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TDC reports revenue up 2.5% to DKK10.05B, thanks to growth in domestic mobile and cable TV customers
August 13, 2007
2 Min Read
COPENHAGEN -- Highlights for 2Q 2007
Revenue up 2.5% to DKK 10,052m, attributable to more domestic mobile and cable TV customers. Adjusted for acquisition and divestment of companies, revenue was up 3.3%.
EBITDA up 2.6% to DKK 3,075m, impacted by the acquisition of Invitel and the divestment of Bité. Adjusted for acquisitions and divestments of companies, EBITDA was up 1.6% compared with (1.3)% in 2Q 2006. The growth in 2Q 2007 is mainly related to a higher level of the domestic mobile and internet customer base partly counteracted by an unfavorable development in the Swiss exchange rate, more cable fault corrections and higher customer acquisition costs.
Outlook for 2007
Revenue is expected to increase slightly compared with 2006, as the continued growth in broadband and mobile activities along with the acquisition of Invitel more than offset the decrease in the landline business and the impact of the divestment of Bité.
Net income is expected to decrease approximately 20% in 2007, as result of changed capital structure and acquisition of Invitel. The estimated impact from the amendment to the corporate tax legislation has been included in the outlook for net income.
TDC continues to attract more customers in the Danish market for TV, mobile and broadband services, while revenue and earnings are increasing in the business segment in the Nordic market. This appears from the financial statements for 2Q 2007, which were published today.
"It is satisfactory that we continue to enjoy growth, but market developments point towards increased competition and lower prices. This affects our earnings, and it takes time to adapt our activities to these market conditions," says President and CEO Jens Alder.
A small revenue increase is expected for all of 2007 compared with 2006. Net income is expected to decrease by approx. 20 per cent compared with a previously announced expected decrease of 5-10 per cent. The downward adjustment is attributable to the general earnings pressure, rising interest expenses and the acquisition of Invitel in Hungary.
"The declining earnings emphasise how important it is for us to maintain our focus on streamlining our processes. At the same time, our efforts are targeted at improving our customer service," says Jens Alder.
Seen in isolation, the financial statements for 2Q 2007 show an increase in both earnings and revenue compared with the same period last year, but the increase is primarily due to the comparison being made with a relatively weak 2Q 2006.
The 2Q revenue amounted to DKK 10.1bn, corresponding to a 2.5 per cent increase compared with 2Q 2006. Earnings before depreciation etc. (EBITDA) increased by 2.6 per cent to DKK 3.1bn. Adjusted for acquired and divested companies, the revenue increased by 3.3 per cent and EBITDA by 1.6 per cent.
TDC A/S (Copenhagen: TDC)
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