Highlights
• Revenue declined by 1.3% to DKK 19,456m compared with 1H 2007 due to lower
revenue from traditional landline telephony, divestment of International Voice
Business, lower sales in TDC Shop, lower roaming prices as well as fewer
landline and mobile wholesale customers. This was partly offset by more
broadband and cable-TV customers as well as more mobile customers in Sunrise
and Mobile Nordic. Further, a positive net impact was achieved from HTCC's
acquisitions and the divestment of Bité. Adjusted for acquisitions and
divestments of enterprises, revenue declined by 3.4%.
• EBITDA increased by 2.2% to DKK 6,294m compared with 1H 2007 due to the
increased customer base in TV and broadband, lower wages, salaries and pension
costs as well as lower operating expenses resulting from lower traffic in
traditional landline telephony. Further, a positive net impact was achieved
from HTCC's acquisitions and the divestment of Bité in addition to gains from
the divestment of small business activities. This was partly counterbalanced by
lower income from traditional landline telephony, the divestment of
International Voice Business, sale and lease back of properties, higher
customer acquisition and retention costs due to growth in customer intake as
well as one-off expenses related to the sale of uncollectibles in Sunrise. The
EBITDA margin improved from 31.2% to 32.3%. Adjusted for acquisitions and
divestments of enterprises, EBITDA declined by 0.8%, reflecting a 2.1% increase
in the Nordic business and a 13.2% decline in Sunrise.
• Operating income (EBIT), excluding special items, increased by 9.0% to DKK
3,438m.
• Net income declined to DKK 1,481m compared with DKK 2,881m in 1H 2007, due to
the gain from the divestment of Bité in 1H 2007.
• Net income from continuing operations, excluding special items and fair value
adjustments, rose by 14.6% to DKK 1,669m.
• Total cash flow declined to DKK (4,976)m compared with DKK (1,543)m in 1H
2007, due to the divest-ment of Bité in 1H 2007.
• Net interest-bearing debt was down by DKK 11,797m to DKK 42,021m.
• Pierre Danon was elected as a new member of TDC A/S' Board of Directors.
• HTCC reviews its strategic alternatives.
Outlook for 2008
• Revenue is expected to be level with 2007, as the full-year effect of HTCC's
acquisitions and growth in YouSee, is expected to offset declining revenue in
the domestic landline business and Sunrise.
• Net income from continuing operations, excluding special items and fair value
adjustments, is expected to increase by 10%-20%. More efficient operations and
decreasing interest expenses will be partly offset by higher taxes from the
full-year effect of the tax legislation amendments in 2007.
Please read the full report attached to the link below.
For inquiries regarding the report please contact TDC Investor Relations at +45
6663 7680.
TDC A/S
Teglholmsgade 1
0900 Copenhagen C
DK-Denmark
tdc.com
