T-MOBILE ANNOUNCES A SUCCESSFUL AND INNOVATIVE YEAR

Total revenues up by 12.5%
Focus on broadband data reflected in nearly 70% increase in data traffic y/y
Stable customer base with predominance of contract customers

In 2015, T-Mobile Czech Republic fully focused on monetizing mobile data and development of its B2B potential gained by the acquisitions of GTS and T-Systems. The operator continued to roll-out very quickly its LTE network which reached coverage 82% population and 80% area coverage by December 31, and launched many innovations including Voice over LTE, Voice over Wi-Fi, a special IoT network, as well as solutions for people with special needs (a navigation for blind, special services for deaf people). T-Mobile also strengthened its position of a technology leader by testing or introducing new technological features in its network aiming mainly at increasing the capacity and speed (4x4 MIMO, Single RAN, 3-band carrier aggregation in LTE-A and a test of 5G SIC technology).

T-Mobile’s integrated operator strategy is proving effective: compared to 2014, its total revenues have increased by 12.5 percent. The company’s customer base has remained stable compared to the previous year, with the mobile customer base reaching 6 million. In the mobile sector, a steep growth in data consumption and a decrease in the average monthly revenue per user can be considered the most visible long-term trends.

“The year 2015 was a year of development and change. We finished the integration process, focusing on two key priorities: to offer most reliable mobile services with a special focus on speed data and to convince B2B customers that we are able to meet all their communication needs,” says Milan Vašina, Managing Director at T-Mobile Czech Republic.

As of January 1, 2016, Milan Vašina became also CEO of Slovak Telekom. He will hold this position in addition to his current post at T-Mobile CZ.

Customers, usage
As of December 31, 2015, more than 6 million customers were using T-Mobile CZ’s mobile services, with 3.6 million contract customers and 2.4 million customers using prepaid services. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) was 1.5%. The number of fixed accesses reached 154,000.

In 2015, users of T-Mobile CZ´s mobile services called on average 155 minutes per month, 2.6% more compared to the previous year. Usage grew in all areas, with data services achieving high 2-digit growth: the volume of transmitted data increased by nearly 70% compared to the previous year, exceeding 17,600 terabyte.

´000	Q1–Q4 2014	Q1–Q4 2015	% y/y (rounded)
Number of customers – mobile services	6,000	6,019	0.3%
Contract customers	3,500	3,597	2.8%
Prepaid customers	2,500	2,422	-3.1%
Net adds	169	18	-89.3%
Contract customers	171	97	-43.3%
Prepaid customers	-2	-78	n/a
Average monthly churn – mobile services	1.3%	1.5%	0.2%p
Contract customers	0.5%	0.6%	0.1%p

Financial indicators
There have been two main trends shaping the telecommunication market: prices of services have been continuously dropping while the consumption has been rising. Despite that, T-Mobile CZ succeeded in achieving satisfactory financial results. Total revenues for mobile and fixed-line services reached more than CZK 27 billion, with revenues from mobile services totaling nearly CZK 18.2 billion. The average monthly revenue per user (ARPU) of mobile services dropped to CZK 253, which is 3.8% 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 seven percentage points to a new record level of 45%.

CZK	Q1–Q4 2014	Q1–Q4 2015	% y/y (rounded)
Total revenues (million)	24,072	27,076	12.5%
Service revenues (million) – mobile services	18,883	18,179	-3.7%
EBITDA (million) (integrated services)	10,035	10,969	9.3%
EBITDA margin (EBITDA/total revenues)	41.7%	40.5%	-1.2%p
ARPU - mobile services	263	253	-3.8%
Contract customers	382	363	-5.0%
Prepaid customers	98	94	-4.1%
Non-voice % of ARPU – mobile services	38%	45%	7%p

More information about T-Mobile’s activities in 2015 is available here.

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.