COPENHAGEN, Denmark, Nov. 4, 2002 (PRIMEZONE) -- TDC A/S (NYSE:TLD) today announced its results for 3Q2002
Highlights - 3Q 2002 compared with 3Q 2001: --EBITDA of DKK 3.9bn, up 18.1% --Net income(see Note) of DKK 718m, up 118% - TDC upgrades 2002 Outlook for EBITDA to DKK 14.2bn from DKK 14.0bn and net income to DKK 2.1bn from DKK 1.8bn - TDC sets preliminary Outlook for 2003 at DKK 54.5bn for net revenues, DKK 15.1bn for EBITDA and DKK 1.9bn for net income(see Note)
Group highlights 3Q 2002
The TDC Group today reported 3Q 2002 EBITDA of DKK 3,861m, up 18.1%. Net income(see Note) totaled DKK 718m, up 118%.
Capital expenditures excluding share acquisitions totaled DKK 1,785m, a 39% reduction compared with 3Q 2001. A part of this reduction relates to the acquisition of a Danish UMTS license in 3Q 2001.
"The solid results in 3Q reflect TDC's focus on execution of plans and strategy. TDC Switzerland continued its impressive growth with a 28% increase in mobile revenues as well as further improvement in EBITDA margin. As a consequence of our strong performance we upgrade the EBITDA and net income(see Note) Outlook for 2002 to DKK 14.2bn and DKK 2.1bn, respectively," said Henning Dyremose, President and CEO of TDC. "Based on the solid performance for 2002 we issue a preliminary Outlook 2003 with the target of reaching net revenues of DKK 54.5bn, EBITDA of DKK 15.1bn and net income(see Note) of DKK 1.9bn."
Net revenues in 3Q 2002 were DKK 12,843m compared with DKK 12,928m. Adjusted for the restructuring of Talkline and deconsolidation of Ben, net revenues grew 4.4%. The underlying performance reflects an improvement in TDC Switzerland and TDC Internet.
EBITDA rose 18.1% or DKK 592m to DKK 3,861m, driven mainly by improvements in TDC Switzerland, TDC Internet and TDC Mobile International, which offset a decrease in TDC Tele Danmark. Adjusted for restructuring of Talkline and de-consolidation of Ben, EBITDA grew 15.7%.
EBIT(see Note) rose 57% to DKK 1,647m, driven by the above mentioned EBITDA improvements. Net financials(see Note) were DKK (336)m, compared with DKK (347)m in 3Q 2001. Income before income taxes(see Note) rose to DKK 1,311m from DKK 701m in 3Q 2001.
Income taxes(see Note) totaled DKK 581m compared with DKK 481m in 3Q 2001, reflecting improved income before income taxes, partly offset by capitalization of tax assets in TDC Switzerland.
Minority interest totaled DKK (12)m compared with DKK 109m, reflecting primarily improved performance in TDC Switzerland.
Net income(see Note) rose to DKK 718m compared with DKK 329m in 3Q 2001, reflecting primarily the strong operating performance, partly offset by lower contribution from minority interests. One-time items include an impairment charge of DKK 779m after tax, related to write-down of goodwill and other assets, due to reduced expectations regarding future cash flows from Contactel and TDC Internet Polska.
Fair value adjustments were DKK 2,793m after tax, related to the divestment of the Dutch mobile operator Ben, including TDC's pro rata share of Belgacom's divestment of Ben. Similarly, TDC's net proceeds from the transaction were DKK 4.2bn.
Net income including one-time items and fair value adjustment of minority passive investments totaled DKK 2,732m in 3Q 2002. Cash flow from operations doubled to DKK 4,100m compared with 3Q 2001, reflecting higher EBITDA as well as improved working capital. In addition, cash flow from investing activities improved DKK 5,581m to DKK 2,781m compared with 3Q 2001 due primarily to lower capital expenditures and proceeds from TDC's sale of Ben including TDC's indirect share from Belgacom.
Capital expenditures excluding share acquisitions were DKK 1,785m, down from DKK 2,950m in 3Q 2001. 3Q 2001 included investment in a Danish UMTS license of DKK 768m. Adjusted for UMTS, capital expenditures in 3Q 2001 was 18.2% lower than in 3Q 2001. Similarly, the capex to sales ratio was 13.9% in 3Q 2002 compared with 16.9% in 3Q 2001.
Net interest bearing debt was DKK 27.8bn by the end of 3Q 2002, a reduction of DKK 6.8bn from the beginning of the year, primarily reflecting the proceeds of the sale of Ben shares.
The minority shareowners of TDC Switzerland have a right to sell their shares in the company to TDC at a price determined when TDC Switzerland was established. The potential cash outlay for TDC is up to DKK 8.5bn and payable in early 2003.
TDC's total pro rata customer base was 13.4m, unchanged from a year ago. Adjusted for restructuring of Talkline and the sale of Ben, the total number of customers grew 6.5%. The number of mobile customers grew 3.1% to 6.63m and the number of cable-TV customers increased 6.9% to 870,000. However, Internet customers decreased 1.9% to 1.44m, which related primarily to the closure of Talkline Internet activities. The number of landline customers was 4.45m, a reduction of 6.0% due partly to the restructuring of Talkline.
TDC's domestic broadband customer base totaled 252,000, up from 83,000 a year ago and comprised 219,000 ADSL customers and 33,000 high-speed cable modem customers.
NOTE: Excluding one-time items and fair value adjustments of minority passive investments
This entire 17-page Earnings Report, including financial tables and conference call information, can be accessed by clicking the following link: http://reports.huginonline.com/879991/109854.pdf