T-Mobile Polska results in the second quarter of 2021 – consistent implementation of the plan of stable growth

In the second quarter of 2021 T‑Mobile Polska continued with a long-term plan of stable, sustainable growth and fulfilled its assumptions recording EBITDA AL increase of 4.1% compared to the corresponding quarter of last year, reaching EBITDA AL of PLN 453 million. At the same time the company reported revenues of PLN 1.58 billion, which excluding the negative effect of low-profit revenues from international transit services being shifted to dedicated structures within the DT Group would amount to 1.2% organic growth. The officially reported revenue change equaled to -2.3% but it should be noted that starting Q3 2021 such an effect won’t be observed anymore. The organic growth of T‑Mobile revenues should be attributed to growing customer base, especially in B2B, and rising popularity of larger data packages and convergent offers.

Being a customer-centric company we stay ahead of the market by offering our customers the best quality: cutting-edge technology and a full range of services addressing their needs. Attractive offers, bundled with entertainment packages and FTTH internet access offering the biggest data allowances on the market have been the main source of our growth. This approach combines with our the best on the market network, in which we continue to heavily invest by i.e. dynamic rollout out the fifth-generation coverage. These two factors create a winning combination – said Andreas Maierhofer, CEO of T‑Mobile Polska. We have already stated that it is our ambition for 2021 to provide a stable EBITDA growth and we are delivering results in line with this assumption.

  

 

By the end of the second quarter T‑Mobile customer base grew by 269 thousand compared to the year ago and reached 11.29 million. It should be noted that, the company observed a customer base increase in both subscription segment as well as prepay. At the same time the number of FTTH customers was also growing. The average monthly churn rate in contract remained at a very low level of 0.7%.

We continued to deliver strong results in the second quarter of 2021 thanks to our focus on customer satisfaction, combined with long-term investments in convergence and new high-margin products. The last couple of quarters have shown that strong financial foundation in such demanding times allows us to successfully challenge the market. The continuous reinvestment of generated funds allows us not only to keep our technological edge but also attract new customers and make the existing ones to consider us their beloved brand – said Juraj Andras, CFO of T‑Mobile Polska.

We connect services, we connect emotions

The second quarter of 2021 in T‑Mobile's individual customer segment was marked by a new approach to the convergent offer. T‑Mobile placed an even stronger bet on the offer of combining mobile and fixed services under the “Benefits for home” programme, offering customers additional variants and discounts for convergent services. T‑Mobile also presented a refreshed offer of unlimited home internet - an alternative for people who are not in the range of T‑Mobile's fiber offerings, allowing them to choose all of their services with one operator and take advantage of the resulting benefits.

The second quarter of 2021 also coincided with the European Football Championship. The operator, as a sponsor of the Polish national football teams, prepared for this occasion a championship 5G subscription offer with the largest gigabyte package in Poland (200 GB). T‑Mobile also continued its weekly customer appreciation program – Happy Fridays – under which it prepared themed gifts that allowed users to experience sports emotions even more intensively.

In addition to sports promotions for prepaid customers, T‑Mobile also continued developing the quality of services offered in this segment. After launching at the end of March the possibility of using 5G network by prepaid users, T‑Mobile has made available a very competitive offer “Unlimited XL” in the GO! tariff with 5G access. In July, T‑Mobile was the first operator on the Polish market to introduce cyclical top-ups in pre-paid offers (“T‑Mobile na kartę”, “MIX” and “Heyah na kartę”).

Growth in the business segment across all key factors.

The whole first half of 2021 has been a time of significant growth in the B2B division and the second quarter also fit into this trend very well. The operator reinforced its position in the most demanding business clients segments gaining new contracts for such services as networking, data center security and cloud. During this time, T‑Mobile obtained a large number of new contracts, including one for building a MPLS WAN network for the Polish Gas Company and supplying convergent telecommunications services for the Polish National Bank.

In response to the anticipated continuous increase in demand for data center services, T‑Mobile is continuing the investment in the Szlachecka 2 data center facility, which will enable the operator to provide its clients with comprehensive ICT technologies and the best quality data processing services in accordance with the highest security standards. In June another important stage of construction, i.e. the completion of the shell, was completed and the works are advancing according to the schedule.

Throughout the second quarter T‑Mobile continued its success in the segment of smaller enterprises – by attracting new customers as well as increasing penetration of the MagentaBIZNES plans in the whole B2B client base. While improving all operational factors in this segment, T‑Mobile recorded increasing number of clients choosing convergent bundles including FTTH internet access as well as the Unlimited Internet from T-Mobile offers. By the of the second quarter the client base of the unlimited internet access in among smaller companies passed 300 thousand.

Consistent network investments focused on quality and enabling 5G access

In the networks area, the second quarter was marked by the implementation of one of the strategically key projects, which is switching off the 3G network. In accordance with the adopted schedule, this year T-Mobile has been gradually disabling 3G technology on 2100 MHz spectrum, launching the LTE network on the released frequencies. In places where T‑Mobile provides 5G services, the freed frequencies may also be used for the needs of both LTE and 5G technologies. For customers, this means higher data transfer speeds and higher comfort of using the services. This is clearly visible in the results of Speedtest.pl, where T‑Mobile took the first place in each month of the second quarter with a constantly growing average data transfer speed.

The spring months were also spent on preparations for the dynamic rollout of the most modern 5G network in other cities and towns, and supplementing the coverage where it is already available. As a result of these preparations, in accordance with the declaration from the beginning of the summer holidays, T‑Mobile is currently launching an average of over 120 5G stations per week throughout Poland, consistently implementing the goal of providing the highest quality services also via the largest 5G network.

Continuation of the ecological strategy and education of senior citizens

As previously announced, T‑Mobile is consistently striving to achieve ambitious climate goals - including those regarding zero emissions (net, direct and indirect emissions) in 2025. The company already uses green energy, which is confirmed by the relevant certificates, while in the second quarter of 2021 it announced that from the beginning of the new year it will use energy from renewable sources, provided by Respect Energy S.A. The parties signed a two-year contract under which the operator will purchase electricity produced in a zero-emission manner. In addition to purchasing energy, T‑Mobile is developing the direction of its production - among others thanks to the installation of photovoltaic panels at its base stations. In the second quarter of 2021, Eco Rating was also presented - a new product labeling system that will enable the identification of more environmentally friendly mobile phones.

Counteracting digital exclusion is also an extremely important element of T‑Mobile's responsible business strategy. Together with the TV Puls "Pod Dębem" Foundation, the company launched a new educational project, "Network of Generations". As part of the initiative, a dozen or so nursing homes were equipped with computer equipment, and a program of educational activities in the use of technology and special duties with call center employees were prepared for the residents. The project is to popularize access to modern technologies and improve digital competences among seniors, but at the same time give them tools to develop their passions and contacts with their loved ones.

Recent months have also brought T‑Mobile several prestigious awards. For the second time in a row, the company was able to enjoy the highest, golden distinction in the "CSR Leaves" competition organized by the "Polityka" weekly. Moreover, in this year's Responsible Companies Ranking it was promoted in the industry ranking and was placed third in the "Telecommunications, technology, media and entertainment" category. T‑Mobile was also on the Diversity IN Check list, prepared by the Responsible Business Forum, which is a list of the most advanced employers in managing diversity and inclusion in Poland.