2014: T-MOBILE CZECH REPUBLIC ANNOUNCES A SUCCESSFUL YEAR

Merger with GTS Czech: a journey to an integrated operator concluded
No1 position in mobile market strengthened
Consumption of services rose in all areas

The year 2014 presented a significant milestone in T-Mobile Czech Republic (TMCZ)´s history, both from organizational and business point of view. The shareholder structure simplified as Deutsche Telekom acquired the remainder of shares and is now the sole shareholder of the company. TMCZ also finalized the full merger with T-Systems CZ and completed the merger with GTS Czech. Nevertheless, from a business point of view, the operator met all the business targets, reaching the 6 million customer mark and satisfactory financial results in a declining market. The company continued building its high-speed 3G and LTE network, making high speed internet access available to approximately 90% of the Czech population.

“It was the busiest year ever. We changed not only our organization and the way we work, but also our mindset,” evaluates Milan Vašina, CEO T-Mobile Czech Republic. “And it was worth it. As a result, our company is much stronger and refreshed, ready to accept new challenges.”

CUSTOMER, USAGE

As of 31 December 2014, 6 million customers were using TMCZ’s mobile services, with 3.5 million contract customers and 2.5 million customers using prepaid services. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) increased slightly to 1.3%. The number of fixed accesses reached 131,000.  

´000	Q1-Q4 2014	Q1-Q4 2013	% y/y
Number of customers – mobile services	6,000	5,831	2.9%
Contract customers	3,500	3,329	5.1%
Prepaid customers	2,500	2,502	-0.1%
Net adds*	169	333	-49.2%
Contract customers	211	217	-2.8%
Prepaid customers	-2	76	n/a
Average monthly churn – mobile services	1.3%	1.1%	0.2%p
Contract customers	0.5%	0.4%	0.1%p

 *For published purposes: Wholesale subscribers from Q1/14 reported under Contract/Prepaid segments.

In 2014, users of TMCZ’s mobile services called on average of 151 minutes per month, 4.1% more compared to the previous year. The overall growth of consumption is reflected in all areas, i.e. in the number of minutes called and text messages sent and, above all, in the volume of transmitted data, which increased by 59% compared to the previous year, reaching nearly 10,500 terabyte.

FINANCIAL INDICATORS

Despite the fact that prices of telecommunications services have been dropping significantly in real terms while consumption has been rising, TMCZ succeeded in achieving satisfactory financial results. The operator has been partly compensating declining revenues with a strong emphasis on efficiency of all its activities, however, without reducing investments in technologies or services to customers.

Total revenues for fixed-line and mobile services overreached CZK 24 billion, with revenues from mobile services totaling CZK 18.9 billion. The average monthly revenue per user (ARPU) of mobile services dropped to CZK 263, which is 8.7% less compared to the previous year. The growing use of data services is mirrored in the share of non-voice services in the revenues from mobile services, which increased by four percentage points to a record level of approximately 38%. 

CZK	Q1-Q4 2014	Q1-Q4 2013	% y/y
Total revenues (million)	24,072	23,756	1.3%
Service revenues (million) – mobile services	18,883	19,754	-4.4%
EBITDA (million) (integrated services)	10,035	10,483	-4.3%
EBITDA margin (EBITDA/total revenues)	41.7%	44.1%	-2.4%p
ARPU - mobile services	263	288	-8.7%
Contract customers	382	419	-8.8%
Prepaid customers	98	117	-16.2%
Non-voice % of ARPU – mobile services	38%	34%	4%p

2014 Total Entity/2013 TMCZ only

More information about T-Mobile’s activities in 2014 is available here.

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T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.