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August 8, 2022

TKRM grew its postpaid subscribers’ base for the seventh quarter in a row

Telekom Romania Mobile Communications S.A. (TKRM)  made a positive impact on the Romanian market in Q4 2021, after having launched its promise to deliver to its customers “Mobile as you want it. Simple and fair”. Thus, in the last quarter, post-paid subscribers increased by 5.3% versus the same period in the previous year, confirming the results of the strategical actions for this customer segment, a press release issued by the company reports.

At the end of 2021, more than 1.735 million postpaid subscribers used Telekom Mobile services. The total number of customers (postpaid and prepaid) reached 3.69 million. The prepaid segment has been growing for two quarters now. With the company stabilizing the overall customer base, ARPU also increased by 2.4% compared to 2020, proving that the operator’s offers have a good value-for-money ratio.

During the first full quarter as a mobile company, pursuant to the separation from the fixed operations, TKRM’s EBITDA stood at 10.4 million euros, keeping its year-on-year growing trend.

“Q4 results show that we are well positioned and have all the right premises to continue with our strategy. October-December 2021 was the first full quarter after the separation from the fixed business and we have delivered results that are in line with our outlook. I am confident that our current customer proposition, together with cost discipline will deliver results. We are here to provide our customers mobile as they want it, and to continue to improve, at all levels”, said Dina Tsybulskaya, Telekom Romania Mobile CEO.

“We work at multiple layers to deliver on our promise to give customers what they want. We are also changing our organizational culture, guiding our teams on how to live the promises in the relation with our customers. Making customers happy requires more than price discounts. By January 2022, almost 67% of all Telekom Mobile employees and associates in the frontline retail, business sales and customer center), have undergone a newly created customer experience culture training under the name #NewMe. Notably, our customer satisfaction index posted a 10% increase compared to the previous quarter and we have made the interaction with the customers simpler and more transparent, and 77% of them are promoters of our products and services”, added Dina Tsybulskaya.

In 2021, the total revenues of the company (including MVNO) reached 386.8 million euros, a 14.6% decrease compared to full year 2020. The fluctuation came amid the separation from the fixed operations and the customers that had fix-mobile convergent (FMC) services, but also due to the pandemic, which limited travels across the globe. Nevertheless, the company was able to overcompensate this on a margin level, where TKRM was successful in further reducing the indirect costs by 2.8% YoY, due to company’s focus on operational and financial efficiency.

The company’s sound position is also reflected by the Adjusted Free Cash Flow, which recorded an important and steep increase YoY. This provides the ground for further investment to offer our customers a high quality experience. Since the second half of 2018, Telekom Romania Mobile’s cost base continues to benefit from its long-term cost transformation program that generates significant operational improvements. It is an important driver of the company’s growth in EBITDA and cash flow of the company, which led to a significant YoY reduction of the cost base compared to 2020. Going forward, with the new strategy “Mobile as you want it”, Telekom Romania Mobile clearly focuses more on customer satisfaction and subscriber growth.

“2021 was uniquely complex for us. It was a momentous year, not only due to the prolonged pandemic-related difficulties, affecting all society. The sale of the fixed company and operations separation was quite a challenge for us. It increased our operational complexity, however we managed to serve our customers in a seamless way, without any effect in terms of services and quality delivered. But it was also the year of a new beginning – the year that Telekom Mobile reinvented itself with a new vision and commercial strategy, focused on customer experience.”, Nicolas Mahler, Telekom Romania Mobile Communications’ Chief Financial Officer summarized.

“Our 2021 results give me great confidence, looking ahead to 2022. We have finished the year better and stronger than we expected. On top, I do hope that this pandemic will end soon. I am sure that people’s need for telecommunications will be even stronger after all these uncertain times and that we will have the chance to be there for our customers, offering our full support”, mentioned Nicolas Mahler.

“Nevertheless, 2022 will be yet another challenging year, given how inflation has increased during the last months. Inflation is significantly up in the last quarter and further increases can be anticipated. I am confident that thanks to our smart & agile team, and our consistent and continuous effort towards digitization, we will manage to handle the cost related challenges”, added Nicolas Mahler.

“We continued to pursue our digitalization journey. In 2021, Telekom Romania Mobile introduced 75.5% more RPAs, compared to 2020, continuing one of the largest Robotic Process Automations (RPAs) farm in the country. Telekom Mobile continues to be a frontrunner in Romania in the RPA development, for the last four years. The RPAs help the company to be more agile and make employees’ and customers’ life easier. The TKRM customers decided to adopt the e-bill in a large manner. Last year we recorded a 22% increase in the use of the electronic bill versus 2020. This way we also help the environment”, concluded Nicolas Mahler.


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