First half of 2010: 3G leads the way
Public 05.08.2010 in category Press News / Financial and Operational
- Number of customers increased slightly
- Total revenues exceed CZK 14.6 billion
- ARPU amounts to CZK 421
Prague, 5 August 2010 - In the first half of 2010, T-Mobile Czech Republic continued to expand its services in the field of mobile and fixed telephony and ICT. The results for the reporting period are satisfactory despite the ongoing impact of a series of negative factors, such as the slow stabilization of the economy, increasing competition and strengthening regulation. In the first half of the year, T-Mobile introduced a number of interesting new tariff plans, as well as many innovative services which provide more possibilities for using mobile phones.
Customer base increased slightly
At the end of June 2010, T-Mobile registered nearly 5.5 million mobile customers. On a year-on-year basis, the number of mobile customers increased by 0.6%. The number of contract customers increased by 5% to 2.7 million, which is a 50% share of the entire customer base. The key factor contributing to the increased popularity of tariff plans was the introduction of the 2v1 ("2in1") plan combining fixed internet access and mobile voice services, the GRAND unlimited voice plans, the new Pratele (Friends) tariff plans and new services intended for business customers - Profi and Tym (Team) plans. The negative difference in net adds in 2010 was influenced mainly by strong marketing campaigns in the first half of 2009.
The impact of the recession was still noticeable in the second quarter of 2010, particularly in the business sector. Despite this fact, T-Mobile managed to win or retain a number of important business clients - e.g. OVB Allfinanz, a.s., NOWACO Czech Republic s.r.o., Deloitte Advisory s.r.o., the Zlin region or the Notarial Chamber of the Czech Republic.
In the fixed services segment, T-Mobile offers primarily ADSL access, which is used by more than 49 000 customers, and fixed-voice services offered especially to companies as part of the T-Mobile ProfiNet solution. The operator's fixed-voice services are used by approximately 350 companies. In March, the modular ProfiNet solution was extended with another ICT service - Equipment Supply and Administration.
| Mobile only customers | Q2/09 | Q2/10 | % y/y | H1/09 | H1/10 | % y/y |
| Customers | 5,433 | 5,464 | 0.6 % | 5,433 | 5,464 | 0.6 % |
| - Contract | 2,599 | 2,730 | 5.0 % | 2,599 | 2,730 | 5.0 % |
| - Prepaid | 2,834 | 2,734 | -3.5 % | 2,834 | 2,734 | -3.5 % |
| Net adds | 22 | 16 | -27.3 % | 11 | 8 | -27.3 % |
| - Contract | 55 | 30 | -45.5 % | 99 | 78 | -21.2 % |
| - Prepaid | -33 | -14 | 57.6 % | -88 | -70 | 20.5 % |
| Average monthly churn | 1.2 % | 1.3 % | 0.1 pp | 1.4 % | 1.3 % | -0.1 pp |
Financial results - integrated
In the first half of 2010, T-Mobile reported total net revenues of approximately CZK 14.7 billion, which represents a year-on-year decrease of 7.6%. The adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) declined to approximately CZK 7.1 billion. The ARPU indicator for the mobile services (average monthly spending on telecommunications services) amounted to CZK 421. The decrease of financial indicators was caused particularly by strong impacts of the EU regulatory measures as well as fierce price competition in the highly saturated Czech market. These negative effects could partly be compensated by a grown contribution of the fixed-line services.
| Q2/09 | Q2/10 | -% y/y | H1/09 | H1/10 | % y/y | |
| Total revenues integrated (CZK million) | 8,283 | 7,453 | -10.0 % | 15,878 | 14,669 | -7.6 % |
| Adj. EBITDA integrated (CZK million) | 4,834 | 3,577 | -26.0 % | 8,352 | 7,066 | -15.4 % |
| ARPU - mobile services (CZK) | 492 | 426 | -13.4 % | 472 | 421 | -10.8 % |
| - Contract | 807 | 681 | -15.6 % | 781 | 676 | -13.4 % |
| - Prepaid | 207 | 173 | -16.4 % | 197 | 170 | -13.7 % |
| Non-Voice % of ARPU - mobile services | 21 % | 23 % | 2 pp | 22 % | 23 % | 1 pp |
Services marked by innovations
The integrated character of the company is reflected in the launch of new tariff plans: in January, T-Mobile introduced a converged offer of the 2v1 tariff plans combining mobile-voice services and ADSL access. The unlimited Grand and Profi plans, as well as the new generation of the Pratele plans have also become very popular. Young customers particularly appreciated the extra free access to 300,000 songs which can be downloaded with no extra charge as part of the BAV SE tariff plan.
T-Mobile also introduced many innovative services: it started testing the NFC (Near Field Communication) technology, launched the first Czech on-line PC games rental service and offered the simple and useful Contacts Backup service. In the first half of the year, the operator continued to develop its activities in the field of mobile marketing: it organized a campaign which guaranteed the success of this type of advertising and successfully tested a promotion based on geographical indicators.
The overall upgrade of the 2G network and intensive coverage of the country's territory with the 3G signal was a technological priority in the first half of 2010. Currently, the fast mobile data service is available in eight cities - Prague, Brno, Plzen, Ceske Budejovice, Olomouc, Pardubice, Zlin and Hradec Kralove. Other locations will follow in the coming months: the operator wants to cover 30 cities by the end of the year.
Corporate social responsibility
T-Mobile is a company that wants to conduct business responsibly with respect to the society in which it operates. In the first half of 2010, this was reflected particularly in the introduction of a service consisting in blocking illegal content on websites, active participation in Earth Hour and a special offer for people affected by the spring floods.
For more information about other new services and technologies introduced within the first half of 2010, please go to www.en.t-press.cz/tiskove_zpravy/.
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.
