Press Releases
TDC expects increased revenue and earnings in 2008
Improvement of efficiency in operations and decreasing interest expenses will contribute to increased earnings in 2008. Net income from continuing operations is expected to increase 10%-20%.
TDC further expects revenue to increase slightly in 2008, mainly due to growth in YouSee and Mobile Nordic. This appears from TDC's earnings release, released today.
"2008 will start showing the results of our new focused strategy. In many ways, 2007 was a year of transformation. The many new initiatives were resource demanding and had a negative impact on last year's results," says President and CEO of TDC, Mr. Jens Alder.
In 2007, TDC's revenue declined by 1.6% to DKK 39.3bn. Earnings before depreciation, amortization and special items (EBITDA) decreased by 3.8% to DKK 12.5bn. The decrease is primarily due to increased outsourcing expenses and higher cable fault expenses.
Net income amounted to DKK 8.2bn, up 137.2% compared to 2006 with net income of DKK 3.4bn. Net income was positively impacted by 8.1bn by the divestments of Talkline, Bité and One and sale and leaseback of properties, whereas write-downs in Sunrise contributed negatively with DKK 2.5bn.
The divestments and the cash flow from the operating activities have also enabled TDC to reduce net debt considerably. During 2007, net interest-bearing debt is down by DKK 13.8bn to DKK 41.4bn.
"Our debt repayment has been higher than expected, thus strengthening our financial resources considerably," Jens Alder emphasizes.
Compared to end 2006, TDC's equity is up from DKK 3.6bn to DKK 10.4bn.
TDC's board of directors proposes a dividend payment of DKK 3.60 per share, equivalent to DKK 714m. For 2006, the dividend payment was DKK 3.50 per share.
Financial highlights
|
DKKm |
2006 |
2007 |
Change in % |
|
Revenues |
39,941 |
39,321 |
(1.6) |
|
Earnings before depreciation and amortization (EBITDA) |
12,991 |
12,498 |
(3.8) |
|
Earnings before net financials and taxes (EBIT) (note 1) |
6,500 |
6,271 |
(3.5) |
|
Special items and fair value adjustments (note 2) |
81 |
5,179 |
- |
|
Net income |
3,443 |
8,167 |
137.2 |
|
EBITDA margin in % |
32.5 |
31.8 |
- |
Note 1) Excluding special items.
Note 2) Including special items concerning closed activities and special items concerning associated companies and joint ventures.
Press conference on the earnings release
TDC will hold a press conference on the earnings release today, Thursday, February 21 at 11.30 a.m., in Nørregade 21, Copenhagen. At the press conference, President and CEO Mr. Jens Alder and Chief Financial Officer Mr. Jesper Ovesen will present the earnings release and answer questions.
Further information:
TDC's Press Office on tel. +45 70 20 35 10
tdc.com
Contact
The task of TDC Press is to ensure the media a quick and professional service.
During the week, TDC Press is open to the press from 8:00 a.m. to 4:30 p.m. However, any calls to our main number +45 70 20 35 10 will be answered 24 hours a day - all year round.
Naturally, you are more than welcome to contact one of us directly.
TDC Press
Teglholmsgade 1, G-455
0900 Copenhagen C
Denmark
Contact for the media: +45 70 20 35 10
E-mail: tdcpresse@tdc.dk