2,132 | 2,467 | 15.7 |
| Prepaid customers - Twist | 3,075 | 2,925 | -4.9 | 3,075 | 2,925 | -4.9 |
| Net adds ('000) | 68 | 79 | 15.9 | 159 | 120 | -24.5 |
| Contract customers | 118 | 95 | -19.6 | 323 | 239 | -26.0 |
| Prepaid customers - Twist | -50 | -16 | -67.7 | -164 | -119 | 27.4 |
| Average monthly churn (%) | 1.3 | 1.2 | -0.1 pp | 1.3 | 1.3 | 0.0pp |
| Total revenues (CZK million) | 8,345 | 8,605 | 3,1 | 23,751 | 24,810 | 4.5 |
| ARPU Revenues (CZK million) | 7,954 | 8,334 | 4,8 | 22,766 | 24,019 | 5.5 |
| EBITDA (CZK million) | 3,706 | 4,225 | 14,0 | 10,929 | 12,186 | 11.5 |
| EBITDA margin (total rev.) | 44.4 | 49.1 | 4.7 pp | 46.0 | 49.1 | 3.1pp |
| EBITDA margin (ARPU rev.) | 46.6 | 50.7 | 4.1 pp | 48.0 | 50.7 | 2.7pp |
| ARPU (incl. visitors) | 513 | 519 | 1,3 | 494 | 503 | 1.8 |
| Contract customers | 952 | 877 | -7.8 | 945 | 868 | -8.1 |
| Prepaid customers - Twist | 219 | 223 | 2,0 | 212 | 216 | 1.9 |
| Non-Voice % of ARPU | 20% | 22 % | 1pp | 20% | 21% | 1pp |
Information on the services introduced in 3Q of 2008:
- Notebook for a great price
- T-Mobile Combi and BAV SE with Mych5
- SMS and MMS gateway
- Companies call within TMCZ network per CZK 0
- ADSL without limits
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.
