TDC braves Q1 2009 ‘extremely well’

7 May 2009

Danish telecoms company TDC has posted its fiscal results for the three months ended 31 March 2009, reporting a 11% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to DKK3.7 billion (USD661.2 million), attributed to lower costs. The company recorded revenues of DKK9.5 billion, remaining stable compared to the same period in 2008. However, net income decreased 6.8% year-on-year to DKK645 million and Business Nordic’s revenue decreased 6.9% to DKK2.83 billion in 1Q 2009 due to a significant unfavourable exchange rate development in Sweden and Norway. TDC’s president and CEO, Henrik Poulsen, commented: ’Despite the financial crisis, TDC braved the first quarter extremely well. Our targeted focus on cost reductions ensured significantly improved earnings, which is very satisfactory. However, we are still experiencing significant pressure on our top line.’

The company’s total customer base grew 3.5% to 12.2 million compared with the first quarter of 2008. The company’s domestic landline customers fell by 11.3% year-on-year in the first quarter of 2009 to 2.05 million, while international fixed line subscribers decreased 1.1% to 1.59 million. Broadband customers also declined; retail subscribers by 1.2% to 1.164 million, and wholesale 4.4% to 131,000. Meanwhile, mobile customers continued to grow, with domestic reaching 3.096 million at 31 March 2009, up 8.9% year-on-year, while international wireless subscribers rose 15.6% to 1.81 million.

TDC’s Swiss telco Sunrise reported revenue in 1Q 2009 of DKK2.4 billion, reflecting a year-on-year increase of 16.5%. Sunrise’s EBITDA rose 23.1% in 1Q 2009, reflecting positive exchange rate development, the acquisition of Tele2 Switzerland in November 2008, and increased earnings in the residential mobile market. ’I’m pleased that our efforts in Sunrise are starting to pay off. After a challenging 2008, we are clearly now on the right track,’ said Poulsen.

TDC’s outlook for full-year 2009 revenue and net income from continuing operations, excluding special items, remains level with 2008.

Denmark, Sunrise Communications