TDC 1H: sales fall, profits fall further

15 Aug 2008

Danish telco TDC has reported a 1.3% decline in first half revenues to DKK19.45 billion (USD3.87 billion) compared to the same period of 2007, as a result of lower revenue from traditional landline telephony, divestment of its International Voice Business and lower roaming prices. This was partially offset by a rising wireless and broadband customer base and the divestment of its Baltic subsidiary Bite. EBITA for the six months ended 30 June 2008 increased by 2.2% to DKK6.29 billion, allowing the EBITDA margin to rise from 31.2% to 32.3%. Net income slipped from DKK2.88 billion in 1H 2007 to DKK1.48 billion. The decrease related mainly to the one-off gain from the sale of Bite in 1H 2007.

Operationally, TDC’s total customer base stood at 11.6 million at the end of June 2008, up 4.3% in twelve months. Its domestic customer base slipped by 0.9% to 7.8 million, largely as a result of fewer landline and dial-up internet customers. International customers, made up of the group’s operations in Switzerland, Hungary and elsewhere, numbered 3.76 million.