Q3 2014: T-MOBILE PROVES ITS LEADING POSITION

Q3 Highlights: integration with GTS, B2B offensive, LTE roll-out
Mobile customer base rose by 4.5% y/y to almost 6 million
Data traffic in the Czech Republic’s fastest network grew y/y by almost 68%

Prague, November 6, 2014 – In the first nine months of 2014, T-Mobile further strengthened its position on the Czech market: the operator gained a significant number of mobile customers, profited from its new strategy in the B2B segment supported by a merger with T-Systems Czech Republic and harmonization of activities with GTS Czech, and further rolled-out LTE technology. At the end of the period, the operator made high-speed 3G and LTE Internet access available to approximately 88% of the Czech population. In the third quarter, T-Mobile also entered into 2G, 3G and LTE network sharing agreements with O2, introduced cloud services for small and medium companies and was the first operator in the Czech Republic to launch unlimited tariff plans with shared mobile internet.

Compared to the same period of 2013, the company's mobile customer base grew by 4.5%, nearly hitting the 6 million mark. Despite a number of factors hindering development of the Czech telecommunications market, T‑Mobile maintained its leading position in the mobile segment and achieved satisfactory financial results.  

“I am very proud that we fulfilled our business goals even in times of such significant internal organizational and cultural changes,“ says Milan Vašina, Managing Director at T-Mobile Czech Republic.

CUSTOMERS, USAGE

As of 30 September 2014, nearly 6 million customers were using T-Mobile’s mobile services, with 3.5 million contract customers (approximately 58%) and 2.5 million customers using the prepaid service. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) increased to 1.3%. The number of fixed accesses reached 132,000. 

’000	Q3 2014	Q3 2013	% y/y
Number of customers – mobile services	5,993	5,733	4.5%
Contract customers*	3,475	3,259	6.6%
Prepaid customers	2,518	2,474	1.8%
Net adds	162	235	-31.1%
Contract customers*	186	176	5.7%
Prepaid customers	16	48	-66.7%
Average monthly churn – mobile services	1.3 %	1.1 %	0.2%p
Contract customers*	0.5 %	0.4 %	0.1%p

*Wholesale subscribers reported under Contract customers.

Users of T-Mobile’s mobile services called an average of 150 minutes per month during the first 9 months of this year, which is an increase of 5.6% compared to last year. Usage grew in all areas, including the number of calling minutes and text messages and, above all, the volume of transmitted data, which increased by 67.7% compared to the previous year, reaching 7,498 terabytes. 

FINANCIAL INDICATORS

In the first nine months of the year, the company reported total revenues from fixed-line and mobile services of CZK 17.9 billion, with revenues from mobile services reaching CZK 14.2 billion. Customers spent an average of CZK 265 per month, which represents almost 10% less than in the same period of last year. The continued growth of data traffic is reflected in a year-on-year increase of the share of non-voice services in the revenues from mobile services, which grew by 4.7 percentage points to the record high level of 37.4%.  

CZK	Q3 2014	Q3 2013	% y/y
Total revenues (million) – integrated*	17,854	17,774	0.5%
Adjusted EBITDA (million) (integrated services)*	7,639	7,891	-3.2%
Adjusted EBITDA margin (total revenues)	42.8%	44.4%	-1.6%p
Service revenues (million) – mobile services*	14,224	15,005	-5.2%
ARPU – mobile services	265	294	-9.9%
Contract customers	385	429	-10.3%
Prepaid customers	99	119	-16.8%
Non-voice % of ARPU	37.4%	32.7%	4.7%p

*2014 Total Entity / 2013 TMCZ only

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.