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 2021, T‑Mobile Poland recorded both revenue growth and improved EBITDA AL. Thanks to the continuation of the positive trends already observed in the previous months of 2021, in the fourth quarter alone the operator increased its revenues by 7% (y/y) and EBITDA AL by 5.1% (y/y). For the year as a&nbsp;whole, this translated into revenue of PLN 6.5bn, up by 0.9% year-on-year, while EBITDA AL rose by 4.6% to PLN 1.76bn. The revenue growth has been achieved despite a&nbsp;clear negative impact on the revenues of shifting international transit services to a&nbsp;dedicated company within the DT Group (visible in the first half of the year) and regulation of MTR and FTR on a&nbsp;level of ca. (-)200 million PLN..

In 2021, we focused on the best customer experience with our brand and network. We expanded our portfolio with comprehensive products for entire households focusing on removing limits and restrictions that hinder our customers. As part of our network expansion strategy, we have been consistently rolling out our 5G network and gradually replacing older network technologies with new ones so that customers can enjoy the best T-Mobile quality.&nbsp; We have also taken actions that have a significant impact on socially important issues and are currently the biggest challenge for the world, namely climate change. Starting 2021, 100% of our energy has had an origin certificate, and we are developing our technology out of concern for the environment, also because of a part of our base stations being powered by natural energy sources (photovoltaic panels) &ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska. As we all increasingly use digital technologies in our lives and work, we feel our responsibility to deliver the highest quality of T-Mobile to the Polish people. We believe that our customer-centric strategy, high quality and excellent experience, allows us to perfectly respond to the current and future needs of our current and future customers. 

The positive change in financial factors is a&nbsp;consequence of commercial successes which have translated into operational improvements. For the full year 2021 T‑Mobile was the operator that lost the least number of customers in the MNP process of all infrastructure operators, and in the fourth quarter of the year alone it ranked first in the ranking, being the only MNO to record a&nbsp;positive balance of mobile number portability. Throughout the year, T‑Mobile maintained the rate of contract customer churn at a&nbsp;very low level, recording an average monthly churn rate of 0.7% for 12 months. As a&nbsp;result, by the end of 2021 T‑Mobile Poland exceeded 11.5 million customers, an increase of 344,000 compared to the previous period, it also recorded an improvement in the net ads ratio in the contract segment and consequently an increase in the number of post-paid customers. More and more customers chose the operator&#39;s convergent offer, which translated into an increase in the customer base of fibre-optic services to almost 70,000 users.

Maintaining the highest quality of service and customer care requires constant investment, as does development of the 5G network or technical facilities enabling expansion of the new, innovative services offering. Add to that the need to cope with increased inflation or rising energy prices, which is one of the key costs in the technology industry. The fact that despite the external burdens we managed to achieve revenue growth and to generate almost five percent EBITDA growth shows the true growth potential of our company and proves that we are on the right track &ndash; said Juraj Andras, CFO of T‑Mobile Polska.

&nbsp;

<img src="/dam/jcr:9c2cd98d-6922-47a8-bde4-27f453ed1482" />&nbsp;<img src="/dam/jcr:2bd06459-0d32-45b6-a477-baa22e512f52" />&nbsp;<img src="/dam/jcr:6354d8fa-54d5-48c3-85c9-7340f49b3c72" />

&nbsp;

Customer in the center of attention

When it comes to activities addressed to individual customers, the year 2021 was marked at T‑Mobile by the appreciation of existing customers, the development of convergent services and the improvement of network quality. Taking care of users was reflected not only in the continuation of programmes such as Happy Fridays with weekly gifts for users, but also in the celebration of the operator&#39;s 25th anniversary on the Polish market.

As part of its systematic development of convergent services and its response to customer needs, T‑Mobile has implemented a&nbsp;new approach to offering home Internet throughout Poland. Currently, when coming to a&nbsp;T-Mobile shops, the user indicates the target location for Internet use and the consultant checks the technology available in that place and adjusts the offer to it, recommending the home internet offer (FMS) or the fibre. T-Mobile&#39;s fiber internet footprint is currently the second largest in Poland reaching about 4.7 million households.

The operator is also encouraging individual customers to use the 5G network, and last year&#39;s sales results show that users are increasingly willing to use this technology. In the third quarter of 2021, smartphones compatible with 5G accounted for 30% of phones chosen by T‑Mobile customers, and in the fourth quarter it already exceeded 40%. In 2022, these numbers have even higher dynamic, which is related to new tariffs introduced by T‑Mobile in January with unlimited internet in smartphones, both in terms of the number of gigabytes and speed. In January this year, 5G tariffs were already chosen by nearly 70% of T‑Mobile customers.

Business segment growing consistently 

Throughout the year, T‑Mobile Poland recorded a&nbsp;dynamic growth in all segments of the business market. In the area of corporate customers, the company focused on the development of three key product lines supporting the digitization of Polish companies: in addition to traditional connectivity services, these included cloud solutions and cybersecurity. In order to effectively respond to the constantly growing demand in these areas, both in terms of scale of services as well as their sophistication and quality, the operator continued to expand its technological resources.

In 2021, the construction of a&nbsp;modern data center Szlachecka B&nbsp;in Warsaw was completed, which is already the sixth such facility of the operator. The new data center, with more than 1,700 square meters of colocation space, meets the highest security standards, and thanks to its connection with other T‑Mobile locations via a&nbsp;400 Gbit/s Ethernet link, the company was the first in Poland to offer MetroCluster solution, providing the highest reliability and operational continuity levels to its customers. In addition to cloud services, SD-WAN offer also enjoys the interest of business customers.

Among cybersecurity products, the Cyber Guard proprietary solution, which guarantees security of mobile devices, enjoyed enormous interest. Its sales increased by 35% compared to 2020. Seeing the growing demand, T‑Mobile continues to develop its portfolio of cybersecurity products, adding to its portfolio in recent months a&nbsp;vulnerability testing service, Security Awareness, which allows one to check your company&#39;s vulnerability to cyber threats and verify the state of the ICT security.

Among the new contracts signed in the past year, the largest are those with the Polish Gas Company, the National Bank of Poland, the Government Administration Service Center and the State Fund for Disabled Persons. Also T-Systems company reported an increase in revenues, and the largest contracts signed in 2021 include a&nbsp;consortium agreement for the delivery of SAP technology for Oxygen Information Technology.

The fourth quarter was a&nbsp;period of numerous promotions for small and medium-sized enterprises and further increases in the number of customers in these segments. Sales of non-subscription devices (such as telephone accessories, office equipment, smartwatches, etc.), which is a&nbsp;new segment of the offer, implemented last year, also grew dynamically. Especially smartwatches are gaining popularity, as was made evident by the 35% increase in the number of activations of the Multisim service in the fourth quarter of the year (q/q).

In addition to attractive device prices, customers choosing the Magenta Biznes offer appreciate unlimited 5G internet. The share of the two highest tariffs L&nbsp;and VIP in the offer doubled in the fourth quarter (q/q). Also in terms of fixed-line access, the operator recorded growth in the small and medium business segment. During the last three months of the year, the active user base of Światłowod Biznes increased by 20% compared to the previous year. All these increases translated into a&nbsp;positive MNP balance in each of the four quarters of 2021.

The best network quality thanks to introduction of new technologies

Pandemic restrictions, changes in society&#39;s habits and the progressive digitalization of companies have made us use data transmission more and more often: to access entertainment, study, stay in contact with the loved ones, but also to conduct business. These changes caused the operator to record a&nbsp;steady growth of demand for data transmission over the year by 19% (y/y) and the amount of transmitted video content increased by 20% (y/y) - currently it accounts for 50% of transmitted data in the T‑Mobile network. To maintain the highest quality and reliability of services, T‑Mobile continued replacing older technologies with new: faster and more capacious solutions. This approach was clearly successful, as evidenced by the Speedtest award for 2021, as well as first place in the RF Benchmark 2021 rankings in the categories of average download speed and ping.

The operator continued the process, already announced in 2020, of replacing the older third-generation network with new 4G and fifth-generation technologies. In August, T‑Mobile completed a&nbsp;months-long process of shutting down the third-generation network operating in the 2100 MHz frequency, and the next step in this area became preparation for a&nbsp;pilot 3G shutdown in the 900 MHz frequency, planned for 2022-2023. At the same time, T‑Mobile continued the expansion of the fifth-generation network coverage, to reach 3,500 stations by the end of the year and a&nbsp;national coverage of 30% of the population.

Responsibility towards the stakeholders and environment

Pro-environmental activities continue to be a priority for T-Mobile and this direction was continued in 2021. Acting on the idea of creating technologies with care for the environment in mind as well as the strategic goal of achieving zero emissions by 2025, the company is constantly modernizing its car fleet and investing in the construction of photovoltaic installations. Currently, 100% of the energy consumed by T-Mobile already comes from renewable sources. In 2021, further environmentally friendly initiatives have also been prepared for the company&#39;s customers. Business customers were encouraged to switch to e-invoicing, in the &quot;Magenta Forests&quot; campaign, as part of which T-Mobile pledged to plant 100,000 trees.&nbsp; Individual customers could also take advantage of the Smartphone Re:generation offer, as well as by giving away their used equipment for recycling or refurbishment, for which they receive attractive discounts on the purchase of new equipment.

Great emphasis was also placed on activities in the field of increasing network security and education and the fight against digital exclusion. In 2021, T-Mobile, together with the Digital University Foundation, continued the B.NET project, which consisted of conducting free online training for teachers on Internet safety. In 2021, the company also launched the &quot;On the Winning Position&quot; project aimed at young people. Collaborating with popular online creators, the Company addressed the topic of online heckling and self-acceptance. In addition, the Company continued its commitment to education and inclusion activities for seniors by implementing the &quot;Network of Generations&quot; initiative, in which it donated computer equipment to selected Nursing Homes and organized free training on the use of technology and consultations with Customer Service staff.

For its commitment to sustainable development and social responsibility in 2021, the operator received a&nbsp;key industry award: the Golden CSR Leaf awarded by the Polityka magazine. It also enjoyed an excellent result in the Ranking of Responsible Companies in which it was ranked 3rd in its industry category, i.e. &quot;Telecommunications, technology, media and entertainment&quot;.

&nbsp;

At the end of 2021, T-Mobile Poland recorded:

<ul>
	<li>An increase in EBTDA AL of 4.6%, thanks to improvements in key operating factors </li>
	<li>Increase in customer base by 344,000, including a&nbsp;significant growth of contract customer base </li>
	<li>Increase in revenues, despite the negative impact of interconnect regulation and transfer of international transit traffic outside the structures of T‑Mobile Poland </li>
	<li>Churn rate in the contract segment maintained at the very low level of 0.7% throughout the whole year </li>
	<li>Improving market trends in the second half of the year, the effects of which can be particularly seen in the fourth quarter, as revenues grew by 7% (y-o-y) and EBITDA AL by 5.1% (y-o-y) </li>
</ul>

t-mobile-polska-results-in-2021

T-Mobile Polska results in 2021. Positive effects of focus on the best quality and customer needs  - growth of all key financial indicators

In the second quarter of 2021 T‑Mobile Polska continued with a&nbsp;long-term plan of stable, sustainable growth and fulfilled its assumptions recording EBITDA AL increase of 4.1% compared to the corresponding quarter of last year, reaching EBITDA AL of PLN 453 million. At the same time the company reported revenues of PLN 1.58 billion, which excluding the negative effect of low-profit revenues from international transit services being shifted to dedicated structures within the DT Group would amount to 1.2% organic growth. The officially reported revenue change equaled to -2.3% but it should be noted that starting Q3 2021 such an effect won&rsquo;t be observed anymore. The organic growth of T‑Mobile revenues should be attributed to growing customer base, especially in B2B, and rising popularity of larger data packages and convergent offers.

Being a customer-centric company we stay ahead of the market by offering our customers the best quality: cutting-edge technology and a&nbsp;full range of services addressing their needs. Attractive offers, bundled with entertainment packages and FTTH internet access offering the biggest data allowances on the market have been the main source of our growth. This approach combines with our the best on the market network, in which we continue to heavily invest by i.e. dynamic rollout out the fifth-generation coverage. These two factors create a&nbsp;winning combination &ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska. We have already stated that it is our ambition for 2021 to provide a&nbsp;stable EBITDA growth and we are delivering results in line with this assumption.

<img src="/dam/jcr:b35731e2-70bf-45a7-8b15-ef076ea521fa" />&nbsp;<img src="/dam/jcr:7da74966-6315-421f-bf12-5240093b293a" />&nbsp;<img src="/dam/jcr:09df9dc6-3498-4623-8994-8069df85e372" />

&nbsp;

By the end of the second quarter T‑Mobile customer base grew by 269 thousand compared to the year ago and reached 11.29 million. It should be noted that, the company observed a customer base increase in both subscription segment as well as prepay. At the same time the number of FTTH customers was also growing. The average monthly churn rate in contract remained at a very low level of 0.7%.

We continued to deliver strong results in the second quarter of 2021 thanks to our focus on customer satisfaction, combined with long-term investments in convergence and new high-margin products. The last couple of quarters have shown that strong financial foundation in such demanding times allows us to successfully challenge the market. The continuous reinvestment of generated funds allows us not only to keep our technological edge but also attract new customers and make the existing ones to consider us their beloved brand &ndash; said Juraj Andras, CFO of T‑Mobile Polska.

We connect services, we connect emotions

The second quarter of 2021 in T‑Mobile&#39;s individual customer segment was marked by a new approach to the convergent offer. T‑Mobile placed an even stronger bet on the offer of combining mobile and fixed services under the &ldquo;Benefits for home&rdquo; programme, offering customers additional variants and discounts for convergent services. T‑Mobile also presented a refreshed offer of unlimited home internet - an alternative for people who are not in the range of T‑Mobile&#39;s fiber offerings, allowing them to choose all of their services with one operator and take advantage of the resulting benefits.

The second quarter of 2021 also coincided with the European Football Championship. The operator, as a sponsor of the Polish national football teams, prepared for this occasion a championship 5G subscription offer with the largest gigabyte package in Poland (200 GB). T‑Mobile also continued its weekly customer appreciation program &ndash; Happy Fridays &ndash; under which it prepared themed gifts that allowed users to experience sports emotions even more intensively.

In addition to sports promotions for prepaid customers, T‑Mobile also continued developing the quality of services offered in this segment. After launching at the end of March the possibility of using 5G network by prepaid users, T‑Mobile has made available a very competitive offer &ldquo;Unlimited XL&rdquo; in the GO! tariff with 5G access. In July, T‑Mobile was the first operator on the Polish market to introduce cyclical top-ups in pre-paid offers (&ldquo;T‑Mobile na kartę&rdquo;, &ldquo;MIX&rdquo; and &ldquo;Heyah na kartę&rdquo;).

Growth in the business segment across all key factors.

The whole first half of 2021 has been a time of significant growth in the B2B division and the second quarter also fit into this trend very well. The operator reinforced its position in the most demanding business clients segments gaining new contracts for such services as networking, data center security and cloud. During this time, T‑Mobile obtained a large number of new contracts, including one for building a MPLS WAN network for the Polish Gas Company and supplying convergent telecommunications services for the Polish National Bank.

In response to the anticipated continuous increase in demand for data center services, T‑Mobile is continuing the investment in the Szlachecka 2 data center facility, which will enable the operator to provide its clients with comprehensive ICT technologies and the best quality data processing services in accordance with the highest security standards. In June another important stage of construction, i.e. the completion of the shell, was completed and the works are advancing according to the schedule.

Throughout the second quarter T‑Mobile continued its success in the segment of smaller enterprises &ndash; by attracting new customers as well as increasing penetration of the MagentaBIZNES plans in the whole B2B client base. While improving all operational factors in this segment, T‑Mobile recorded increasing number of clients choosing convergent bundles including FTTH internet access as well as the Unlimited Internet from T-Mobile offers. By the of the second quarter the client base of the unlimited internet access in among smaller companies passed 300 thousand.

Consistent network investments focused on quality and enabling 5G access

In the networks area, the second quarter was marked by the implementation of one of the strategically key projects, which is switching off the 3G network. In accordance with the adopted schedule, this year T-Mobile has been gradually disabling 3G technology on 2100 MHz spectrum, launching the LTE network on the released frequencies. In places where T‑Mobile provides 5G services, the freed frequencies may also be used for the needs of both LTE and 5G technologies. For customers, this means higher data transfer speeds and higher comfort of using the services. This is clearly visible in the results of Speedtest.pl, where T‑Mobile took the first place in each month of the second quarter with a constantly growing average data transfer speed.

The spring months were also spent on preparations for the dynamic rollout of the most modern 5G network in other cities and towns, and supplementing the coverage where it is already available. As a result of these preparations, in accordance with the declaration from the beginning of the summer holidays, T‑Mobile is currently launching an average of over 120 5G stations per week throughout Poland, consistently implementing the goal of providing the highest quality services also via the largest 5G network.

Continuation of the ecological strategy and education of senior citizens

As previously announced, T‑Mobile is consistently striving to achieve ambitious climate goals - including those regarding zero emissions (net, direct and indirect emissions) in 2025. The company already uses green energy, which is confirmed by the relevant certificates, while in the second quarter of 2021 it announced that from the beginning of the new year it will use energy from renewable sources, provided by Respect Energy S.A. The parties signed a two-year contract under which the operator will purchase electricity produced in a zero-emission manner. In addition to purchasing energy, T‑Mobile is developing the direction of its production - among others thanks to the installation of photovoltaic panels at its base stations. In the second quarter of 2021, Eco Rating was also presented - a new product labeling system that will enable the identification of more environmentally friendly mobile phones.

Counteracting digital exclusion is also an extremely important element of T‑Mobile&#39;s responsible business strategy. Together with the TV Puls &quot;Pod Dębem&quot; Foundation, the company launched a new educational project, &quot;Network of Generations&quot;. As part of the initiative, a dozen or so nursing homes were equipped with computer equipment, and a program of educational activities in the use of technology and special duties with call center employees were prepared for the residents. The project is to popularize access to modern technologies and improve digital competences among seniors, but at the same time give them tools to develop their passions and contacts with their loved ones.

Recent months have also brought T‑Mobile several prestigious awards. For the second time in a row, the company was able to enjoy the highest, golden distinction in the &quot;CSR Leaves&quot; competition organized by the &quot;Polityka&quot; weekly. Moreover, in this year&#39;s Responsible Companies Ranking it was promoted in the industry ranking and was placed third in the &quot;Telecommunications, technology, media and entertainment&quot; category. T‑Mobile was also on the Diversity IN Check list, prepared by the Responsible Business Forum, which is a list of the most advanced employers in managing diversity and inclusion in Poland.

In the second quarter of 2021, T‑Mobile Polska:

<ul>
	<li style="text-align:justify">Recorded stable organic revenue growth of ca. 1,2% (y/y) diminished in reporting by one-off factors.</li>
	<li style="text-align:justify">Achieved an EBITDA AL increase of 4.1% - fully in line with long-term growth plan.</li>
	<li style="text-align:justify">Recorded a&nbsp;significant customer base growth both in the subscription and prepay segment - by a&nbsp;total of 269 thousand (y/y) in total.</li>
	<li style="text-align:justify">Launched a&nbsp;new range of convergent offers, accompanied by numerous special offers and promotions across all B2C customer segments.</li>
	<li style="text-align:justify">Recorded substantial increase of all key financial and operational factors in the B2B as a&nbsp;result of growing demand for services in such areas as data center, cloud, security as well as increasing popularity of the convergent SOHO offers.</li>
	<li style="text-align:justify">Continued projects in the areas of network quality including the 5G technology rollout.</li>
</ul>

t-mobile-polska-results-in-the-second-quarter-of-2021---consistent-implementation-of-the-plan-of-stable-growth

T-Mobile Polska results in the second quarter of 2021  – consistent implementation of the plan of stable growth

In the first quarter of this year T‑Mobile Polska generated an EBITDA AL profit of PLN 431 million. Thus, it recorded an increase of 4.1% compared to the first quarter of last year, well in line with the ambitious assumptions of the operator&#39;s long-term development strategy. At the same time, the company&#39;s total revenue remained at a level similar to last year, amounting to PLN 1.55 billion. It should be emphasized that this result was achieved despite lower revenues from tourist traffic and transferring international transit services to a dedicated structures within the DT Group. This was possible thanks to the increase in revenues from both the private and business market. Mobile service revenue increased by 1.8% (y/y) during this period.

The results of the first quarter show a growing trend in customer choices. More and more often they are driven not only by price, but rather by the quality of services. And quality has always been our key asset we have heavily been investing into &ndash; now it pays off. The second element of this trend is the search for simple and comprehensive offers. Here, our convergent offer, built on the knowledge of customer needs and placing their experience in the center of attention allows us to effectively convince them to choose T‑Mobile &ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska. Despite a still difficult situation we were able to deliver a 4.1% increase on EBITDA, in line with the assumptions of our strategy focused on growth throughout the year. It shows that our approach is very well adapted to the market and allows us to successfully implement our long-term assumptions.

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

&nbsp;

At the end of March this year the number of T‑Mobile customers reached 11.2 million, i.e. 223 thousand more than a year ago. Importantly, the company recorded an increase in both the base of users of pre-paid and post-paid services, as well as an increase in the number of users of fiber optic lines. At that time, the average monthly churn rate for contract clients remained at very low 0.8%.

The increase in EBITDA AL while maintaining a similar level of revenues is the result of greater focus on high-margin services, both in the private and business segment, and continuous efforts to drive efficiencies. The fact that in such a volatile environment the company not only generates strong operational results, but also maintains the pace of financial growth is a reflection of its healthy condition. Our strategy this year sets us ambitious financial goals. The first quarter shows that we are on the right track to achieve them &ndash; said Juraj Andras, CFO of T‑Mobile Polska.

<img src="/dam/jcr:9c2cd98d-6922-47a8-bde4-27f453ed1482" />&nbsp;<img src="/dam/jcr:b77d6d40-0f4e-474c-9b87-f1ecdf0cb9a2" />

&nbsp;

Focus on service quality and customer experience

The first quarter of 2021 in private customer area at T‑Mobile was marked by improving the quality of services and customer experience. At the end of January, subscribers were offered the possibility of using the fiber-optic internet service free of charge until the end of the year, and subscribers porting in can take advantage of six months of full discount for voice and fiber services.

Postpaid customers used the increasing amount of data sent over the 5G network. At the end of the first quarter of 2021, this value was more than twice as high as in the last week of December last year. In order to smoothly handle the growing demand of customers and provide them with comfortable use of the fifth generation network, at the end of March T‑Mobile introduced new 5G tariffs with doubled data packages in select variants. Along with 5G tariffs, customers can also take advantage of a new device financing model consisting of flexible installments for 24 months with attractive discounts on equipment.

The first months of 2021 also meant increasing the comfort of using the network for T‑Mobile prepay and MIX customers. In March the operator made VoLTE and VoWiFI technologies available to this group of customers, which enable voice calls as well as sending and receiving SMS and MMS messages in the LTE or WiFi network. Furthermore, three weeks later, pre-paid T‑Mobile users were given the opportunity to use the 5G network in the new &quot;No limit XL&quot; offer in the GO tariff! with 40 GB of internet.

Also in March a new version of the Heyah 01 fully digital subscription brand was presented. In the refreshed offer, each new user receives 30-day access to unlimited calls, SMS, MMS and a package of as much as 20 GB for 1 zloty. After this period, the cost of the service is PLN 19.99 for 30 days, which is currently one of the most attractive offers on the Polish market.

T‑Mobile consistently offers a weekly Happy Fridays campaign, under which it provides free bonuses to individual customers. In the first quarter of 2021, the operator&#39;s users took advantage of them as many as 1.7 million times, of which the most popular was the 10 GB package distributed during the matches of the Polish national football team. On this occasion, T‑Mobile customers activated over 460.000 free gigabyte packets.

&nbsp;

Digitization as a driving force for the growth in the business market

Since the beginning of 2021, the business sector is still under the influence of the pandemic, but there has also been a noticeable positive investment trend, related to the adaptation of companies to the new situation. This translated into an increase in demand for cybersecurity products as well as solutions for retail sector, which dynamically develops online sales as an important element of the growth strategy. The business for cloud solutions has also been on the rise, especially in the area of analytical solutions for e-commerce.

During this time, the operator also obtained new, demanding contracts. Among others, for the construction of the WAN network for the new National Toll Collection System at the request of the Ministry of Finance, the provision of mobile services for employees and diplomats of the Ministry of Foreign Affairs, as well as suppling mobile services and equipment for the State Sanitary Inspectorates, in order to improve the implementation of tasks related to counteracting COVID-19.

In response to the growing demand, T‑Mobile is developing its hybrid cloud offer and is working on the expansion of the Szlachecka 2 data center, which will allow it to increase its data processing capacity, catering the need of even the most demanding clients. It is planned to close the building&#39;s shell in the coming weeks. The operator is also consistently expanding its portfolio of cybersecurity products. Anti-DDoS solution for business clients has been enhanced to 200 Gbps to protect them against the largest cyber threats of this type. In addition, the Cloud Security service has been supplemented with the E-Mail Protection system, offering, among others advanced, multi-layered anti-virus and anti-phishing protection as well as effective spam detection and removal.

In the segment of services intended for smaller enterprises, the MagentaBIZNES offer enjoys constant customer interest. Customers responded very positively to the expansion of the portfolio of available devices, in particular high-end smartphones and laptops. The operator recorded an increase in all key operating indicators in this segment.

&nbsp;

The highest quality of the network thanks to investments in new technologies

In the first quarter, T‑Mobile focused on the expansion of the 5G network based on the existing frequencies as well as the expansion and modernization of the LTE network. At the beginning of January this year, the 5G network was made available to customers in the Tri-City, thanks to which it covers about 6.3 million inhabitants. New stations, along with the growing selection of 5G devices and their popularity &ndash; at T‑Mobile, customers can choose from over 30 phone models which accounted for a quarter of the total volume of devices sold in the T‑Mobile network &ndash; mean that the demand for 5G services has also been growing. In the first quarter, the amount of data transferred over the 5G network doubled. Compared to the first quarter of last year, the amount of data sent to the entire T‑Mobile network increased by 32%. The vast majority of this growth is due to the most popular technology, which is LTE, and the share of data sent in the 3G network, in which less than 4% of data is sent, is consistently declining.

&nbsp;

Beginning of the year with ambitious CR goals and excellent results

The strategy of T‑Mobile Polska is closely linked to activities in the field of responsible business. One of its key parts are activities dedicated to climate protection. The first quarter of 2021 brought new, ambitious climate goals set by the company. In previous years, the Deutsche Telekom Group adopted a plan according to which the total elimination of its carbon footprint &ndash; both directly by the organization and throughout the entire process from production to distribution &ndash; was to take place by 2050. According to the new strategy, the company wants to meet the zero emission (net) target for direct and indirect emissions in 2025, and the one for the entire supply chain already in 2040, i.e. 10 years earlier than originally assumed.

Digital responsibility is another extremely important area of the company&#39;s CR activities. In the first quarter, the first edition of the B.NET project was completed, which was to provide teachers with knowledge of online safety and practical teaching materials. Nearly 500 teachers participated in 16 online workshops, and 90% of them have already completed cybersecurity classes with their students. The project was also a form of activity for children and young people &ndash; 6,579 students from 113 schools took part in the interactive knowledge tournament.

T‑Mobile was also able to enjoy an excellent result in the report &quot;Responsible Business in Poland. Good Practices&rdquo;, the largest and most comprehensive review of sustainable development initiatives in the country. This year&#39;s publication describes as many as 19 of the company&#39;s initiatives. T‑Mobile&#39;s projects were included in seven categories, which shows that the company&#39;s responsible business strategy is consistent with global standards.

In the first quarter of 2021, T‑Mobile Polska:

<ul>
	<li style="text-align:justify">Generated stable revenues and an increase in EBITDA AL by 4.1% compared to the same quarter of the previous year</li>
	<li style="text-align:justify">Achieved further improvement in mobile service revenue by 1.8% (y/y).</li>
	<li style="text-align:justify">Recorded an increase in customer base both in the prepaid and subscription segments &ndash; by a&nbsp;total of 223 thousand (y/y)</li>
	<li style="text-align:justify">Presented new offers with access to 5G technology, fiber access and favorable data packages very well received by the market </li>
	<li style="text-align:justify">Recorded growth in the area of business services, especially in relation to the development of e‑commerce and digitization of companies as well as growing demand for cybersecurity</li>
	<li style="text-align:justify">Continued activities in the area of network quality improvement in response to the increased demand for data transmission </li>
</ul>

t-mobile-polska-results-in-the-first-quarter-of-2021---strong-growth-in-line-with-a-long-term-strategy

T-Mobile Polska results in the first quarter of 2021  – strong growth in line with a long-term strategy

In line with its strategy, in 2020 T-Mobile Polska generated an increase in both annual revenues and EBITDA AL, which amounted to PLN 6.46 billion and PLN 1.68 billion, respectively. Compared to the previous year, the operator recorded an improvement in revenues by 1.1% and by 2% in terms of EBITDA AL profit. Importantly, these increases were achieved despite the lower roaming revenues and the more difficult, volatile market situation. Despite this volatility, the operator&#39;s revenues grew steadily compared to the previous year for three quarters, to stabilize in the fourth quarter. EBITDA AL in the fourth quarter was affected by payment of a&nbsp;special annual bonus of EUR 500 for all T-Mobile&rsquo;s employees.

Undoubtedly, in 2020 T-Mobile services became a&nbsp;vital center of our customers&#39; lives, being a&nbsp;basis for remote work, education, family entertainment and even running whole businesses. It is a&nbsp;great responsibility for us, but also an opportunity to develop close relationships with our customers. The increase in their loyalty shows that the strategy focused on the highest quality of services and customer care has allowed us to achieve this goal &ndash; said Andreas Maierhofer, CEO of T-Mobile Polska. From the perspective of our goal to generate a&nbsp;stable EBITDA growth, we should point out two challenges: the need to deal with additional expenditures necessary to maintain the quality of the network under the increased traffic and transition smoothly to remote work model of the whole company as well as lower revenues from roaming. We are pleased that under these circumstances not only we&rsquo;ve achieved this goal but even allocated a&nbsp;significant part of our fourth quarter profit to the payment of a&nbsp;special annual bonus to employees as a&nbsp;sign of appreciation for their contribution towards the company&rsquo;s success throughout the year.

<img src="1_revenues.png/{_document}/hippogallery:original" />&nbsp;<img src="1_customers.png/{_document}/hippogallery:original" />

&nbsp;

Achieving such positive results was possible thanks to the consistent improvement of key operating indicators, in particular the expansion of customer base. At the end of the year, it amounted to 11.198 million, which means an increase compared to the previous year by 244.000 mobile customers. The company was consistently increasing its broadband client base recording almost 40.000 clients by the end of 2020, out of which 30.500 were FTTH customers. Throughout the year, T-Mobile lowered the average monthly churn rate of contract clients to a record low of 0.7%.

After a&nbsp;very promising start to the year, we very quickly faced the challenge of a&nbsp;decline in roaming revenues due to reduced tourist traffic and the need to suspend operations of a&nbsp;sizeable part of our shops. In this situation, the strong financial stability of the company, developed over the past years, turned out to be a&nbsp;great asset in terms of crisis resistance. It allowed us to smoothly adapt to the new working model, and at the same time continue network investments without interruptions, as well as invest in customer experience &ndash; said Juraj Andras, CFO of T-Mobile Polska. &ndash; The actions taken, combined with the growth of the base and effective addressing of the growing needs for digital services on the part of our clients, allowed us to achieve our financial goals.

<img src="1_ebitda_en.png/{_document}/hippogallery:original" />&nbsp;<img src="1_msr_en.png/{_document}/hippogallery:original" />

&nbsp;

Hand in hand with customers during the pandemic

T-Mobile Polska&#39;s activities in 2020 aimed at individual customers were largely determined by the COVID-19 pandemic. This was reflected not only in the change in marketing communications, but also in offers, new contact channels and additional pro-customer activities.

In order to meet the increased demand for the Internet related to remote work and learning, the operator throughout the year offered weekly free bonuses to customers as part of the Happy Fridays campaign. Users activated them nearly 13 million times, using over 74 million free gigabytes. In addition, at the end of the year, individual customers of T-Mobile received 2&nbsp;weeks of free, unlimited mobile Internet for Christmas for free.

In 2020, T-Mobile also focused on the development of convergent services, with particular emphasis on fiber-optic internet. At the end of the year, this service&rsquo;s footprint reached approx. 3.5 million households, and customers already using optical fiber from T-Mobile assessed positively both the service itself (over half of 9&nbsp;and 10 ratings on a&nbsp;10-point scale) and the sales process (75% of indications 9&nbsp;and 10) as well as the installation process (80% of ratings 9&nbsp;and 10). Optical fiber sales in each subsequent month of 2020 systematically increased. Additionally, at the beginning of 2021, T-Mobile provided its existing subscribers with a&nbsp;fiber optic service for free until the end of the year under a&nbsp;24-month contract.

Despite the pandemic limitations, T-Mobile did not forget about infrastructure development and providing customers with the highest quality network. From mid-2020, the operator&#39;s clients can use the 5G network. The range of smartphones in the operator&#39;s offer that support this standard is also becoming wider &ndash; in 2020, every fourth device introduced in T-Mobile operated in 5G standard. Currently, customers can choose from 26 smartphones and two 5G routers.

&nbsp;

A&nbsp;proven partner in digital transformation

In the B2B area, 2020 was marked by the dynamic digitization of business. T-Mobile specialists supported clients both in the projects of transitioning entire enterprises to remote work model and launching e-commerce services under time pressure, but also helped to implement complex ICT solutions, allowing companies to optimize costs and maintain efficiency. The company recorded a&nbsp;rapid increase in the demand for connectivity, both in the form of an increase in the number of orders for new lines and an increase in the existing line parameters. Customers responded positively to the expansion of the cloud services offer, and the constantly developed digital competences in this area were noticed by the market when at the end of the year T-Mobile was recognized in the Digital Excellence Awards competition in the Transformational Capabilities category.

T-Mobile supported the public sector by helping to digitize offices and healthcare. Its offer addressed to the education sector met with great interest of schools and universities, which due to the pandemic situation had to switch to remote teaching. The &ldquo;Przyjazna Szkoła Zdalna&rdquo; project run by T-Systems, Microsoft and the Chmura Krajowa consisting of free support in the configuration and launch of the MS Teams platform covered over 700 educational institutions. Another large project supporting remote learning was the delivery of 40,000 SIM cards for School Multimedia Kits.

Among the clients acquired in 2020 by T-Mobile and T-Systems, there were such enterprises as: Państwowe Gospodarstwo Wodne Wody Polskie, Polska Sp&oacute;łka Gazownictwa, Agencja Restrukturyzacji i&nbsp;Modernizacji Rolnictwa, the National Health Fund in Krak&oacute;w, and the West Pomeranian University of Technology in Szczecin. Cooperation with the gas transmission operator Gaz-System was also expanded. Last year the operator also launched the first private telecommunications network in Poland, created specifically for one business client. The campus network based on 5G technology was launched by T-Mobile in Krakow, in ASTOR locations.

The clear increase in interest in ICT services fits perfectly with the project of building a&nbsp;new Szlachecka data center, on which T-Mobile has been working throughout the year. In October last year, the foundation act was laid for this investment, and the opening of the facility for customers is scheduled for autumn 2021. The new investment meets high security standards confirmed by certificates, and its high energy efficiency puts it on a&nbsp;par with the most modern data processing centers. Developing the offer of advanced ICT services for companies, in recent months T-Mobile has introduced SD-WAN to its portfolio, which will complement the existing WAN connectivity offer, as well as a new cybersecurity product - Cloud Security - providing the company with protection of devices and networks against cyber threats at a&nbsp;very high level, a&nbsp;level previously available only to the largest organizations.

The company has also implemented a&nbsp;number of projects in the area of smart cities and the Internet of Things, including the launch of the municipal monitoring installation in August&oacute;w and the intelligent parking system in Wrocław. Using the nationwide mobile network in the NB-IoT (Narrowband for Internet of Things) standard, T-Mobile implemented smart metering solutions for thermal energy companies in Koszalin and Krak&oacute;w, as well as announced participation in the first project of the smart agriculture operator in Poland.

T-Mobile is also successful in the small business segment. The flagship offer of MagentaBIZNES already boasts over 1.2 million contracts and the small business segment is constantly growing.

&nbsp;

Network investments in response to the growing demand for data

During the last 12 months T-Mobile has been very active in the network area. The beginning of the pandemic resulted in a&nbsp;significant increase in the demand for mobile telecommunications services - in just a&nbsp;few days a&nbsp;jump of 40% took place in the number of calls and the amount of data transferred increased by about 25%. Throughout 2020, the average monthly amount of data sent within the T-Mobile network increased by over 40%.

In mid-2020, T-Mobile commercially launched the 5G network, which currently, thanks to 1,650 base stations operating on 2100MHz frequencies, reaches around 6.3 million inhabitants of Poland. In the following months of 2021, the launch of the 5G network on the same frequencies in other large Polish cities can be expected. At the same time, T-Mobile is constantly ready to build a&nbsp;5G network on new frequencies as soon as they are allocated.

In the fourth quarter, the process of implementing VoLTE technology on the network side for pre-paid customers was also completed. In February this year, this technology, which allows to make telephone calls using the LTE network, was made available to the first group of customers. Contract customers have been able to use VoLTE since 2016. Currently, this technology accounts for over 20% of all voice traffic within the network. The launch of VoLTE for prepaid customers is one of the first steps in preparation for T-Mobile&#39;s 3G network shutdown scheduled for 2023.

&nbsp;

Ambitious goals in the area of social responsibility

The strategy of T-Mobile Polska is inextricably linked with the protection of the planet and the implementation of responsible business goals in practice. This year, the company launched the WE CARE campaign, which incorporates all its ecological activities and sets ambitious goals. The activities mainly include those aimed at reducing carbon dioxide emissions, saving resources, as well as increasing energy efficiency.

T-Mobile has already started an internal STOP PLASTIC campaign, in which it has resigned from plastic bags in showrooms and minimized the use of plastic products in offices. In line with the DT group&#39;s goal of significantly reducing CO2 emissions, the operator is also in the process of switching to green energy. In 2020, the company used 70% of energy from renewable sources, and in 2021 it plans to use only green energy. In addition, T-Mobile has been introducing environmentally friendly electric vehicles into its fleet since 2011. In the upcoming years, it will replace company cars powered by diesel engines with vehicles with an alternative drive, including hybrid ones.

In 2020, T-Mobile Polska recorded:

<ul>
	<li style="text-align:justify">Revenue increase by 1.1% and EBITDA AL by 2% compared to 2019.</li>
	<li style="text-align:justify">Consistent improvement of mobile service revenues by 4.6% (y-o-y).</li>
	<li style="text-align:justify">Increase in both the total clients base to the level of 11.2 million and an increase in number of contract clients</li>
	<li style="text-align:justify">Maintaining churn in the contract segment at a&nbsp;record low level for the whole year, which lead to reaching the ratio of 0.7%.</li>
	<li style="text-align:justify">In the fourth quarter, maintaining revenues at a&nbsp;stable level and maintaining EBITDA at the previous year&#39;s level, while allocating a&nbsp;significant part of it into the payment of a&nbsp;special bonus for the employees reflecting their contribution towards the overall strong performance of the company in 2020.</li>
	<li style="text-align:justify">Throughout the year the operator maintained the highest level of services and customer care, as well as adapted its offer accordingly to the growing demand for data transmission and digital services.</li>
	<li style="text-align:justify">In the business area, it supported clients during the digital transformation of companies, in particular in the area of cloud services, connectivity, data center and security, forecasting a&nbsp;continuous increase in demand for these solutions.</li>
	<li style="text-align:justify">The company optimized how the network operates and continued to develop it in order to maintain the highest quality of services. Also launched the fifth generation network and expanded its range.</li>
</ul>

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