Annual report 2001 - Polkomtel

OPERATING RESULTS
Customer Base
As of the end of 2001, the number of
customers using our network stood at 3.44m
and was 40% higher than the 2000 figure. The
number of subscribers amounted to 1.96m,
while customers using pre-paid services
totalled 1.48m (an increase of 21.8% and
74.2%, respectively). Customers using pre-paid
services represented 64% of the customers
acquired in 2001.
Churn Rate
In 2001, the churn rate was 22% as compared
to 16.4% in 2000. The increase was to a great
extent caused by the worsening economic
situation that forced many users to stop using
the network’s services. However, quarterly data
indicate a slowdown in the growth of the churn
rate. Accordingly, in the fourth quarter of 2001,
the rate dropped to 5.1%, from 5.8% in the
third quarter.
The above is a result of the growing attractiveness of the services offered by Plus GSM and
loyalty programmes that include different types of reduced tariffs or free minutes that are
available to active customers and those who have been using our services for a long time.
Average Revenue Per User
18
In 2001, average revenue per user (ARPU) dropped by 17.9%, to PLN 114.5 per month. The
occurrence of a decrease is a natural consequence of the growing market penetration and is
observed globally. The above is caused by an increasingly greater proportion of pre-paid
phone users in the total number of customers. Such customers generate substantially lower
revenues as compared with those generated by subscribers (throughout 2001, the figures
were PLN 36.6 and PLN 165.4 a month, respectively). Additionally, in line with the growing
market saturation, new customers are acquired from among less frequent users of Plus GSM
services. This, coupled with cheaper tariffs, means a drop in average revenue per subscriber.
In 2001, the figure dropped by 11.4%. However, this pattern does not apply to pre-paid
service users, who on average spent 6.7% more than in 2000.