First half of 2011: data services lead the way

• The number of customers remains at 5.4 million; 52% of them are contract customers 
• Revenues reached CZK 13.4 billion

Prague, 4 August 2011 – The results reported by T-Mobile Czech Republic confirm the current trends – the customer base is stable and while the consumption of telecommunications services keeps growing, prices and operators' revenues are decreasing. As at 30 June 2011, the number of customers remained at 5.4 million, of which 52% were contract customers. The total revenues for the first half of this year reached CZK 13.4 billion, with EBITDA amounting to CZK 6.7 billion. 

“Our results accurately mirror the conditions of the Czech market,” says Milan Vašina, T-Mobile's Managing Director, commenting on the results, adding: “Customers have been actively optimizing their plans and learning to use new services. Prices of services have been dropping steadily, which is naturally reflected in revenues and other financial indicators.” 

Customers and services
As at 30 June 2011, T-Mobile had 5.4 million customers, which is approximately the same number as one year ago. The ever growing share of customers using one of the mobile tariff plans exceeded 2.8 million, which accounts for 52% of the total customer base. The key factors contributing to the increased popularity of tariff plans are the broad offer and favourable terms of integrated services and the possibility of combining services in bundles for attractive prices. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) has remained at the very low level of 1.3%.

Mobile only customers (‘000)	H1/2011	H1/2010	% y/y	Q2/2011	Q2/2010	% y/y
Customers	5,425	5,464	-0.7%	5,425	5,464	-0.7%
- Contract customers	2,823	2,730	3.4%	2,823	2,730	3.4%
- Prepaid customers	2,602	2,734	-4.8%	2,602	2,734	-4.8%
Net adds	- 42	8	n.a.	-21	16	n.a.
- Contract customers	52	78	-33.3%	25	30	-16.7%
- Prepaid customers	-94	-70	-34.3%	-46	-14	n.a.
Average monthly churn	1.3%	1.3%	0.0%p	1.3%	1.3%	0.0%p
- Contract customers	0.5%	0.4%	0.1%p	0.5%	0.4%	0.1%p

Financial indicators
T-Mobile’s financial results reflect primarily the continuously decreasing prices for services, which is partially compensated by the operator's high efficiency. In the first six months of the year, total integrated revenues reached nearly CZK 13.4 billion, which is an 8.7% decrease against the previous year. Revenues generated by mobile services exceeded CZK 12.4 billion. EBITDA (earnings before interest, taxes, depreciation and amortization) reached nearly CZK 6.7 billion (a decrease of 5.2%). The EBITDA margin on total revenues reached 50%. 

The important drop in prices is reflected in the average revenue per user (ARPU): in the first half of the year, it amounted to CZK 381, which is 9.5% less that in the same period last year. The share of non-voice services in the revenues from mobile services increased slightly by 1p% to 24% compared to previous year.  

CZK (‘000)	H1/2011	H1/2010	% y/y	Q2/2011	Q2/2010	% y/y
Total revenues (million) – integrated	13,396	14,669	-8.7%	6,859	7,453	-8.0%
Service revenues (million) – mobile	12,436	13,752	-9.6%	6,392	6,975	-8.4%
Adj. EBITDA (million) – integrated	6,697	7,066	-5.2%	3,383	3,577	-5.4%
Adj. EBITDA margin (total revenues)	50.0%	48.2%	1.8%p	49.3%	48.0%	1.3%p
ARPU – mobile	381	421	-9.5%	392	426	-8.0%
- Contract customers	589	676	-12.9%	598	681	-12.2%
- Prepaid customers	153	170	-10.0%	161	173	-6.9%
Non-voice % of ARPU mobile	24%	23%	1%p	24%	23%	1%p

Services: (not only) data, TV, support for mobile payments, Magic Tuesdays
In the first six months of the year, T-Mobile introduced 22 new products and services. Most of them related to data services: in the first half of this year, T-Mobile introduced, for example, a broad offer of smart phones at favourable prices (here), and extended its offer of data services with the addition of time-limited mobile internet bundles intended for both contract customers and prepaid Twist card users (here).

An attractive offer was also prepared for users of T-Mobile TV – they could purchase the TV Standard plan at a significant discount (here), activate a new premium plan or combine a TV plan within a 2v1 (“2in1”) or 3v1 (“3in1”) bundle, both of which offer more favourable terms (see here). 

In the first half of the year T-Mobile continued to invest heavily particularly in the rollout of its high-speed 3G network. As at the end of June, more than 50% of the population of the Czech Republic was covered by the 3G network. The operator also launched the first shared base stations within the cooperation project with Telefónica. 

“Our strategy is and will continue to be focused on retaining our existing customers. We greatly appreciate that they are with us and we want to make their lives more pleasant,” says Milan Vašina. “Therefore we are extending the Magic Tuesdays offer, which has attracted hundreds of thousands of fans since its introduction in March.” Within the Magic Tuesdays program, T-Mobile customers get benefits at selected partners or can use specially priced services (for more details see here). 

More information about the services and developments in the first half of the year is available at http://en.t-press.cz/tiskove_zpravy/.

 

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.