Solid operational results

At the end of 2018 T-Mobile Polska served 10.787 million customers, which means that during the year client base went up by 333 thousand (3.2% y-o-y). Out of this the highest number of customers - 322 thousand (4.6% growth y-o-y) - has been won in the key postpaid segment. At the same time overall churn decreased by one third. In the whole year 2018 average monthly churn in the postpaid segment was record-low at 0.9%.
&ndash;&nbsp;At&nbsp; the beginning of 2018 we announced to have the year of the great comeback and we have kept our promise. Not only we have been able to convince the customers to stay with us, reaching the lowest contract churn levels since 2012. We have also been winning over new clients, who in many cases switched to our competition in the last years but decided to return to T-Mobile, praising our customer-centric approach and technological superiority of our network&nbsp;

&ndash; said Andreas Maierhofer, CEO of T-Mobile Polska. 
&ndash;&nbsp;It should be seen as a direct consequence of our continuous focus on customer experience and changes introduced in T-Mobile offer and client service procedures. With 120 new points of sale,&nbsp;revamped sales network and the waiting time needed to reach a call center consultant improved drastically, we are more present than ever for our customers. We see results of these changes in satisfaction surveys. We are entering the 2019 as a stronger player, with a new approach, ready to challenge the market&nbsp;&nbsp;

&ndash; he added.

<div>
Reversing trends in financial results

During the whole fiscal year 2018 the company has recorded revenues of 6.5 billion PLN which means increase by 1.2% in comparison to 2017. In the sole 4Q2018 T-Mobile Polska achieved a revenue growth of 1.3% to the level of 1.68 billion PLN as compared to the corresponding quarter of 2017. The company&rsquo;s improving EBITDA result of 1.66 billion has been strongly influenced by two key factors: the roam-like-at-home effect, which hindered the whole Polish telco market&rsquo;s results in the first 6 months of 2018 and changes in accounting methodology.
</div>
&ndash;&nbsp;Growing customer base got reflected in the revenue growth &ndash; both total and across the segments, but still &ndash; the RLAH impact in the first half of the year combined with effects of accounting methodology changes didn&rsquo;t let us achieve full EBITDA stabilization. We can clearly see that operational results are starting to translate to financial results and we want to keep this trend going in the coming year

&ndash; said Juraj Andras, CFO of T-Mobile Polska.

<div>
Attractive consumer products and customer focus

In 2018, T-Mobile consistently strengthened its product portfolio in every consumer segment. Since June, customers of prepaid services can use new offers with Supernet Video included. At the end of the year, this service was used by almost 90 thousand customers of pre-paid services. At the end of August, the operator introduced a new family offer, which was met with a very good reception of the market, and described as the most flexible offer of that kind. On its account, T-Mobile also recorded the first thousand customers of the Smart Car service, only in December.

Throughout the year T-Mobile also improved the systems and service processes, as a result of which the time needed to connect with a call center consultant decreased almost twice. The number of calls to our call center dropped by 25% (December, y-o-y) and the overall satisfaction of customers from the call center service was 8% higher year to year. T-Mobile also recorded a clear increase on all key customer satisfaction measurements.

As a result of systematic communication activities emphasizing technological excellence and the best quality of T-Mobile services, in 2018 brand perception improved, both among its own clients and competitors&#39; customers. The brand gained in aspects related to the quality of services offered and assessing the ability to respond to customer needs. Today, T-Mobile is undeniably perceived as the best network in Poland, both from a speed and from a coverage perspective.

Strong position in the business segments

The MagentaBIZNES offers introduced in 2Q2018 took over the SOHO segment dynamically, quickly reaching over 80% of offers sold to customers in this sector, offering not only a fully unlimited, flexible telecommunications solution for companies but also an array of additional products such as productivity software, accounting services or remote IT support.

In the higher segments T-Mobile bet strongly on synergies derived from cooperation with T-Systems and in result being able to provide corporate and public clients with a full variety of services: from mobile communications and fixed network access to systems integration, cybersecurity and a full spectrum of custom ICT solutions.

Investments in future growth foundations

In 2018, T-Mobile continued its strategy of providing clients with services based on the best network. Despite the fact that regardless of the technology, the network reaches nearly 100% of the population, in the last year it has been supplemented by nearly 500 new stations. Their main task is to supplement the range and, above all, increase network capacity.

In 2018, the network harmonization process was completed in the 11 largest cities in Poland and in the tourist areas, in Karpacz and Zakopane. This means an increase in network capacity and data transfer speed, thanks to, among others, the use of more bandwidth for LTE services, in which the vast majority of the total data volume is transmitted. In 2019, the harmonization project will be completed in the last of the largest Polish agglomerations and will cover further areas. At the end of the year, the network harmonization process will cover over 50% of the country&#39;s area.

The highest quality of voice and data transmission services is confirmed by consumer tests made by Speedtest.pl. In the ranking for 2018, T-Mobile took first place in not one, but both categories: among&nbsp;mobile internet providers and providers of mobile network services in LTE technology. In addition, the company has been receiving the highest rating in independent network quality research carried out by P3 Communications for several years.

The crowning achievement of 2018 was the launch of the first fully functional 5G network in Poland. In the first phase T-Mobile launched 5 base stations (4 in the center of Warsaw and one in the company&#39;s headquarters). In the next steps planned for 2019, T-Mobile intends to gradually expand the tests with new locations.
</div>

At the end of 2018 T-Mobile Polska recorded:

<ul>
	<li>10.787 million customer base, consistently growing (especially in the contract segment) by&nbsp;333 thousand in comparison to 2017</li>
	<li>Growing revenues of 6.5 billion PLN &ndash; up 1.2% year-on-year</li>
	<li>Improving trends in EBITDA, negatively influenced by roam-like-at-home effect and the change in accounting methodologies</li>
	<li>A great reception of new offers both in B2C and B2B and a considerable rise in customer satisfaction across all segments</li>
	<li>Subsequent advances in technology leadership: launch of the first Polish 5G network and further improvement of the current-gen networks</li>
</ul>

solid-operational-results-translate-to-positive-tendencies-in-financial-indicators

Solid operational results translate to positive tendencies in financial indicators

On January 1st Agnieszka Rynkowska will join the Management Board of T-Mobile Polska as the Director of the B2B segment.

Agnieszka Rynkowska has over 20 years of experience in international business. For the last 5 years she has been affiliated with Microsoft Sp. z o.o., where she was Marketing &amp; Operations Director, Member of the Board and before that &ndash; Strategy Director. She had also been employed in Philips Lighting S.A. as the Marketing Director Central Eastern Europe responsible for 17 markets and before that in various managerial positions at Microsoft Sp. z o.o., Orange/PTK Centertel Sp. z o.o. and Ericsson Sp. z o.o. Agnieszka Rynkowska has been educated and is adept in both Technology (Master of Engineering, ICT industry) and Management &amp; Marketing. She graduated from Warsaw University of Technology, finished post-graduate studies at WSZiM and The Chartered Institute of Marketing.

<ul>
	<li>I am very satisfied to see that we are joined by such an experienced leader. Agnieszka Rynkowska&rsquo;s vast experience in both technology and marketing make her an ideal match for our team. I am sure that with Agnieszka on the helm our business unit can reach new heights,
	said Andreas Maierhofer, CEO of T-Mobile Polska.
	</li>
</ul>

For the last 9 months the business segment has been led by Piotr Markowski, B2B Division Manager. Piotr Markowski will continue as the head of B2B until March 31st, at the same time supporting Agnieszka Rynkowska during the first three months of her tenure. After April 1st he will transition to a newly established position in the company as a Transformation Officer in charge of the company business excellence and process simplification, which will enable the improvement of service and product satisfaction of the clients. The Transformation Officer will report directly to the CEO of T-Mobile Polska.

<ul>
	<li>Piotr Markowski is an extremely skilled and competent manager, able of tackling even the most demanding projects. After achieving great results as the head of B2C marketing, almost a year ago he accepted the task of improving operations of our Business Division and managed to repeat his success. Now, we would like to entrust Piotr with new strategic challenges,
	added Andreas Maierhofer.
	</li>
</ul>

<ul>
	<li>Agnieszka Rynkowska becomes a T-Mobile Polska Management Board Member B2B</li>
	<li>Piotr Markowski to lead T-Mobile Polska&rsquo;s Transformation Office</li>
</ul>

new-member-of-the-board-in-t-mobile-polska

New Member of the Board in T-Mobile Polska

On 7 December in Warsaw at the #5G_LAB centre, the Minister of Digital Affairs and the representatives of T-Mobile inaugurated the launch of the 5G T-Mobile network, the first fifth generation network in Poland. Devices providing access to the network have been distributed to selected T-Mobile partners, so they can be used in order to develop new business solutions and products, which will be eventually offered on the mass market.

Marek Zag&oacute;rski, the Minister of Digital Affairs, represented the state authorities at the event and 
T-Mobile was represented not only by the CEO of T-Mobile Polska, Andreas Maierhofer but also Chairman of the Management Board of DT Group, Tim Hoettges, as well as Srini Gopalan, Management Board Member for Europe at Deutsche Telekom AG. The launch of the 5G network is a continuation of the declaration made a year ago by Tim Hoettges, who announced that Poland is one of the key markets for the DT Group and one of the first countries in Europe that will take advantage of the fifth generation network from T-Mobile.

&ldquo;We do not wait for the future, but create it today for Poland by building and launching the first 5G network in our country! We are well aware how important role 5G plays in the development of an innovative economy and creating development opportunities for the whole society. This conclusion has found its way to the &ldquo;2020 Responsible Development Strategy&rdquo; document. We are happy that we can now act on our commitments,&rdquo; said Andreas Maierhofer, the CEO of T-Mobile Polska. &ldquo;It&rsquo;s noteworthy that the installation we have launched today is not just an isolated test of our technology, but an actual full-fledged network of the fifth generation, which we will gradually expand and spread to other cities, to ultimately cover the entire country.&rdquo;

&ldquo;We support all the activities related to testing and implementation the fifth generation networks. The goals of public administration and business are convergent in this topic. Our priority, which results not only from the &nbsp;European Commision&rsquo;s guidelines but above all from our striving to become one of the European leaders of data-driven economy, is the prompt and efficient introduction of 5G. Thus, initiatives such as today&#39;s, carried out in Poland, are particularly appreciated. We feel that our efforts are valued by the international business&rdquo;, said Marek Zag&oacute;rski, the Minister of Digital Affairs. At the same time, he stressed that from the point of view of the government, it is important not only to create the 5G network, but also to ensure that Citizens function safely in it and in its environment. 5G must be perceived as a safe environment, also when in the technological aspect&rdquo;, the Minister added.

As predicted in the analyses published in the &ldquo;Responsible Development Strategy&rdquo;, the launch of the 5G network in Poland is the baseline of the fourth industrial revolution and the formation of Industry 4.0, which will boost the economy thanks to greater innovativeness and make the country more competitive globally.

From the point of view of an individual citizen, 5G is above all a chance to improve the quality of life. Thanks to the network&rsquo;s capacity, it will now be able to constantly monitor health using sensors that track the key vital functions, and its high reliability allows to carry out remote medical consultations or even remote surgical operations. The 5G network will certainly offer completely new possibilities in entertainment, from truly mobile and delay-free gaming to fully immersive broadcasts of music concerts and sporting events powered by virtual reality solutions.

5G will also be widely used in agriculture, where the mass use of sensors controlling soil temperature, hydration, and the harvest condition, coupled with the automation of farm animal husbandry will increase productivity and limit the use of chemicals. It will also bring major changes to industry and the labour market, where automation of manufacturing processes will allow to create truly smart factories, smoothly responding to changes in demand or in the prices of raw materials, and cooperating with other facilities in an automatic manner. It will also create new jobs for professionals and increase mobility thanks to systems that support on-the-job training and facilitate access in real-time to information and instructions for even the most challenging tasks.

The 5G network also means new perspectives for the development of smart cities, where, for example, a network of miniature sensors embedded in all parts of urban infrastructure will help control traffic, streamline waste disposal, manage parking spaces, and even deliver measurable savings thanks to smart street lighting.

&ldquo;The highest quality of the network is the priority, and the most important feature that makes T-Mobile stand out from its competitors. Apart from the best coverage and data transmission speed in the LTE network, we now have yet another argument to support this claim. It is T-Mobile that launched today the first real, functional and full-fledged 5G network in Poland, which is based on commercial solutions and has been made available to our partners,&rdquo; said Thomas Lips, Chief Technology and Innovation Officer at T-Mobile Polska. &ldquo;Even now, we are working hard towards the integration of the fifth generation network with our 3G and 4G commercial networks as well as the broadening the base station coverage.

As at the day of launching the 5G network, T-Mobile operates five base stations spreading network coverage across the centre of Warsaw. The 5G system in the 3.5 GHz band with a 100MHz channel bandwidth has been made available on every station. The 5G signal is broadcast by antennas, which support technological solutions that are essential to 5G, which involve forming and tracing the beam to the individual user&rsquo;s location as it changes (called beam forming and beam tracking). They ensure connections of the highest quality. Each of the base stations used in the project was thoroughly adapted and prepared for the launch of the fifth generation network, and they were all connected to the network via fiber optic technology supporting 10Gb/s.

T-Mobile Polska has launched the first fully functional fifth generation mobile network in Poland - its coverage is currently available in the centre of Warsaw. T-Mobile commits itself to investing in and continuing development of the 5G network in the coming months and years, extending it to more locations and cities so it ultimately covers the entire country.

t-mobile-launched-the-first-5g-network-in-poland

T-Mobile launched the first 5G network in Poland

On 7 December 2018, at Plac Defilad in Warsaw, T-Mobile Polska opened its #5G_LAB, a centre where the mobile network operator presents a vision of the world of the future that we will come to experience thanks to the fifth generation networks. Here, everyone interested in the technology will be able to personally experience the real applications of the 5G technology, catch a glimpse of the completely new and broad possibilities this technology has to offer, and also see how it will help us build an even better future.

&ldquo;By launching the first functional 5G network in Poland, we create future for the entire Polish society. 5G is not only the next generation mobile network, even faster than the previous ones, but a completely new quality. It&rsquo;s a technology that offers the whole society and the economy entirely new opportunities. The fifth generation network stands for remote surgical operations with unbelievable precision and accurate diagnostics in healthcare. It stands for modern agriculture, minimised use of chemicals and maximised productivity, as well as the innovative 4.0 industry, this will help build a modern and competitive economy.&rdquo; said Andreas Maierhofer, CEO of T-Mobile Polska. &ldquo;We know what the future of each of us will look like thanks to 5G, and we want to share this vision with all those who decide to visit out #5G_LAB&rdquo;, he added.

Thanks to multimedia educational stations powered by the latest virtual and augmented reality solutions, everyone will be able to see how technology will make our lives better. The showcased solutions include a farm producing healthy and natural food thanks to the 5G technology, an automated factory and an operating room where the most difficult operations are performed by a robot controlled by a surgeon located across the continent. Visitors will have the opportunity to manage a smart city and by controlling its smart city systems in virtual reality they will have to deal with crisis situations. We will also see how 5G will support all of us, its individual users, in our everyday lives, anticipating our needs and helping us manage our home, or support us at work. Visitors will also experience the entertainment of the future. Watching a sporting event, we will be right there in the middle of the pitch between the players, following each game closely from the best possible angle. Tech geeks will appreciate the stations presenting the most interesting technological solutions used in fifth generation networks and running a simulation that allows to personally experience how fast and reliable the 5G network is.

&ldquo;Thinking about 5G, what instantly comes to mind is the incredible bandwidth that these networks will offer. However, this is, in fact, just one of the many features of the fifth generation network that, along with capacity and reliability, allow 5G to offer solutions that we have not dared to dream of until recently and which will make our lives better and easier&rdquo;, said Thomas Lips, Chief Technology and Innovation Officer at T-Mobile Polska.

T-Mobile created the #5G_LAB to present to everyone interested, regardless of how familiar they are with technology or how interested they are in telecommunications, the possibilities offered by 5G. That is why all the information provided during the visit to the lab is communicated in an accessible way, in a play and learn manner, so that everyone can familiarise themselves with the solution, regardless of age or interest in technical novelties.

#5G_LAB is located at Plac Defilad, from the Marszałkowska Street side. It is open 7 days a week, between 7 and 31 December, 10:00 a.m. to 8:00 p.m. Admission to the centre is free. #5G_LAB is worth visiting also when it is closed to see light shows on its fa&ccedil;ade after dark.

With the launch of the first fully functional 5G network in Poland, T-Mobile is starting a project that is intended to demonstrate its capabilities. #5G_LAB which has been created in the centre of Warsaw, enables everyone interested in the future powered by 5G to learn how this technology will change our lives.

5g-lab---t-mobile-shows-the-future-thanks-to-5g

#5G_LAB – T-Mobile shows the future thanks to 5G

At the end of Q3/2018, T-Mobile Polska operated 10.690 million SIM cards, including over 7.1 million contract customers and over 3.5 million prepaid customers. This represents an increase of 84,000 over the quarter. More importantly, T-Mobile not only gains customers more efficiently but retains them effectively: the contract customer churn rate dropped to 0.8%, the lowest figure since 2012.

<ul>
	<li>&lsquo;Our results clearly show that although the Polish market is under great pricing pressure, there is still room for an operator such as T-Mobile &ndash; focusing on offering the highest quality of service and competing for customers with the latest technologies and the best customer experience. We are especially pleased with the steadily decreasing churn rate, which at the moment in the contract segment is at its lowest since Q2/2012. We owe this achievement to continued investments into the quality of all our customer touchpoints. In consequence not only the number of our customers is increasing but also an average revenue per user (ARPU), which means that customers are willing to choose more premium plans and take advantage of additional services. These drivers are contributing to improved financial performance&rsquo;,
	said Andreas Maierhofer, CEO of T-Mobile Polska.
	</li>
</ul>

Customers appreciate quality and innovative solutions

In Q3/2018, T-Mobile once again recorded a steady increase in customer trust and satisfaction indicators. This was due to a number of changes introduced over the last quarters in the area of customer experience, such as improvements in call center operation decreasing the waiting time to reach our consultants by 4 times. Currently, the operator has launched an advanced mobile application which enables customers to easily manage all of the subscribed services and resolve the most common queries much faster than through the telephone customer care channel. In consequence T-Mobile offers its clients the highest quality in of all of the customer touchpoints like our own and franchised &nbsp;stores, professional call-center and digitally through the mobile app. &nbsp;

Over this period, customer surveys showed a marked increase in the service quality satisfaction, especially in the post-paid segment.&nbsp; This has translated not only into a lower churn rate but also into better mobile number portability figures: in the third quarter T-Mobile has achieved a positive MNP balance.

In the third quarter, T-Mobile launched a family offer, which quickly became a best-seller. The operator&rsquo;s proposal has gained favor with customers primarily due to its flexibility &ndash; among other things, it enables to add more family members any time throughout the entire duration of the contract. Additionally the pre-paid market segment saw the successful launch of the SuperNet Video offer, which gained 80,000 active users in three months.

The SME segment opts for MagentaBIZNES plans

The SME segment has warmly welcomed the MagentaBIZNES plans, which offer the possibility of using a single unlimited Internet deal on all SIM cards within the company, as well as featuring a number of unique additional services, such as remote IT support, Office365 or online accounting, that will be useful to anyone running a business. Within six months of its launch, this offer has gained huge popularity among customers, accounting for 85% of sales in the SOHO VSE segment.

Gradual growth of financial ratios

In the period in question, T-Mobile Polska has recorded growth both in terms of revenue and EBITDA. Its revenue totaled PLN 1.688 billion, i.e. 5.5% more than in the corresponding period of last year. At the same time, the company&rsquo;s EBITDA increased to PLN 418 million, i.e. by 11.5% (year-on-year) partially driven by different seasonalization of EBITDA this year vs. prior year.

 
&nbsp;

<ul>
	<li>&lsquo;Lower churn, growing customer base and stabilizing ARPU affected positively our financial performance. As we had stated on a number of occasions it was our imperative to continue stabilization and even turnaround of revenues and EBITDA, which are no longer influenced by the negative impact of the roam-like-at-home regulation. We are glad to see that our financial figures finally start to reflect the positive actions that we have taken since several quarters&rsquo;
	&ndash; said Juraj Andras, CFO of T-Mobile Polska.
	</li>
</ul>

Investing in a digital future

The company continues to take steps aimed at moving away from the traditional mobile operator model towards that of a modern, fully convergent company. After concluding the contract with Orange to gain access to the operator&rsquo;s fiber-optic network, which reaches multi-family buildings, 
T-Mobile signed another contract, this time with Nexera, an optic network operator. The new contract perfectly complements the one concluded with Orange, as it enables access to lines which are installed mainly outside large towns or cities and connected to single-family houses. Both of these contracts, combined with the Office of Electronic Communications&rsquo; decision which obliges Orange to grant its competitors access to households in the regulated areas mean that T-Mobile&rsquo;s convergent offer will be available for 4.5 million households by 2020 and the first customers will be able to enjoy its convergent services later this year.

Providing the highest quality network remains T-Mobile&rsquo;s priority. The company is determined to continue making infrastructural investments and maintain its technological leadership status. In September, the operator maintained its (joint) leader&rsquo;s position in the speedtest ranking of mobile operators and became the undisputed winner in the ranking of mobile data transmission speed within operators&#39; own networks.

&nbsp;

Compared to the end of Q3/2017, T-Mobile Polska&rsquo;s revenue increased by 5.5%, while its adjusted EBITDA grew by 11.5%. At the same time, the company maintained an upward trend in customer base growth by adding net 84,000 customers in the past quarter.

t-mobile-polska-s-performance-in-q3-2018---gradual-growth-of-key-financial-and-operating-indicators

T-Mobile Polska’s performance in Q3/2018:  gradual growth of key financial and operating indicators

&nbsp;

As of October 1st, 2018, T-Mobile market communication activities and activities related to building the brand&#39;s perception will be coordinated within the Brand Management Department. Krzysztof Jankowski will become the new Director of the Department.

&nbsp;

The new Department of Brand Management will be led by Krzysztof Jankowski - an extremely experienced manager who built his competences in the most competitive markets, including FMCG and consumer electronics. He implemented international projects, for many years working for leading European giants, such as Kenwood, Kraft Foods and Reckitt Benckiser. He will be reporting directly to Frederic Perron, Board Member, Chief Commercial Officer.

Maria Katarzyna Grzywaczewska, who led the activities of the Market Communication Department for the last 3 years, decided to leave the company. She successfully completed the task of developing a coherent strategy for the T-Mobile brand and bringing the brand to a solid and healthy position, with more modern positioning. Thanks to this, T-Mobile can compete against our rivals on an equal footing every single day.

Krzysztof Jankowski recently held the position of Global Marketing Director of the Kenwood Group where he was responsible, among others, for creating a global brand strategy and vision, consumer strategy, as well as managing the innovation strategy based on a broad analysis of trends and customer needs. At Reckitt Benckiser, as one of the global brand managers&#39; marketing, he created a cross-product strategy for introducing and positioning key product lines.

Krzysztof returns to Poland after spending the past 10 years in the UK.

News

Solid operational results translate to positive tendencies in financial...

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T-Mobile launched the first 5G network in Poland

#5G_LAB – T-Mobile shows the future thanks to 5G

T-Mobile Polska’s performance in Q3/2018: gradual growth of key financial and...

Krzysztof Jankowski joins T-Mobile as the Director of the Brand Management...