ClearWave More Than Doubles Subscriber Base in 2000 to Reach Nearly 1.5 Million Subscribers.Business Editors AMSTERDAM, The Netherlands & MONTREAL--(BUSINESS WIRE)--March 5, 2001 (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :TIW Tiw (tē`  ), Norse Tyr (tür), ancient Germanic god. .UN.)For the fourth quarter and year ended December 31, 2000 All amounts are in US$, unless otherwise stated:
- Cesky Mobil achieves 7% market penetration in start-up year
- MobiFon posts operating income in third full year of operation
ClearWave N.V., a subsidiary of Telesystem International Wireless Inc. (TIW), today announced its financial and operating results for the fourth quarter and year ended December 31, 2000. ClearWave has cellular operations in Romania and the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. . Total cellular subscribers more than doubled in 2000 to 1,473,500 compared to 702,100 at the end of 1999 as a result of accelerated growth in Romania and rapid market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" in the Czech Republic. Net additions in the fourth quarter totalled 314,400, a new quarterly record. Proportionate pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. subscribers increased 97% to 755,400 at the end of 2000 compared to 384,000 for 1999. Driven by subscriber growth in Romania and the launch in the Czech Republic during the year, service revenues reached $93.8 million for the fourth quarter of 2000 compared to $62.4 million for the corresponding period in 1999. Selling general and administrative expenses rose to $50.8 million compared to $34.1 million for the fourth quarter of 1999. The Company recorded a positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization) of $3.8 million for the fourth quarter of 2000 compared to $7.6 million for the corresponding period in 1999. Net loss was $6.0 million ($0.07 per share) for the period compared to a net profit of $51.5 million ($0.61 per share) for the fourth quarter of 1999, mainly due to a gain on sale of a portion of our Romanian interest of $62.1 million in the fourth quarter of 1999. For the full year 2000, ClearWave achieved service revenues of $321.0 million compared to $211.4 million in 1999. Selling, general and administrative expenses rose to $167.4 million in 2000 compared to $102.2 million in 1999, reflecting the start-up in the Czech Republic. Despite the costs associated with the service launch in the Czech Republic, ClearWave recorded positive EBITDA of $40.9 million compared to $48.5 million in 1999. Net loss was $19.1 million ($0.23 per share) compared to a net profit of $38.0 million ($0.45 per share) in 1999. The 1999 results include a gain on sale of a portion of our Romanian interest of $62.1 million. "ClearWave's two operating companies operating company A business that engages in transactions with outsiders. had an outstanding year by exceeding all of our financial and operational objectives. Our entry into the Czech Republic was most successful and Cesky Mobil was recognized as the fastest growing start-up cellular operator in Central/Eastern Europe," said Alexander Tolstoy, President and Chief Executive Officer. "In Romania, we achieved good profitability in only our third full year of operation, a noteworthy achievement in the global cellular industry." Cellular penetration in Romania more than doubled to 11% in 2000 compared to 5% in 1999, indicating major potential for further subscriber growth in the region's second largest country with its population of 23 million. In the Czech Republic, the increase in the penetration rate to 42% from 19% at the end of 1999 was associated with accelerated uptake uptake /up·take/ (up´tak) absorption and incorporation of a substance by living tissue. up·take n. of SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. services, pointing to a fertile fer·tile adj. 1. Capable of conceiving and bearing young. 2. Fertilized. Used of an ovum. market for GPRS-enabled mobile data services. Both MobiFon S.A. and Cesky Mobil a.s. introduced WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. services in late 2000 to be followed by GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. implementation in the first half of 2001. Based on the early success of SMS, ClearWave expects mobile data services to stimulate demand for cellular services while contributing gradually to revenues. MobiFon S.A. - Romania With 171,700 net cellular additions in the fourth quarter, a quarterly record, MobiFon reached 1,171,800 cellular subscribers at the end of 2000, compared to 702,100 at the end of 1999. Its share of net adds in the fourth quarter was the highest in the industry, positioning MobiFon for continued growth. MobiFon also established its Xnet service as the leading Internet Service Provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. in Romania with 44,000 subscribers at year-end. The proportion of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. subscribers increased throughout the
year, reflecting increased penetration of the consumer market. The
company's postpaid/prepaid split at year-end was approximately
50/50 while the average blended monthly churn rate (1) The percentage of customers who cancel their online, cellphone or other subscription service during a certain time period.(2) The percentage of employees who leave the company during a certain time period. See churning. was 2.12% compared to 2.50% at the end of 1999. Services revenues were $299.5 million compared to $211.4 million in 1999. Despite the significant growth in subscribers, the company contained its SG&A expenses which remained stable at $96.7 million compared to $95.7 million in 1999. For the fourth quarter, services revenues were $81.8 million compared to $62.4 million in the same 1999 period. EBITDA rose to $33.8 million in the fourth quarter and $130.1 million for 2000, compared to $14.0 million and $54.9 million, respectively, in 1999. Operating income was $18.8 million in fourth quarter and $64.2 million for the year, compared to operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $0.1 million and profit of $2.7 million, respectively, in 1999. Cesky Mobil a.s. - Czech Republic Cesky Mobil made an outstanding entry into the Czech Republic as the third cellular operator. The company nearly doubled its quarterly net additions from quarter to quarter to end the year at 301,700 subscribers for a 7% market share. Most of the company's penetration was in the prepaid segment, which accounted for 72% of its total subscriber base. The company is introducing new service packages targeting frequent users, including the business market, and plans to enhance its offering with data services upon completion of its GPRS implementation. Services revenues were $21.5 million in the company's first year of operations, of which $11.9 million was recorded in the fourth quarter and $7.0 million in the third quarter. Cesky Mobil launched its services in March 2000. SG&A was $63.4 million compared to $4.7 in 1999. Consistent with Cesky Mobil's development status, the company posted negative EBITDA of $82.0 million and an operating loss of $104.1 million. Liquidity and Capital Resources Capital expenditures in 2000 increased to $324.5 million compared to $147.0 million in 1999. Network construction in the Czech Republic accounted for $294 million and $23 million, respectively, with the balance invested in the Romanian network. At the end of 2000, MobiFon's network covered 92% of the population. Through an aggressive build-out, Cesky Mobil attained parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. with the incumbent operators in 2000 as its network reached 98% of the population. With almost 1,750 sites at year-end, the company is six months ahead of its license requirements. At the end of 2000, ClearWave had consolidated cash and cash equivalents of $121.2 million and available uncommitted operating credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities totalling $26.6 million. In July 2000, Cesky Mobil entered into a $426.1 million credit facility, of which $238.9 million was undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely as of December 31, 2000 and available for the continued build-out of its network in the Czech Republic. Conference call The conference call with analysts on the fourth quarter and 2000 results for TIW, Dolphin dolphin, fish dolphin, large, swift game fish, Coryphaena hipparus, also called dorado. It is of nearly worldwide distribution in warm waters. and ClearWave will be made available via an audio web cast from our Internet site. The web cast is scheduled to begin at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Wednesday, March 7, 2000 (at http://www.tiw.ca). A replay of the conference call can also be heard between 12:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Wednesday, March 7 and 11:59 p.m. EST on Friday, April 6. To access the replay facility, dial (416) 695-5800 and you will be instructed to enter the access code: 705765. Forward looking statement This news release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the current views and/or expectations of ClearWave with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. About ClearWave N.V. ClearWave N.V. is a leading GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. operator in Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , currently active in Romania through MobiFon S.A. and in the Czech Republic through Cesky Mobil a.s.. Shares of ClearWave are contained in Units traded on the TSE under the symbol "TIW.UN". ClearWave is a subsidiary of Telesystem International Wireless Inc. (TIW). About TIW TIW is a rapidly-growing, global mobile communications operator with over 4.8 million subscribers worldwide. The Company's shares are listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. ("TIW") and NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ("TIWI TIWI Telesystem International Wireless Incorporated (Montreal, Quebec, Canada) ").
CLEARWAVE N.V.
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SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA
(in thousands of US dollars, except operating and per share data)
---------------------------------------------------------------------
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Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
$ $ $ $
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(Unaudited) (Unaudited)
STATEMENTS OF LOSS
AND CASH FLOWS DATA:
Revenues 101,940 70,355 341,604 233,965
Operating loss (21,182) (6,559) (47,160) (3,780)
Interest expense, net (6,083) (6,041) (30,523) (21,122)
Foreign exchange (loss) (1,794) (8,479) (4,937) (15,167)
Gain on investments - 62,136 - 62,136
Net income/(loss) (5,962) 51,548 (19,102) 38,001
Net income/(loss)
per share (0.07) 0.61 (0.23) 0.45
Acquisitions of
capital assets 210,123 115,451 324,501 204,882
Investments - (74,894) 20,000 (74,894)
OPERATING DATA
EBITDA (1)(2) 3,801 7,581 40,861 48,473
As of December 31, 2000 As of December 31, 1999
$ $
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(unaudited)
BALANCE SHEET DATA:
Cash and cash
equivalents 121,229 25,877
Total assets 1,082,734 561,168
Short-term and
long-term debt 578,224 287,748
Funded capital(3) 185,332 128,187
Total shareholders'
equity 129,402 93,927
OVERVIEW OF OPERATIONS(4)
(as of December 31,2000)
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Start-up Licensed Total Equity
Date of POPs Sub- POPs Equity
Technology Operations (mil- scribers Equity (mil- Sub-
lions) (5) Interest lions) scribers
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Central/
Eastern Europe Cellular
------------------------
Romania GSM Q2 1997 22.5 1,171,800 58.9% 13.3 690,200
Czech
Republic GSM Q1 2000 10.3 301,700 21.6% 2.2 65,200
---- --------- ---- -------
32.8 1,473,500 15.5 755,400
(1) EBITDA represents operating income before depreciation and
amortization.
(2) EBITDA financial figures are not intended to represent any measure
of performance in accordance with generally accepted accounting
principles and may not be comparable to similarly titled measures
reported by other companies. Furthermore these measures do not
represent funds available for discretionary use nor are they a
source of liquidity. We disclose these measures as we use EBITDA
as a key performance indicator and proportionate financial figures
may be of use to certain investors.
(3) Proceeds from share issuance.
(4) The results of Mobifon (Romania) and Cesky Mobil (Czech Republic)
are fully consolidated.
(5) Figures include 590,400 and 216,300 prepaid subscribers in Romania
and Czech Republic respectively but excludes ISP subscribers.
Our web site addresses are: www.tiw.ca, www.oskar.cz, www.connex.ro |
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