Strong growth in the number of broadband customers, continued success for the domestic mobile business and a positive development for TDC Cable TV in 2006 helped TDC secure an overall increase in earnings before depreciation, amortization and special items (EBITDA) of 5 % to DKK 13.7bn. This appears from TDC's annual report which was published today.

TDC's revenue rose by 1.8 % to DKK 47.4bn, while net income excluding special items and fair value adjustments was DKK 3.4bn, down 28.5 % on 2005. The drop is caused by the changed capital structure, resulting in increased interest expenses.

The financial statements exceed the expectations announced by TDC in connection with the quarterly report for the third quarter 2006. This means that EBITDA is DKK 0.3bn higher than announced, while revenue is DKK 0.1bn higher.

"The Danish market is crucial to the future success of TDC, and it is therefore satisfactory that TDC keeps attracting more customers in Denmark, although competition is fierce. In order to maintain that growth we have a dedicated focus on improving our customer service and developing new customer-friendly services. It is also vital that we continue to rationalize and streamline our business," says President and CEO of TDC, Jens Alder.

In 2006 the number of TDC broadband customers grew by 32.5 % in Denmark, giving TDC more than 1.2 million broadband customers. The number of mobile customers rose by 7.5 % to 2.8 million, while the number of cable TV customers rose by 2.9 % to 1.1 million. This means that TDC now has a total of 7.8 million customers in Denmark, the equivalent of every Dane having almost one and a half customer relationship with TDC.

Revenue in the overall domestic business rose by 3.5 % to DKK 24.6bn, while EBITDA rose by 4.9 % to DKK 9.6bn. This means that the domestic market accounts for nearly half of TDC's total revenue and approx. 70 % of the Group's total EBITDA. 

Fierce competition on the Swiss market and a lower average exchange rate contributed to a drop in revenue and EBITDA in TDC Switzerland. Calculated in DKK, revenue dropped by 3.4 % to DKK 9.3bn, while EBITDA dropped by 1 % to DKK 2.6bn.

In TDC's German mobile company Talkline the number of customers grew by 9 % to 3.7 million, while EBITDA rose by 29.3 % to DKK 538m. The figures include German callmobile and divested service provider activities in the UK and the Netherlands.

In 2006, TDC's capital expenditures amounted to DKK 5.3bn, which were primarily used to expand and maintain the Danish telecommunications infrastructure. These expenditures have resulted in improved broadband speeds and a telecommunications network which is prepared for the convergent multimedia services of the future.  

TDC is expecting revenue for 2007 to be on par with 2006, as the continued decline in the traditional landline business and the effect of the disposal of the Baltic mobile company Bité are expected to be offset by continued growth in the broadband and mobile activities.

Net income is expected to drop by 5-10 % in 2007 due to increasing interest expenses resulting from the changed capital structure whose full-year effect will not materialize until 2007.

Key financial data

^{Note 1) Operating income (EBIT) is exclusive of special items.}

^{Note 2) Net income excluding special items and fair value adjustments, also excluding special items from income from associated enterprises and joint ventures as well as special items from income from discontinued operations.}

Press conference on the financial statements

TDC will hold a press conference on the annual report today, Thursday, February 22, at 11 am at Nørregade 21 in Copenhagen. Here President and CEO Jens Alder and CFO Hans Munk Nielsen will present the financial statements and answer questions.

See also the stock exchange release on the annual report at

http://tdc.com/ir/releases/

Further information:

TDC’s Press Secretariat on tel. +45 70 20 35 10 or tdc.com