Jakub Chajdak08.08.2019

Financial and operational results of T‑Mobile Polska in the second quarter of 2019 – visible results of the customer-centric market approach

In the second quarter of 2019, T‑Mobile Polska noted:

  • EBITDA AL at PLN 427 million - an increase of nearly 1% compared to the second quarter of 2018.
  • Stable revenue of PLN 1.57 billion (on similar level compared year-on-year)
  • Customer base increase of 260 thousand (year-on-year)
  • 5.5% growth in mobile service revenue (year-on-year)
  • Launch of a convergent offer including mobile services, fiber network access and entertainment services
  • Growth of ICT revenues in B2B and development of cloud capabilities

The company served 10.87 million customers, which equals growth of 260 compared to analogous quarter last year, as a consequence of maintaining the record-low churn level of 0,7% in contract segment. During this period the operator achieved a significant growth in the mobile service revenues – 5.5% as compared to the second quarter of previous year – as well as in the area of ICT revenues.

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  • In following our client-centric strategy we concentrate on two main areas – providing the best client service and offering products which are suited to customer needs as well as are a delight to use. We can clearly see that this approach works very well in the long term. The new products attract new customers and the best service convinces them to stay with us –

    said Andreas Maierhofer, President of the Management Board of T‑Mobile Polska

  • peaking number-wise this translates to growing customer base and stabilizing or even rising profits. In addition to great offers already winning new customers for us, in the second quarter we entered the convergent market with our Magenta 1 offer, which combines mobile and fixed services as well as great entertainment offer

    - he added.

Stabilization thanks to development in new areas

In the second quarter of 2019 T‑Mobile Polska recorded EBITDA AL of PLN 427 million and revenue of 1.57 billion which means that both of these values are basically stable versus the comparable period of 2018, and in terms of EBITDA this represents a slight 1% y-o-y increase a second quarter in a row. 

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  • Steady influx of customers and growing loyalty combined with the effects of market stabilization results changes. On the other hand, we have to face such challenges as growing work-related costs and rising energy prices which hinder the overall performance and will continue being a challenge in the coming in growing mobile revenue, which lets us offset still visible effects of wholesale business strategy quarters. We are happy that even under these circumstances we see the stability in major financial indicators, and we are working on developing new areas to assure continuous revenue growth in the future – such as fixed services and entertainment offer in B2C and cloud services in B2B

    - said Juraj Andras, Member of the Board, Financial Director of T‑Mobile Polska.

Convergent offer tailored to customers’ needs

At the end of the second quarter of this year, T Mobile expanded its services portfolio to include optical fiber and entertainment, joining the group of convergent players on the Polish market. The operator's convergent offer consists of simple and legible service packages. The client can flexibly choose from services such as mobile subscription, fiber optic internet or mobile home internet and entertainment.

Packages within Magenta 1 offer can be extended by a decoder, smartphone, a larger Netflix package or a higher speed of fiber optic internet. After the first month of sale, the operator positively assesses the interest in the new offer. The development of the portfolio of convergent services is one of the priorities of T‑Mobile for the coming years.

The development of business capabilities

In the business segment the already well-received Magenta Biznes plans have been supplemented witch the Magenta 1 Biznes offers, giving smaller enterprises access the high quality fiber network as well as a selection of added services such as security and productivity bundles. 

In higher segments T‑Mobile continued winning market shares with a wide portfolio of ICT services provided in cooperation with its subsidiary T-Systems. Among others, the company succeeded in winning significant public contracts concerning: data transfer networks for the Ministry of Family, Labor and Social Policy and Competition and Consumer Protection Authority, data network for the Polish Post and SMS–based administration-citizen mass communications solution for the Central Information Technology Center.

T‑Mobile also continued building new capabilities to support digitalization of Polish companies. Thanks to a global strategic cooperation between the DT Group and Microsoft it acquired access to the best in the industry cloud solutions and support of 2000 engineers and programmers of Microsoft Acceleration Center – a regional DT competence center dedicated to development and implementation of cloud services based on Microsoft products. This will allow the company to offer the most innovative and advanced solutions for enterprises irrespective of their size or scope.

The highest quality network

In the second quarter of 2019, T‑Mobile continued to develop the LTE Carrier Aggregation network, resulting in 780 new stations supporting this technology. Currently, thanks to over 8150 such LTE CA stations it covers over 70% of the country's population. As many as 4 bands (800MHz, 1800MHz, 2100MHz 2600MHz) are aggregated for nearly 2000 sites (an increase of over 700), which thanks to the technologies used allows data transmission at a speed up to almost 600 Mbps. Almost 91% of data is transmitted in the LTE network, most of which using the 800MHz and 2600MHz frequencies. The 3G network is responsible for 9% of the transmitted data, and the 2G network for only 0.06%.

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