TDC’s 2Q revenues rise by 6.2% thanks to mobile and broadband

5 Aug 2004

Danish incumbent TDC reported a 6.2% rise in net revenues for the second quarter of 2004 to DKK10.77 billion, from DKK10.14 billion in the same period of 2003, and EBITDA of DKK3.06 billion, up 10% year-on-year, thanks to the company’s mobile and broadband initiatives which offset declines at its traditional telephony operations. Net income in the three-month period dropped by 14.8% to DKK566 million, primarily as a result of the sale of Belgacom shares, without which TDC would have posted a 23.3% rise in net income. TDC’s total customer base stood at 13.187 million by the end of June, driven mainly by domestic and international mobile operations. TDC reported 2.392 million mobile subscribers in its home market at the end of Q2, up 5.9% or 134,000 users quarter-on-quarter. Internationally, its German unit Talkline had 2.28 million subscribers (24.6%, 2Q 2003), Lithuanian cellco Bite GSM had 739,000 (54.3%), and TDC Switzerland claimed 1.323 million mobile users (+11.3%). The number of ADSL users rose by 152,000 to 484,000, leading to a 20.6% growth in data communications and internet services revenues to DKK909 million. In addition, the company said its broadband rollout programme was being supplemented by the deployment of hotspots across Denmark, which now numbers more than 400. However, turnover from traditional telephony services continued to decline as customers migrate from landline to wireless services or IP-based networks. By 30 June the number of domestic landline customers (PSTN/ISDN) was 2.442 million, a decline of 5.9% year-on-year, while the number of internet dial-up accounts had decreased by 12.1% to 450,000.

Denmark