RadioMobilâ??s Revenues up By 70% in the First Half of 2000

• Revenues of RadioMobil amounted to 7.8 billion crowns in the first half of 2000, net profit reached 1.13 billion crowns
• Investments in the first half-year grew by more than 40% compared to last year
• In the first 6 months RadioMobil reaffirmed its position of the fastest-growing GSM network again by gaining nearly 500 thousand new customers. This signifies an almost 150% increase of customer influx compared to the same period last year
• Number of mobile phones will nearly equal the number of fixed lines in the CR by the end of the year

The Companyâ??s investment activity is further increasing, it amounted to 3.4 billion crowns in the first half-year. We direct the money especially into further network improvement and technologies necessary for launching the most modern services. There is an increase in the number of base stations and especially in coverage in the 1800 MHz band, because Paegas has been a dual network since the beginning of July, working with frequencies 900 as well as 1800 MHz. A significant part of the investments were spent on implementation of the GPRS technology enabling fast data transmissions and also on implementation of the CAMEL system offering a standard, full roaming for owners of prepaid cards as well. A whole range of other services that are gradually being prepared should appear on the market this year.

â?śWe are not planning to reduce investment activities in the following years either, because the development goes on, the demand for mobile services increases and existing technologies need to be expanded and new ones have to be added. Building the 3rd generation mobile network (UMTS), on which RadioMobil counts, as well as the approach of the Czech Government regarding granting licences will have a substantial influence on the total investment volume. It is the interest of our customers that means be directed into building up the mobile infrastructure itself rather than into problem areas of the State budget,â?ť says the Financial Director of RadioMobil Gustav Hraška.

In the first six months RadioMobil reaffirmed its position as the fastest-growing GSM network again, having gained almost 500 thousand new clients in a mere half-year. Last year, too, it was the most successful telecommunication operator on the Czech market in the number of new subscribers, gaining more than 500 thousands customers.

â?śOur successes are certainly backed by a wide offer of services, many of which are not offered by any other operator in the CR or even in the world, but also by our price policy. We offer the best ratio of offered services and price, and one of our goals is to keep up this position. Our customers can be sure that we always offer the best ratio of price and value,â?ť specified the Companyâ??s spokeswoman Tereza Kakosová.

This summer the number of mobile phone owners in the CR exceeded three million and penetration hence reached 30 percent. That means that three out of ten Czechs have a mobile phone. â?śIt is very likely that the number of mobile phones will equal the number of fixed phones in the CR at the end of the year. From our marketing research it follows that another million people will get a mobile phone until the end of the year and we believe that we will keep up our position in gaining new customers again,â?ť added Tereza Kakosová.

 

Overview of Selected Economic Indicators (According to IAS), in mill. CZK

	1997	1998	1999	6/1999	6/2000
Revenues	2 981	6 468	10 931	4 599	7 826
Sales Costs	-3 280	-3 035	-5 373	-2 177	-3 716
Other Costs	- 493	-2 534	-3 773	-742	-1 090
Financial Costs/Revenues	308	- 59	- 461	-196	-324
Taxes	142	- 310	- 459	-234	-191
Net Profit	- 342	530	865	420	1 131
Equity	4 942	5 472	6 337	5 893	7 468
Total Assets	8 009	10 240	17 409	11 873	20 378
Investments (bln. CZK)	4,4	3,3	5,5	2,2	3,4
Customers (000s)	173	373	875	530	1 272

 

The joint-stock company RadioMobil is the operator of the most dynamically growing GSM network in the Czech Republic. At the end of 1999, the Paegas brands share of the market amounted to 47%, and the share of its Paegas Twist pre-paid services even reached over 60%. During 1999 more than 500,000 new customers decided to use its services, which is the highest such figure in the history of mobile communications in the CR. The Paegas GSM network, which is operated by RadioMobil, is among the most technologically advanced in the world and has no rival on the Czech market for a whole range of services.

Only in the Paegas network can literally all customers, including owners of pre-paid Paegas Twist cards, make use of the most up-to-date services: completely cost-free data and fax transmissions, GSM banking, WAP-based services, Paegas Assistant and others. Currently, only RadioMobil offers the option of ordering services or monitoring billing over the Internet, thanks to the Paegas Info Profile service. And customers can always be sure that they have chosen the most effective operator on the Czech market.

RadioMobil can fully rely on its shareholders: ÄŚeské radiokomunikace - 51% (during 2001 its share will decrease to 39.2%, following exercise of an option by the CMobil consortium) and the CMobil consortium - 49% (beginning in 2001, 60.8%). The CMobil consortium is made up of the following: T-Mobil - a 100%-owned daughter company of Deutsche Telekom (85.55%), TIM - Telecom Italia Mobile (12%), as well as SKS - SpoĹ?itelní kapitálová spoleÄŤnost, a.s. and PVT, a.s.

Today the Paegas GSM network covers more than 99% of the Czech population and 99.8% of category 1 roadways. RadioMobil customers can use their mobile telephones in the networks of 189 operators in nearly 85 countries all over the world (116 different locations in all). During 1999 RadioMobil invested more than 5.5 billion Czech crowns into its network, and investment for the year 2000 is planned at over 10 billion. In June 2000 over 1 350 000 customers were using the Paegas services. Paegas registered about 500 000 new customers.

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.