Jakub Chajdak21.02.2019

Solid operational results translate to positive tendencies in financial indicators

At the end of 2018 T‑Mobile Polska recorded:

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

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%.

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  • – At  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 

    – said Andreas Maierhofer, CEO of T‑Mobile Polska.

  • – 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, 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  

    – he added.

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’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’s results in the first 6 months of 2018 and changes in accounting methodology.

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  • – Growing customer base got reflected in the revenue growth – both total and across the segments, but still – the RLAH impact in the first half of the year combined with effects of accounting methodology changes didn’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

    – said Juraj Andras, CFO of T‑Mobile Polska.

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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' 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'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 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's headquarters). In the next steps planned for 2019, T‑Mobile intends to gradually expand the tests with new locations.


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