T-Mobile's results for the third quarter of 2011

• Mobile services: 5.4 million customers, 53% contract customers
• Lower spending on a larger volume of service
• Transmitted data volume increased by more than 20%

Prague, 10 November 2011 – T-Mobile's results for the third quarter of 2011 continue the trend of the previous period. The number of customers has not seen any significant changes and while the consumption of telecommunications services keeps growing, prices and operators' revenues are decreasing. As at 30 September 2011, the number of customers was just below 5.4 million, of which 53% were contract customers. While the ARPU indicator has dropped by nearly 10%, the consumption of telecommunications services has continued to grow mostly in the area of data services. 

“In the third quarter of 2011, we celebrated 15 years of the company’s presence on the Czech market, which gives us an opportunity to look back and realize how the situation in the telecommunications sector has changed during that time,” says Milan Vašina, T-Mobile's Managing Director commenting on the results. He adds: “The enthusiasm stemming from technological innovation has been replaced with a rational approach: customers are learning to use new services but they are also actively optimizing their plans. Prices of telecommunications services have been dropping steadily and we, the operators, have to find a new approach to customers and the services we are providing.” 

Customers and services
As at 30 September 2011, T-Mobile had nearly 5.4 million customers. An ever growing share of customers uses tariff plans; the number of contract customers now exceeds 2.8 million, which accounts for nearly 53% of the total customer base. The average monthly churn rate (i.e. the share of customers who stopped using the operator’s services) has remained at the very low level of 1.3%.  

The number of business customers using the operator's service reached 1.2 million. In the first nine months of the year, T-Mobile won more than 7,000 new business customers including, for example, KPMG, ŠKODA POWER, Globus Car, Barum Continental, Santé and BRAMAC střešní systémy. 

Users of T-Mobile's mobile services called an average of 125 minutes per month, more than 3% compared to last year. The growing consumption is reflected particularly in the area of data services, where the volume of transmitted data soared by more than 20%. 

Financial indicators
T-Mobile's financial results show that prices of telecommunications services have been decreasing. The operator has been compensating for the lost revenues with increased emphasis on efficiency. In the first nine months of the year, total integrated revenues slightly exceeded CZK 20 billion. The significant drop in prices is reflected in the average monthly revenue per user (ARPU): in the first nine months of the year, ARPU amounted to CZK 380, which is 9.7% less that in the same period last year. The growing use of data services is reflected in the share of non-voice services in the revenues from mobile services, which increased to 25%. 

Services: data and all for the family
In the first nine months of 2011, T-Mobile introduced a number of new products and services focused mainly on data services. They included, for example, the ever expanding portfolio of smart phones for reduced prices, time-limited mobile internet bundles, VDSL and a data plan for the whole family for one monthly fee. The operator also continued to expand its 3G network, which is now available to more than 70% of the population of the Czech Republic. 

In the third quarter, the operator launched innovated family plans (here) and half-price internet (here).   

More information about the services and developments in the first nine months of the year is available at http://en.t-press.cz/tiskove_zpravy.

Mobile only customers	Q3/11	Q3/10	% y/y (rounded)
Customers (‘000)	5,399	5,460	-1.1%
Contract customers (‘000)	2,844	2,750	3.4%
Prepaid customers (‘000)	2,554	2,710	-5.8%
Net adds (‘000)	-69	4	n.a.
Contract customers (‘000)	73	98	n.a.
Prepaid customers (‘000)	-142	-94	n.a.
Average monthly churn (%)	1.3 %	1.3 %	0.0%p

 

Financial indicators	Q1 - Q3/11	Q1 - Q3/10	% y/y (rounded)
Total revenues – integrated (million)	20,020	22,049	-9.2%
Service revenues – mobile (million)	18,577	20,654	10.1%
Adj. EBITDA – integrated (million)	9,506	10,634	-10.6%
Adj. EBITDA margin (total revenues) (%)	47.5 %	48.2 %	-0.7%p
ARPU – mobile (CZK)	380	421	-9.7%
Contract customers (CZK)	586	675	-13.2%
Prepaid customers (CZK)	152	170	-10.6%
Non-voice % of ARPU – mobile (%)	25%	23%	2.0 %p
MoU per customer/month (minutes)	125	121	3.3%

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.