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  • O2 in Q3 2019: Number of O2 TV, home broadband as well as mobile customers grew. O2 Spolu convergent packages, newly also with unlimited mobile data, helped the growth.

O2 in Q3 2019: Number of O2 TV, home broadband as well as mobile customers grew. O2 Spolu convergent packages, newly also with unlimited mobile data, helped the growth.

1. 11. 2019
  • Number of O2 TV customers grew by one third year-on-year, hence the base grew by close to 100 thousand.
  • Almost two thirds of the customers activated a new mobile tariff in O2 Spolu bundled package containing also O2 TV and home broadband service, while one third of them opted for unlimited data tariff.
  • Broadband Internet HD base grew by 21 thousand year-on-year and reached 830 thousand.
  • Consolidated revenue went up 1.4% year-on-year to CZK 28.6 billion in the first nine months of 2019, with growth reported both in the Czech Republic and Slovakia.
  • Consolidated EBITDA grew by close to 12% to CZK 9.3 billion; increased investments in the past years led to a close to 5% decline in consolidated net income to CZK 4 billion; its decline has been decelerating.

"Our results show, that the decision to offer customers home broadband internet, O2 TV and mobile tariffs in O2 Spolu packages was right. Currently, 70 percent of our customers activate new mobile tariff in a package, and a third of them choose a tariff with unlimited data," comments Jindřich Fremuth, Chief Executive Officer and the Chairman of the Board of Directors of O2 Czech Republic on the results, and adds: "In the already rich sports content offering, we have newly included the English Premier League, confirming O2 TV's position as a TV platform offering the best sports and movie content in one place. With a 100 thousand year-on-yearcustomers' increase and a dynamic increase in web and app watching, O2 TV belongs to one of our fastest growing services."

"High investments in 2018 increased depreciation charge and diluted our net profit in 2019," explains Tomáš Kouřil, the company's Chief Financial Officer and Vice-Chairman of the Board of Directors and adds: "We directed our investments into pro-growth areas in which together with our new commercial proposition it contributes to further growth. Our EBITDA increased, the net profit already shows improving trend, our strategy works."

Overview of key events in the third quarter 2019

On September 16, O2 started offering NEO mobile tariffs with unlimited data, in which customers may choose the speed of the connection to fit their needs. At the same time, O2 substantially increased data packages in improved FREE+ tariffs with unlimited voice services. O2 quintupled the data package in the mobile tariff FREE+ Gold to 60GB and thus offers the lowest price per gigabyte on the market. The best offer through which the customers can get the new tariffs including unlimited tariffs is within the O2 Spolu bundled packages. These packages enable individuals, families and larger groups to flexibly combine different services. Moreover, O2 adds the best sports content to all customers of O2 Spolu bundled packages and until the summer of 2020 also a premium HBO channel free of charge.

Digital television O2 TV has further strengthened its sports content. In addition to the complete Czech football Fortuna League, UEFA Champions League and ice hockey Tipsport league, O2 acquired a new Premier Sport channel that will broadcast hundreds of live matches from the world's most prestigious football league - the English Premier League. In addition to the English Premier League, the new TV station will also bring two other British Islands leagues - the English Championship, i.e. the second highest English league, and the Scottish Premiership.

For the tennis fans, O2 has extended the television rights for the full WTA tennis tour for another three seasons, i.e. until 2022. O2 TV Tenis, the only tennis channel in the Czech Republic, will continue to bring all live events from the WTA tournaments and thanks to unique multidimension even concurrent matches.

Operating overview
Mobile segment

Thanks to the successful proposition of O2 Spolu bundled packages and continuing popularity of tariffs with higher data packages, the total number of mobile registered customers [1] reached 5,617 thousand at the end of September 2019. The number of mobile contract customers was at 3,215 thousand, the number of mobile prepaid customers stood at 1,963 thousand, while the number of M2M services reached 439 thousand.

In O2 network, smartphones represent 75% of handsets and 64% of total handsets support LTE technology. The larger portion of data volumes included in FREE tariffs along with customers' interest in O2 Data tariffs with a monthly data volume of 4 to 20 GB and an increase in the number of customers with a 4G LTE-enabled smartphone contributed to a 30% year-on-year increase in mobile data usage generated in handsets.

Fixed segment

The number of O2 TV tariffs customers provided over O2 fixed line (IPTV) as well as over internet connection from any provider (OTT), reached 406 thousand as at 30 September 2019, including households subscribed for complementary MULTIservice, which enables customers to watch TV on multiple TV sets at once. During the first nine months of 2019, the number of O2 TV customers increased by 70 thousand.

Number of broadband internet customers [2] over cable as well as wireless technology reached in total 830 thousand as at 30 September 2019. During the first nine months of 2019, their number increased by 21 thousand.


O2 Slovakia keeps recording increasing demand for its O2 Pausal mobile tariffs portfolio. As at 30 September 2019, the total active customer base reached 2,116 thousand. The contract base amounted to 1,361 thousand and it represented 64.3% of the total base,
up by 2.5 percentage points year-on-year.

Financial overview

Total consolidated operating revenue reached CZK 28,615 million in the first three quarters of 2019, up 1.4% year-on-year, with growing revenue in all segments. Operating revenue in the Czech Republic improved by 1.2% to CZK 23,129 million, thanks to the 1.2% growth in fixed revenue to CZK 8,123 million and a 1.2% year-on-year growth of mobile revenue to CZK 15,006 million. Mobile data, financial services and O2 TV were the key revenue growth drivers.

In Slovakia, total operating revenue improved by 2.0% to EUR 220 million in the first three quarters of 2019. In Czech koruna (CZK) the operating revenue reached CZK 5,665 million, up 2.6% year-on-year. Similarly, to the Czech Republic, higher mobile data revenue was the key growth driver.

Consolidated earnings before depreciation and amortisation EBITDA improved by 11.7% year-on-year to CZK 9,318 million in the first three quarters of 2019, thanks to the higher revenue, savings in majority of costs and a positive impact of the new IFRS 16 accounting standard. In the Czech Republic, EBITDA grew by 10.7% to CZK 7,022 million, while Slovakia reported a 16.5% increase to CZK 2,326 million (+15.9% to EUR 91 million). Consolidated EBITDA margin improved by 3.0 percentage points to 32.6% in the first three quarters of 2019.

Consolidated net profit decreased by 4.6% year-on-year reaching CZK 4,023 million in the first three quarters of 2019 as higher investments into growth areas in 2018 led to depreciation & amortisation growth. These investments already positively contributed to the financial results in the third quarter 2019 standalone with net income decline slowed to


Financial indicators9M 20199M 2018Year-on-year change

Operating revenue

- CZ mobile revenue

- CZ fixed revenue

- SK revenue

CZK 28,615 mil.

CZK 15,006 mil.

CZK 8,123 mil.

CZK 5,665 mil.

CZK 28,209 mil.

CZK 14,822 mil.

CZK 8,027 mil.

CZK 5,524 mil.





Total costs

- of which operating costs

CZK 19,379 mil.

CZK 5,700 mil.

CZK 19,950 mil.

CZK 6,065 mil.

EBITDACZK 9,318 mil.CZK 8,342 mil.+11.7 %
EBITDA margin32.6 %29.6 %+3.0 p. p.
Net profitCZK 4,023 mil.CZK 4,217 mil.-4.6 %

[1] Since 1Q 2019, it has comprised mobile customers who have generated revenue for the past 13 months and has excluded Internet HD mobile customers using 4G LTE and WTTx wireless technologies; comparable data for the previous period have been adjusted.

[2] Fixed (xDSL, fiber), wireless (4G LTE, WTTx).

Lucie Jungmannová

tel: 800 163 342 (800 1 media)

About O2 Czech Republic

O2 is the largest integrated telecommunications provider in the Czech market. At present we operate close to eight million mobile and fixed accesses, which ranks us among the market leaders in fully converged services in Europe. To users of mobile services in the Czech Republic we offer state-of-the-art HSPA+ and LTE technology. We have the most comprehensive proposition of voice and data services in the Czech Republic, and we actively exploit the growth potential of the various business lines, especially ICT. Our data centres, with total floor area of 7,300 square metres, rank us among the leaders in hosting, cloud and managed services. O2 data centres belong to the few commercial ones in Central Europe to have TIER III certification. With our O2 TV we are also the largest IPTV service provider in the Czech Republic. In January 2014, O2 became a member of the Czech investment group PPF.