TDC publishes 3Q results

31 Oct 2007

Danish incumbent TDC has reported its results for the three months ended 30 September 2007. Total revenue amounted to DKK9.9 billion (USD1.9 billion) in 3Q 2007, down by 1.5% year-on-year. The fall is due to lower earnings from fixed line telephony. EBITDA decreased by 2.3% to DKK3.2 billion compared to the same period in 2006. Increases in EBITDA due to data communications and internet, and more domestic mobile customers, were more than offset by lower revenues, more cable faults and the sale and leaseback of properties. Adjusted net income for the third quarter was DKK677 million, down 8.4% year-on-year.

With effect from 1 July 2007, TDC underwent a restructuring. Its business segments now comprise Business Nordic (business customers), Fixnet Nordic (fixed line and internet), Mobile Nordic (mobile operations), YouSee (cable TV) and Sunrise (TDC’s Swiss activities). Other activities include International Holdings, IT Nordic and Headquarters. As a result of the changed capital structure, as well as the acquisition in January 2007 of Hungarian telco Invitel, TDC expects net income for 2007 to be approximately 20% less than the DKK3.4 billion recorded in 2006.

TDC’s customer base totalled 11.2 million customers at 30 September 2007, 7.2% less than the same date in 2007, attributable mainly to the divestment of Baltic cellco Bite in February 2007. This was partly offset by the acquisition of Invitel. The domestic customer base totaled 7.9 million, up 2.9% from a year ago, primarily the result of growth in the mobile, xDSL and cable-modem customer bases as well as more TV customers, partly counterbalanced by a decline in the number of wireline telephony and dial-up internet customers. The Danish mobile customer base increased by 10.8% to three million, while the number of domestic retail xDSL customers grew by 19.4% to 832,000. The total number of domestic retail broadband customers, including cable modem customers, increased by 16.5% to 1,138,000.

Denmark