In the first half of 2022 T‑Mobile Polska recorded a sizable growth of subscriber base in mobile and fixed (FTTH) services with the mobile base growing by 817,000 compared to the second quarter of 2021 and passing the 12 million milestone. Also, the percentage of households using more than one service from the operator’s portfolio has increased and, at the same time, the company achieved higher revenues coming from the sales of terminals. Not only were T‑Mobile customers more prone to buying handsets than the year before, but also showed more interest in choosing terminals from higher market segments. In result, T‑Mobiles revenues in the second quarter amounted to 1.6 billion PLN, growing 2.6% year-on-year despite the still noticeable negative effect of MTR regulation. The company also had to deal with the issue of growing energy costs – one of the key operational costs for telco operators – by ca. 40% compared to 2021. Despite the obstacles, in the second quarter the EBITDA AL grew substantially by 2.6% (y-o-y) reaching 465 million PLN.
During the second quarter, the average monthly churn in contract segment remained at the very low level of 0.6% and the operator recorded positive growth in net additions across all segments – compared to last year, as well as the previous quarter. Also, the mobile number portability report published by the Office of Electronic Communication showed that T‑Mobile was the only MNO to record a positive portability balance and thus reporting the best performance among the leading telcos.
In accordance with our market strategy, we are removing unnecessary restrictions to provide customers with an unlimited experience. By introducing a convergent Magenta Dom offer we enable them to get all the services they need from one provider in the highest service quality. Thanks to our customer obsession and technology leadership we created a proposal which allows customers to enjoy the full potential of technology in each of our services and they appreciate it – said Andreas Maierhofer, CEO of T‑Mobile Polska – The fact that during the second quarter we were faced with difficult circumstances of the ongoing war was a key challenge. In this time we were doing our best to provide those in need with our uninterrupted connectivity services and long-term material support. But we are also well aware that being a responsible company means following the ESG goals under all circumstances. Therefore, we took another step towards our goal of becoming a fully carbon-neutral company by signing a long-term contract for green energy.
During the time the operator continued to provide support for the refugees from Ukraine. T‑Mobile employees kept on providing help in all key areas: volunteering (also on the Polish-Ukrainian border), humanitarian aid, customer offers, strengthening the network by the border and reception points and in hundreds of grassroots employee initiatives that the operator supported. The company also continued to prepare attractive offers for those wishing to keep in touch with relatives and provided means of communication, as well as material help, to the relief organizations at the border. What's more, Deutsche Telekom Group supported the Happy Kids Foundation, which has been fighting for equal opportunities for children for years, currently running the largest center in Poland for those from Ukrainian orphanages. The organization received in total 300,000 PLN of support from DT and T‑Mobile Polska.
Also, the recent period marked a strong push towards the fulfillment of the company’s ambitious goal of achieving net zero emissions, both direct and indirect, already within the next three years, and by 2040 in the entire supply chain. The company, has already been using 100% green energy since 2021 but now it signed an innovative vPPA contract with V-ridium Group which will guarantee T‑Mobile Polska exclusive access to green energy for the upcoming 15 years and ensure construction of 2 wind farms and 3 photovoltaic farms specifically for this project, which will provide around 200 GWh of electricity annually and help reduce more than 145,000 tons of CO2 emissions each year. Also, as the contract establishes a predetermined energy prices, which will guarantee T‑Mobile electricity price predictability and reduce cost risk in the long term.
We really appreciate the customers choosing T‑Mobile more and more often, as well as buying more services from our company and we can see these trends translating into revenue growth. At the same time we are dealing with inflation and increasing costs which have a noticeable negative impact on our business and will continue being a burden in the future. To counter them we are introducing initiatives such as the vPPA contract guaranteeing green energy in pre-agreed prices for the next 15 years, a project which shows that ecology and business do in fact go together perfectly. The fact that under these circumstances we are reporting a substantial, steady growth is a testament to our company’s strong foundations: financial stability and proven strategy – said Juraj Andras, CFO of T‑Mobile Polska.
Customer needs and convergent services in the spotlight
During the second quarter of 2022, T‑Mobile Polska has introduced television (linear & OTT) to its service portfolio for individual customers, becoming a fully convergent operator. Thanks to a new offer – Magenta Dom – the operator once again focused on removing barriers from customers' lives, offering them a simple and flexible package that includes unlimited mobile subscription, fiber internet and TV. The offer was developed based on numerous surveys and conversations with customers, to respond to their real needs to the greatest extent possible. This approach has translated into a very positive customer reception and high interest in the offer, as well as sales. The focus on customer needs has also been reflected in the prepaid user segment. T‑Mobile prepaid users are the first in Poland to have the option of self-registering a prepaid number in the app and with identity confirmation through mojeID. In addition, attractive and numerous prepaid offers have resulted in strong growth in the prepaid customer base.
Steady growth in business
The company continued its growth also in the business segment. It attracted new SOHO customers thanks to a MagentaBIZNES offer combining unlimited calls, internet access and attractive smartphones, supported by a wide advertising campaign. Also, the operator reported an increase in customers choosing 5G-enabled plans. In the corporate segment, the operator signed a contract with a very demanding customer, the Supreme Administrative Court, which T‑Mobile will provide with WAN services that meet stringent requirements for stability, redundancy and protection against DDoS attacks. In fact, in this quarter customer interest in cybersecurity products kept growing and the company observed a substantial revenue increase from such products as Cyber Guard and AntiDDoS solutions. The operator’s cybersecurity line of products has been recognized by the Leaders of the Banking and Insurance World in the category for the Best Solution for the Banking Sector and Disaster Recovery as a Service winning the Best in Cloud award. A the same time T‑Mobile’s big data tool for traffic analysis was recognized during Smart City Forum and its self-service solution eSerwis got the Technology Leader award from Gazeta Finansowa. In June the company received the title of Trusted Brand based on a national opinion survey carried out to find the best brands, services, products aimed at business.
Investments in the best network quality
During the second quarter T‑Mobile continued its efforts aimed at providing the best service quality in the vicinity of the Ukrainian border and reception points by extending capacity of the LTE layers on the key base stations and increasing their maintenance levels. The operator also finished the 3G retirement process in the Świętokrzystkie area which will allow for the freed resources to be used for faster and more capable next generation networks. On the national level T‑Mobile kept rolling out its 5G network based on already owned spectrum (DSS) at the same time preparing the radio infrastructure for the future rollout of the 5G network on the 3.x GHz band (C-Band). Also, in line with its long term strategy of building its own fiber-optic distribution network, the operator kept investing in this area. Among other benefits, such network allows the T‑Mobile base stations to handle growing data traffic which will become even more important with the even higher demand for data produced by adoption of 5G technology. At the moment more than 50% of all T‑Mobile base stations are connected to the access network via fiber and almost 90% of base stations situated in cities and towns bigger than 10 thousand inhabitants.
In the ESG area, alongside the actions focused on supporting Ukraine and Ukrainian refugees in Poland, the company also implemented a digital inclusion project, which forms the basis of the company's ESG activities – "In a Winning Position." Based on a collaboration with influencers, the company addressed the topic of hegemony over the internet, engaging the youngest internet users.
It is worth mentioning that the second quarter of this year was also a period of corporate responsibility awards. The company once again received the "Golden CSR Leaf" awarded by Polityka magazine in cooperation with the Deloitte consulting firm, and a special "Green Leaf" award for its environmental activities. In addition, for the second time in a row, the company was included in the Diveristy IN Check list, which recognizes the most advanced companies in terms of diversity management.