Press Centre
Third quarter 2006: T-Mobile services are used by largest number of customers
- Contract customers represent more than 34% out of a total 4.823 million customers
- 188 thousand of new customers in first 9 months of the year
- Total revenues and ARPU increase
Prague, 9 November 2006 - The third quarter of 2006 has brought T-Mobile on the leading position in the Czech market in terms of the number of active customers. The number of customers who were using T-Mobile services as of the end of September reached 4.823 million which means growth by 5.9% compared to the same period last year. T-Mobile's long-term focus on the contract-customer segment and its effort to offer favorable services are strongly reflected in the customers results: the number of contract customers reached 1.636 million and represent more than 34% out of total number of customers. Total revenues grew year on year by 5.5% to CZK 21.6 billion and net profit amounted to CZK 4.1 billion. EBITDA reached approximately CZK 9.6 billion and the EBITDA margin attained value of 44.6%.The share of non-voice services in the revenues per customer is 21%.
"The reported results prove our No. 1 strategy works. More than 188 thousand of new customers have chosen our services in the first 9 months. If we consider the current level of penetration in the Czech Republic, this result is more than excellent", says Roland Mahler, Managing Director at T-Mobile Czech Republic, adding: "Our strategy of investing in customers is reflected in the wide portfolio of inspiring services and favorable tariff plans. We are sure it will enable us not only to increase customer numbers but also improve our financial figures on the long term basis".
In the first nine months of 2006 T-Mobile was not idle: the company significantly reduced roaming charges, introduced first (and so far very much successful) tariff for young people 6 - 26 named BAV SE, brought special offers including high volume of free units (minutes, SMS), and extended the fastest wireless broandband service named Internet 4G to majority of the Czech Republic. All these activities contributed to the positive results.
Customers: the number of new contract customers grew by 200%
The total number of customers grew year on year by 5.9%. In the first 9 months of the year 188 thousand of new customers chose T-Mobile services. The total number of contract customers increased to 1.63 million. As of the end of September 2006, the contract-customer base accounted for more than 34% of the total customer base. The 200% year-on-year increase in the number of new contract customers is also no less convincing.
The monthly churn grew year on year by a mere 0.4 percentage point to a total of 1.4%.
Financial results: total revenues higher by 5.5%, increase in ARPU
In the first three quarters of 2006, T-Mobile Czech Republic a.s. recorded total revenues in the amount of CZK 21.6 billion, which represents a year-on-year increase of 5.5%. The growth of the customer base and greater usage of the services provided substantially contributed to this very good result. EBITDA (earnings before interest, taxes, depreciation and amortization) reached approx. CZK 9.6 billion and the EBITDA margin reached 44.6%. ARPU (average revenue per user) slightly increased by 1.4% year on year to CZK 490.
The development of net profit, which amounted to CZK 4.1 billion, was particularly influenced by higher depreciation in the relevant period.
Services: precise segmentation, UMTS for more than 50% of Czech population
The values achieved clearly show that T-Mobile can appeal to customers with offers that encourage them to make more extensive use of mobile communication services. In addition to one of the most successful services provided by T-Mobile, Pevna+ (Fixed+), new services were launched that significantly reduce call charges, such as special packages of free units intended not only for new customers. Another area of focus is roaming - the special roaming add-on called Cestovatel (Traveler) introduced in January of this year offers the best roaming prices in the Czech market. The biggest "hit" of the 3rd quarter was the offer for youngest segment 6 - 26 years - BAV SE tariff offering favorable prices for calling and SMS and high amounts of promo packages of free units.
The most important activity in data services was spreading UMTS (Internet 4G) service on approx. 100 biggest towns and neighboring villages. At the moment more than 50% of Czech population can use the fastest mobile broadband service.
| 1 - 9/2006 | 1 - 9/2005 | Change % | |
| Number of customers ( ´000) | 4,823 | 4,553 | 5.9 |
| Contract customers | 1,636 | 1,220 | 34.1 |
| Twist customers | 3,187 | 3,333 | -4.4 |
| New customers ( ´000) | 188 | 193 | -2.6 |
| Contract customers | 348 | 116 | 200.0 |
| Twist customers | -160 | 78 | |
| Total revenues (CZK million) | 21,632 | 20,514 | 5.5 |
| Revenues from services | 20,729 | 19,271 | 7.6 |
| Net profit (CZK million) | 4,146 | 4,492 | -7.7 |
| EBITDA (CZK million) | 9,632 | 9,669 | -0.4 |
| EBITDA margin - total revenues (%) | 44.5 | 47.1 | -2.6 p.b. |
| EBITDA margin - revenues from services (%) | 46.5 | 50.2 | -3.7 p.b. |
| ARPU incl. foreign customers (CZK) | 490 | 483 | 1.4 |
| Share of non-voice services in ARPU (%) | 21 | 22 | -0.4 p.b. |
For more information on other services launched during the first 9 months of 2006, see the links below:
- Cestovatel (Traveller)
- Web'n'walk
- Caller Tunes
- BAV SE: a tariff plan for young people
- TV in your pocket
- Twist roaming
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FacebookT-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.