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OSKAR SIGNIFICANTLY INCREASES PROPORTION OF POSTPAID SUBSCRIBERS

03. March 2003

Oskar’s service revenues grew by 81% to 227,3 million USD in 2002 Proportion of postpaid subscribers rose to 36% In 2002, Oskar’s subscriber base grew reach 1,179,800. Oskar added 133,800 new subscribers in the fourth quarter alone. At year-end the company made a downward adjustment of 93,600 to the reported subscriber count to reflect a more stringent policy of excluding from the count, pre-paid customers with six or more months of call inactivity. These customers were not included in the final subscriber count as of December 31, 2002. In 2002, Oskar continued to strengthen its market share.

  • Oskar’s service revenues grew by 81% to 227,3 million USD in 2002
  • Proportion of postpaid subscribers rose to 36%
In 2002, Oskar’s subscriber base grew reach 1,179,800. Oskar added 133,800 new subscribers in the fourth quarter alone.

At year-end the company made a downward adjustment of 93,600 to the reported subscriber count to reflect a more stringent policy of excluding from the count, pre-paid customers with six or more months of call inactivity. These customers were not included in the final subscriber count as of December 31, 2002.

In 2002, Oskar continued to strengthen its market share. Oskar estimates it held a 14% share of the national cellular market as of December 31, 2002, compared to a 12% share at the same time last year. During the past 12 months, management estimates cellular penetration in the Czech Republic increased to 83% from 67%.

“In 2002 Oskar again confirmed its position as one of Europe’s most successful operator in its category, and achieved positive EBITDA in each of the four quarters,” said Karla Stephens, Oskar’s Chief Operation Officer.

Service revenues increased 58% to 68.3 million USD in the fourth quarter of 2002. The monthly average revenue per subscriber (ARPU*) was 18.96 USD as compared with 18.14 USD in the fourth quarter of 2001. In the last quarter of 2002, Oskar recorded EBITDA of 7.3 million USD.

“Oskar’s pre-paid/post-paid mix as of December 31st, 2002 increased to 64/36 compared to 71/29 at December 31st, 2001. This is attributable to the successful campaigns in the second half of the year that accelerated the acquisition of postpaid customers,“ adds Karla Stephens.

For the year 2002 as a whole, service revenues increased 81% to reach 227.3 million USD. EBITDA reached 20.2 million USD ompared to negative EBITDA of 41.6 million USD for 2001.

Last year, Oskar recorded extraordinarily strong growth in the business segment. The medium enterprise segment (10-49 SIMs) grew by 154 percent, while the corporations segment (more than 50 SIMs) expanded by 227 percent. Oskar’s important business clients acquired last year include OMV, Contactel, FC Viktoria Plzeň, ČSAD Bus Ústí na Labem, Zenit Čáslav and Pinelli.

Last year, Oskar stood up to the events that dealt a serious blow to the entire country. In the aftermath of the disastrous floods in mid-August, Oskar established the charitable fund Oskavalir that distributed more than CZK 4,5 million to schools in flood-stricken regions. This initiative was recognized by the Cannes’ GSM Association, which nominated Oskar as one of the 4 finalists for the “Best Use of Wireless for Emergency Situations“ award.

*) ARPU excludes revenues from other cellular networks’ customers roaming in the Oskar’s network.

Cesky Mobil became the first dual-band (GSM 900/1800) network operator in the Czech Republic after being granted its license in October 1999. It launched commercial operation of its leading edge GSM network on March 1, 2000 under the brand name Oskar. By December 2002 Oskar acquired over 1,179,000 subscribers becoming one of the fastest growing third license operators in Europe! At present, Oskar is the only operator in the Czech Republic to constantly increase its market share.

Through the ClearWave holding, Český Mobil a.s. is a member of the telecommunications group of Canadian-based Telesystem International Wireless (TIW).