Positive trends in TDCs core busine

07/08/2013

TDCs core business is reflecting positive trends in performance. As presented in the Interim Report TDC's earnings within mobility services showed improved development in the second quarter of 2013 compared with many past consecutive quarters, and its overall landline business also improved.

TDC's Q2 performance meets expectations, and we therefore confirm our 2013 guidance. We are also pleased to reveal results that confirm our continuing positive trends in our traditional core business, mobile and landline telephony. We have successfully curbed the decrease in revenue per mobile user, and in terms of landline business, have attracted 22,000 more retail customers than one year ago. In other words, we have increased the number of broadband customers for the eighth consecutive quarter, says Carsten Dilling, TDCs President and CEO.

In Q2, TDC Group revenue totalled almost DKK 6.2bn, a decline of approximately 6.5% compared with Q2 2012. Almost half of the decrease was due to price regulations by the authorities in the telecommunications market. Revenue was also impacted to some extent by declining sales of mobile phones.

In the TV market, TDC has continued to grow its revenue, and the cable-TV business, YouSee, achieved rising profit (EBITDA) for the 50th consecutive quarter compared with the same quarter of the previous year. Growth in on-demand streaming of film and TV series continued at a very high level, and in Q2, the TDC Group increased its streaming events by 123% compared with Q2 2012.

In Q2, the Nordic market saw a slight decrease in revenue, but an improved earnings capacity and overall TDC Nordics EBITDA rose by almost 7% compared with Q2 2012.

Compared with Q2 2012, Group EBITDA, i.e. operating profit before interest, taxes, depreciation, amortisation, etc. decreased by 1.4% - an improvement on Q1 2013. For the first time in seven quarters, TDC recorded an increase in organic EBITDA, i.e. EBITDA excluding the effect of regulation by the authorities, fluctuating currency rates, and acquisitions and divestments.

In Q2, gross profit and EBITDA margins improved in all business areas in relation to Q1 2013 and Q2 2012.

We are continuing to roll out our 2015 strategy with a focus on integrated solutions for businesses and residential customers. The recently announced integration of TDC and YouSee is an important step in that direction. With Jens Aal se and Peter Schleidt as Senior Executive Vice Presidents, for TDC Channels and TDC Operations, respectively, joining the Executive Committee, we have gathered a perfect team to help implement the strategy smoothly and efficiently. The high customer satisfaction score first measured in 2012 remains clearly evident in 2013, showing that our customers genuinely appreciate TDC's ongoing transformation, says Carsten Dilling.

LINK:	http://press.tdc.com/press-releases/positive-trends-in-tdcs-core-busin...
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