2003 RESULTS – SERVICE REVENUES SURPASS THE CZK 10 BILLION MARK
Oskar added 367,000 new subscribers in 2003 to reach 1,547,000 as of December 31, 2003, representing year-on-year increase of 31.1%. During the year, Oskar estimates its market share has grown from 14% to 16%. By year-end 2003, the share of postpaid customer had risen to 42% compared to 36% at the end of 2002. The postpaid share of 2003 net additions reached 65%.
Oskar added 367,000 new subscribers in 2003 to reach 1,547,000 as of December 31, 2003, representing year-on-year increase of 31.1%. During the year, Oskar estimates its market share has grown from 14% to 16%.
By year-end 2003, the share of postpaid customer had risen to 42% compared to 36% at the end of 2002. The postpaid share of 2003 net additions reached 65%. “Oskar’s strategy, based on clearly structured tariffs and favourable rates without written commitments, is one of the reasons behind Oskar’s success,“ says Karla Stephens, Chief Operating Officer at Oskar.
The high share of postpaid customers together with active usage of Oskar’s services have resulted in ARPU of USD 22.95 compared with USD 17.20 in 2002, this represents a year-on-year increase of USD 5.75. The active usage of Oskar’s services is best illustrated by the example of MMS. At the end of September 2003, a month after the service launch, over 24,000 Oskar customers used MMS. By year-end 2003, this number tripled to exceed 70,000.
In spite of an estimated 95.2% mobile telephony market penetration as of December 31, 2003, Oskar’s service revenues increased by 70% compared to previous year to reach USD 385.44 million as compared with USD 227.3 million in 2002. “Our revenues have exceeded the important milestone of CZK 10 billion. Oskar is increasingly the choice of customers who prefer using tariff plans to call at favourable rates,” says Karla Stephens.
Operating income before depreciation and amortization (“OIBDA”)1 reached USD 103.3 million, up by 411% compared to USD 20.2 million in 2002. In addition, operating income increased from USD -47.22 million to USD 9.22 million in 2003.
|Oskar||2003 celkem||2002 celkem||2001 celkem|
|Results from Operations:|
|Service revenues (USD mil.)td>||10 820||7 366||4 772|
|Operating income (USD mil.)||251,7||-1 532,4||-3 137,3|
|Number of customers (in thousands)||1 547||1 179||858|
|OIBDA1 (USD mil.)||2 896,4||649,4||-1 534|
|% of postpaid subscribers||42%||36%||29%|
Oskar is a trademark of Český Mobil a.s., a subsidiary of Telesystem International Wireless Inc. (“TIW”). TIW is a leading cellular operator in Central and Eastern Europe with more than 5.0 million subscribers. TIW is the market leader in Romania through MobiFon and is active in the Czech Republic through Český Mobil a.s. TIW’s shares are listed on the Toronto Stock Exchange (“TIW”) and NASDAQ (“TIWI”).
This information is taken from the TIW press release dated Feb 24, 2004 and is available by accessing the TIW web site (www.tiw.ca). Financial results are unaudited and prepared using Canadian generally accepted accounting principles (“GAAP”).
1 Oskar uses the term operating income before depreciation and amortization (“OIBDA”) and average revenue per user (“ARPU”) which may not be comparable to similarly titled measures reported by other companies. Oskar believes that OIBDA, referred to in our previous reporting as EBITDA, provides useful information to investors because it is an indicator of the strength and performance for Oskar’s ongoing business operations, including its ability to fund discretionary spending such as capital expenditure and other investments and its ability to incur and service debt. While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Oskar’s OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the wireless telecommunications industry. Oskar believes that ARPU provides useful information concerning the appeal of its rate plans and service offerings and its performance in attracting and retaining high value customers. ARPU excludes revenues from other cellular networks’ customers roaming on Oskar’s network. OIBDA and ARPU should not be considered in isolation or as alternatives measures of performance under GAAP.