T-MOBILE SLOVENSKO REPORTS STRONG EBITDA GROWTH DURING FIRST THREE MONTHS OF 2005

  • EBITDA increased 20% in first quarter 2005 to Sk 1.6 billion
  • EBITDA margin increases to 47% up from 43% in first quarter 2004
  • Mobile service revenues increased 11%, to Sk3 billion in first quarter 2005
  • 1,885 thousand mobile customers at the end of March 2005, nearly 12% increase over first quarter 2004

Bratislava, May 17, 2005 – T-Mobile Slovensko today announced that it ended the first quarter 2005 with 1,885 thousand customers, a 12% increase over its customer count at March 31, 2004.

T-Mobile Slovensko ended the first quarter 2005 with earnings before interest, taxes, depreciation and amortization (“EBITDA”) of Sk1,564 million. This represents a 20% improvement over EBITDA of Sk1,302 million earned during the first quarter 2004. The Company’s EBITDA margin (EBITDA divided by total revenues) amounted to 47% for the first three months of 2005, compared to 43% for the same period in 2004.

In terms of revenues, T-Mobile Slovensko recorded an increase of nearly 9% to Sk3.3 billion in the first quarter 2005. Recurring service revenues of Sk3.1 billion for the first quarter 2005 represent an increase of 11% over the same period in 2004 that was primarily driven by growth in the number of customers, especially the contract customer base.

The blended average revenue per user (“ARPU”) decreased slightly by 3% from Sk559 in the first quarter 2004 to Sk540 in the first quarter 2005. This decline in ARPU is attributable to the fact that we experienced disproportionately strong growth in the number of customers with moderate usage of mobile services as well as to general decline in pricing of mobile services in the course of last 12 months and to the campaigns introduced, allowing customers to reduce their bills.

Strong improvement was recorded also in the usage of the non-voice services. In the first quarter 2005 revenues from non-voice services account for 16% of the blended ARPU.

T-Mobile Slovensko CEO, Robert Chvátal, stated: “The results achieved in the first quarter of 2005 are strong evidence that T-Mobile Slovensko builds on a solid base of customer and financial stability. We can see already now that the rebranding process, which was completed on May 2, 2005, is perceived positively both by our existing and potential customers.”

Ivan Bošňák, T-Mobile Slovensko Chief Financial Officer, noted: “T-Mobile delivered very strong revenue growth in first quarter of 2005. Double digit increase in service revenues is an evidence of continuing growth of mobile phones usage. Our bottom line and cash generations capability also improved significantly.”

Operating Highlights – 2005

As of March 31,
2005 / 2004 / % Change
Total Mobile Customers / ths. / 1,885 / 1,685 / 12%
Contract Customers / ths. / 663 / 490 / 35%
PrePaid Customers / ths. / 1,223 / 1,195 / 2%
Net Customers Additions / ths. / (29) / 71 / (137)%
Contract / ths. / 15 / 30 / (50)%
PrePaid / ths. / (44) / 41 / (207)%
Average Monthly Churn into the Market / % / 2.3% / 1.4% / 64%
Monthly ARPU / SK / 540 / 559 / (3)%
As of March 31,
Slovak Crowns (in millions) / 2005 / 2004 / % Change
Total Revenues / 3,299 / 3,029 / 9%
Recurring Service Revenues / 3,073 / 2,764 / 11%
Non-Voice Revenues as % of ARPU / 16% / 13% / 23%
EBITDA / 1,564 / 1,302 / 20%
EBITDA Margin
(EBITDA / Total Revenues) / 47.4% / 43.0% / -

For more information, contact:

Ivan BošňákJuraj Droba

Chief Financial OfficerCorporate Affairs Director

+421-2-4955-5114+421-2-4955-5034

About T-Mobile Slovensko, a. s.
T-Mobile Slovensko, a. s., is a leading telecommunications company that provides mobile communication and mobile data services in Slovakia. T-Mobile Slovensko, a. s., is 100% owned by Slovak Telecom, a. s., a subsidiary
of Deutsche Telekom AG (Frankfurt, Amtlicher Handel: DTE / NYSE: DT).
As of December 31, 2004 T-Mobile Slovensko, a. s., served 1.9 million customers. T-Mobile Slovensko, a. s., is
the only mobile operator in the Slovak Republic to offer its customers mobile internet access using the four
high-speed data transmission technologies, HSCSD, GPRS, Wireless LAN (Wi-Fi) and EDGE.
T-Mobile Slovensko, a. s., is the first mobile operator to have rolled out in Slovakia the MMS services and SuperSpeed, a 3G EDGE-based data service.
For more information about T-Mobile Slovensko, a. s., please visit
About T-Mobile International
T-Mobile International is one of the world’s leading companies in mobile communications. As one of Deutsche Telekom`s three strategic business units, T-Mobile concentrates on the most dynamic markets in Europe and the United States. T-Mobile services are provided to some 80 million customers and all that over acommon technology platform based on GSM, the world’s most successful digital wireless standard. This also makes T-Mobile the only mobile communications provider with a seamless transatlantic service.
For more information about T-Mobile International, please visit