TDC Reports Q2 Profit Growth

TDC posts revenues of DKK 11.7B, up 8.5% year on year; upgrades guidance for 2005 revenue and income

August 4, 2005

2 Min Read

COPENHAGEN, Denmark -- In 2Q 2005, TDC's net revenues grew by 8.5% to DKK 11.693m compared with 2Q 2004 and earnings before interest, tax, depreciation, amortization and one-time items (EBITDA) grew 7.3% to DKK 3,287m. Net income, excluding one-time items and fair value adjustments was DKK 1,366m, up 42.3%.

Capital expenditures, excluding share acquisitions, grew 3.7% to DKK 1,294m. The capex-to-net revenues ratio decreased from 11.6% to 11.1%.

TDC's customer base grew by 9.8% to 14.1m, driven mainly by the progress in TDC Mobile International's international mobile operations.

"We are pleased to report continued growth and momentum in TDC's earnings and intake of new customers in our focus areas: broadband and mobile services. Our increased investments in the broadband rollout and third generation mobile networks have together with our focused acquisition path strengthened our market positions. Hence, we have a good platform for further progress in earnings," says Henning Dyremose, president and CEO.

Net revenues

TDC's net revenues amounted to DKK 11,693m in 2Q 2005, up DKK 921m or 8.5%, and mainly reflecting increased sales in TDC Solutions. Adjusted for the acquisition of TDC Song, HTCC and NetDesign, and for the divestment of Dan Net and Talkline ID, the net revenues grew 4.5%.

Operating expenses

Total operating expenses grew 8.3% to DKK 8,444m. Transmission cost and costs of goods sold increased 8.7% to DKK 4,232m, while wages, salaries and pension costs increased 7.3% to DKK 2,026m, and other external expenses increased 8.6% to DKK 2,186m. These increases are mainly attributable to the inclusion of TDC Song and HTCC, partly offset by the sale of Talkline ID.

Net income

Net income, including one-time items and fair value adjustments came to DKK 1,357m, compared with DKK 976m in 2Q 2004. Net income, excluding one-time items and fair value adjustments was DKK 1,366m, up 42.3%.


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