Write-offs hit T-Mobile Czech’s bottom line

11 Aug 2006

Mobile operator T-Mobile Czech Republic reported profits of CZK2.68 billion (USD122.8 million) for the six months to 30 June 2006, down 11.6% year-on-year due to the impact of write-offs, the company said in a statement today. Revenues rose by 6% in the period to CZK14.2 billion on the back of a 6.1% rise in subscriber numbers to over 4.73 million. With contract customers making up 31% of its total subscriber base, T-Mobile reported a 0.8% rise in monthly blended average revenue per user (ARPU) to CZK486. In the second half of the year the cellco plans to further improve revenues by developing its data services and tariffs.

Meanwhile, domestic rival Eurotel Prague reported 4.77 million clients at end of June, 90,000 more than at the start of the year. Its 1H 2006 sales stood at CZK15.3 billion and monthly ARPU was CZK498. Third-placed Vodafone (Oskar) recorded net additions of 122,000 in the period to lift its total to 2.26 million; ARPU was CZK674 per month. At end of June the Czech Republic was home to more than 11.8 million active mobile phone numbers, or 115 SIM cards per 100 of the population. Nonetheless, local analysts estimate that around 20% of Czechs do not own a mobile phone.