T-Mobile Ups Q3 Growth

BONN, Germany -- T-Mobile International again recorded a strong jump in earnings in the thirdquarter of 2003. The number of subscribers increased by 13 percent in thelast 12 months. Expressed in actual figures, the number of customers atT-Mobile International’s majority-owned companies rose to 57.7 million,or by 6.5 million compared with September 30, 2002. Excluding T-MobileNetherlands, which was fully consolidated for the first time in the fourthquarter of 2002, the number of customers increased by 6.1 million.

Year-on-year, development of revenue was also very positive, with netrevenue climbing by 18 percent to EUR 16.8 billion. Excluding consolidationeffects, revenue growth would have been over 13 percent in this period.Revenue growth in Europe was 15 percent (excluding consolidation effects,just below 9 percent), and in the USA, revenue increased by almost50 percent year-on-year expressed in US dollars. As a result of exchangerate effects, this represents an increase in euros of 24 percent.Earnings before interest, taxes, depreciation and amortization (EBITDA),adjusted for special factors, rose by 30 percent year-on-year toEUR 5 billion. The EBITDA margin was around 30 percent. The results fromordinary business activities amounted to EUR 637 million. Results fromordinary business activities of EUR 239 million were recorded in the thirdquarter alone.

René Obermann, CEO of T-Mobile International: "In the third quarter,we continued the trend of growth with sustained value." According toObermann, the EBITDA margin in the USA tripled in the third quarter yearon-year. He added that this "also clearly proves the case for commitment inthe USA."

Mr. Obermann is also pleased with the development in the key Germanmarket, where the number of contract customers increased substantially inthe last quarter, while the acquisition costs per new subscriber decreased.Even in the highly competitive UK market, positive indications can clearly beseen. Obermann said, "the number of contract customers increased by20 percent in the last twelve months to over 2.5 million. This also led to anincrease in the total number of customers, despite substantial streamliningof the prepay customer base."

Thomas G. Winkler, CFO of T-Mobile International, was very pleased withthe balance sheet at September 30, 2003, above all in view of business inthe USA: "T-Mobile USA increased the so-called cash contribution(i.e. EBITDA minus Capex) in all three quarters." Overall, with EUR 5 billionadjusted EBITDA, T-Mobile has already reached the level of the full 2002financial year. Winkler said, "we more than doubled the cash contribution inthe third quarter year-on-year."

T-Mobile Germany
T-Mobile Germany increased its customer base by 370,000 in the thirdquarter. 226,000 of these new subscribers were fixed-term contractsubscribers. At the same time, T-Mobile Germany reduced the averageacquisition costs per customer gained to EUR 85. While revenue increasedby around 7 percent compared with the third quarter of 2002, EBITDA grewby over 11 percent to EUR 953 million. As a result, the EBITDA marginincreased to over 43 percent, compared with around 41 percent in the samequarter last year. Monthly ARPU increased by EUR 1 to EUR 25 quarter-onquarter,but was EUR 1 lower than the figure of the third quarter of 2002 ofEUR 26 (rounded figures).

T-Mobile USA
With an increase of 670,000 new customers in the third quarter,T-Mobile USA now has a customer base of 12.1 million. The churn ratealso increased in this period, as it did for other mobile communicationsoperators in the USA, and reached 3.3 percent per month. However, this issubstantially lower than last year’s figure of 4.2 percent. Revenue increasedby more than 26 percent compared with the same quarter last year toaround EUR 2 billion or, expressed in US dollars, by over 45 percent toaround USD 2.2 billion. Measured in US dollars, monthly ARPU remainedconstant compared with the previous quarter, at USD 50 (EUR 45). Socompared with the same quarter last year, ARPU increased by USD 3.Translated into euros, this means a EUR 3 decrease, due to exchange rateeffects. At USD 482 million (EUR 429 million), EBITDA more thanquadrupled compared with the third quarter of 2002. The EBITDA margintripled to 21.7 percent.

T-Mobile UK
As announced, T-Mobile UK again streamlined its customer base in thethird quarter to remove inactive prepay customers. At the end ofSeptember, the company had 12.4 million customers, includingVirgin Mobile customers, which is 0.6 million more than in the same quarterlast year. In the past year, T-Mobile UK increased the number of contractsubscribers by 20 percent to more than 2.5 million. 123,000 new contractsubscribers were won in the third quarter of 2003 alone. As a result of thestreamlining of inactive prepay customers, the churn rate increased to4.2 percent. However, the churn rate for contract subscribers developedpleasingly. At 2.2 percent, it reached the lowest level for one and a halfyear. Monthly ARPU increased to GBP 45 (EUR 64), for all customers itwas GBP 21 (EUR 31). Measured in pound sterling, revenue increased byalmost 14 percent compared to the same quarter last year and amounted toGBP 761 million. Translated into euros, the increase was 3 percent toEUR 1.1 billion. In local currency, EBITDA increased by more than26 percent compared to the same quarter last year to GBP 182 million, ineuros by almost 15 percent to EUR 260 million.

T-Mobile AustriaT-Mobile Austria’s customer base remained stable at more than two millionsubscribers. At the same time, ARPU increased to EUR 32. Revenueincreased by 8 percent compared with the same quarter last year toEUR 277 million, EBITDA improved substantially in the same period bymore than 56 percent to EUR 80 million.T-Mobile Czech RepublicT-Mobile Czech Republic closed the third quarter with 3.7 millioncustomers. Of the 84,000 new customers won in this quarter, 48,000 werecontract subscribers. The average churn rate in the third quarter was0.9 percent per month, and at EUR 16, monthly ARPU decreased slightlycompared with the same quarter year-on-year. Revenue increased byalmost 5 percent compared with the third quarter last year toEUR 195 million, whereas EBITDA decreased slightly to EUR 88 million.

T-Mobile NetherlandsIn the third quarter, T-Mobile Netherlands increased the number ofcustomers by 150,000 to over 1.84 million. Monthly ARPU per customer isEUR 38, and is thus the highest of all T-Mobile companies in Europe. Withrevenue of EUR 225 million, and EDITDA of EUR 9 million in the thirdquarter, T-Mobile Netherlands again made a positive contribution to theEBITDA of the whole group, as in the second quarter of 2002.

T-Mobile International AG