TDC posts falls in revenue, EBITDA and profit

Danish incumbent TDC’s revenue for the first three months of 2008 declined by 0.7% year-on-year to DKK9.6 billion (USD1.99 billion). EBITDA decreased by 3.5% to DKK3.0 billion, while adjusted net profit was down 3.1% on a year earlier to DKK708 million. Lower revenue from traditional landline telephony, lower mobile termination rates and roaming prices as well as fewer wholesale customers all contributed to the fall in earnings, which was partially offset by increased broadband and cable TV customers as well as more mobile customers for the domestic Mobile Nordic business and wholly-owned Swiss cellco Sunrise. Increased customeracquisition costs were a factor in the decreased EBITDA, as well as growing costs in relation to the sale and leaseback of properties. CEO Jens Alder said, ‘We continue to see a strong pressure on both earnings and revenue in the domestic market due to falling prices, but at the same time, we strengthen our market position by increasing the number of broadband, mobile and TV customers…In the current market situation, it is imperative that we continue to focus intensively on measures to enhance efficiency and cost reductions across the entire TDC Group, in order to meet our targets for 2008.’ TDC’s full-year expectation for 2008 is an increased net income from continuing operations, excluding special items and fair value adjustments, of 10-20%.