T-Mobile in 2012

• Year of fast data and continuous focus on efficiency
• More services for less money
• Increased number of customers, lower churn rate

Prague, 28 February 2013 – It is no exaggeration to say that 2012 was the year of fast data. T-Mobile extended and increased the speed of its 3G network, which has long been evaluated as the fastest network in the Czech Republic according to independent measurements. Following successful tests, the operator launched the pilot operation of LTE technology and increased the speed of fixed-line internet access. T-Mobile’s portfolio was extended to include attractively priced tariff plans combining voice and data services and the operator offered generously subsidised smartphones. ICT services saw an expansion as well. As compared with the previous year, the number of T-Mobile customers increased by 117,000 (2.2%) to nearly 5.5 million, of whom nearly 56% were contract customers. The use of telecommunications services again saw growth, while the average revenue per user declined. 

“The 2012 development clearly showed that in order to achieve satisfactory results we need to concentrate all our efforts on what is relevant for customers and continue to seek out new opportunities,” says Milan Vašina, T‑Mobile’s Managing Director, adding: “The telecommunications market is changing continuously and operators must be very flexible to succeed. I strongly believe that T-Mobile will be such an operator.” 

Customers
As at 31 December 2012, T-Mobile had nearly 5.5 million customers using mobile services, having added 117,000 new customers, mainly in the segment of contract customers, since the previous year. The number of users of prepaid Twist cards totalled 2.4 million. The monthly churn rate (i.e., the share of customers who stopped using the operator’s services) declined to 1.1% year-on-year.

‘000	31 December 2011	31 December 2012	% y/y (rounded)
Number of customers – mobile services	5,381	5,498	2.2%
Contract customers	2,872	3,072	7.0%
Prepaid customers	2,509	2,426	-3.3%
Net adds	-86	117	n/a
Contract customers	101	199	97.0%
Prepaid customers	-188	-83	n/a
Average monthly churn – mobile services	1.3%	1.1%	-0.2%p
Contract customers	0.5%	0.4%	-0.1%p

In 2012, users of T-Mobile’s mobile services called an average of 133 minutes per month, 5.6% more compared to the previous year. The overall growth of consumption is reflected in all areas, i.e., in the number of minutes called and text messages sent and, above all, in the volume of transmitted data, which doubled as compared to the previous year, reaching nearly 3,500 terabytes. 

Financial indicators
Despite the fact that prices of telecommunications services have been dropping in real terms while consumption has been rising, T-Mobile succeeded in achieving satisfactory financial results. The operator´s successful marketing strategy together with a strong emphasis on the efficiency of all activities had a strong positive effect on the EBITDA development. 

Total revenues for fixed-line and mobile services reached nearly CZK 26.3 billion, with revenues from mobile services totalling CZK 23.5 billion. The average monthly revenue per user (ARPU) of mobile services was CZK 362, which is 4.7% 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 two percentage points to the record level of 27%. 

CZK	31 December 2011	31  December 2012	% y/y (rounded)
Total revenues (million)	26,836	26,254	-2.2%
Services revenues (million) – mobile services	24,727	23,498	-5.0%
EBITDA (million) (integrated services)	12,510	12,203	-2.5%
EBITDA margin (EBITDA/total revenues)	46.6%	46.5%	-0.1%p
ARPU – mobile services	380	362	-4.7%
Contract customers	584	538	-7.9%
Prepaid customers	151	143	-5.3%
Non-voice % of ARPU – mobile services	25%	27%	2%p

Information about T-Mobile’s other activities in 2012 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.