One of the largest Polish mobile operators – T-Mobile – has just published the latest financial report for the first quarter of 2018. There are reasons to be satisfied, but not everything seems to go according to the heads of this company.
About the fact that T-Mobile is one of the largest Polish operators, you probably do not need to convince anyone. Although the old three (including Plus and Orange) initially noted a large downward rebound in customer bases after the active launch of the Play network, it seems that the situation is slowly beginning to stabilize, which is also shown by the company's latest report.
More customers, but only in a subscription
The first quarter of 2018 was at the same time the seventh in a row, in which T-Mobile is recording a rise in terms of the number of clients associated with this telecom. Of course, the differences are not huge, but the very fact that after the relegation from 3-4 years ago the company is back in the game, is the most worthy notices. In total, the network currently serves 10,059 million active clients, an increase of 280,000 compared to the result achieved after the first three months of last year.It is worth noting, however, that this telecom scale of growth can be owed only to contract customers , ie deciding to join a subscription company. Here, T-Mobile recorded an increase of 294 thousand subscribers, while the number of people using the pre-paid offer dropped slightly – the decrease is minimal, from 3.533 million people to 3.519 million, that is by only 14,000 people. Such a result is also due to the very low level of leave, which is the lowest from evenly two years. Growth in the subscriber base is sure to be enjoyed by T-Mobile's management, but a bit less – the company's financial results. Revenues of T-Mobile Polska remained at a similar level as in the first quarter of 2017 and amounted to PLN 1,569 million, while EBITDA (ie operating profit before deduction of taxes and interest on loans) for the first quarter of 2018 amounted to PLN 401 million, which means a drop by 7.0%. So where in the company's results fall, since the subscriber base has increased?
Roaming responsible for financial losses
This is, of course, the effect of the introduction of new regulations regarding roaming, which significantly limited profits on this account , and yet it is no secret that it was precisely this part of the activity of telecoms that gave clean profits. The decrease in revenues from this decreased the financial results by PLN 37 million – if this phenomenon was excluded from the company's financial results, EBITDA would remain at the same level as before. Well, but such moves can not be done, so the fact is that T-Mobile compared the previous quarters ended the beginning of this year in the red.
A lot of investments behind the belt
Of course, the negative balance is also affected by investments, and it must be admitted that T-Mobile has a really broad plan for the nearest months when it comes to expenses . In the first quarter, T-Mobile began tests aimed at changes in the manner of using its frequencies. As a result, a dozen or so stations offering aggregation of 4 bands with a maximum data transfer speed of up to 590 Mbps have been launched. In total, T-Mobile already has over 4,250 stations with bandwidth aggregation. In addition, in Q1, 70 new nodes fed with 1Gbps or 10Gbp / s fiber-optic fiber were launched. This year, 150-200 more projects are planned. Thus, it seems that the main movements are taking place especially with care for the development of network infrastructure in order to accelerate the speed of mobile and stationary internet. The situation in T-Mobile is therefore the easiest to assess as stable. Sure, there is a considerable impact of the lack of roaming charges on telekomic profits, but looking at the decisive actions of more companies to force the Office of Electronic Communications to use additional fees, you can expect that they will not soon bother the head of accountants of telecommunications molochs. In the end, we will pay for everything – customers. source: T-Mobile