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First Quarter Financial Results Record Growth

Highlights
  • Over 700,000 net new customers - 14.34 million customers up 17.4% on Q1 ’03; - up 5% on end 2003
  • Revenues up 11% to £771 million
  • EBITDA up 41% to £262 million
  • Blended ARPU up £2 from £19 to £21
New Services
  • Roaming rates cut by up to 45%
  • WiFi roll-out
  • Euro ’04 unique offers

London, 13 May, 2004:

As part of Deutsche Telekom’s publication of first quarter financial results, T-Mobile UK today announced a further quarter of record growth building on its 2003 momentum. T-Mobile also confirmed key initiatives in its mobile broadband strategy and in introducing a new standard for simple, low cost roaming rates.

Brian McBride, Managing Director of T-Mobile UK, said:
“T-Mobile UK has got off to a great start for 2004, building on the strong momentum we achieved last year. We’ve added over 700,000 net new customers in the quarter, including Virgin Mobile customers, growing our total customer base to over 14.3 million, up over 5% since year end and up over 17% since the first quarter last year.

“We grew revenues by 11% to over £770 million with average monthly customer revenue up £2 and average churn significantly down. EBITDA increased 41% to more than £260million, and our EBITDA margin is now 34%.

“All this places us in a strong position now to consolidating our market share and focus on the key product and service initiatives we plan for the rest of 2004.”

T-Mobile UK had a record quarter, with customers including Virgin Mobile up over 17% since the same period last year, and up over 5% since year end to 14.34m.

Revenues were up over 11% to £771 million. EBITDA was up 41% to more than £260 million with an EBITDA margin of 34%.

Growth was driven by a rising customer base, rising average customer spend (ARPU), the benefit of new commercial arrangements with Virgin Mobile and a one-off positive accrual.

T-Mobile was one of the fastest growing UK networks adding some 707,000 net new customers in the quarter, 450,000 of these being added by the T-Mobile branded network.

T-Mobile UK’s customer base remains largely pre-pay, split 2.74 million contract and 11.6 million pre-pay. Net contract additions were 59,000 for the quarter, making an increase of over 404,000 since the same period last year. In pre-pay, T-Mobile was the clear growth leader with 648,000 net additions for the quarter.

Contract ARPU grew by £1 to £44 per month. Within this, non-voice revenues were 17% of ARPU, driven by growing adoption of multi-media services and strong SMS revenues. T-Mobile UK now has more than 900,000 unique active data users a month. Total downloads increased to 1.25 million, a 25% increase on Q4 03.

T-Mobile also leads the mobile industry in Wireless LAN (WiFi), with approximately 6,000 HotSpots across the group, and plans aggressively to expand this number as part of T-Mobile's strategy to deliver integrated 3G and WiFi networks.

Wholesale is a key supporting element of T-Mobile UK’s strategy, helping leverage the network investment it has made since the end of 1999 and extend its customer reach. T-Mobile has agreed a new long-term network supply agreement with Virgin Mobile, which came into effect this year. Of T-Mobile UK’s customer base, 3.9 million are Virgin Mobile customers, up a net 257,000 for the quarter.

Roaming Rates
T-Mobile today announces cuts of up to 45% in the cost of mobile calling from abroad with the introduction of new lower and simpler roaming rates.

UK mobile users in total are estimated to spend over £1billion a year on mobile calls when abroad, some 80% of these within Europe. There are currently hundreds of roaming rates with call charges up to £3.99 a minute.

From June 1, until end August, in time for Euro ’04 and summer holidays, T-Mobile is now introducing new single rate call charge, irrespective of time of day or roaming network, pre-pay rates from Europe are cut by 45% to 55p per minute. Contract call rates are cut by over 30% to 50p per minute for bundles of 30 Relax Holiday Minutes.

T-Mobile’s initiative builds on its ‘Relax Minutes’ tariff programme designed to simplify tariffs and give customers clear, better value.

Nikesh Arora, Chief Marketing Officer of T-Mobile said: “Whether for emergency, fun or staying in touch, we want customers to feel able to call, text, send pictures and data whenever they want and wherever they are. We don’t want customers to be deterred by cost or complexity.”

Euro ‘04
T-Mobile is one of the eight official sponsors of UEFA Euro ’04. Its unique range of Euro ’04 services include:

  • Euro ’04 breaking news ticker service on your phone
  • Automatic MMS and video alerts
  • SMS text alerts
  • Video clips of past and present England successes
  • Downloading England chants and the UEFA Euro ’04 theme tune
  • ‘Vote and Win’: voting on best football picture and win a trip to Lisbon
  • Exclusive price plan packages for new customers

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