Financial

-- Revenue down by 5.2%; organic revenue decreased by 3.6% in line with the
2013 level
-- Gross profit down by 2.5%, resulting in lowest organic gross profit decline
in 3 years (DKK 77m)
-- Timing of personnel-related savings fuelled higher than expected opex
savings (5.3%)
-- Almost flat EBITDA development (-0.3%) after 8 quarters with consecutive
EBITDA decline; organic EBITDA growth of 0.9%
-- Equity free cash flow as expected (DKK 381m); 20.3% YoY decline due to
different timing of tax payments
-- 2014 guidance after TDC Finland disposal: Organic revenue will decrease
less than in 2013 (2013: -3.5%), EBITDA > DKK 9.6bn, Capex of DKK 3.7bn and
DPS of DKK 3.70


Operational -- Challenging service level in call centres negatively affected
the recommend
score (-2 points vs. Q4) and level of unacceptable customer experiences
(-10 points vs. Q4); mitigation plan including increased staff in place
-- Residential mobile subscribers down 57k vs. Q4 affected by low ARPU churn
(31k) and aggressive competitor initiatives
-- Strong residential broadband net adds (10k vs. Q4) driven by YouSee
-- TV net adds of 18k vs. Q4 affected by strong intake in TDC brand/Fullrate
(12k), inclusion of a large antenna association (14k) in YouSee as reported
in Q4 2013, partly offset by a minor drop in individual customers as well
as leakage from antenna associations
-- The number of high ARPU households increased by 7% vs. Q4



TDC A/S
Teglholmsgade 1
0900 Copenhagen C
DK-Denmark
tdc.com

Release 9-2014 TDC_ER_Q1_2014 - UK.pdf