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;
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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 2022, T-Mobile Poland:

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

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

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

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

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

&nbsp;

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

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

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

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

&nbsp;

A year of focusing on the customer and convergent services

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

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

Growth in the business segment

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

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

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

The best network quality

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

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

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

Responsible business 

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

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

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

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

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

t-mobile-polands-performance-in-2022

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

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

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

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

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

&nbsp;

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

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

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

&nbsp;

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

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

Listening to the voice of the customer

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

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

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

Business customers choose T‑Mobile 

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

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

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

Investments in the best network quality

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

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

Responsible business

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

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

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

t-mobile-polands-results-in-q3-2022

T-MOBILE POLAND'S RESULTS IN Q3 2022

In the first half of 2022 T‑Mobile Polska recorded a&nbsp;sizable growth of subscriber base in mobile and fixed (FTTH) services with the mobile base growing by 817,000 compared to the second quarter of 2021 and passing the 12 million milestone. Also, the percentage of households using more than one service from the operator&rsquo;s portfolio has increased and, at the same time, the company achieved higher revenues coming from the sales of terminals. Not only were T‑Mobile customers more prone to buying handsets than the year before, but also showed more interest in choosing terminals from higher market segments. In result, T‑Mobiles revenues in the second quarter amounted to 1.6 billion PLN, growing 2.6% year-on-year despite the still noticeable negative effect of MTR regulation. The company also had to deal with the issue of growing energy costs &ndash; one of the key operational costs for telco operators &ndash; by ca. 40% compared to 2021. Despite the obstacles, in the second quarter the EBITDA AL grew substantially by 2.6% (y-o-y) reaching 465 million PLN.

During the second quarter, the average monthly churn in contract segment remained at the very low level of 0.6% and the operator recorded positive growth in net additions across all segments &ndash; compared to last year, as well as the previous quarter. Also, the mobile number portability report published by the Office of Electronic Communication showed that T‑Mobile was the only MNO to record a&nbsp;positive portability balance and thus reporting the best performance among the leading telcos.

&nbsp;

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&nbsp;

In accordance with our market strategy, we are removing unnecessary restrictions to provide customers with an unlimited experience. By introducing a&nbsp;convergent Magenta Dom offer we enable them to get all the services they need from one provider in the highest service quality. Thanks to our customer obsession and technology leadership we created a&nbsp;proposal which allows customers to enjoy the full potential of technology in each of our services and they appreciate it &ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska &ndash; The fact that during the second quarter we were faced with difficult circumstances of the ongoing war was a&nbsp;key challenge. In this time we were doing our best to provide those in need with our uninterrupted connectivity services and long-term material support. But we are also well aware that being a&nbsp;responsible company means following the ESG goals under all circumstances. Therefore, we took another step towards our goal of becoming a&nbsp;fully carbon-neutral company by signing a&nbsp;long-term contract for green energy. 

During the time the operator continued to provide support for the refugees from Ukraine. T‑Mobile employees kept on providing help in all key areas: volunteering (also on the Polish-Ukrainian border), humanitarian aid, customer offers, strengthening the network by the border and reception points and in hundreds of grassroots employee initiatives that the operator supported. The company also continued to prepare attractive offers for those wishing to keep in touch with relatives and provided means of communication, as well as material help, to the relief organizations at the border. What&#39;s more, Deutsche Telekom Group supported the Happy Kids Foundation, which has been fighting for equal opportunities for children for years, currently running the largest center in Poland for those from Ukrainian orphanages. The organization received in total 300,000 PLN of support from DT and T‑Mobile Polska.

Also, the recent period marked a&nbsp;strong push towards the fulfillment of the company&rsquo;s ambitious goal of achieving net zero emissions, both direct and indirect, already within the next three years, and by 2040 in the entire supply chain. The company, has already been using 100% green energy since 2021 but now it signed an innovative vPPA contract with V-ridium Group which will guarantee T‑Mobile Polska exclusive access to green energy for the upcoming 15 years and ensure construction of 2 wind farms and 3 photovoltaic farms specifically for this project, which will provide around 200 GWh of electricity annually and help reduce more than 145,000 tons of CO2 emissions each year. Also, as the contract establishes a&nbsp;predetermined energy prices, which will guarantee T‑Mobile electricity price predictability and reduce cost risk in the long term.

We really appreciate the customers choosing T‑Mobile more and more often, as well as buying more services from our company and we can see these trends translating into revenue growth. At the same time we are dealing with inflation and increasing costs which have a&nbsp;noticeable negative impact on our business and will continue being a&nbsp;burden in the future. To counter them we are introducing initiatives such as the vPPA contract guaranteeing green energy in pre-agreed prices for the next 15 years, a&nbsp;project which shows that ecology and business do in fact go together perfectly. The fact that under these circumstances we are reporting a&nbsp;substantial, steady growth is a&nbsp;testament to our company&rsquo;s strong foundations: financial stability and proven strategy &ndash; said Juraj Andras, CFO of T‑Mobile Polska. 

&nbsp;

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&nbsp;

Customer needs and convergent services in the spotlight

During the second quarter of 2022, T‑Mobile Polska has introduced television (linear &amp; OTT) to its service portfolio for individual customers, becoming a&nbsp;fully convergent operator. Thanks to a&nbsp;new offer &ndash; Magenta Dom &ndash; the operator once again focused on removing barriers from customers&#39; lives, offering them a&nbsp;simple and flexible package that includes unlimited mobile subscription, fiber internet and TV. The offer was developed based on numerous surveys and conversations with customers, to respond to their real needs to the greatest extent possible. This approach has translated into a&nbsp;very positive customer reception and high interest in the offer, as well as sales. The focus on customer needs has also been reflected in the prepaid user segment. T‑Mobile prepaid users are the first in Poland to have the option of self-registering a&nbsp;prepaid number in the app and with identity confirmation through mojeID. In addition, attractive and numerous prepaid offers have resulted in strong growth in the prepaid customer base.

Steady growth in business

The company continued its growth also in the business segment. It attracted new SOHO customers thanks to a&nbsp;MagentaBIZNES offer combining unlimited calls, internet access and attractive smartphones, supported by a&nbsp;wide advertising campaign. Also, the operator reported an increase in customers choosing 5G-enabled plans. In the corporate segment, the operator signed a&nbsp;contract with a&nbsp;very demanding customer, the Supreme Administrative Court, which T‑Mobile will provide with WAN services that meet stringent requirements for stability, redundancy and protection against DDoS attacks. In fact, in this quarter customer interest in cybersecurity products kept growing and the company observed a&nbsp;substantial revenue increase from such products as Cyber Guard and AntiDDoS solutions. The operator&rsquo;s cybersecurity line of products has been recognized by the Leaders of the Banking and Insurance World in the category for the Best Solution for the Banking Sector and Disaster Recovery as a&nbsp;Service winning the Best in Cloud award. A&nbsp;the same time T‑Mobile&rsquo;s big data tool for traffic analysis was recognized during Smart City Forum and its self-service solution eSerwis got the Technology Leader award from Gazeta Finansowa. In June the company received the title of Trusted Brand based on a&nbsp;national opinion survey carried out to find the best brands, services, products aimed at business.

Investments in the best network quality

During the second quarter T‑Mobile continued its efforts aimed at providing the best service quality in the vicinity of the Ukrainian border and reception points by extending capacity of the LTE layers on the key base stations and increasing their maintenance levels. The operator also finished the 3G retirement process in the Świętokrzystkie area which will allow for the freed resources to be used for faster and more capable next generation networks. On the national level T‑Mobile kept rolling out its 5G network based on already owned spectrum (DSS) at the same time preparing the radio infrastructure for the future rollout of the 5G network on the 3.x GHz band (C-Band). Also, in line with its long term strategy of building its own fiber-optic distribution network, the operator kept investing in this area. Among other benefits, such network allows the T‑Mobile base stations to handle growing data traffic which will become even more important with the even higher demand for data produced by adoption of 5G technology. At the moment more than 50% of all T‑Mobile base stations are connected to the access network via fiber and almost 90% of base stations situated in cities and towns bigger than 10 thousand inhabitants.

Empowering responsibility

In the ESG area, alongside the actions focused on supporting Ukraine and Ukrainian refugees in Poland, the company also implemented a&nbsp;digital inclusion project, which forms the basis of the company&#39;s ESG activities &ndash; &quot;In a&nbsp;Winning Position.&quot; Based on a&nbsp;collaboration with influencers, the company addressed the topic of hegemony over the internet, engaging the youngest internet users.

It is worth mentioning that the second quarter of this year was also a&nbsp;period of corporate responsibility awards. The company once again received the &quot;Golden CSR Leaf&quot; awarded by Polityka magazine in cooperation with the Deloitte consulting firm, and a&nbsp;special &quot;Green Leaf&quot; award for its environmental activities. In addition, for the second time in a&nbsp;row, the company was included in the Diveristy IN Check list, which recognizes the most advanced companies in terms of diversity management.

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

<ul>
	<li>Recorded revenue growth of 2.6% thanks to higher revenues in both B2C and B2B segments, despite unfavorable MTR regulations. The EBITDA AL grew by 2.6% (y-o-y). </li>
	<li>Achieved substantial increase in net adds &ndash; both in postpaid and prepay &ndash; resulting in passing the 12 million milestone for the customer base size. </li>
	<li>Lunched the new, convergent Magenta Dom offer, based on customers&rsquo; feedback which was very favorably received by the market. </li>
	<li>Increased B2B customer base &ndash; in both: higher and lower segments, noting special interest in cybersecurity services. </li>
	<li>Continued investments in deploying 5G DSS sites and fiberoptic lines. Continued to prepare its radio infrastructure for the future 5G rollout on 3.x GHz spectrum. </li>
</ul>

t-mobile-polska-results-in-the-second-quarter-of-2022

T-Mobile Polska results in the second quarter of 2022 – substantial revenue and EBITDA growth, over 12 million customers.

In the first three months of 2022 T‑Mobile Polska achieved a&nbsp;substantial, steady growth both in revenue and EBITDA AL. Despite a&nbsp;sizeable negative influence of MTR regulation which resulted in lowering interconnect revenues by approx. 75 million PLN, total revenues amounted to 1.58 billion PLN, growing 2% year-on-year. This in turn translated to a&nbsp;sizeable 4.9% (y/y) growth in EBITDA AL reaching 452 million PLN.

Besides revenues being visibly impacted by regulation of MTRs, as mentioned above, another factor affecting company&rsquo;s operations was the war in Ukraine. T‑Mobile focused its activities on supporting refugees coming to Poland, as well as company&rsquo;s customers who maintained contact with people in Ukraine. T‑Mobile has provided them with unlimited free international calls from Poland to Ukraine combined with reduced roaming rates. Special offers have been made available to prepaid customers, who can take advantage of free calls, gigabytes and extended account validity. Only under the T‑Mobile prepaid, Heyah prepaid and T‑Mobile MIX offers customers have already used nearly 90 million free minutes and almost 6 million free gigabytes. Furthermore, volunteering T‑Mobile employees have been distributing free T‑Mobile and Heyah prepaid starters to Ukrainians coming to Poland: at the border, bus and train stations, as well as at the refugee reception points. Almost half a&nbsp;million SIM cards have already been distributed among Ukrainian refugees. Additionally, the company has been supporting the Polish Red Cross, Polish Centre for International Aid and a&nbsp;number of other organizations it provided with phones, SIM cards, routers and tablets and connectivity services free of charge.

At the same time T‑Mobile also introduced a&nbsp;number of initiatives aimed at providing the highest level of services at the border and in the reception centers, including deployment of mobile base stations and improving the capacity of existing ones. The war in Ukraine also induced the need to apply extraordinary security measures: physical, aimed at protecting the critical infrastructure, as well as cybernetic, to ensure networks would be protected from cyberattacks.

<img src="/dam/jcr:9c2cd98d-6922-47a8-bde4-27f453ed1482" />&nbsp;<img src="/dam/jcr:2bd06459-0d32-45b6-a477-baa22e512f52" />

&nbsp;

The recent months have proven how connectivity is essential for our daily lives but especially in the time of crisis, and shown us that it can&rsquo;t be taken for granted. As a&nbsp;service provider we have learnt how much effort it takes to rise to the challenge in such a&nbsp;moment but also that by working together we can make a&nbsp;difference &ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska &ndash; The war in Ukraine has undoubtedly impacted our operations in the first quarter, causing higher costs and additional work in order to respond to the issue. The fact that even in the face of these adversities we were able to report a&nbsp;sizeable growth in the key factors, shows that our strategy works even under the most unexpected circumstances.

By the end of the first quarter of 2022 T‑Mobile customer base grew by 640 thousand (y/y), reaching 11,8 million. Average monthly churn in contract remained at the very low level of 0.6%. According to the Mobile Number Portability report for the first quarter, published by the Office of Electronic Communication, not only was T‑Mobile the most successful MNO but also the only one to achieve a&nbsp;positive balance. In fact, the company has seen growing customer numbers in all the segments: contract, prepay, private and business. The new truly unlimited plans in B2C segment have been very well received by the market, similarly to the new, also unlimited, home internet offer. The number of customers taking advantage of the FTTH and entertainment offering, as well as customers using multiple services from T‑Mobile has also been growing steadily. The B2B segment has been growing across the line &ndash; including the small-business segment, as well as the offer for larger customers; especially in the security, connectivity and cloud.

<img src="/dam/jcr:6354d8fa-54d5-48c3-85c9-7340f49b3c72" />

The first quarter was very specific and brought a&nbsp;number of unexpected challenges. The war in Ukraine induced sizeable additional expenses necessary to guarantee security and reliability of our core services, while also supporting refugees and people, and institutions helping them. Moreover, we are facing unprecedented inflation rates and sky-rocketing energy prices which heavily impact our business. It wouldn&rsquo;t be surprising if customers decided to postpone their buying decisions in this situation. In reality we are proud to see them choosing our offer more and more often, appreciating the best service quality and our focus on customer experience. This in turn translates into consistent growth in all key operational and financial factors despite these challenging circumstances &ndash; said Juraj Andras, CFO of T‑Mobile Polska.

Customers appreciate the unlimited offers 

At T‑Mobile, the first quarter of 2022, in the area of activities addressed to individual customers, was marked by providing its users with unlimited services of the highest quality. In January this year, T‑Mobile became the first operator in Poland to launch unlimited internet for smartphones without data and speed limits. In March, in turn, the operator managed to remove another barrier from the lives of individual customers by introducing &ndash; also the first in the Polish market &ndash; a&nbsp;truly unlimited home internet offer in 5G/LTE technology with a&nbsp;router supporting Wi-Fi 6. All this in order to allow customers to enjoy what now matters to them, according to the new brand communication platform. Currently, interest in unlimited tariffs is growing steadily, and since the introduction of the spring promotion with a&nbsp;second unlimited subscription or fiber for up to a&nbsp;year at T‑Mobile&#39;s expense, unlimited tariffs are already chosen by the majority of new customers.

High demand for business services

Also in the business segment the operator continued to grow. Due to the situation in Ukraine and the increased number of hacking incidents on companies, an increased interest in cybersecurity services has been observed. In the first quarter of 2022 the operator saw a&nbsp;30% increase in requests for cybersecurity services and achieved a&nbsp;significant increase in sales in this segment, especially among large customers such as banks and other financial institutions or software developers. It introduced a&nbsp;new range of cybersecurity products based on its proprietary Cyber Guard solution, Disaster Recovery as a&nbsp;Service offer and launched a&nbsp;new Data Center at Szlachecka, Warsaw, which allowed a&nbsp;Metro Cluster product to be introduced, providing customers with the highest level of data security. In March, T‑Mobile signed a&nbsp;contract with Agency for Restructuring and Modernization of Agriculture, prolonging existing cooperation in Data Center services for the next 6 years.

During the first quarter T‑Mobile continued strengthening its position in the smaller business segment. It introduced changes its to MagentaBIZNES offer thanks to which entrepreneurs will receive an even faster Internet connection, a&nbsp;larger Internet package with the lowest tariff, as well as additional minutes within the European Union.

Investments and optimizations to deliver the best network quality

In order to provide customers with the best network quality and to prepare for the growing demand for data, T‑Mobile continued the network modernization process. It allows the operator to keep increasing the 4G network capacity, expand the 5G network using the already owned frequency resources, and also prepare the infrastructure for the future rollout in the target 3.x GHz band. T‑Mobile continued preparations necessary for the shutdown of the 3G network which will enable the freed resources to be used for more capable and faster next generation networks in the future. This approach yields tangible results &ndash; the T‑Mobile network has been recognized by Speedtest.pl as the one with the fastest mobile download speeds throughout the whole quarter.

Improvement of accessibility 

In the ESG area, apart from the full spectrum of activities aimed at supporting war refugees and NGOs helping them, the operator informed its customers about full its accessibility for deaf persons. This is another step in the consistently implemented D&amp;I (Diversity and Inclusion) strategy. From the beginning of 2022, people with hearing impairments can take advantage of all available forms of contact. Using the website <a href="https://www.t-mobile.pl/c/migam" target="blank">www.t-mobile.pl/c/migam</a> deaf customers can connect with an online sign language interpreter who will participate in the conversation between the person and an employee of the T‑Mobile contact center. Those are not the only changes &ndash; the operator has also decided to expand the availability of sign language interpreter services from selected 120 stores to all stores, meaning more than 600 stores throughout Poland. In each of these places, the customer can count on the connection conducted by an employee of a&nbsp;given outlet.

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

<ul>
	<li>Achieved total revenue growth of 2% (y/y) despite lower revenues from interconnect.</li>
	<li>Reported a&nbsp;consistent EBITDA AL growth of 4.9%.</li>
	<li>Increased its customer base, both in prepaid and postpaid &ndash; by 640 thousand (y/y) in total.</li>
	<li>Offered support to war refugees from Ukraine, by providing free communication services, additional mobile coverage at the borders and by working with NGOs.</li>
	<li>Introduced new unlimited voice and data plans, very well-received by the customers.</li>
	<li>Continued to grow in all B2B segments, especially in data center, security as well as connectivity services.</li>
	<li>Continued network modernization project in order to continue providing customers with the best network quality.</li>
</ul>

t-mobile-polska-results-in-the-first-quarter-of-2022---consistent-revenues-and-ebitda-growth-despite-negative-impact-of-interconnect-regulation

T-Mobile Polska results in the first quarter of 2022 – consistent revenues and EBITDA growth despite negative impact of interconnect regulation.

After reaching a turnaround in the whole FY2019 and the first quarter of 2020, T-Mobile Polska sustained a positive trend even under hindrance of overall economic slowdown and the obligation to close shops located in shopping malls caused by COVID-19 pandemic. Even under these circumstances the company managed successfully to introduce new ways of working and interacting with clients. As a result, T-Mobile Polska not only increased the customer base by 1.4%, but even exceeded last year&rsquo;s second quarter results by reaching revenue of 1.6BLN PLN, 3.4% larger than before, with contract base growing by 2.5%. In the second quarter, the contract churn rate dropped to level of 0.6% &ndash; the lowest in company&rsquo;s history.

<ul>
	<li>Under the pandemics the role telecommunications services play in the work, education and life of our clients became even more prominent. The customers needed reliability and trusted that we could provide them with the highest quality services without interruptions. We couldn&rsquo;t let them down. I&rsquo;m proud that T-Mobile, thanks to its employees&rsquo; effort rose to the challenge
	&ndash; said Andreas Maierhofer, CEO of T‑Mobile Polska. 
	After the lockdown ended we introduced a new model of working, based on safety and elasticity which proved to be very efficient. As a result, we continued the growth trends in service revenues, reaching satisfactory results by the end of the quarter.</li>
</ul>

In spite of hindrances in sales and considerable spending to guarantee necessary level of safety to employees and clients as well as changes to the infrastructure in order to provide employees with remote access to workstations, the company achieved another positive EBITDA development. EBITDA AL kept the positive trend from the first quarter and reached 435 million PLN, growing 1.9% year-on-year. By achieving this outcome the company demonstrated that its strategy proves to be efficient even under tougher circumstances.

&nbsp;

<img src="wynigi_1e.png/{_document}/hippogallery:original" />&nbsp;<img src="wyniki_2e.png/{_document}/hippogallery:original" />

&nbsp;

During the most intensive phase of the pandemics, T-Mobile introduced a variety of client-centric and CR activities. Among others the operator offered its clients free data packets so they could stay informed and in touch under lockdown, provided them with free streaming services as well as conferencing solutions and productivity business software. T-Mobile also joined the official relief efforts by covering educational platform access with zero-rating and providing schools with software necessary for remote education.

<ul>
	<li>The developments of April and May challenged our goal to sustain the steady EBITDA growth from previous quarters. Fortunately, our quick and smooth transformation to a new working model enabled us to maintain the momentum and minimize the impact of negative market trends during lockdown. After the &lsquo;unfreezing&rsquo; of Polish economy, we successfully regained the commercial momentum and bridged the gap in order to keep up with our long-term growth assumptions
	&ndash; says Juraj Andras, CFO of T‑Mobile Polska.
	</li>
</ul>

&nbsp;

<img src="wyniki_3e.png/{_document}/hippogallery:original" />&nbsp;<img src="wyniki_4e.png/{_document}/hippogallery:original" />

&nbsp;

Up to date and close to the customer

T-Mobile&#39;s activities in the area of the B2C market were focused on the responding to users&#39; needs in the period of a new, epidemic reality. The increased demand for internet access due to intensified remote work and education has been reflected in the free mobile internet bonuses offered weekly as part of the Happy Fridays action, additional activities and new offers from the operator. In the second quarter of 2020 alone, T-Mobile&#39;s customers have taken advantage of T-Mobile&#39;s free gifts nearly 3.5 million times, activating packages consisting of more than 23.3 million free gigabytes in total. In the first half of the year, it is as much as over 6.1 million Happy Fridays activations and nearly 44 million free gigabytes.

The operator also decided that the access to remote teaching tools for schools, the use of e-learning platforms of universities and the &ldquo;Home Quarantine&rdquo; (&ldquo;Domowa kwarantanna&rdquo;) application would not consume data packages of T-Mobile customers. At the beginning of April, T-Mobile also implemented a high speed home Internet and fiber-optic offer for 1 PLN per month for two months. In particular, fiber optic was very popular with customers, which sales are steadily growing from quarter to quarter. This is, among other things, due to the fact that T-Mobile&#39;s fiber-optic coverage has been extended to 3.4 million households thanks to the start of sales of services in the POPC2 area of Inea and Nexera operators.

In May, T-Mobile offered &quot;Super Deal&quot; options, thanks to which users could, among other things, for six months pay half subscription fees or access the Netflix platform for free. In June, the operator introduced new tariffs for post-paid customers: among others, options with the Internet without a&nbsp;limit of gigabytes appeared, and discounts for families and duos became even more attractive.

At the end of the second quarter of 2020, T-Mobile was working to refresh its second brand, Heyah, which debuted on the market for the second time, this time as Heyah 01 in the subscription version. The new &ldquo;zero-one&rdquo; offer is a tribute to customers who expect simple, modern and competitive services. The brand has not only gained a new, digital image, but most of all, it is distinguished by an original, zero-one structure of the offer, in which the client pays for services every second month. With Heyah 01 customers receive unlimited calls to mobile and landline numbers in the country, unlimited SMS and MMS and a 20 GB data packet for 30 days at a price of PLN 39 once every two months.

In June T-Mobile announced availability of 5G network for all customers using latest tariffs. No additional payments or packets are necessary to take advantage of the 5G coverage and the fifth generation network signal has been made available to 6 million inhabitants of 46 cities and towns.

Business division growing across all segments

In the B2B area T-Mobile achieved growth in sales across all segments. Naturally, the rising need for remote work and a push towards digitalization resulted in a heightened demand for connectivity and collaboration solutions. T-Mobile joined the relief efforts in this area, providing businesses with licenses for productivity software as well as conferencing solutions free of charge.

In the corporate segment in the second quarter, T-Mobile Polska recorded growth in revenues from both mobile and fixed services. The latter has been reinforced by the fact of broadening the range of T-Mobile&rsquo;s own fiber network. Despite the challenging environment, Polish companies continued the push in the area of digitalization. This trend has also been reinforced by businesses turning their attention to digital tools seeking new business models in the wake of new market situation. T-Mobile experts were supporting the clients in such endeavors, providing smart solutions enabling cost optimization and elasticity. All of the above lead to a substantial rise in T-Mobile&rsquo;s and T-Systems revenue coming from ICT. In the analyzed period the company was consistently developing its capabilities in this area by continuing investment process in the new data center located in Warsaw.

In Q2 2020 the small and medium business segment saw introduction of 5G to MagentaBIZNES coupled with an incremental refreshment of the offers. In the analyzed period the penetration of B2B base with Magenta BIZNES plans grew substantially. At the same time churn factor dropped to new record-low levels. The operator&rsquo;s strong bet on digital sales channels in this segment proved to be very beneficial under the lockdown as online sales volumes in the second quarter doubled (y-o-y). T‑Mobile also broadened reach of its fiber offering based on infrastructure partners&rsquo; networks. In result the company recorded growth in both revenues and client numbers also in the small and medium enterprise sector.

Network development: 5G, better speed and quality

In the second quarter of this year, T-Mobile completed two important projects in the area of radio network. The change in the model of using the frequencies it owns, initiated in May 2018. In effect the sharing of 1800MHz band with Orange was completed. As a result of this project, the entirety of this band dedicated only to T-Mobile customers, increasing the capacity of the LTE network and improving average data transfer speeds. Also in the second quarter, 5G technology was made available to T-Mobile customers at 1,600 base stations using the 10MHz band in the 2100MHz band.

Regardless of the ongoing projects, T-Mobile continues to expand and modernize its radio network. The number of stations supporting band aggregation increased to 9660, of which nearly 3500 stations support 4-band aggregation and 4000 support aggregation of 3 frequency bands. Investments carried out by T-Mobile continue to translate into the highest quality of services provided to customers. In the RFBENCHMARK application report, T-Mobile dominated as a leader through the majority of the year in terms of data transfer speed. In the Speedtest application, in each of the months of the second quarter T-Mobile achieved the best results in data transfer rates, regardless of technology, and for the LTE network alone. Also in the second quarter of this year, T-Mobile received the &ldquo;Best in test&rdquo; certificate for the best mobile network in Poland. This certificate was awarded to T‑Mobile for the fifth time in a row.

COVID-19 and responsible business conduct

In the second quarter of 2020, in the area of corporate responsibility, T-Mobile was focused on supporting various social groups during a pandemic. The company became a partner of the PCPM Medical Rescue Team, operating at the Polish Center for International Aid Foundation, and joined the campaign of the Legia Foundation #GOTOWIDOPOMOCY. The operator also launched two free hotlines: for medical workers with psychological support (an initiative prepared with the Dawka Wsparcia organization) and the Talking Phone for Seniors (implemented with the Open Ideas Foundation). In addition, the company supported several medical facilities by handing over phones and tablets with SIM cards, and using 3D printers for preparing protective helmets for medical personnel.

At the same time, T-Mobile continued its current corporate responsibility strategy, modifying some of its activities into online activation. An example of such an approach are initiatives implemented under the WE CARE campaign, such as the creation of an ecological e-guide for employees or a series of webinars and workshops with external experts on topics related to environmental protection, zero waste or responsible consumption.

The company&#39;s activities in the field of CR were appreciated during this period in two prestigious competitions. The company received the highest, golden award in the CSR Leaves competition organized by the &ldquo;Polityka&rdquo; magazine and the title of the &quot;Debutant of the Year&quot; in the Ranking of Responsible Companies prepared by &ldquo;Dziennik Gazeta Prawna&rdquo; together with Deloitte, Responsible Business Forum and Kozminski University.

In the second quarter of 2020 T-Mobile Polska recorded:

<ul>
	<li>Total revenues of 1.6 BLN PLN &ndash; growth of 3.4% compared to 2Q 2019, reached even under difficult market trends and shop lockdown in April</li>
	<li>EBITDA AL increase of 1.9% y-o-y, reaching 435 million PLN</li>
	<li>Growth in service revenues by 6.3%, continuing trends from previous two quarters</li>
	<li>Contract customer base growth by 186 thousand y-o-y</li>
	<li>Improvement of all key operational and financial factors in private and business segments</li>
	<li>5G launch at the end of the quarter</li>
	<li>Continuous implementation of projects aimed at providing clients with the best service quality </li>
</ul>

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