Financial and operational results of T‑Mobile Polska for the third quarter of 2019 – consistent implementation of strategic direction

7.11.2019KONRAD MRÓZ

At the end of the third quarter of 2019, the customer base of T‑Mobile Polska amounted to 10.9 million, which means that during the last 12 months the company maintained a high growth dynamics of the base, raising 215 thousand (yoy) in total. At the same time number of contract customer increased by 281 thousand (yoy).

  • This is the third year in a row when T‑Mobile has been consistently increasing its customer base. During this period, our contract customer base grew by 918,000. In the third quarter of this year alone, the subscriber base grew by 60,000, while maintaining the record low CHURN rate at 0.7%. Good operational results are the effect of consistent implementation of the strategy focused on the highest quality network, services and customer service

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

  • Since the launch of our convergent Magenta 1 packages offers a full range of telecommunication services for home and selected entertainment of the highest quality, which is provided by strategic partnerships with the world's largest suppliers, we have seen a systematic increase in interest in this part of our offer. The results achieved so far in this area allow us to look positively at the future development of our convergent services

    – added Andreas Maierhofer.

 
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T‑Mobile Polska generated an EBITDA AL result of PLN 423 million, 3.4% higher than the reported result for the same period last year. This means that the company achieved growth in all 3 quarters of 2019.

  • As already initiated in the previous quarters, we decided to focus not only on the revenue side, but also on cost optimization, in order to achieve profitability improvement and generate resources for upcoming major investments

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

  • The decision taken at the end of 2018 to limit our involvement in the wholesale of terminals resulted in a slight decline in revenues in the third quarter, but we managed to improve the revenue structure in favor of more profitable businesses.
 
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Customer Service and Development of Digital Channels of Contact with Customers

T‑Mobile's initiatives focused on the best customer experiences have been reflected in the assessment of the company by its users. In the TRIM B2C customer satisfaction survey, in the third quarter of this year, T‑Mobile received the highest rating in the segment.

Among the users who have decided to use the Magenta 1 convergent offer since July this year, 89% of them positively evaluated the sales process, and 90% – the installation of the fiber optic. 82% of respondents would recommend T‑Mobile’s offer.

The popularity of digital customer service channels, for which it is a quicker and more convenient form of contact, is also growing dynamically. Compared to the second quarter of 2019, the number of served customers in social media channels such as Facebook, YouTube, Instagram and LinkedIn increased by over 110%. Online chat and Messenger are in great demand, with customers using 119% more than in the previous quarter. The development of digital customer contact channels has led to a decline in the number of calls to customer service. In the last 12 months, the number of calls decreased by 4%.

At the same time, customers are increasingly eager to manage their services themselves thanks to the possibilities offered by “Mój T‑Mobile” app. Every third individual customer of T‑Mobile uses the “Mój T‑Mobile” app regularly, at least once a month. The application allows you to independently manage and check services and packages, control payments and change selected account settings. In the last quarter, the application added the ability to pay for services from Google Pay, the list of connections and the ability to check the PUK code. In addition, customers using this form of management of their services can expect many additional benefits, which are presented every Friday.

Similarly as in the segment of individual customers, in the area of corporate customers, T‑Mobile continued its activities aimed at improving the customer service process, among others by developing digital tools to speed up the service time. At the end of the third quarter of this year, as many as 78% of customers with such a possibility used the self-service system (eService), and 66% of transactions with business customers were carried out online.

New Contracts in B2B

In the B2B area, the company consistently attracted new public customers for both voice and data transmission services, as well as advanced ICT products. During this period, T‑Mobile Polska signed an agreement with the Office of Technical Inspection for the provision of data transmission services using lines of high reliability and cyber security. The company was also re-elected to serve the Centrum Obsługi Administracji Rządowej and thanks to it T‑Mobile will offer the telecommunications services to 222 state administration units, including the Chancellery of the Prime Minister, the Chancellery of the President of the Republic of Poland, the Parliament and ministries. T‑Mobile has also delivered 6 out of 15 colocation facilities for the construction of the National Educational Network connecting educational institutions throughout the country – the largest number of colocation service providers participating in the project. T‑Mobile also started to build a waste transport management system for the Municipal Department of Municipal Services in Wałbrzych, which will use the operator's Narrow Band IoT network to operate.

Network Ready for Tomorrow's Needs

The demand for mobile data transmission services continues to grow rapidly. Compared to the third quarter of the previous year, the amount of transmitted data increased by 50%. The volume of data sent by customers making voice calls in the LTE – VoLTE network increased by 200%, which is a result of the growing portfolio of phones supporting this technology. Currently, over 91.5% of all data is transferred over the LTE network.

Therefore, T‑Mobile is constantly investing in network development throughout Poland to increase the network capacity and offered speeds. In the last 12 months, the number of base stations offering aggregated bandwidth increased by 40% (8520 stations from CA). 2250 stations support aggregation of all 4 bands on which LTE is offered in the T‑Mobile network.

T‑Mobile consistently maintains a leading position in Internet speed tests. In the monthly rankings published by Speedtest.pl, the operator was on the first place in the ranking for both 3G and LTE technologies, as well as for LTE itself.

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

  • Customer base increase of 215 thousand (yoy)
  • Stable CHURN, maintaining a record low of 0.7% in the contract segment
  • EBITDA AL at PLN 423 million – an increase of 3.4% compared to the third quarter of 2018
  • 0.6% growth in mobile service revenue (yoy) and total revenue of PLN 1.61 billion
  • Customer satisfaction increased thanks to the development of digital communication channels with clients
  • Winning in key B2B tenders

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