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News

H1: Financial stability, sharp growth of data and innovation

19.08.2020
Company: T-Mobile Czech Republic a.s.

  • Stable financial results

  • Significant growth in the volume of transmitted data, increase of sms and voice services
  • Support for people in a state of emergency and companies in restarting their business
  • Prepared summer campaign to help tourism in the Czech Republic

 The first half of 2020 was significantly influenced by corona crisis and its impact both on people´s lives and economic development. In Q1 T-Mobile CZ focused on coping with the situation itself and offered unlimited data to people and companies and other reliable solutions enabling a seamless shift to the work-from-home mode. In Q2, the operator decided to help re-starting the economy by launching a special support to business clients, and prepared the special summer campaign #spolupomagentove, which helps to mitigate the effects of the crisis on the tourism sector.

 “We are fully aware of how important integrated and reliable telecom services are in such challenging times and we feel obliged to help our customers to overcome serious problems caused by corona times,“ says Juraj Bóna, Chief Country Officer Czech Republic, adding: “Communication services help to maintain both personal and working relationships even under the circumstances of necessary social distancing.“ 

Despite the difficult situation, T-Mobile also presented several advantageous offers to residential customers, continued in enhancing the LTE coverage of Prague metro, and further deploying optical network coverage. This year T-Mobile made available an optical network with a speed of up to 1 Gb / s to another almost thirty thousand households, for example in Benesov, Breclav, Zlin or in Prachatice. In cooperation with VSB-Technical University of Ostrava and Eriscsson T-Mobile also built the first private 5G Campus Network in Czech Republic.

Customers

Mobile services: As of 30 June 2020, T-Mobile’s mobile services were being used by more than 6.2 million customers. Almost 58% of the base are customers with a contract. The number of customers using a prepaid contract decreases slightly over time; on the contrary, the popularity of M2M SIM cards for smart devices, the number of which has already exceeded half a million, is growing in double digits.

Fixed broadband: In first half of 2020, fixed services, including xDSL, Pevný internet vzduchem (Fixed Internet Over the Air), or Pevný internet do zásuvky (Plug-in Fixed Line Internet), were used by 356,000 customers; i.e. by 22.8% more than in the same period of 2019.

TV: T-Mobile TVs on IPTV or satellite platforms are used by almost 179,000 customers, (plus 58.4% compared to H1 2019).

In thousands H1 2019 H1 2020

% YoY

(rounded)

Customers – mobile 6,224 6,239 0.2%
Contract 3,586 3,595 0.3%
Prepaid 2,162 2,113 -2.3%
M2M 476 530 11.3%
New customers – mobile 37 -26 n/a
Contract 27 4 -85.2%
Prepaid -26 -60 n/a
M2M 37 30 -18.9%
Customers – fix broadband 290 356 22.8%
Customers – TV 113 179 58.4%
Operational results

The operational results kept the trend started in the emergency state: people were using telecommunication services more intensively, to be in contact with their families and friends, to access the information needed, or to work and study remotely.

The number of called minutes increased y/y by 11.5%, the number of SMS by 32.6% to over 2.6 billion. The overall volume of data transmitted grew even more significantly: the mobile and fix data traffic grew by 60% y/y, the amount of the data transmitted only in mobile network more than doubled, compared to the same period 2019.

Usage H1 2019 H1 2020

% YoY

(rounded)

Minutes (million) 5,912 6,593 11.5%
SMS (million) 2,002 2,655 32.6%
Data (TB) – mobile network w/o FWA 34, 923 76,290 118.5%
Data (TB) – mobile network + FWA 135,617 217,189 60.1%

Mobile data traffic (include tariffs: Mobile data tariffs + Bezdrát)
Mobile and fix data traffic (include tariffs: Mobile data tariffs + Bezdrát + PIV + PIZ)

Financial indicators

Despite the corona crisis, total revenues from mobile and fixed-line services including hardware slightly grew to CZK 13.7 billion which represents 2.2% year-on-year increase, in H1 2020. The slight decrease in EBITDA is due to higher costs of cope with the corona the situation. The overall results confirm the good performance of the company.

Financial indicators (CZK million) H1 2019 H1 2020

% YoY

(rounded)

Total revenues 13,416 13,706 2.2%
EBITDA After Lease 5,671 5,643 -0.5%

Total revenues reported without ICSS – separate part of DT international business. EBITDA according new IFRS 16 standard. The numbers are retrospectively adjusted.

 

Tags: Business Development | IT |

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