TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

Gross profit
Gross profit in Wholesale increased by DKK 4.0m or 0.3%,
while the gross profit margin increased from 59.6% to
62.0%.
The gross profit margin increase was driven by 8.6% lower
network costs, allocated from Operations, as a
consequence of efficiency improvements. Moreover,
Wholesale has been positively affected by various one-offs
in both 2010 and 2011. In 2011, the one-offs affected
transmission costs and thus had a positive impact on the
GP margin development. The one-offs related mainly to
roaming and mast rental settlements regarding previous
years.
The gross profit margin increase was counteracted by price
regulation on international roaming and internal transfer of
high margin fibre customers to Consumer. The margin was
also negatively affected by a changed product mix away
from high-margin products (primarily landline, SP and
broadband) towards lower margin products (primarily
MVNO and capacity).
EBITDA
Wholesale's EBITDA increased by DKK 36m or 3.6% to DKK
1,031m in 2011, which related primarily to savings on IT, as
well as on consultants and facility management.
Wages, salaries and pension costs increased marginally,
resulting from the transfer of staff functions to Wholesale
and an increase of 32 employees following the acquisition
of an IT-platform from Zitcom. Excluding these factors, the
number of employees decreased by 15.7%.
The cost savings were carried out while Wholesale
completed a reorganisation to increase both its commercial
focus and emphasis on an increased focus on segments
and channels to achieve a more proactive sales approach
through TDC 2.0. This was combined with continued work
with the TAK programme, which increased customer
satisfaction from 63 in Q4 2010 to 69 in Q4 2011.
TDC Group Annual Report 2011
Financial highlights
Wholesale 2011 2010 Change in %
DKKm
Revenue 2,153 2,234 (3.6)
Landline telephony 483 525 (8.0)
Mobility services 596 586 1.7
Internet and network 886 931 (4.8)
Other¹
Transmission costs and
188 192 (2.1)
cost of goods sold (818) (903) 9.4
Gross profit 1,335 1,331 0.3
External expenses
Wages, salaries and
(198) (230) 13.9
pension costs
Other income and
(107) (106) (0.9)
expenses
EBITDA before pension
1 - -
income 1,031 995 3.6
Pension income - - -
EBITDA 1,031 995 3.6
Gross profit margin % 62.0 59.6 -
EBITDA margin % 47.9 44.5 -
Organic revenue² DKKm 2,153 2,158 (0.2)
Organic EBITDA² DKKm 1,031 946 9.0
¹ Includes rent of mobile sites.
² Reported revenue and EBITDA excluding impact from acquisitions and divestments as
well as the impact of regulatory price adjustments.
Selected operational data
Wholesale
31 Dec.
2011
31 Dec.
2010 Change in %
RGU base ('000)
Landline 202 220 (8.2)
Mobile voice 201 187 7.5
Mobile broadband 2 2 -
Internet
Other networks and data
348 369 (5.7)
connections 8 10 (20.0)
TDC TV 3 2 50.0
RGU base, total 764 790 (3.3)
ARPU DKK / month
PSTN/ISDN 98 100 (2.0)
Mobile voice, Service Provider 89 127 (29.9)
FTEs
Number of FTEs (EoY) 190 178 6.7
Average number of FTEs 178 189 (5.8)
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