TDC: Satisfied earnings in 2008

TDC: Satisfied earnings in 2008

TDC’s income before depreciation, amortization and special items (EBITDA) rose by 5.4% to DKK 13.2bn in 2008. The increase is due to cost reductions and growth in the cable-TV market among other things, says TDC’s years earnings release published today.

“Considering the full year, we can be satisfied with the result. The strong focus on cost reductions has meant that we have been able to secure a healthy increase in earnings,” says CEO of TDC, Henrik Poulsen.

Revenue decreased by 1.3% to DKK 38.8bn in 2008. The decrease is partly due to a decline in the Danish fixnet business and lower roaming prices.

“We experience a constant pressure on our top line, which is further worsened by the global economic halt. This is the reason why we will focus our energy on market oriented actions in 2009 combined with a tight control of our cost levels,” says Henrik Poulsen.

The sale of Polkomtel has contributed to a considerable reduction of TDC’s net interest-bearing debt. During 2008 the net interest-bearing debt was down by DKK 6.3bn to DKK 35.1 bn.

Earnings in TDC-owned Swiss telco, Sunrise, are less satisfactory. Earnings fell from DKK 2.4 bn in 2007 to DKK 2.2 bn in 2008.

In 2009 revenue and net income from continuing operations, excluding special items, are expected to be on level with 2008.

DKK m. 2008 2007 Change in %
Revenue 38,819 39,321 (1.3)
Income before depreciation, amortization and special items (EBITDA) 13,175 12,498 5.4
Net income excluding special items 4,270 2,552 67.3
EBITDA-margin in pct. 33.9 31.8 -

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