Satisfactory EBITDA and cash flow results in Q1

Financial

Revenue down by 5.2%; organic revenue decreased by 3.6% in line with the 2013 level
Gross profit down by 2.5%, resulting in lowest organic gross profit decline in 3 years (DKK 77m)
Timing of personnel-related savings fuelled higher than expected opex savings (5.3%)
Almost flat EBITDA development (-0.3%) after 8 quarters with consecutive EBITDA decline; organic EBITDA growth of 0.9%
Equity free cash flow as expected (DKK 381m); 20.3% YoY decline due to different timing of tax payments
2014 guidance after TDC Finland disposal: Organic revenue will decrease less than in 2013 (2013: -3.5%), EBITDA > DKK 9.6bn, Capex of DKK 3.7bn and DPS of DKK 3.70

Operational

Challenging service level in call centres negatively affected the recommend score (-2 points vs. Q4) and level of unacceptable customer experiences (-10 points vs. Q4); mitigation plan including increased staff in place
Residential mobile subscribers down 57k vs. Q4 affected by low ARPU churn (31k) and aggressive competitor initiatives
Strong residential broadband net adds (10k vs. Q4) driven by YouSee
TV net adds of 18k vs. Q4 affected by strong intake in TDC brand/Fullrate (12k), inclusion of a large antenna association (14k) in YouSee as reported in Q4 2013, partly offset by a minor drop in individual customers as well as leakage from antenna associations
The number of high ARPU households increased by 7% vs. Q4

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