T-Mobile announces its results for the first half of 2012

• Nearly 5.4 million customers using mobile services; 54.8% of them contract customers
• Consumption of telecommunications services is growing, especially in data services 

Prague, 9 August 2012 – The second quarter of this year did not bring any significant changes in trends affecting the Czech telecommunications market: while consumption of telecommunications services – particularly mobile data services – grew, prices and operators' revenues decreased. T-Mobile continued to focus mainly on the development of data services and, among other things, doubled the speed of its 3G network; however, it also offered a number of new tariff plans. Whereas the number of users of mobile services has long been approximately 5.4 million, with rising share of contract customers, the customer base in the fixed-line segment increased year on year to 105,000 accesses. Financial indicators decreased in comparison with the first half of last year, while consumption of services rose significantly. For example, the volume of transmitted data doubled in comparison with the previous year. 

“We are glad that even in a stagnating market we managed to achieve such good results,” says Milan Vašina, T-Mobile’s Managing Director, adding: “Customers’ sharply rising demand for our mobile data services as well as fixed-line is a positive sign.” 

Customers
As at 30 June 2012, approx. 5.4 million customers were using T-Mobile’s mobile services, with contract customers constituting nearly 55% (2.9 million). A total of 2.4 million customers used the prepaid Twist service as at the end of the second quarter. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) further declined to 1.2%. 

The number of accesses in the fixed-line services (voice & data) grew by 18.0% to 105,000. 

Users of T-Mobile’s mobile services called an average of 133 minutes per month during the first half of this year, which is an increase of 6.4% in comparison with last year. Consumption grew in all areas – the number of calling minutes and text messages, but above all in the volume of transmitted data which nearly doubled in comparison with the previous year, reaching approximately 1,452 terabyts.

´000	H1 2011	H1 2012	% y/y
Customers – mobile services	5,425	5,377	-0.9%
Contract customers	2,823	2,949	4.5%
Prepaid customers	2,602	2,428	-6.7%
Net adds	-42	-4	n/a
Contract customers	52	76	46.2%
Prepaid customers	-94	-80	n/a
Average monthly churn – mobile services	1.3%	1.2%	-0.1%p
Contract customers	0.5%	0.4%	-0.1%p

Financial indicators
T-Mobile’s financial results strongly mirror two significant factors: prices of, and consequently revenues from, telecommunications services have been steadily declining, which operators have to compensate for with increased emphasis on efficiency.

In the first half of the year, the company reported total revenues for fixed-line and mobile services of CZK 12.9 billion, with revenues from mobile services reaching nearly CZK 11.7 billion. Customers spent an average of CZK 363 per month on mobile services, which is 4.7% less than last year. The growing use of data services translated to a year-on-year increase of the share of non-voice services in the revenues from mobile services of three percentage points to the record level of 27%.

CZK	H1 2011	H1 2012	% y/y
Total revenues (million) – integrated	13,396	12,926	-3.5%
Service revenues (million) – mobile services	12,436	11,668	-6.2%
Adj. EBITDA (million) (integrated services)	6,697	6,029	-10.0%
Adj. EBITDA margin (total revenues)	50.0%	46.6%	-3.4%p
ARPU – mobile services	381	363	-4.7%
Contract customers	589	540	-8.3%
Prepaid customers	153	145	-5.2%
Non-voice % of ARPU – mobile services	24%	27%	3%p

Information about T-Mobile’s other activities in the first half of this year 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.