Strong earnings and cash-flow performance despite continued deterioration in
the macroeconomic environment
•Group revenue of DKK 17,839m was level with 1H 2008:
•Nordic Business's revenue declined DKK 677m due to a negative impact from the
macroeconomic environment, lower domestic landline voice revenue, divestment
and outsourcing of business activi-ties (DKK (141)m) as well as a negative
currency impact of (DKK (192)m), partly offset by the net ef-fect of the
acquisitions of Fullrate and A+ (DKK 56m). Excluding the impacts from
divestments, acqui-sitions, outsourcing and currency, revenue in the Nordic
Business declined by approximately 2.0%
•Sunrise's revenue showed strong growth of DKK 591m due to favorable currency
impact (DKK 289m) and acquisition of Tele2 in November 2008 (DKK 337m), which
was counteracted by the divestment of SBC in July 2008 (DKK (191)m). Adjusted
for these impacts, Sunrise's revenue increased by ap-proximately 3.5%
•Despite the challenging macroeconomic environment, Income before depreciation,
amortization and spe-cial items (EBITDA) rose by 8.4% to DKK 6,337m:
•5.8% growth in Nordic Business's EBITDA resulted from necessary cost reductions
•20.4% growth in Sunrise's EBITDA is related to the acquisition of Tele2, a
favorable currency impact and growth in the residential mobile business
•Net income from continuing operations, excluding special items, increased by
DKK 123m or 5.6% to DKK 2,336m, reflecting higher EBITDA and lower net
financial expenses, counteracted by lower income from joint ventures and
associates
•Net income increased by DKK 85m to DKK 1,576m, reflecting higher EBITDA and
lower net financial ex-penses, counteracted by lower income from joint ventures
and associates
•Strong cash flow from operating activities, up by 55.1% or DKK 1,784m
•Outlook for 2009 remains unchanged: Revenue and net income from continuing
operations excluding special items are expected to be level with 2008
•Customer base growth of 7.1%
•The acquisitions of the broadband service providers Fullrate A/S and A+ were
consolidated in 2Q 2009
•TDC has returned to an accounting policy of expensing subscriber acquisition
costs as incurred
•TDC's 64.6% shareholding in Invitel is regarded as non-core business. TDC
intends to divest its share-holding in Invitel. Accordingly, Invitel's
operations are reclassified as ‘Discontinued operations' in TDC's consolidated
financial statements
•Net interest-bearing debt was DKK 30.4bn compared with DKK 42.0bn at 1H 2008.
Adjusted for the re-classification of Invitel as ‘Discontinued operations', net
interest-bearing debt was reduced by DKK 6.3bn to DKK 35.7bn.
For inquiries regarding the report please contact TDC Investor Relations at +45
6663 7680 or investorrelations@tdc.dk.
TDC A/S
Teglholmsgade 1
0900 Copenhagen C
tdc.com
