Good results for TDC in difficult market

Good results for TDC in difficult market
TDC’s income before depreciation, amortization and special items (EBITDA) rose 11% on 1Q 2008 to DKK 3.7bn, and revenue remained stable at DKK 9.5bn, level with 1Q 2008, as reflected in TDC’s financial statements for the first quarter of 2009 published today.

”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,” says Henrik Poulsen, TDC’s President and CEO.

The increased EBITDA stems mainly from lower costs, and in 1Q 2009, TDC saw a higher earning capacity in all business areas in the Nordic Business. Although impacted by a decline in landline telephony, TDC’s earnings were boosted by an influx of customers within e.g. mobile telephony and mobile broadband, and by higher ARPU on TV.

In Sunrise, revenue in 1Q 2009 rose by 16.5% to DKK 2.4bn. Strong growth was generated by an encouraging exchange rate development, Sunrise’s acquisition of Tele2 and growth in customer intake and throughout all business areas. Sunrise’s EBITDA rose by 23.1% in 1Q 2009, reflecting the positive exchange rate development, acquisition of Tele2, 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,” says Henrik Poulsen.

Cash flow from operating activities grew by DKK 838m or 42.4%, and net interest-bearing debt fell by DKK 6.0bn to DKK 36.3bn compared with 1Q 2008.

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

Read the entire release here.

Key financial data
DKK million 1Q 2009 1Q 2008 Change in %
Revenue 9,513 9,502 0.1
EBITDA 3,697 3,332 11.0
EBITDA margin in % 38.9 35.1 -


Further information:
TDC Press Office, tel. +45 70 20 35 10
Tdc.com/press