Jakub Chajdak12.11.2020

T-Mobile Polska 3Q 2020 results

Uninterrupted growth across the company despite lower roaming revenues

In the third quarter of 2020 T-Mobile Polska noted

  • The 4th quarter of uninterrupted year-on-year growth in both revenues and EBITDA AL as well as mobile service revenues
  • Total revenues of 1.6 BN PLN – 0.6% increase over the comparable quarter of 2019
  • Revenue increase in private and business segments, from mobile and fixed connectivity as well as from ICT
  • EBITDA AL of 433 MN PLN – growth by 2.4% y-o-y
  • Customer number growth both in contract and prepay amounting to total increase of the customer base of 163 thousand
  • A launch of video- and data-centric prepaid and postpaid B2C offers
  • Growing demand for connectivity and ICT services in business area
  • Further optimization of the Best Network to guarantee its clients the best data services

In the third quarter of 2020 T‑Mobile Polska concentrated its efforts on mastering the essentials: delivering the best customer experience and the best quality of services, the two cornerstones of the company’s development. In result, T‑Mobile Polska’s customer base increased both in postpay and prepay, by 163 thousand in total, amounting to 11.07 million by the end of the quarter. In the financial area T‑Mobile recorded consistent positive developments with quarterly revenues growing to 1.6 billion PLN and EBITDA AL reaching 433 million PLN.
 

Our services are as significant for the customers’ lives and businesses as never before. We provide whole families with the best mobile and fixed connectivity as well as entertainment services, at the same time helping businesses become more digital and flexible so they can operate in these turbulent times

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

As we can clearly see, good decisions pay off. Today clients look for stability provided by the best networks as well as the best customers experience, so they can concentrate on other important aspects of life. And these are the two priorities we have consistently put so much pressure on. Stable growth in all key financial factors: revenues, EBITDA and customer base show that with the right priorities and strategy our company delivers on promises even in tougher environment.
 

 

EBITDA AL grew by 2.4% as compared to the third quarter 2019 which is in line with the results of previous quarters showing a consistent improvement over the last year. Revenues kept growing too, reaching a 0.6% increase over the third quarter of 2019, as well as mobile service revenues: up 2.9% y-o-y. A notable revenue growth has been recorded in private market as well as business markets, coming from mobile, fixed connectivity and ICT services. All of the mentioned above resulted in a growth of the company which compensated even the lower revenues from the roaming business being impacted by the travel restrictions.
 

  • After a successful execution of a turnaround our promise for 2020 concentrates on delivering consistent growth across the year. On one hand, the current market situation negatively influences the revenues in some areas such as roaming and in-shop sales, but on the other hand, our healthy financials give us the stability and room to invest and compete on the market, so much needed in present times. With great market offering, positive momentum, and solid growth strategy we are able to stand up to the challenge and keep on growing steadily

    - said Juraj Andras, CFO of T-Mobile Polska.

 

Focusing on customer needs during COVID-19 pandemic
Due to the increased demand for the Internet, especially in connection with remote work and education, the operator continues to distribute free weekly bonuses within the Happy Fridays campaign. In the third quarter of this year T‑Mobile customers used their free gifts nearly 3.4 million times, receiving over 12.2 million free gigabytes. From the beginning of the year to the end of October these numbers amounted to more than 10.7 million bonus activations and 68.4 million gigabytes distributed respectively.

The increased demand for the Internet was also reflected in the new offers of the operator. In August, T‑Mobile launched a "fan offer", which enabled users to watch video materials, including match broadcasts, without using the gigabytes available in the package. Additionally, football emotions can be watched thanks to three IPLA sports packages.

At the same time, the operator systematically develops and focuses on the sale of fibre-optic Internet. Starting from the launch of the service at the end of the third quarter of 2019, in each subsequent quarter, including the third quarter of 2020, the sale of this service recorded systematic growth. In recent weeks, T‑Mobile also launched a promotion combining super-fast fibre-optic internet, access to IPLA TV packets including IPLA ELEVEN SPORTS.

Near the end of the quarter, the operator has also launched GO! – a new prepaid offer, positively received by customers. This is the first product in the history of the company built and tested in agile system from the very beginning. Developing a new technological architecture of the tariff took its creators nine months and resulted in the creation of a much more comfortable and smooth user experience and three refreshed starter variants tailored to different customer needs.


Strong connectivity and ICT business
In the third quarter this year, T‑Mobile Polska observed positive developments in the business sector in small and midsize as well as higher market segments. When it comes to large accounts, a notable trend has been observed: companies invested eagerly in connectivity and digitalization to be able to operate flexibly in the changing economic environment. T‑Mobile continued development if its capabilities in the this area.

In July, the company announced the construction of a new data center in Warsaw, which will become available for customers in the fall of 2021. Thanks to advanced physical and technological security systems used there, it will guarantee the highest quality of services and provide customers with solutions ideally suited to their business needs in the coming years. The company has also introduced a new SD-WAN offer which complements T‑Mobile’s existing WAN offer as well as a new cybersecurity product, Cloud Security, enabling companies from all segments to reach for the highest level of protection, available until now only to the largest players. In the offers targeted at the corporate clients an eSIM solution has also been introduced in order to streamline the mass activation of large batches of top tier devices.

The company noted a considerable demand for its advanced “smart” solutions for cities, intelligent monitoring systems as well as those based on the company’s Narrow Band network (NBIoT). In this period a smart city project was initiated in a municipality of Chocianów and at the same time a smart parking system in Wrocław was launched based on T‑Mobile’s technology. Among the other significant contracts acquired by T‑Mobile and its subsidiary T-Systems in the third quarter, one should also mention the Social Security, The National Public Prosecutor's Office, Central Statistical Office, Polish Gas Company and the Main Police Headquarters.

In smaller account segments T‑Mobile concentrated on activities leading to extending client base and focused on value growth. It launched another installment of the promotional campaign based on the “no-nonsense” concept, which met with a very good reception of the market. Its business offering has been supplemented by extension of handset portfolio, including the most anticipated devices from top-tier manufacturers. In effect, by the end of the third quarter the company observed satisfactory operational results in this segment including further improvement of MagentaBIZNES plans penetration in its business client base.


The best network ready for growing demand for data
In September 2020, T‑Mobile customers sent approximately 30% more data than 12 months earlier. The highest increases in demand for data transmission services were visible at the beginning of the pandemic in Poland, i.e. this spring. Recent weeks have seen a rapid increase in demand for data services again. The number of phone calls made by T‑Mobile customers is also growing.

At the end of the third quarter, T‑Mobile customers could use a network of 11,550 base stations, of which 9,700 supported aggregation of at least two frequency bands, 3,750 of which supported aggregation of four frequency bands, and 3,900 of three bands. At that time, LTE technology was already responsible for 95% of the total volume of data sent in the T‑Mobile network.

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