T-MOBILE IN THE FIRST NINE MONTHS OF 2013

More than 5.7 million customers, of which almost 57% are contract customers
Customers: lower spending, higher usage of services
Mobile data consumption up by almost 90% year-on-year 

Prague, 7 November 2013 – T-Mobile Czech Republic asserted its position in the third quarter of 2013 despite a turbulent market situation. The operator coped successfully with substantial changes which significantly reduced prices in the mobile sector and a high number of virtual operators, which entered the market over the course of the last 9 months. 

Uptake of services continued to grow, particularly in the area of data services. T-Mobile signed 235,000 new mobile customers bringing its customer base to over 5.7 million. The fixed-line services also increased their reach year-on-year with data 119,000 fixed network access lines in total. Financial indicators declined compared with the first nine months of last year. 

“The growing number of customers and their active use of our services clearly show that we are on the right track. Our focus on delivery and efficiency helped us in achieving decent financial results,” says Milan Vašina, T-Mobile’s Managing Director, adding: “First nine months of the year brought us a great opportunity in the B2B sector, as well: the acquisition of T-Systems Czech Republic will further enhance our competence in the segment.”

CUSTOMERS

As of 30 September 2013, more than 5.7 million customers were using T-Mobile’s mobile services. The ratio of contract and prepaid customers stayed the same as in Q2: a majority of them – 57% (3.2 million) – are contract customers. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) remained stable at 1.1%. The number of fixed network Access lines (only data services according to DT methodology) grew by 13.3% to 119,000.  

Users of T-Mobile’s mobile services called an average of 142 minutes per month during the first nine months of this year, which is an increase of 7.6% compared to the same period last year. Consumption grew in all areas, above all, the volume of transmitted data, which increased by 88.9% and reached approximately 4,470 TB (terabytes).

	Note	Q1–Q3 2013	Q1–Q3 2012	% y/y (rounded)
Customers – mobile services	(’000)	5,733	5,415	5.9%
Contract customers	(’000)	3,248	3,003	8.2%
Prepaid customers	(’000)	2,474	2,412	2.6%
Net adds	(’000)	235	34	n/a
Contract customers	(’000)	176	131	34.4%
Prepaid customers	(’000)	48	-97	n/a
Average monthly churn rate – mobile services	(%)	1.1%	1.1%	0.0%p
Fixed network Access lines	(’000)	119	105	13.3%

FINANCIAL INDICATORS 

The negative impact of so called tariff revolution in the second quarter of the year, combined with the challenge of increased competition presented by more than 20 virtual operators was partly offset by growth of the customer base and particularly by an even stronger emphasis on internal efficiency. 

In the first nine months of 2013, the company reported total revenues from fixed-line and mobile services of CZK 17.8 billion, with revenues from mobile services reaching CZK 15.0 billion. Customers spent an average of CZK 294 per month, which is 20.5% less than in the same period last year. The growing use of data services translated into a year-on-year increase of the share of mobile service revenues from non-voice services to a record high of almost 33 %.

CZK	Note	Q1–Q3  2013	Q1–Q3  2012	% y/y (rounded)
Total revenues – integrated	(mio CZK)	17,774	19,793	-10.2%
Service revenues – mobile services	(mio CZK)	15,005	17,910	-16.2%
Adjusted EBITDA (integrated services)	(mio CZK)	7,891	9,439	-16.4%
Adjusted EBITDA margin (total revenues)	%	44.4%	47.7%	-3,3%p
ARPU – mobile services	CZK	294	370	-20.5%
Contract customers	CZK	429	552	-22.3%
Prepaid customers	CZK	119	146	-18.5%
Non-voice % of ARPU	%	32.7%	27%	6%p

Information about T-Mobile’s activities in the first nine months 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.