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T-Mobile International - Q2 results

  • T-Mobile International has best half year in company history
  • EBITDA in the group increased by more than 86 percent to
    2.5 billion compared to same period of the previous year
  • EBITDA margin in Europe at approximately 35 percent
  • Despite strong customer growth VoiceStream contributes more than EUR 280 million to group EBITDA
  • Number of customers up 20 percent on last year to 57.5 million

August 26 2002 - Bonn

T-Mobile International can look back on the best half-year in company history. Group revenues were up 53 percent compared to the same period of the previous year to EUR 9.1 billion (1st half-year 2001: EUR 6.0 billion). 

At the same time earnings before interest, tax and depreciation (EBITDA) were up 86.1 percent to EUR 2.56 billion (1st half-year: EUR 1.4 billion), and the corresponding EBITDA margin climbed from 23 to 28 percent. 

The number of customers increased by almost 20 percent from 48.0 to 
57.5 million. Of this 47.5 (41.8) million customers were accounted for by subsidiaries and majority holdings in Germany, the USA, Great Britain, Austria and the Czech Republic. The holdings in the Netherlands, Poland and Russia had approximately 10 million customers by June 30, i.e. 
3.7 million more than a year before. 

" We were able to latch onto the excellent development of the 1st quarter without letting up. And here the close cooperation of our European subsidiaries and the reorganization to the global brand T-Mobile gave us added impetus. Now it is really important to continue this performance in the second half of the year" , commented René Obermann, member of the board of management for European Operations. 

T-Mobile CFO Thomas G. Winkler added: " The continuous improvement 
of all important financial indicators shows that we are on the right track in the USA and also in Europe. In the second quarter we were also able to prove that customer growth and an increase in profitability really can be combined."  

VoiceStream
The US subsidiary VoiceStream also remained one of the main driving forces behind customer growth. Despite a slump in the prepaid base (-166,000 in Q2/02), the number of customers increased by 526,000 to a current total of more than 8 million: that is 2.1 million or almost 35 percent more than the previous year. With EUR 282 million VoiceStream was able to secure a positive EBITDA half-year result for the first time. 

VoiceStream revenues in the 1st half-year of 2002 reached almost EUR 2.8 billion. The share of customers with mobile telephone contracts is now 80 percent, and although the average monthly revenues per customer went down compared to the first quarter of this year from EUR 52 to EUR 51, this was only due to the exchange rate development. On the other hand, there was a slight increase seen on a dollar basis. 

Europe
In the European majority-owned subsidiaries revenues grew from EUR 5.6 to EUR 6.3 billion. The EBITDA margin was more than 35 percent in the first half-year, which represents an absolute EBITDA of almost EUR 2.3 billion compared with EUR 1.4 billion the previous year. The EBITDA margin was up 10 percent compared to the same period of last year. 

T-Mobile Deutschland
The total customer base of T-Mobile Deutschland was 23.3 million customers at the end of the 1st half-year 2002. This represents an increase on the figures for the end of the 1st half-year 2001 of around 1.2 million or five percent. The market share compared to the same period of last year was up by about one percent to approximately 41 percent. The share of customers with mobile telephony contracts in the total customer base was almost 47 percent at the end of the 1st half-year 2002. T-Mobile Deutschland managed to boost revenues during the 1st half-year by approximately 9 percent compared to the same period in 2001 to reach EUR 3.7 billion (3.4 billion last year). 

EBITDA in Germany was up by around 44 percent on the figures for 2001 to over EUR 1.5 billion (EUR 1.1 billion last year). This meant the EBITDA margin increased from 31.4 to 41.3 percent. This improvement was thanks to a further reduction of the customer acquisition costs, increased efficiency and stringent cost management. The average acquisition costs per subscriber were EUR 93, with costs amounting to EUR 165 for customers with contracts and prepay customers costing EUR 32. In the first half-year of 2001 average acquisition costs per newly acquired subscriber were still EUR 131. 

T-Mobile UK
T-Mobile UK also managed to secure a considerable number of new subscribers compared to the previous year. The customer base was up by almost 1.7 million on the previous year to 11.1 million, which represents an increase of 18 percent. In the first half of the current financial year more than 150,000 new customers with mobile telephony contracts were secured. The market share improved from 21 to 22 percent. 

T-Mobile UK was also able to considerably improve its revenues in the first half-year. Revenues amounted to EUR 1.85 billion, representing a 19 percent growth on the same period of the previous year. EBITDA was up by more than 90 percent on the figures for the previous year — from EUR 229 million to EUR 436 million. The EBITDA margin was 23.6 percent — almost nine percent up on the previous year (14.7 percent). The ARPU was up on the previous year's figures from EUR 24 to EUR 28 — an increase of 16 percent, despite the negative effect from the exchange rate development. 

T-Mobile Austria
T-Mobile Austria was able to increase its average revenues per customer from EUR 27 to EUR 29, thanks to a streamlining of its pre-paid customer base. This elimination of inactive customers carried out in the first quarter of the year reduced the number of regular customers from 2.1 million the previous year to 2.0 million. 

Market share in Austria was over 33 percent. Revenues remained almost constant at EUR 0.50 million compared to EUR 0.52. T-Mobile Austria was able to increase its EBITDA by about 47 percent to EUR 170 million (previous year: EUR 116 million). Hence, the EBITDA margin improved by almost 12 percent to more than 34 percent. Here the improvement is primarily due to reduced customer acquisition costs. For instance, the company managed to cut average costs per newly acquired subscriber by more than one third to EUR 85. In addition the sale of a fixed network line made a positive contribution to the EBIDA of EUR 20 million net. 

T-Mobile CZ
As at June 30 T-Mobile in the Czech Republic was able to increase its customer base by more than 40 percent on the figures for the previous year, from 2.2 to almost 3.2 million. Net growth of the number of customers with mobile telephony contracts was 25 percent in the first six months of the current year, compared to approximately 6 percent for the same period of last year. 

Revenues reached EUR 325 million and EBITDA was EUR 151 million, which constitutes an EBITDA margin of more than 46 percent. With a market share of 41 percent T-Mobile is still by far the second-largest provider of mobile telephony in the Czech Republic. 

Joint Ventures in the Netherlands, Poland and Russia
There was an extremely positive development in the customer figures for the minority-stake affiliated companies in the Netherlands (Ben), Poland (PTC) and Russia (MTS). For instance, Ben now has a customer base of 1.3 million — approximately 0.3 million more than the previous year. The company, for which T-Mobile is going to take over a majority stake, is now the undisputed number three on the Dutch market. 

PTC was also able to further improve its position in Poland, with a customer growth compared to last year of 3.3 million, taking its customer base to 
4.2 million, and it is a strong number two on the Polish mobile telephony market, with a 36-percent market share. 

Russian market leader MTS was able to increase the number of its customers by 132 percent, from 1.9 to 4.4 million. 

Key figures of the TMO Group for the 1st half-year of 2002 
(Financial figures of TMO including consolidation effect) 

Customers ('000.) 1st H./01 1st H./02 Delta Delta%
TMO Group 41,795 47,533 5,738 13.7
T-Mobile Deutschland 22,082 23,262 1,180 5.3
T-Mobile UK 9,428 11,099 1,671 17.7
T-Mobile Austria 2,089 1,995 94 -4.5
T-Mobile CZ1) 2,243 3,150 907 40.4
VoiceStream2) 5,953 8,027 2,074 34.8


Revenues (Mio. EUR) 1st H./01 1st H./02 Delta Delta%
TMO Group 5,973 9,140 3,167 53.0
T-Mobile Deutschland 3,404 3,721 317 9.3
T-Mobile UK 1,555 1,849 294 18.9
T-Mobile Austria 517 497 -20 -3.9
T-Mobile CZ1) 148 325 177 119.6
VoiceStream2) 370 2,796 2,426 n.m.
EBITDA (Mio. EUR) 1st H./01 1st H./02 Delta Delta%
TMO Group 1,375 2,5593) 1,184 86.1
T-Mobile Deutschland 1,068 1,535 467 43.7
T-Mobile UK 229 436 207 90.4
T-Mobile Austria 116 1704) 54 46.6
T-Mobile CZ1) 68 151 83 n.m.
VoiceStream2) -63 282 345 n.m.

1) First consolidation of RadioMobil, April 1, 2001; financial figures recognized in accordance with German Commercial Code

2) First consolidation of VoiceStream (including Powertel) June 1, 2001; financial figures recognized in accordance with German Commercial Code

3) Contains a one-time special effect of EUR 47 million from sale of  Westel shares from Media One to Matav from the first quarter of 2002.

4) Contains a one-time special effect of EUR 20 million net from the sale of Memorex standard fixed line.

ARPU 1st H./01 1st H./02 Delta Delta%
T-Mobile Deutschland 24 24 0 -0.8
T-Mobile UK 245) 28 4 16.2
T-Mobile Austria 27 29 2 6.2
T-Mobile CZ6) 19 15 -4 -20.9
VoiceStream7) 57 51 -6 -10.8
SACs per gross add 1st H./01 1st H./02 Delta Delta%
T-Mobile Deutschland 131 93 -38 -29.1
T-Mobile UK 805) 146 66 82.7
T-Mobile Austria 127 85 -42 -33.5
T-Mobile CZ6) 22 30 8 38.8
VoiceStream7) 263 223 -40 -15.4
Churn (in %) 1st H./01 1st H./02 Delta Delta%
T-Mobile Deutschland 0.9 1.6 0.7 -
T-Mobile UK 1.65) 2.0 0.4 -
T-Mobile Austria 1.6 2.7 1.1 -
T-Mobile CZ 0.5 0.7 0.2 -
VoiceStream 4.5 4.3 -0.2 -

4) VoiceStream (including Powertel) in 1st half-year only fully consolidated in June, Radiomobil in 1st half-year only fully consolidated in second quarter

5) KPIs including Virgin Mobile subscribers

6) First consolidation of RadioMobil 01.04.01; Financial figures recognized in accordance with German Commercial Code

7) First consolidation of VoiceStream (including Powertel) June 1, 2001; Financial figures recognized in accordance with German Commercial Code

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