Prague, 8 November 2007 - The third quarter of 2007 confirmed T-Mobile's leading position in the Czech market in terms of the number of customers and saw further growth of financial indicators. The total number of customers who were using T-Mobile services at the end of September reached 5.2 million, which means an increase of 8% compared to the same period last year. Contract customers accounted for 40.9% of the total customer base. Total revenues grew year-on-year by 9.8% to CZK 23.75 billion. EBITDA reached approximately CZK 10.9 billion and the EBITDA margin reached an excellent 46%. Average revenue per user (ARPU) amounted to CZK 494 in the first nine months of the year.
"We are satisfied with our results for the third quarter. The market development surprises us - in a positive way - by the dynamics of its growth," says Otakar Král, Executive Vice President Finance adding: "As we predicted, the market has entered a new phase of extensive growth. Net adds have significantly slowed down, whereas the consumption of telecommunication services is growing. Our financial results clearly reflect our investment in customers and the level of care provided to them."
In the third quarter, the Company's effort to offer favorable services tailored to customers' needs was demonstrated, for example, by the offer of calling within the T-Mobile network for CZK 1.19/min. and the offers targeted at data users (e.g. free internet access for up to six months etc.).
Increase in revenues, EBITDA and ARPUThe achieved results clearly show that T-Mobile can appeal to customers with favorable services, thanks to which they are no longer afraid to use mobile communications services to a larger extent. T-Mobile, for example, introduced not only the EU roaming tariff prior to the deadline stipulated by the European Commission in August but also advantageous offers with respect to voice and data tariffs. Thirty thousand customers signed up for the roaming tariff in the first month.
More than 2.1 million contract customersMonthly churn (i.e., the number of customers who decided to stop using the operator's services) remains more or less stable: based on a year-on-year comparison, this indicator dropped by 0.1 percentage point to 1.3%.
All financial figures are according to IFRS | 1-9/2007 | 1-9/2006 | Change y/y (%) |
Number of customers ('000) | 5,207 | 4,823 | 8.0 |
Contract customers | 2,132 | 1,636 | 30.3 |
Twist customers | 3,075 | 3,187 | (3.5) |
New customers ('000) | 159 | 188 | (15.8) |
Contract customers | 323 | 348 | (7.3) |
Twist customers | -164 | -160 | (2.7) |
Average monthly churn (%) | 1.3 | 1.4 | (0.1p) |
Total revenues (CZK mil.) | 23,751 | 21,632 | 9.8 |
ARPU revenues incl. visitors | 22,766 | 20,729 | 9.8 |
EBITDA (CZK mil) | 10,929 | 9,632 | 13.5 |
EBITDA margin - total revenues (%) | 46.0 | 44.5 | 1.5p |
EBITDA margin - ARPU revenues | 48.0 | 46.5 | 1.5p |
ARPU incl. vistors | 494 | 490 | 0.8 |
Share of non-voice services in ARPU (%) | 20 | 21 | (1p) |
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.