In the second quarter of 2024, T-Mobile Polska:
<ul>
	<li>Achieved a significant increase in both revenues and EBITDA AL &ndash; by 5.8% and 4.7% respectively </li>
	<li>Attracted new customers, increasing its mobile customer base by 181 thousand and passing the 300k mark customer milestone in the fixed broadband </li>
	<li>Achieved a sizeable growth in convergent sales: every second T-Mobile customer buys two or more services from the operator </li>
	<li>Presented refreshed MagentaBIZNES plans as well as continued developing its corporate business in the security and data center areas </li>
	<li>Kept on delivering the best networking experience by&nbsp;continuing its ambitious 5G on C-band rollout and launching the highest number of C-band sites among all MNOs </li>
	<li>Continued its commitment to pursuing its ambitious ESG goals, with its efforts as a market leader in this area being awarded top awards by Polityka and Rzeczpospolita.</li>
</ul>

T-Mobile Polska closed the second half of the year with the mobile customer base of over 12.64 million, which constitutes an improvement of 1.5% year over year. This is a result of consistent efforts to further improve the quality, availability and competitiveness of T-Mobile&#39;s offer even more. In addition to continuous investments in the mobile network, the operator is also developing the availability of its home internet offer based on third party infrastructure (BSA model) &ndash; 7 million households in range, the second largest footprint in Poland &ndash; and the availability of FWA services, as well as attracts customers with attractive plans. At the beginning of the year T-Mobile had been awarded by SpeedTest.plfor having the fastest home internet offer. At the end of the second quarter, it was supplemented by the titles of the best and the most consistent mobile network speeds by the global benchmarking provider Ookla, which shows how the steady investments in the infrastructure yield palpable results in the service quality for customers.

The increase in the number of customers, combined with the growing popularity of both higher tariff plans offering more possibilities, and the fact that customers choose convergent contracts (i.e. combining two or more services) with growing frequency, resulted in a clear increase in revenue in both the mobile and fixed segment. Several per cent growth was visible in both the individual and business services segments, which translated into revenues of PLN 1.76 billion, almost PLN 96 million higher than last year, an increase of 5.8 per cent.

Our efforts to deliver the best customer experience in the recent quarters and months pay off. With great offer, highest care of customer experience and growing popularity of the Magenta Moments program, rewarding customers for being with us, we became an important partner for them. This is the foundation for our success in the second quarter and a long-term strategic direction that we will continue to pursue&nbsp;&ndash; said Andreas Maierhofer, CEO of T-Mobile Polska. Since the beginning of the year, we have been focusing on improving availability of our 5G C-band services and FTTH coverage. Currently our fiber offer has the second highest footprint and is available to over 40% of all households in Poland, and the largest in country 5G C-band network covers over 30% of population. This means that we can offer our top-tier services to even more customers and we can see that they appreciate it, by choosing higher, more powerful plans and a convergent offer.

<img alt="Revenue" src="/dam/jcr:de4a1d49-fa88-4d46-901c-1366ed71a1e9/EN_Revenue.2024-08-07-16-42-36.png" style="display:inline-block" />&nbsp;<img alt="Customers" src="/dam/jcr:ac2c02a5-fe50-4df8-afdf-3aba61bcacc0/EN_Customers.2024-08-07-16-42-36.png" style="display:inline-block" />&nbsp;

Despite inflation growth slowing down, the majority operating costs were still growing and were substantially higher than in the last year. On the other hand, the energy costs have been significantly lower than in the last year thanks to the effects of vPPA contract, which saw solar and wind farms built for the operator. As a result, the operator recorded a clear increase in EBITDA AL: in the second quarter, it amounted to PLN 488 million, an increase of PLN 22 million, or 4.7 per cent.

After a series of quarters challenging from the macroeconomic point of view, the improved environment has allowed us to show our true potential, keep up the momentum we started in Q1 and deliver on our promise to report a solid growth also in this quarter. And the result of revenue and EBITDA AL improvement of around 5% in each case is a very strong achievement &ndash; said Juraj Andras, CFO of T-Mobile Polska. It wouldn&rsquo;t be possible without consistent investments in the network, customer experience and the development of the convergent offer and it is great to see that all the efforts invested in the consistent pursuit of our strategic goals are yielding such good results. 

<img alt="EBITDA" src="/dam/jcr:608e3e08-46e6-4270-8084-e774d844c509/EN_EBITDA.2024-08-07-16-42-36.png" />

In the second quarter of 2024, T-Mobile continued its commitment to ESG (Environmental, Social, Governance) activities, aiming to be a leader in sustainable business. The company&#39;s sustainability efforts have been recognised with a number of awards, including the prestigious Polityka&rsquo;s ESG Leafs and a high position in the &quot;ESG Ranking: Responsible Management&quot; published by Rzeczpospolita. T-Mobile was ranked among the top companies in the &#39;Telecommunications, Technology, Media and Entertainment&#39; category, which underlines its commitment to environmental protection, social responsibility and excellent management. The company also proudly announced its partnership with UNEP-GRID, which is another step towards the implementation of its environmental strategy.

T-Mobile continues its customer-centric strategy

In the second quarter of this year, T-Mobile has continued to pursue its strategy of developing convergent services. More than half of the brand&#39;s contracts in the second quarter of 2024 combined two or more services. In addition, the company recorded 305,000 fixed broadband customers in the second quarter of the year.

The operator also implemented activities aimed at creating the best customer experience when interacting with the brand. In April, in Warsaw&#39;s Mokot&oacute;w district, T-Mobile opened Poland&#39;s first interactive and multimedia showroom, the T-Mobile Magenta Experience Centre, where the customer experience is being elevated to a completely new level, with w range of unprecedented technologies available to everyone at their fingertips.

In May, the company expanded its product portfolio with another edition of 5G smartphones for every pocket, signed with the T brand: the T Phone 2 5G and T Phone 2 Pro 5G. The T Tablet also continued to enjoy strong customer interest during this time. In June, as part of its expansion of the prepaid segment, T-Mobile offered the largest package on the market with up to 7200 gigabytes.

Development in the B2B area

In the small business segment, the second quarter of the year was marked by the refreshed MagentaBIZNES offer, which includes unlimited calls and internet for the entire company based on optical fiber or a modern mobile network. The new MagentaBIZNES offers even higher speeds in select cases, the possibility to increase the limits during the contract, as well as higher data limits in the EU. The offer has also been expanded to include Security Packages, through which entrepreneurs can benefit from, among other things, network protection, remote IT service, device insurance and Norton Security Online software. These changes translated into a further increase in customer interest in the offer with a 10% (y-o-y) increase in the number of activations of new SIM cards in this segment.

Also in the corporate segment, security services were at the center of customer interest. The second area in which T-Mobile is continously developing its offering and experiencing steady growth is data centre services. In April this year, the operator announced that it had been certified to the ISO/IEC 27001:2022 Information Security Management System standard in the areas of: Cloud Service Security and Cloud Data Protection for cloud computing, backup and cyber security services. Furthermore, for these services and for the co-location service, it has obtained a renewal of the certificate certifying compliance with the ISO 22301:2019 Business Continuity Management System standard.

Dynamic 5G network rollout

Activities to improve network quality and quality of service for customers focused on continuing the dynamic rollout of the 5G network operating in C-band, which started in the first quarter. Currently, out of the more than 12400 base stations in T-Mobile&#39;s network, over 2800 offer a 5G More signal. As a result, 66 per cent of the population have been within range of 5G DSS (Dynamic Spectum Sharing) technology and more than 30 per cent of the population can use the 5G service provided on 3.x frequencies. The latter means that T-Mobile has not only maintained, but significantly strengthened its leadership position in 5G C-band technology. To ensure that 5G stations have adequate capacity, the operator has consistently pursued strategy of connecting 5G stations more with fiber. Importantly, around 95% of 5G stations connected to T-Mobile&#39;s network via fiber are using 10G links.

These activities translate into real improvements in the customer experience, as confirmed by independent benchmarks. T-Mobile concluded the second quarter with the news that it had won the Ookla (Speedtest.net) network quality ranking, confirming&nbsp;that the operator&#39;s mobile network offers the highest speeds and most consistent speeds. The trophy is the perfect complement to the achievement brought by SpeedTest.pl for the fastest home network in 2023.

The increasing convenience of data usage goes hand in hand with an increase in customer data consumption. Data transmission also makes it possible to provide customers with premium voice services thanks to the uptake of VoLTE technology. Currently, around 80% of all calls on T-Mobile&#39;s network are made using this solution. T-Mobile is also increasing the availability of VoLTE with its roaming partners. Curently, the operator&#39;s customers can use the technology in 40 countries with 57 roaming partners.

T-Mobile acts for nature

As part of its commitment to full product circularity, T-Mobile launched its &#39;We act for nature&#39; campaign, which encourages customers to recycle their phones by offering special discounts in return. In addition, nearly 16,000 old mobile phones were collected thanks to a competition for schools and kindergartens, organised together with the recovery organisation Biosystem. More than 300 educational institutions took part in the competition, which promoted environmental responsibility among young people.

Through these activities, T-Mobile is consistently delivering on its mission to integrate sustainability into its daily operations, and support a responsible and inclusive future.

growth-in-all-key-areas

Growth in all key areas
– customers appreciate T-Mobile's convergent offer and the best network quality


In the first quarter of 2024, T-Mobile Polska:
<ul>
	<li>Achieved a substantial total service revenue increase of 5.8% despite another round of MTR regulations; </li>
	<li>Improved total revenues by almost 1% thanks to growth in both mobile and fixed segments; </li>
	<li>Achieved an increase in EBITDA AL by 3.3%, recording one of the strongest first quarter results in years; </li>
	<li>Kept gaining new customers, which allowed the company to achieve a customer base growth to 12.6 million customers despite another round of deactivation of unused SIM cards distributed to refugees from Ukraine; </li>
	<li>Recorded a sizeable growth in sales of services in the B2C segment &ndash; especially of its mobile offer, empowered by the launch of 5G C-band services and the fixed offering; </li>
	<li>In B2B focused on developing the T Business offer for corporate customers and continued winning hearts of entrepreneurs with the MagentaBIZNES; </li>
	<li>Kept on delivering on its ambitious environmental commitments and implementing projects beneficial for the society; </li>
	<li>Executed an ambitious network rollout resulting in delivering the largest 5G C-band coverage out of all Polish MNOs.</li>
</ul>

At the end of the first quarter of 2024 T-Mobile Poland customer base amounted to 12,6 million. This represents a steady net increase of 22 thousand year-on-year. This was made possible by significant growth of the postpaid customer base &ndash; by 198 thousand y-o-y. On the other hand, the impact of this customer growth was masked by the 150 thousand decline in prepaid cards due to the decision to switch off another large batch of unused prepay SIM cards, originally distributed to refugees from Ukraine as a part of relief actions. More importantly, customers are increasingly more likely to choose higher and richer plans, which has had a positive impact on T-Mobile&rsquo;s revenues. In connection with a consistent growth of FTTH customer base and constantly improving convergent offer sales this led to one of the strongest first quarters in years: EBITDA AL growth by 3.3% y-o-y, reaching the level of 453 million PLN with Total Service Revenues growing by a solid 5.8%. At the same time total revenues increased up by almost 1% and reaching 1,7 billion PLN.

Our market approach is based on providing the highest quality of network and service with a strong focus on customer satisfaction. All of this we do in a highly responsible manner, in line with our ambitious ESG goals. The best technology was particularly in focus this quarter, as we launched the biggest 5G C-band network, enabling us to reach customers with mobile services of unprecedented quality, rivalling even the fiber connections. We can see that customers who have been given the opportunity to test the full 5G capabilities are more likely to choose higher plans that offer them even more than before &ndash; said Andreas Maierhofer, CEO of T-Mobile Polska. Recently we recorded 1 million users of our Magenta Moments engagement program which clearly shows that the customers appreciate the benefits they receive just by being with us. We have also launched the Magenta Experience Center to be even closer with our customers as in this first such flagship store, they can experience the T-Mobile world.

<img alt="Customers" src="/dam/jcr:fda9271d-812d-4eef-825b-257e4b703a39/EN_Customers_q1.2024-05-15-23-41-15.png" style="display:inline-block" />&nbsp;<img alt="Adj. EBITDA AL" src="/dam/jcr:49dd90f6-ad55-4a04-95d8-8f39fb1c7d7e/EN_EBITDA_q1.2024-05-15-23-41-15.png" style="display:inline-block" />

Despite the decline in inflation compared to the year 2023, the impact of prices growing in the last quarters are very noticeable. This quarter was the first one in which the operator&#39;s result were affected by the effects of wage increases introduced in the previous year. The company also had to cope with higher costs for almost all external services as well as an increase of shop rent prices, indexed in relation to the inflation last year. The vPPA energy contract, which allowed T-Mobile to offset the energy price increases, very noticeable last year, keeps on yielding positive results, as the operators energy needs are covered 100% in green sources, including the wind and solar farms built especially for the needs of this project. Also, the C-band 5G rollout process &ndash; initiated in the spring of 2023 &ndash; was being continued throughout the whole period, allowing T-Mobile to achieve and maintain leadership in this area.

It has been a strong start to the year, both operationally and financially. The combination of the deactivation of unused prepaid cards, the negative effects of MTR regulation and still rising prices constitutes a real challenge. Fortunately, with our impressive commercial momentum, which resulted in growth in all key operational and financial factors, we were not only able to overcome all the obstacles, but also to achieve a solid growth and keep going strong &ndash; said Juraj Andras, CFO of T-Mobile Polska.Actually, seeing the 5.8% growth in Total Service Revenues makes it one of the most dynamic first quarters in the last years. This shows that we are not only ready to deal with challenges when it is needed but also to successfully compete on the market and deliver results in all circumstances.

<img alt="Total Revenue" src="/dam/jcr:637950f4-0b6b-409d-8df7-c645b7aa3cdd/EN_revenues_q1.2024-05-15-23-41-15.png" />

Growth in B2C segment powered by 5G 

T-Mobile&#39;s main objective in the first quarter of 2024 was to provide customers with offers that make the superfast 5G network even more accessible, both on smartphones and in the home internet offering. Investments in the network and services had a positive impact on mobile subscription sales, which increased by 15% year-on-year in the first quarter of 2024. T-Mobile also achieved steady growth in converged solutions in the first quarter. The operator saw an increase in sales of bundled home services, which accounted for almost 45% of T-Mobile&#39;s fiber contracts signed in the period. The operator&rsquo;s advertising campaign promoting 5G Bardziej was also very well received by customers, further accelerating sales in the B2C segment.

Continuing its product synergy strategy, T-Mobile made the Red Bull TV VOD collection available to all MagentaTV customers, strengthening its partnership with the Red Bull brand and offering customers an even greater variety of content to watch.

In Q1, the operator also focused on growing the prepaid segment, offering T-Mobile prepaid customers a bundle of up to 5,200 GB. In addition, to mark the launch of the 5G More network, T-Mobile offered all T-Mobile prepaid, Heyah prepaid, Heyah MIX and MIX customers free 5G More network access for several months, regardless of their plan.

Powering Polish companies

In the area of corporate solutions, T-Mobile focused on promoting its T Business offering, which consists of 7 different product lines: Mobile, Next Generation Connectivity, Cybersecurity, Modern Workplace, ERP, Smart City / IoT and Data Centre &amp; Cloud. Similarly to the previous quarters, in the higher business segment the operator recorded consistently growing interest in cybersecurity products. Among the interesting projects completed in the first quarter, it is worth to mention the launch of a measuring buoy allowing water quality control in the Vistula River at the level of Krak&oacute;w. T-Mobile also announced that it had won tenders to provide services to PGW Wody Polskie and the Polish Mining Group.

In the smaller business segment, the MagentaBIZNES offer, which now includes access to the 5G Bardziej network, is enjoying steadily growing customer interest. In March, T-Mobile unveiled a new advertising campaign prepared in cooperation with entrepreneurs who are regular customers of the magenta network. The cybersecurity offer aimed at entrepreneurs has been very successful in this sector too, with the number of customers of the &lsquo;Secure Network&rsquo; service exceeding 100,000 in the first quarter.

Dynamic 5G network rollout

In terms of technology and providing T-Mobile customers with the best network experience one topic dominated the developments in Q1: preparations for the launch of 5G on C-band, the launch and subsequent network rollout. To make sure that the operator would be ready to bring online successive C-band base stations immediately after receiving the appropriate permissions, the main phase of preparations had been initiated in 2023. A large number of sites received upgrade to new generation hardware and T-Mobile developed its fiber network in order to connect the majority of updated sites with fast optical connections. Thanks to all that, after the 5G Bardziej network unveiling on January 19th, the operator successfully executed a lightning-fast rollout, quickly passing the 25% population coverage milestone. After finalizing the first phase of the rollout, based on the infrastructure prepared before the launch, T-Mobile moved on to implementing the organic upgrade process, which currently results in 2187 C-band sites being available to T-Mobile customers, with over 26% of Poland&rsquo;s population in range. Currently, almost 90% of all T-Mobile&rsquo;s own C-band capable sites are fiber connected.

The MNO continued to invest in its backbone infrastructure. In Q1 it built up almost 200 km of its own fiber and upgraded its global internet exchange points to 800 Gb/s connections.

It is clear that higher connection comfort encourage customers to be more active online. The data traffic in T-Mobile network grew 16% y-o-y in the first quarter exceeded 800 petabytes. Another key process in the terms of service quality is the ongoing adoption of the VoLTE standard. Currently almost 80% of all voice connections in T-Mobile are powered by VoLTE or VoWiFi. T-Mobile customers can also take full advantage of the highest connection quality also outside of Poland, as VoLTE is also available in roaming in 32 countries with 43 different foreign operators.

Social responsibility in focus

T-Mobile has also consistently delivered on its commitment to the ESG strategy, which is an integral part of its mission and values, and ambitious ESB goals. Through its actions, the company aims to achieve full climate neutrality by 2040 and promotes sustainability, taking care of the environment, society and effective governance.

In the first quarter of 2024, T-Mobile continued its commitment to the #HejtOut campaign and expanded it with the new initiative #HejtOutLoveIn, which gained huge popularity on the TikTok platform, with more than 20 million impressions. The campaign not only attempted to draw attention to the problem of hate speech online, but to promote positive attitudes online.

Supporting seniors in the use of new technologies is also one of the priorities for T-Mobile. A special helpline for seniors has been awarded the prestigious OK Senior certificate by the National Institute of the Senior Economy. In the first quarter of 2024 alone, the helpline handled more than 36,000 calls, demonstrating its importance and effectiveness in providing support and information to seniors.

The operator also continued its actions aimed at achieving full product circularity in 2030. In the &lsquo;Old Phones Work Wonders&rsquo; campaign every old smarphone submitted for recycling in one of T-Mobile&rsquo;s stores contributes towards supporting the Szlachetna Paczka charity foundation.

dynamic-beginning-of-the-year-2024

Dynamic beginning of the year 2024 
– improvement in all key operational and financial factors

Customer growth, consistent earnings dynamics increase in each quarter, growth in all segments despite the still unfavorable macroeconomic situation. 
 
T-Mobile Poland:
<ul>
	<li>Achieved constant EBITDA AL growth rate starting in the second quarter and culminating in 5,3% growth in the fourth quarter. As a&nbsp;result, at year-end, recorded an increase in EBITDA AL of 1% compared to 2022. </li>
	<li>Recorded a&nbsp;fourth quarter revenue growth of 2,8% and the full year revenue growth of 5,5%. </li>
	<li>Observed improving sales of service bundles, increasing popularity of fiber optic services, and growth in the business segment. </li>
	<li>Expanded its fiber coverage by 1 million households, developed its entertainment portfolio and convergent packages to offer customers a&nbsp;complete range of products for the entire household. </li>
	<li>launched Magenta Moments, an engagement program that offers customers bonuses and services from T‑Mobile partners. </li>
	<li>Invested in network quality for customers, particularly in upgrading base stations with a&nbsp;plan to launching a&nbsp;5G network on new frequencies when radio permits were received.</li>
</ul>

At the end of 2023, the number of T‑Mobile mobile customers stood at 12.6 million - a&nbsp;result that was achieved despite the deactivation of about 250,000 SIM cards offered as part of the relief efforts for refugees from Ukraine. Importantly, T‑Mobile also achieved positive number portability results in each of the four quarters of the year. At the same time, the number of fixed broadband customers increased to 260,000, up more than 100,000 from 2022.

<img alt="Mobile customers (ths.)" src="/dam/jcr:da2bce25-530e-42fa-bfe0-c8b5ce1c0c42/EN_Klienci_mobile.2024-02-22-17-46-22.png" style="display:inline-block" />&nbsp;<img alt="Fixed Broadband Customers" src="/dam/jcr:b580d0f3-d8bb-4442-88e2-452d651f2f81/EN_Klienci_FBB.2024-02-22-17-46-22.png" style="display:inline-block" />

Continuously growing in popularity among customers were service bundles that include entertainment or fiber internet in addition to voice services. The latter, in particular, is gaining in popularity, which is also linked to the expansion of T‑Mobile&#39;s fixed-line internet coverage. Last year, the operator entered into wholesale agreements with the operator Vectra and Polski Światłowod Otwarty, which in time will allow it to reach up to 10 million Polish households with its offer. At the end of the year, the number of households within reach of the fiber-optic offering reached 6.4 million. The increase in the number of customers and an increase in the number of people choosing a&nbsp;greater number of services and higher tariff plans providing users with more options, as well as growth in all business market segments with a&nbsp;particular focus on the areas of ICT and security, translated into an increase in the company&#39;s yearly revenues by PLN 362 million, or 5.5% (y/y).

<img alt="Total Revenue" src="/dam/jcr:6add4205-2e75-4043-9289-10421edd2c14/EN_Przychody.2024-02-22-17-46-22.png" style="display:inline-block" />

In 2023, we have taken a&nbsp;major step forward in terms of quality of customer care, service, the increased variety of offers and tailoring them to customers&#39; needs. We can clearly see that our convergent offer is gaining in popularity, and the expansion of fiber optic service coverage as well as the recently launched 5G Even More network make it possible to reach more customers with a&nbsp;complete range of services. An important element of our customer appreciation strategy was also the launch of Magenta Moments, the first such program among Polish operators in which free bonuses and discounts prepared in cooperation with the best Polish and international partners await customers &ndash; said Andreas Maierhofer, CEO of T‑Mobile Poland &ndash; However , we still see the impact of rising costs due to inflation, which limited the growth dynamics of EBITDA AL growth in the first quarter. Despite this, we improved each quarter, especially in Q4 which lead to an full-year EBITDA AL growth of 1%. We intend to continue to invest in the best customer experience based on superior network and service quality and customer care as well as convergent solutions for individual and business customers. 

In 2023, the operator recorded a&nbsp;visible increase in operating expenses, which include a&nbsp;40% increase in electricity costs compared to 2022, as well as the cost of rents and fees denominated in contracts in euros. Outlays for employee salaries also increased as a&nbsp;consequence of the decision to raise salaries taken at the end of 2022. Among the factors that will help in the long term to limit the impact of energy cost increases on T‑Mobile&#39;s results, one of the most important is the establishment of 3 photovoltaic and 2 wind farms under the vPPA deal, producing green energy for the T‑Mobile contract. This, combined with revenue growth, resulted in an increase in the full-year EBITDA AL to PLN 1.79 billion, 1% higher than the previous year. Looking at the fourth quarter alone, the EBITDA AL result grew 5.3% year-on-year.

<img alt="Adj. EBITDA AL (4Q)" src="/dam/jcr:a02b0816-4f49-4496-a95d-011cecb6050e/EN_EBITDA_Q4.2024-02-22-17-46-22.png" style="display:inline-block" />&nbsp;<img alt="Adj. EBITDA AL (FY)" src="/dam/jcr:6616dc25-0a3a-42ef-97cc-34688878d070/EN_EBITDA_2023.2024-02-22-17-46-22.png" style="display:inline-block" />

The last year would be challenging in itself, because of all the headwinds we had to endure related to difficult economy and especially: inflation. But the fact that under these conditions we executed a&nbsp;massive network rollout aimed at providing our customers with the best 5G experience makes it an even more notable achievement &ndash; said Juraj Andras, CFO of T‑Mobile Polska &ndash; Thanks to a&nbsp;proven strategy, as well as a&nbsp;solid commercial and financial performance we managed to succeed in all that, but also to provide the company the solid foundation for growth. The fact that in executing our vPPA contract we combined our care for environment and delivery of concrete financial goals shows that our commitment for sustainable growth really yields great effects. 

Other key developments for the company include the opening of T&nbsp;Hub, a unit aimed at implementing projects for the entire Deutsche Telekom Group. These include such areas as application systems engineering, innovations in network services or global connectivity solutions.

In 2023, T‑Mobile has been consistently fulfilling goals of its ESG strategy. When it comes to environment protection, it focused on changes that will bring it closer to achieving full climate neutrality as early as 2040, but it also did not forget the vitally important area of circularity. In social activities, the company focused on projects targeting Generation Z&nbsp;and seniors, in which it educated on safe Internet use.

T-Mobile focuses on convergence and the best customer experience 

For T‑Mobile, the past year has been mainly about developing and selling convergent services, as well as providing the best customer experience. In 2023, the operator expanded the portfolio of its MagentaTV service by 29 new channels, providing access to 159 channels in total as part of its TV packages. The company has also increased the number of titles in its VOD collection, offering customers access to more than 1,000 videos.

In the case of fiber offerings, the number of orders has increased by 20% over 2022, while the number of TV services sold increased by as much as 87%. The share of bundled service sales from the operator has increased as well. Currently, 60% of the fiber contracts signed at T‑Mobile are sold in bundles, i.e. combining at least two services, i.e. combining at least two services.

In 2023, T‑Mobile became the first in the market to enable a&nbsp;free 90-day trial of unlimited internet via e-SIM without having to switch operators or sign a&nbsp;contract. The end of the third quarter saw the premiere of Red Bull MOBILE&#39;s subscription-based no-obligation offer by T‑Mobile with unlimited internet for six months also available with an eSIM card. In the fourth quarter the operator launched its Magenta Moments customer appreciation programme, which has already accumulated 850k users.

Additionally, good results were achieved by the sales of devices branded with the T&nbsp;brand: the next edition of T&nbsp;Phone, as well as T&nbsp;Tablet. The latter achieved an impressive 70% share of the operator&#39;s sales in the Android tablet segment.

Continued growth in the business segment

Over the course of the year in the B2B segment, T‑Mobile recorded growth in both the smaller business and corporate customer areas. Among small businesses, the refreshed MagentaBIZNES tariffs continue to enjoy success, resulting in a&nbsp;growing customer base. What is more, customers are increasingly reaching for the highest tariff variants and contracts with fiber. To meet the cybersecurity needs of SME customers, in October T‑Mobile offered them the &quot;Protection on the Network&quot; service, which is a&nbsp;comprehensive security solution for mobile devices that does not require a&nbsp;heavy burden on the budget or the need to hire additional IT specialists.

Also in the corporate area, interest in ICT and cyber security services remained remarkably high. In response, T‑Mobile offered its customers &quot;Secure Internet&quot; - a&nbsp;service that makes it possible to fully secure a&nbsp;company&#39;s Internet connection without intervening in the customer&#39;s infrastructure. Other innovative products introduced this year for the high end of the market include &quot;Business Internet Pro,&quot; which enables quick changes and secures the customer&#39;s network, and the &quot;Workspace as a&nbsp;service,&quot; where the customer receives properly configured employee hardware and IT support from T‑Mobile without incurring investment expenditures. Another area of growth was smart city solutions, including those that help protect the environment. T‑Mobile, together with the City of Wroclaw, launched a&nbsp;project to monitor water in the Oder River, using a&nbsp;special buoy to measure water levels in real time and relaying the measurements to researchers.

The operator ended the year in the business segment with the introduction of a&nbsp;comprehensive T&nbsp;Business offer, combining the competencies of T‑Mobile and T‑Mobile Polska Business Solutions (formerly T-Systems) to respond even better to the needs of the most demanding customers through an even closer combination of the two companies&#39; competencies and closer cooperation.

Network quality Even More

In the area of technology, T‑Mobile has introduced a&nbsp;number of projects geared toward the continuous improvement of the quality of service for customers, and in particular the preparation for the launch of a&nbsp;significant number of base stations of the 5G Even More network, which operates in the 3.x GHz band. To this end, T‑Mobile not only upgraded more than 1,300 base stations, but also carried out a&nbsp;program to expand the fiber-optic links connecting them to the T‑Mobile network. During 2023 alone, T‑Mobile built 700 km of its own fiber-optic links, and the percentage of C-band stations connected by optical links at the end of December reached 87%.

The second important decision from the point of view of network development was the shutdown of the third-generation network. At the beginning of the year, T‑Mobile decided to accelerate the process so that the last 3G stations would be out of service by the end of April. A&nbsp;project to launch LTE900 coverage based on the frequency resources recovered in this way has been implemented - this allowed us to offer customers a&nbsp;newer, faster and more efficient technology, which will further support the operation of the 5G Even More network.

At the end of the year, a&nbsp;total of 12332 base stations were operating in the magenta network. 60% of the country&#39;s population was within range of the 5G network delivered using DSS (Dynamic Spectrum Sharing) technology based on 2.1 GHz frequencies, and the 5G Even More - operating in the C-band - will be available on more than 2,000 base stations in the first half of 2024 and will cover more than 26% of the population.

Responsible business 

T-Mobile continued its climate-centric efforts in 2023. It has already met all of its electricity needs from 0-emission sources since 2021, and in 2023 the company focused on reducing its own emissions. In the space of 12 months, it managed to reduce them by 28%. During the same period, wind farms and photovoltaic installations built for the implementation of T‑Mobile&#39;s vPPA, as well as photovoltaic installations installed at the operator&#39;s facilities, produced a&nbsp;total of 68.2 GWh of energy, thereby contributing to the reduction of its carbon footprint by about 50,000 tons.

In the fourth quarter of 2023, T‑Mobile&#39;s concern for the planet was intertwined with initiatives for excluded communities. As part of its Christmas campaign, the company joined forces with Noble Parcel and engaged its customers in the &quot;Old phones work wonders&quot; campaign. The more they found in special containers in the operator&#39;s showrooms, the greater the support for the organization - up to one million zlotys!

In addition, in the fourth quarter of 2023, T‑Mobile consistently implemented activities that support the fight against digital exclusion. First, it launched a&nbsp;new educational campaign #HEJTOUT, in partnership with the SEXEDPL Foundation. Its goal is to equip young people with tools and strategies to minimize the negative psychological effects of experiencing hate, but also to draw the attention of their adult environment to the problem. What&#39;s more, the brand has announced a&nbsp;partnership with Success University, which aims to enable young women to realize their dreams and take their first steps in the fascinating world of IT with the support of experts and experienced industry practitioners.

However, supporting the youngest generation is not the end of the company&#39;s activities in this area, as it has become involved in the activities of the Digital Seniors Coalition, which brings together 22 private organizations, including the largest chambers, unions, federations or foundations specializing in new technologies and digitization in the broadest sense. Its main goal is that by 2030 at least 70% of seniors in Poland will use the Internet and digital services, and 70% of companies offering digital services and products will have an offer and communication tailored for them.

t-mobile-polska-2023-results

T-Mobile Polska’s 2023 results
Customers appreciate quality - a strong year by T-Mobile.

In the second quarter of 2023, T-Mobile Poland:
<ul>
	<li>Improved revenues by 2.7% (y/y), despite the still visible negative impact of interconnect rate regulation,</li>
	<li>in the face of rising operating costs, stabilized EBITDA AL on the level of PLN 466 million, achieving an increase of 0.2% (y/y),</li>
	<li>increased the number of mobile customers by 350,000 (y/y) and developed its broadband customer base,</li>
	<li>consistently implemented its ambitious ESG strategy, focusing on pro-environmental projects,&nbsp;</li>
	<li>increased sales of post-paid services and convergent packages,</li>
	<li>recorded an increase in the customer base of ICT services and tariff plans SOHO companies,</li>
	<li>modernized its network infrastructure, through the development of the LTE coverage on the basis of resources recovered from the 3G network and for the preparation of 5G based on the new awaited spectrum.</li>
</ul>
&nbsp;

At the end of the second quarter of 2023, T-Mobile Poland&#39;s customer base comprised of 12.460 million customers, an increase of 353,000 (2.9 per cent) compared to the second quarter of last year. At the same time, the number of active prepaid cards decreased compared to the first quarter 2022 as a result of the deactivation of inactive support cards offered customers from Ukraine. Comparing year over year prepay customer base grew by 193 thousand and the number of postpaid customers increased both compared to the first quarter and year over year. All of this combined with the growing popularity of higher tariff plans and convergent packages, the increase in revenues from ICT services and exceeding 200,000 broadband users, allowed T-Mobile to generate revenue growth of 2.7 per cent despite the loss of some operator billing revenue due to MTR regulation. T-Mobile&#39;s revenues for the period amounted to PLN 1.66 billion. 
The second quarter of the year was another one in which the company faced an increase in operating costs. In particular, the cost of electricity purchase grew, although this increase was largely offset by the positive effects of the vPPA contract. As a result, the operator generated quarterly AL EBITDA of PLN 466 million, a level similar to that of the same quarter last year, with a slight increase. This increase represents a reversal of the negative trends observed in the previous two quarters, with an improvement in AL EBITDA of PLN 27 million compared to the first quarter of the year. 
 
With T-Mobile, we want customers to have access to a complete service offering. That is why we focus on convergent packages, combining fixed, voice and entertainment services. But this entire offering would not be complete without our care for the highest quality technology and most importantly: customer service. We see this combination yielding strong results. Unfortunately, recent quarters have seen, in addition to commercial success, cost growth so intense that at times it offset the benefits of revenue growth - this has been the case in the last two quarters. It is therefore wording very good news that we are ending the second quarter of 2023 with a reversal of this trend. The partial mitigation of the effect of the increase in operating costs thanks to the commissioning of the first green energy farms under the vPPA, combined with very satisfactory commercial results, has resulted not only in a stabilization of the result, but even in an improvement, said Andreas Maierhofer, CEO of T-Mobile Poland. 
 
The virtual Power Purchase Agreement signed last year, under which 5 photovoltaic and wind farms are being built specifically for the T-Mobile contract, is now not only one of the key elements of T-Mobile&#39;s environmental care strategy, but also an important tool for compensating for rising energy costs. With 3 PV farms already in operation, it is possible to largely limit the impact of an annual over 60 per cent increase of in the cost of purchasing energy. The wind farms will be commissioned in the second half of the year, making it possible to offset this burden even more effectively. 
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<div style="text-align:center">&nbsp;</div>
 
The divergence between revenue growth and its reflection in profitability result shows how seriously the business of companies like ours is affected by the continuing significant increase in costs. This is especially important now that we are not only investing in the development of our mobile network, but also expanding our fibre infrastructure, data centers, developing our ICT and security competences, and are ready to invest in the rollout of the 5G network in the coming months, said Juraj Andras, T-Mobile Polska CFO. All this is possible thanks to the actions initiated and implemented before: the adoption of a strategy focusing on quality and constant concern for the financial stability of the company, which are paying off today and allow us to operate with full efficiency despite the difficult economic environment. 
 
Another milestone from T-Mobile&#39;s perspective in the second quarter was the creation of T Hub unit in Poland &ndash; a structure dedicated to drive, contribute to, and deliver various international scale projects for the Deutsche Telekom Group. Over the next 3 years, the T Hub will employ 500 IT, NT and other specialization experts, carrying out tasks both for the DT Group itself and for the needs of the company&#39;s customers, including the automotive and banking sectors, EU digitization solutions or German government projects. 
&nbsp;
<div style="display:flex; justify-content:center"><img alt="" src="/dam/jcr:e83bb0a2-c0c0-4e1f-b0f7-39e1e0539677/EN_Reve.2023-08-09-14-51-40.png" style="height:381px; width:351px" /></div>
 
Focus customer experience and convergent offers 
 
T-Mobile is continuing its strategy of providing its customers with the best possible experience, and starting in the second quarter of 2023, it is giving prospective users this opportunity as well. This is made possible by introducing a 30-day service trial option to all post-paid and bundled offers. At the same time, T-Mobile is the first operator in Poland to provide the opportunity to test mobile internet for free for 3 months via eSIM without changing the current operator. 
Equally important, T-Mobile is betting on the development and promotion of convergent services. In the second quarter of this year, the operator not only expanded its MagentaTV service with 12 new TV channels, but also offered customers to purchase convergent services for up to 9 months for free. Such measures translated into an increase in interest in service bundle offerings &ndash; comparing sales of service bundles with fiber in the second quarter of 2023 to the preceding quarter, the increase was 6.8%, while the operator recorded a 22% increase in sales of fiber alone, comparing the second quarter of 2023 to the same period in 2022. 
 
Technology to empower business and cities 
 
The second quarter of 2023 in T-Mobile&#39;s business segment sees the continuation of the development of technologies that support not only companies, but also cities and the planet. Thus, for large corporations, the operator has implemented the &#39;Secure Internet&#39; service, which allows for comprehensive protection of a corporate internet connection. Smaller businesses, on the other hand, can grow faster with T-Mobile thanks to the refreshed MagentaBIZNES offer, in which the operator has been offering an extended range of services since mid-May this year. The offer has been enriched with, among other things, higher transmission speeds, a higher data limit or higher device discounts. Activities focused on creating solutions that allow small and medium-sized companies to grow in the second quarter of 2023 resulted, among other things, in more than 15,000 customers with active fibre service and another period with a positive balance of number portability. 
Equally importantly, the new technologies implemented by T-Mobile are also a positive influence on the development of cities and the planet. Already a special measuring buoy is floating in Wrocław, monitoring the state of pollution in the Oder river, and the operator received an award at the Smart City Forum for its smart metering solutions for another year in a row. T-Mobile is continuing its partnerships in education area and development projects, including with Siemens in the area of private campus networks, with the Krak&oacute;w Technology Park in the area of Industry 4.0 and with Kozminski University in Warsaw in the area of postgraduate studies in Cyber Security Management. 
 
Investing in the quality of service 
 
Following the shutdown of the 3G network, T-Mobile is focusing on getting LTE base stations up and running as quickly as possible in its place. Customers can already take advantage of 3100 stations upgraded from 3G to LTE, which means not only an increase in data speeds, but also an improvement in the quality of voice calls thanks to voice-over-LTE technology. At the end of the second quarter, 70% of the voice traffic on the operator&#39;s network was already via VoLTE and VoWIFI. But this is not the end of the improvements. T-Mobile is consistently continuing development of &nbsp;its 5G network based on the 2100 MHz frequency and DSS technology and preparing infrastructure for the upcoming rollout of 5G based on the new awaited 3,6 GHz spectrum. In the second quarter, the number of base stations offering fifth-generation network coverage in this technology exceeded 50% of all stations available on T-Mobile&#39;s network, and the 5G network now reaches more than half of Poland&#39;s population. In Q2 the amount of data traffic in T-Mobile&rsquo;s mobile network grew by 25% year-over-year. 
In the second quarter of 2023, T-Mobile once again proved that technology can serve the environment. At the end of April, the operator launched a test power supply installation for the base station, which consists not only of the already used photovoltaic panels, but also wind turbines and an energy storage system. Equipped with a new, ecological power supply system, the base station in Brudzowice is the first project of its kind in Poland. 
 
Responsibly for the environment 
 
In addition to the development of environmentally friendly technologies, the operator can also boast two implementations that are closely related to the support of biodiversity. The first is the launch of an analytical buoy that monitors the state of the water in the Oder River, making it possible to detect possible threats at an early stage. The second is the implementation of an bird monitoring project - thanks to the loggers set up, scientists can track and analyse the behaviour of endangered species of eagles. The company&#39;s commitment to environmental topics was further complemented by its involvement in this year&#39;s Earth Day celebrations, which included the creation of an employee zone. For a week, it promoted green solutions and encouraged employees to, for example, donate their old phones or test new electric cars. 
In the whole first half of the year T-Mobile cut its total energy consumption by 5% and CO2 emissions by 24% compared to the adequate period of 2022. Currently 100% percent of the energy used by the company comes from renewable resources. Comparing to the year 2019 when T-Mobile announced its carbon footprint improvement program the company decreased its CO2 (indirect and direct combined) by 99%. 
It is worth mentioning that the operator received two prestigious awards in the last quarter: &quot;Polityka&#39;s&quot; Golden Leaf confirmed its active, strategic involvement in sustainable development activities, and its presence on the &quot;Diversity IN Check&quot; list confirmed the high quality of its DE&amp;I activities. In addition, as many as 10 of our operator projects were described in the 21st edition of the Responsible Business Forum report, the largest review of ESG initiatives in Poland. 
&nbsp;

results2q23

Improved commercial performance translates into continued revenue growth and stabilization of EBITDA AL

In the first quarter of 2023, T‑Mobile Polska:

<ul>
	<li>Achieved a&nbsp;total revenue growth of 10.3% (YoY) despite lower interconnect revenues.</li>
	<li>Recorded a&nbsp;1.1% (YoY) growth in mobile service revenue.</li>
	<li>Achieved an EBITDA AL of -2.9% due to cost increases in a&nbsp;high inflation environment (especially the energy cost which increased by 170%).</li>
	<li>Maintained a&nbsp;low churn rate of 0.7%. for contract customers.</li>
	<li>Added 708,000 users to its customer base (+6%, YoY).</li>
	<li>Recorded a&nbsp;positive net porting result of +13,900 customers.</li>
	<li>Increased the number of broadband internet users to 182,000 (+91,000, doubled YoY).</li>
	<li>Implemented a&nbsp;hybrid power supply system for base stations as a&nbsp;solution to gradually reduce its carbon footprint, the first of its kind in Poland.</li>
	<li>Continued the modernization of its network to provide customers with the highest quality services.</li>
</ul>

In the first quarter of 2023, T‑Mobile Polska achieved significant growth in total revenue and mobile service revenue. Despite a&nbsp;decrease in interconnect revenue, total revenue amounted to PLN 1.72 billion and increased by 10.3% YoY. During the same period, mobile service revenue reached PLN 1.01 billion, representing a&nbsp;1.1% YoY increase. However, a&nbsp;significant increase in costs due to high inflation (especially energy costs which increased by 170%) reduced the EBITDA AL result by -2.9% YoY to PLN 439 million. The sale of devices had a&nbsp;clear impact on the company&#39;s revenue growth.

<img src="/dam/jcr:abe643f0-4bf1-4cf8-837b-e6c73dcee45d/przychody.2023-07-03-08-45-19.png" style="display:inline-block" />&nbsp;<img src="/dam/jcr:2f740e67-f344-4cc0-9c20-250fa88bdc5f/skoryg.-ebitda-al.2023-07-03-11-59-02.png" style="display:inline-block" /><img src="/dam/jcr:b47624ec-3cea-414c-bb52-42df1b1d3ee6/przychody-z-uslug-mobilnych.2023-07-03-11-59-02.png" style="display:inline-block" />

&nbsp;

T-Mobile incessantly invests in network quality to furnish clients with unsurpassed propositions and services. In the first trimester, it pioneered a&nbsp;hybrid power system for base stations in Poland. Such endeavors enable the operator to not merely achieve climate neutrality goals, but also translate to the loftiest satisfaction scores amongst infrastructure operators.

As of early 2023 Deutsche Telekom Group, of which we are a&nbsp;part, was recognized in the Brand Finance Global 500 report as the most valuable brand in Europe. I&nbsp;have no doubt that T‑Mobile Poland&#39;s activities also contributed to this achievement. But it is not the awards that we put first, but our customers. It is for them that we take care of the highest quality of the network, services and their satisfaction every day. And it is with them in mind that we introduce more and more innovations, so that it is T‑Mobile customers who are the first to benefit from reliable solutions that improve their technological experience. This quarter, we were the first operator in Poland to implement a&nbsp;hybrid power system for base stations, but also free trials of T‑Mobile unlimited Internet through e-SIM without switching operators. In doing so, I&nbsp;can assure you that this is not our last word in building the satisfaction of current and future T‑Mobile customers&ndash;&nbsp;stated Andreas Maierhofer, CEO of T‑Mobile Polska.

By the end of the first quarter, T‑Mobile&#39;s customer base increased by 708k year-on-year, reaching a&nbsp;level of 12.5 million. The churn rate in the contract segment remained low at 0.7%. According to the Office of Electronic Communications&#39; number portability report, T‑Mobile achieved the second-best result among infrastructure operators during this period, registering a&nbsp;positive MNP balance of 13,900 new users.

The company witnessed growth in the number of customers across all segments: contract, prepaid, private, and business. Notably, the increase in customers with broadband internet access deserves attention, which currently stands at 182,000 users (an increase of 91,000 YoY). The number of individual clients opting for convergent packages from T‑Mobile also experiences a&nbsp;steady rise.

<img src="/dam/jcr:d3e447fe-0a93-41af-a78a-81b983d6e890/liczba-klientow.2023-07-03-08-45-19.png" style="display:inline-block" /><img src="/dam/jcr:9f8a68f3-a5bb-4fff-ab5d-e80553ef8a85/liczba-klientow-z-szerokopasmowym-dostepem-do-internetu.2023-07-03-11-59-02.png" style="display:inline-block" />

&nbsp;

In the first quarter of 2023, we continued to observe the economy tackling with double-digit inflation levels and high energy prices, which caused T‑Mobile&#39;s energy costs to soar by 170%. Despite these challenging external conditions, we achieved more than 10% increase in total revenues and expanded our customer base to over 12.5 million. We attribute this positive result to several factors. Primarily, it was the significant interest in our broadband internet services and a&nbsp;very evident surge in device sales. I&nbsp;have no doubt that our solid performance is also a&nbsp;consequence of our focus on the network quality leadership, highest customer satisfaction, consistent implementation of market strategy, accompanied with attention to the company&#39;s financial stability&ndash;&nbsp;stated Juraj Andras, T‑Mobile Board Member for Finance.

<h3>Customers increasingly choose convergent offers</h3>

Since introducing linear television to its portfolio in 2022, T‑Mobile has observed steady growth in interest for the convergent Magenta Dom offering, as well as its individual components, which is reflected in the persistent positive balance of number portability. In the first quarter of this year, the operator worked diligently to make joining T‑Mobile and using its products, including convergent packages, even easier. This approach resulted in the implementation of the first-ever free 3-month trial of T‑Mobile&#39;s unlimited internet via e-SIM in Poland, without changing the operator or signing a&nbsp;contract. Being aware of the quality of its services, T‑Mobile also allows customers to test any service for 30 days. The operator is also focused on developing the prepaid segment &ndash; in April of this year, as the first in Poland, it introduced an offer with unlimited calls to Ukraine within the Heyah prepaid plan, and a&nbsp;T-Mobile prepaid offer featuring the largest market package of 4,800 GB extra for a&nbsp;year.

<h3>Continued growth in the business segment</h3>

The first quarter of 2023 for T‑Mobile in the business segment was marked by stable growth. Compared to the same period in 2022, the operator recorded a&nbsp;+28% increase in number portability in the small business area, as well as double-digit growth in sales of top L/VIP offers and fiber-optic contracts. This was the result of consistent communication and sales activities for the MagentaBiznes offer, as well as the implementation of the MagentaBiznes VIP offer aimed at offices. Importantly, in the first three months of 2023, MagentaBiznes customers significantly more often chose top-shelf smartphones.

Meanwhile, in the segment of the largest companies, T‑Mobile focused on customer needs and creating innovative solutions together with them. This resulted in the implementation of three new services. The first, &quot;Secure Internet,&quot; fully secures T‑Mobile&#39;s internet connection without any intervention in the customer&#39;s infrastructure. &quot;Internet Business Pro&quot; addresses the need for rapid changes in local networks, offering cyber protection mechanisms and the ability to build guest networks for customers, which were previously available exclusively to corporations. The third service is &quot;Workspace as a&nbsp;Service,&quot; through which the customer receives appropriately configured equipment for employees and IT support from T‑Mobile. Importantly, the &quot;as a&nbsp;Service&quot; sales model means that the customer pays a&nbsp;monthly fee instead of incurring investment costs, without burdening their credit capacity.

The beginning of 2023 also marked T‑Mobile&#39;s establishment of two significant partnerships. The operator became a&nbsp;partner of the postgraduate studies &quot;Cybersecurity Management&quot; at the Leon Kozminski Academy in Warsaw, which will help educate new experts in this field. Meanwhile, the collaboration with Siemens will enable offering customers even more possibilities in the area of industrial networks (campus networks).

<h3>Highest network quality</h3>

In the first quarter of 2023, T‑Mobile continues network investments to provide customers with the best quality of services. As the customer base and data transmission demand have increased, data traffic in T‑Mobile&#39;s network rose by 3% compared to the fourth quarter of 2022 and by 30% year-on-year. T‑Mobile addresses these trends by constantly modernizing its network and preparing it for increased loads. In the first quarter, the operator modernized approximately 300 base stations and continued investments in expanding the 5G network. The 5G signal was launched in the 2100 MHz band at over 480 base stations, increasing their number to more than 5,620, and the country&#39;s territorial coverage is at 47% of the population. In 2022, T‑Mobile began optimizing its network to support the development of 4G/LTE and 5G while phasing out old technology like 3G. In the first quarter, the process gained full speed and the 3G network was turned off in most of Poland. not only Network modernization contributes to offering customers the highest quality services using the best technology but also to reducing energy consumption in the operator&#39;s network.

At the same time, the operator consistently implements the ESG strategy, aiming to achieve environmental neutrality throughout the supply chain by 2040, also by applying innovative solutions using renewable energy to power base stations. In addition to installing photovoltaic panels on base stations and other telecommunications facilities, the operator introduced a&nbsp;hybrid installation powering a&nbsp;base station with solar and wind energy. The base station in Brudzowice is the first project of this type in Poland. T‑Mobile plans to introduce similar systems in other locations.

<h3>Steadily towards climate neutrality</h3>

The first quarter of 2023 in terms of responsible business actions involves the consistent implementation of the ESG strategy, hence the operator&#39;s further eco-friendly initiatives. The company decided to reduce the plastic cards on which SIM cards are delivered. This solution will save about 8 tons of plastic materials annually. In its actions, T‑Mobile is also moving towards climate neutrality. As a&nbsp;sign of its full commitment to supporting climate neutrality actions, the operator not only turned off the lighting in its headquarters during this year&#39;s Earth Hour but also summarized the results of its recent actions. Thanks to the analysis of the most energy-consuming instances in the main headquarters building and the introduction of several changes, 12% of energy and 33% of heat from the municipal network were saved compared to the same period in the previous year. Additionally, changes introduced to the vehicle fleet allowed saving 900 tons of CO2 and reducing emissions by 35%.

In the last quarter, the company also implemented projects in the field of digital inclusion. On the occasion of Grandparents&#39; Day, the company reminded about the &quot;Network of Generations&quot; campaign and a&nbsp;free technology course. In February, the operator&#39;s new solution, &quot;8 for Seniors,&quot; premiered. By contacting the Customer Service Office and choosing number 8, customers can access new facilities prepared for the elderly.

<img src="/dam/jcr:e37555c6-99fa-4ee7-8b61-b38a997ed799/wyniki_tmpl_1.-kwartal-2023-r.-w-liczbach.2023-07-03-08-45-32.jpg" />

t-mobile-polskas-results-in-the-first-quarter-of-2023

T-Mobile Polska's Results in the First Quarter of 2023

In 2022, T-Mobile Poland:

<ul>
	<li>improved key operational and financial indicators, including a 2.1% (y/y) increase in revenues; </li>
	<li>which allowed to partially offset the considerable increase in costs, especially energy, particularly in the fourth quarter of the year. The final EBITDA AL achieved was 0.9% higher than the year before; </li>
	<li>accomplished growth in spite of the increasingly difficult environment, thanks to very good commercial results: growing sales of convergent services and acquiring almost 1 million mobile customers and achieving the best MNP result among Polish MNOs, as well as exceeding 154,000 broadband customers and successfully acquiring business customers; </li>
	<li>undertook extensive activities for the benefit of people affected by the war in Ukraine, including the SIM card distribution at the border and cooperation with aid organizations; </li>
	<li>continued its efforts to continuously improve the quality of its own mobile and fiber infrastructure as well as the FTTH footprint.</li>
</ul>

Throughout 2022, T-Mobile acquired 970,000 new customers, surpassing the 12.5 million active SIM cards at the end of the fourth quarter of the year. As for the contract segment, the net additions ratio for the year was 225,000, an 11,4% increase compared to last year. This was possible both due to an increase in the number of customers acquired from competing operators - T-Mobile was the only one of the four largest operators in Poland to end the year with a positive net result, with a balance of 64,000 - and by maintaining high level of contract customer loyalty (average monthly churn rate of 0.7). In turn, the result of the prepaid segment resulted from organic growth as well as the great reception of the distribution of SIM Cards to help refugees from Ukraine.

The market also very positively reacted to the addition of linear TV to the offer, which had a positive impact on sales of fiber services. At the end of the year, T-Mobile had coverage of 5.6 million households, which represented almost 40% of the total number of households nationwide. At the end of the year, the number of the operator&#39;s fixed broadband customers exceeded 154,000. Notably, the greater number of offered services translated into an increase in the number of customers choosing more than one service from T-Mobile&#39;s offer. The consequence of this, combined with an increase in sales of unlimited tariff variants and the number of devices sold in the operator&#39;s network - was an increase in revenue, which grew by 2.1% year on year, reaching PLN 6.6 billion.

2022 was definitely a year in which we have successfully competed for customers. We are delighted to have gained almost one million new customers and to have won the MNP ranking. This is certainly thanks to the launch of a full, convergent offer for the whole family, but also - we see this clearly in our conversations with customers - because of the highest quality of service and support, and because we address their real needs accurately. We are grateful for their trust and we will continue doing everything to make them 100% satisfied with our services - said Andreas Maierhofer, CEO of T-Mobile Poland. - However, from a financial point of view, the subsequent months of the year were increasingly challenging. Rising prices, particularly for energy which is the one of main costs of operation for any technology company, posed a serious challenge to our growth plans. Nevertheless, thanks to the consistent implementation of our strategy and the increase in sales and customer base, we were also able to meet our financial assumptions in full. 

<img src="/dam/jcr:6354d8fa-54d5-48c3-85c9-7340f49b3c72" />&nbsp;<img src="/dam/jcr:2bd06459-0d32-45b6-a477-baa22e512f52" />

&nbsp;

On a year-over-year basis, the cost of energy used by T-Mobile Poland increased by almost PLN 100 million compared to 2021, an increase of 70%. In the fourth quarter alone, electricity expenses were higher by more than&nbsp;140% compared to the corresponding quarter of the previous year. This, combined with rising land lease and retail rental costs of the operator&#39;s shops, limited the translation of revenue growth into EBITDA AL, which for the 12 months of the year amounted to PLN 1.77 billion, up 0.9% (y-o-y).&nbsp;However, in the fourth quarter of the year, which in which the negative influence of increased operating costs was the largest, it translated into a decline in quarterly EBITDA AL by (-)4.3%.

In terms of responsible business T-Mobile activities last year were focused on supporting those affected by the war in Ukraine. The operator very quickly launched coordinated aid program aimed primarily at providing connectivity and access to information free of charge to all those who need it. The company supported the Polish Red Cross, the Polish Centre for International Aid, and a number of other organizations to which it provided phones, SIM cards, routers and tablets. In the following months, the company supported the Ukrainian community in Lublin by donating thousands of meals for persons in need, providing shelters with TV and internet access, financing thousands of school sets for children and covering costs of renumeration for Ukrainian teachers. T-Mobile also got involved in the #LiftUkraine action by financing transport of refugees to Germany and supported the Happy Kids Foundation, which has been fighting for equal opportunities for children, also from Ukraine, for years and during the crisis ran the largest center in Poland accommodating children from Ukrainian orphanages

In recent years, we have focused on improving the company&#39;s inner workings from market strategy and its implementation to financial stability. We have been doing so not only to achieve better growth&nbsp;but also to be ready for the time of economic downturn, which, we must face at the moment - said Juraj Andras, CFO of T-Mobile Polska. It is this healthy financial condition of the company that has allowed us to largely offset additional expenses, 80% of which are energy costs, and combined with a very good commercial result to report year-end increases in EBITDA AL, in line with our growth strategy. 

<img src="/dam/jcr:d335c0db-7a36-4988-940d-eeeffb1b975a" />

&nbsp;

A year of focusing on the customer and convergent services

T-Mobile&rsquo;s activities in the B2C area have focused on positive customer experience in both customer service quality and the proposed offers. In the first weeks of the year, the operator was the first in the Polish market to implement tariffs which are unlimited in terms of both speed and data, with these types of tariffs making up a large share of contracts sold overall.

In the second quarter, T-Mobile introduced linear TV to its offer, becoming the fully convergent operator. As part of the Magenta Dom offer, the operator once again focused on removing obstacles from the customers&rsquo; lives, providing them with a simple and flexible service package. The increase in T-Mobile&rsquo;s TV offer between the 3rd and 4th quarters was 15%, and the fiber sales in 2022, compared to 2021, rose by as much as 44%. Equally important is that by the end of 2022, on average, every second client looking to buy fiber from T-Mobile decided on a contract which also included TV or TV and voice services.

Growth in the business segment

T-Mobile recorded a positive balance of number portability not only within the private segment, but also in the business, where MagentaBIZNES tariffs had been increasing in popularity with each quarter. Throughout the year, Magenta BIZNES customers increasingly opted for higher, unlimited, tariff variants - particularly L and VIP - and were progressively willing to go for fiber internet service.

On the other hand, in term of the largest companies, in addition to growth in connectivity, T-Mobile recorded a substantial increase in interest concerning security services (revenue growth of 60% over the year) and cloud services (revenue growth of 20%). These trends were certainly a response to global events - the popularization of the remote or hybrid working model and the increase in cyber security threats associated with the outbreak of war in Ukraine. To meet customer needs, the operator developed its product portfolio in these areas to launch Disaster Recovery as a Service and Workspace as a service. In addition, T-Mobile developed its proprietary CyberGuard solution with new functionalities.

Appreciating the wide choice and quality of business services offered by T-Mobile, the most demanding business customers were increasingly willing to choose the operator&#39;s products. In 2022, the company won a number of contracts, including in the public sector with customers such as the Supreme Administrative Court, the Central IT Centre, the Ministry of Family and Social Policy, the Ministry of the Interior and Administration; PKP Intercity; the Agency for Restructuring and Modernization of Agriculture, the Institute of Meteorology and Water Management, the Supreme Chamber of Control, and the Office of Technical Inspection. In November, T-Mobile and T-Systems were awarded the Commercial Partner of the Year award in EMEA Central by Cisco.

The best network quality

Throughout 2022, T-Mobile continued its network investments to ensure that its customers receive the highest quality of service even in the face of rapidly growing data demand. During those 12 months, the volume of data transferred on the operator&#39;s mobile network increased by 28% and the proportion of voice calls made using VoWIFI and VoLTE technologies exceeded 60%. The operator also carried out investments aimed at the expanding the 5G network on currently held frequencies and prepared the infrastructure for the rollout of the fifth-generation network on 3.5GHz bands. Currently, the 5G signal is available on almost half of the base stations forming T-Mobile&#39;s network coverage. In order to improve the management of frequency resources, the company continued the process of shutting down the 3G network in order to allocate the 900MHz band for the construction of newer generation networks and, in view of the favorable results, decided to accelerate the project schedule. Currently, the third-generation network is to be switched off in April 2023. The project to produce electricity through the installation of photovoltaic panels on base stations also continued. To date, these have produced almost 0.5 gigawatt of energy.

The operator has also consistently expanded its own fiber-optic network, which is used to transmit data on the operator&#39;s own network, also connecting Data Centre facilities and base stations of T-Mobile. Also on their basis, the operator provides services to business customers.

All these activities have translated into achieving the highest network quality. In 2022, T-Mobile was awarded first place for download speeds in mobile and home internet by SpeedTest.pl and in the 4G/LTE download category by RFBENCHMARK.

Responsible business 

The year 2022 marked a strong shift towards the ESG perspective in the responsible business strategy. The company pursued initiatives in the areas of environment, social and governance, with a consistent drive towards its goals.

The most ambitious ones relate to the environmental area and zero emissions, which the company wants to achieve as early as 2025 in terms of indirect and direct emissions. The fact that already 100% of the energy consumed by T-Mobile comes from renewable sources should be considered a success. The company is continuously modernizing its vehicle fleet and investing in the construction of photovoltaic installations. The operator has also inaugurated the &#39;Planet Matters&#39; campaign in 2022, which aims to educate people about the proper recycling of old devices and encourage customers to return unused phones.

Digital responsibility is another extremely important area of the company&#39;s activities. In 2022, T-Mobile continued the &quot;On the Winning Position&quot; project aimed at young people. Based on its collaboration with popular internet creators, T-Mobile addressed the topic of hegemony and self-acceptance online. In addition, the company continued its commitment to helping seniors and implemented the next instalment of the &#39;Network of Generations&#39; initiative, in which it donated computer equipment to 20 nursing homes and provided free training in the use of technology for the elderly.&nbsp;

T-Mobile Poland published a corporate social responsibility report for the third time in 2022. The material was presented in an online format. The report issued by T-Mobile presented the company&#39;s commitment to the development of sustainable business. The report was prepared in accordance with the Global Reporting Initiative GRI Standards and was externally verified by an independent auditing company. An electronic version of the report is available at <a href="https://www.raport-t-mobile-polska.pl" target="blank">www.raport-t-mobile-polska.pl</a>.

Consistent implementation of the strategy, operational and financial growth despite a sizeable increase in costs, especially in the fourth quarter of the year.

t-mobile-polands-performance-in-2022

T-Mobile Poland's performance in 2022. Customers choose T-MOBILE – almost 1 million new customers in a year

In the third quarter of 2022, T‑Mobile Polska:

<ul>
	<li>recorded a&nbsp;3.8% (y/y) increase in revenues despite the still visible negative impact of MTR regulation that continues to be visible; </li>
	<li>increased revenues made it possible to compensate for the operator&#39;s dynamically rising operating costs, including an electricity price increase. As a&nbsp;result, the operator has generated stable EBITDA AL compared to the third quarter of last year (up 0.2%); </li>
	<li>successfully attracted prepaid and postpaid customers in both private and business market segments, as well as expanded the customer bases of the fibre-optic service clients and the users of two or more T‑Mobile products; </li>
	<li>continued its focus on maintaining a&nbsp;superior customer experience and recorded a&nbsp;further increase in interest regarding the Magenta Dom convergent offering; </li>
	<li>successfully increased the customer base of the MagentaBIZNES offer and continued to develop the business in the corporate segment, particularly in the areas of security and ICT; </li>
	<li>offered customers the highest quality data transmission due to the modernisation of the mobile network.</li>
</ul>

At the end of Q3 2022, the number of T‑Mobile Polska&rsquo;s customers amounted to 12.3 million &ndash; up 214 thousand in comparison to the previous quarter and 896,000 year-on-year. The increase in the number of customers was recorded in all segments, including postpaid, where the quarterly contract net adds amounted to 61 thousand (up 3.4% year-on-year). Furthermore, according to the Office of Electronic Communications report, in the third quarter of the year T‑Mobile once again not only achieved the best number portability result among the four largest mobile operators in the country but was also the only one to record a&nbsp;positive balance in that regard. Apart from the increases in the customer base, the operator&#39;s result was also positively influenced by the rise in revenue from the sale of devices, the steadily growing purchases of fibre-optic services, as well as the increasing share of customers choosing not only a&nbsp;single service but entire convergent packages from T‑Mobile, which include a&nbsp;TV offer in addition to voice and fibre-optic internet services. As a&nbsp;result, T‑Mobile achieved a&nbsp;3.8% year-on-year increase in revenue, which amounted to PLN 1.67 billion in total.

<img src="/dam/jcr:d6151c27-47f2-4e4c-bfae-9464b299fe98" />&nbsp;<img src="/dam/jcr:1bbbfe76-af50-41fb-8bd0-59d5d25c3f05" />

&nbsp;

Despite this rise in revenue, EBITDA AL improved by 0.2 per cent and thus remained at a&nbsp;similar level to last year: PLN 458 million. This is mostly the result of the apparent increase in the majority of the operating costs. In particular energy costs, which represent the highest operating cost of T‑Mobile&#39;s network, were 74% higher in the third quarter than in the comparable period a&nbsp;year ago.

Taking into consideration the difficult economic situation, we consider the third quarter to be a&nbsp;successful one for us. Thanks to our convergent offering, we are attracting not only individuals but entire families choosing full-service packages. Consistently focusing on the needs of customers and the quality of their experience allows us to increase their loyalty towards our brand - said Andreas Maierhofer, CEO of T‑Mobile Polska. - The rise in revenue noted this quarter, driven by strong market performance, allowed us to offset a&nbsp;significant increase in operating costs. This is an excellent confirmation of our strategy execution even in more difficult economic times. 

<img src="/dam/jcr:a7412d2d-48c5-4de8-bb19-7736c110b1bb" />

&nbsp;

In terms of responsible business, the third quarter of 2022 at T‑Mobile Polska was marked by the consistent implementation of the company&#39;s ESG strategy, which focuses primarily on the areas such as climate, circularity, digital inclusion and people. Recent months have seen the launch of the &#39;Planet Matters&#39; initiative, which aims to educate people on how to properly recycle old devices, as well as encourage customers to return unused smartphones. The operator also continued its efforts to support people from Ukraine. The start of the new school year provided the perfect opportunity to develop strategic cooperation with the city of Lublin. The company donated 2,000 school backpacks to the children residing there and financed the employment of 2 teachers from Ukraine in Lublin institutions for the entire school year. These educators will work to reduce the language barrier, supporting the children and youth in the integration process.

T-Mobile is a&nbsp;technology leader, which requires us to keep consistently high level of investments, even in difficult times. Therefore, the basis of our strategy in the financial area has been to ensure that the company is financially strong and stable - this consistent approach is paying off today. In addition to the expenses related, among other things, to investments in the network or the increase in operating costs that all companies face today, we are confronted with major increases in the price of electricity, which is becoming the largest of the operating costs of our network. The fact that we have managed to offset this major cost increase demonstrates the superior resilience of our company to market fluctuations - said Juraj Andras, CFO of T‑Mobile Polska. 

Listening to the voice of the customer

In 2022, taking care of T‑Mobile&rsquo;s customer experience took a&nbsp;structured form. The operator has implemented the Medallia system to track customer satisfaction on an ongoing basis. Since the program&#39;s launch in February, the operator&#39;s customers have completed more than 175,000 surveys. Among other things, this has allowed the operator to implement improvements suggested by the customers themselves, such as changing the billing cycle.

New services, including the Magenta Dom convergent offer, are also being surveyed &ndash; in the first wave of the survey, customers rated the entire offer highly, which was also reflected in an increase in sales by nearly half, comparing data from July and September 2022.

Listening to the voice of the customer also took place in the development of the first 5G smartphones from T‑Mobile. Currently, most Poles use smartphones priced up to PLN 1,000, and with the &ldquo;Bez limitu&rdquo; offer, the T&nbsp;Phone 5G falls just within this price ceiling, and the T&nbsp;Phone Pro 5G exceeds this amount by just a&nbsp;few dozen zlotys. These models in the first month of sales accounted for nearly 6% of total smartphone sales at the magenta operator.

Business customers choose T‑Mobile 

In the mass business market segment, T‑Mobile has recorded an increase in the number of customers. They are increasingly opting for the higher MagentaBIZNES tariff variants and 5G services. Customer loyalty also remains at a&nbsp;very high level &ndash; a&nbsp;fact that was emphasised in a&nbsp;recent advertising campaign in which the operator reported that 9 out of 10 customers stay with T‑Mobile permanently.

In the segment of the largest enterprises, currently, the company is observing an increasing interest in ICT, Data Centre and cybersecurity services. The latter, in the form of the proprietary Cyber Guard product, were recognised in the form of an award by Gazeta Finansowa in the &#39;Product for Corporations&#39; category.

During the reported period, T‑Mobile won a&nbsp;number of service contracts for public customers. These included: contracts for data transmission services in 329 locations for the Agency for Restructuring and Modernisation of Agriculture, the provision of IPV VPN and Internet access for PKP Intercity, the provision of WAN data transmission services for the Institute of Meteorology and Water Management, and the acquisition of a&nbsp;contract for mobile services for the Polish Air Navigation Services Agency.

Investments in the best network quality

As T‑Mobile&#39;s customer base grows, so does the demand for data from all users. The data traffic on the operator&rsquo;s mobile network has been up around 40 per cent year-on-year. This is a&nbsp;continuing trend that T‑Mobile is addressing by upgrading its network and preparing it for increased usage. In the third quarter, the operator upgraded around 400 of its base stations, continued to develop its 5G network on the frequencies it owns (mid-band), and also increased the number of stations connected to the network via fibre optic lines. These activities allowed T‑Mobile to maintain the highest quality of data transmission &ndash; the operator consistently topped the rankings for download speeds in RFBenchmark and SpeedTest.pl.

The process of switching off the 3G network in order to allocate the 900MHz band for the construction of newer generation networks, initiated by T‑Mobile, is progressing as planned. By the end of the third quarter, it was being extended to include further areas. In the following months, the operator plans to cover the poviats of Ł&oacute;dzkie and Mazowieckie, with the aim of completing the project by the end of 2023. Importantly, turning off the 3G network allows for reducing the electricity consumption in the operator&#39;s network.

Responsible business

As T‑Mobile continues to implement its ESG strategy, in addition to its activities related to helping refugees from Ukraine and educating them about appliance recycling, the company has undertaken several further initiatives. It started cooperation with the Our Earth Foundation, became a&nbsp;partner of the &quot;Underwater Clean Up the World&quot; initiative, participated in a&nbsp;competition for kindergartens and schools, funding attractive prizes for the most engaged institutions, and created the educational platform <a href="https://www.planetamaznaczenie.pl" target="blank">www.planetamaznaczenie.pl</a> highlighting the benefits that come with the recycling of the unused smartphones. Furthermore, an educational programme for T‑Mobile&rsquo;s employees was launched. The project named &quot;ESG? We are ready!&quot; is designed to introduce them to the key areas of the ESG strategy and the reasoning behind them.

The third quarter of this year also saw the launch of the company&#39;s Sustainability Report 2021, which was prepared in accordance with the Global Reporting Initiative GRI Standards and externally verified by an independent auditing company. An electronic version is available at <a href="https://raport-t-mobile-polska.pl" target="blank">https://raport-t-mobile-polska.pl</a>. The landing page presents the key areas of the report, and the entire publication is a&nbsp;multi-page download that goes into more depth on the topic of corporate sustainability.

Continuation of growing operational performance largely influenced by increase of operational costs resulting in stable EBITDA.

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