Tele Danmark Announces 1999 Financial Results.Business Editors COPENHAGEN Copenhagen (kō`pənhā'gən, –hä'gən), Dan. København (kö'bənhoun`), city (1992 pop. 464,566; metropolitan area 1,339,395), capital of Denmark and of Copenhagen co. , Denmark--(BUSINESS WIRE)--Feb. 23, 2000 Tele Danmark A/S (NYSE NYSE See: New York Stock Exchange : TLD (Top Level Domain) The highest level domain category in the Internet domain naming system. There are two types: the generic top level domains (gTLDs) such as .com, .org, and .net, and the country codes, such as .ca, .uk and .jp. See gTLD and Internet domain name. ), the Danish-based European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. communications solutions provider, today reported its 1999 financial results. Highlights -- Contactel, Czech Republic, an Internet service provider we established as a 50/50 joint venture with Ceske Radiokomunikace -- Sunrise, Switzerland, the landline and Internet provider in which we increased our ownership stake from 37.2% to 43.9% -- Talkline NL, Holland, the Internet and cellular provider in which we increased our ownership stake from 90% to 100% -- NetCom ASA, Norway, an acquisition of 20.4% -- Lokaldelen AB, the second-largest directory service in Sweden, of which we acquired 100% -- InterNordia, Sweden, our terminal equipment provider, in which we increased our ownership stake from 50% to 100% -- Bite, Lithuania, our cellular operator, in which we increased our ownership stake from 71.6% to 100% as of January 2000 -- El Tele 0st, a Norwegian backbone and business customer provider, of which we acquired 51% -- Mediaforlaget Foretagstele AB, a Swedish directory service, of which we acquired 100% effective January 2000 -- DanNet A/S, Denmark, our electronic data interchange provider, in which we increased our ownership stake from 50% to 100% Knud Heinesen, Chairman of the Board, commented: "These strong results were achieved through solid advances in total operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from domestic businesses and very strong growth in revenues and operating income from international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . Tele Danmark enhanced its business potential through ten acquisitions in 1999, which bodes well for future expansion and value creation. Our enthusiastic and dedicated workforce is the basis for our leadership position, and we will continue to invest in growing our business towards achieving our goal of being the best provider of communications solutions in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ."
Group overview
DKKm 1998 1999 % Change(1)
Net revenues(2) 33,989 38,206 12.4
Earnings before interest, taxes,
depreciation and amortization
(EBITDA) 10,389 11,655 12.2
Total operating income before
one-time items 5,298 6,350 19.9
One-time items, net(3) 699 0 NM
Total operating income (EBIT) 5,997 6,350 5.9
Net income 4,013 3,513 (12.5)
Net income before
one-time items 3,140 3,513 11.9
Shares issued (million) 216.5 216.5 0
Earnings per share before
one-time items (DKK) 13.61 16.23 19.2
Pro forma EPS (DKK) (4) 16.49 19.41 17.7
Capital expenditures 7,617 11,013 44.6
(1) FY 99 vs. FY 98.
(2) Adjusted for the divestment of Pannon and DanaData in 1998, net
revenues grew 14.0%.
(3) 1998 includes the divestment of DanaData resulting in a DKK 221m
tax-free gain, the sale of Pannon shares resulting in income of
DKK 1,007m and write-downs on net assets of DKK (529)m.
(4) Pro forma EPS is earnings per share before one-time items and
before goodwill amortization related to acquisitions, etc.
NM = Not meaningful
1999 was yet another successful year for Tele Danmark. Net revenues increased 12.4% to DKK DKK In currencies, this is the abbreviation for the Danish Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 38.2bn and we achieved record net income of DKK 3.5bn, an increase of 11.9%, adjusted for one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items. Earnings per share, excluding goodwill amortization and one-time items, increased 17.7% to DKK 19.41. The number of subscribers on a pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend basis increased 18.6% to 9.2m at Group level. Similarly the number of cellular users grew 40.5% to 3.2m. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the dial-up Refers to using the regular "dial-up" telephone network to send data from a computer to a remote network or to a remote device. The computer's digital data are converted to analog signals in the same frequency range as human voice by a modem. subscribers grew 101% to 657,000 and landline Land based. Refers to standard telephone and data communications systems that use in-ground and telephone pole cables in contrast to wireless cellular and satellite services. customers increased slightly to 4.4m. Tele Danmark domestic now has 260,000 Duet customers, an increase of 40.6%, and 240,000 ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. 2 subscribers, an increase of 114%. The number of cable television customers was 825.000 at the end of 1999. International revenues accounted for 42% of Group revenues compared with 38% in 1998.
Domestic activities
DKKm 1998 1999 % Change
Net revenues(1) 21,031 22,063 4.9
Total revenues 22,221 23,415 5.4
Total operating expenses (13,647) (14,112) (3.4)
Earnings before interest, taxes,
depreciation and amortization
(EBITDA) 8,574 9,303 8.5
Depreciation, amortization etc. (3,496) (3,431) 1.8
Total operating income before
one-time items 5,078 5,872 15.6
One-time items(2) (289) 0 NM
Total operating income (EBIT) 4,789 5,872 22.6
(1) Adjusted for the discontinued activities in DanaData, which were
divested in 1998, net revenues increased by 6.3% from FY98 to
FY99.
(2) Includes a DKK 221m tax-free gain on the divestment of DanaData
in 1998 and write-downs on property, plant and equipment of DKK
(510)m.
NM = Not meaningful
With regard to continuing domestic operations, net revenues increased by 6.3% to DKK 22.1bn. Earnings before interest, tax, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) were DKK 9.3bn, an increase of 8.5%. Total operating income before one-time items was DKK 5.9bn, an impressive growth of 15.6%. "In 1999, we changed our domestic business structure to a convergence-oriented functional organization," said Henning Henning is a surname with origins in Northern Germany (see Henning (surname)). It originates as a given name from either Heinrich or Johannes. In Germany and nordic countries it is used as a given name as much as a surname. Dyremose, Chief Executive Officer. "The new business model optimizes our resources in sales & marketing, product development and network infrastructure units. It enables us to be responsive and flexible to customer needs and market changes, which enhances our customer satisfaction. Combined with our ongoing introduction of innovative communications solutions, it will capture future market growth and bring value to our customers and shareholders." "In 1999, we expanded our business by focusing on key growth areas: Internet, customer calling services, data services, cellular and international activities. Our successes in our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. focus areas have resulted in continuous improvement of our revenue and income growth capability," Henning Dyremose said. "Our stringent cost control and capital allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. programs add to the positive development of our domestic business." Tele Danmark's 1999 domestic highlights: -- Contactel, Czech Republic, an Internet service provider we established as a 50/50 joint venture with Ceske Radiokomunikace -- Sunrise, Switzerland, the landline and Internet provider in which we increased our ownership stake from 37.2% to 43.9% -- Talkline NL, Holland, the Internet and cellular provider in which we increased our ownership stake from 90% to 100% -- NetCom ASA, Norway, an acquisition of 20.4% -- Lokaldelen AB, the second-largest directory service in Sweden, of which we acquired 100% -- InterNordia, Sweden, our terminal equipment provider, in which we increased our ownership stake from 50% to 100% -- Bite, Lithuania, our cellular operator, in which we increased our ownership stake from 71.6% to 100% as of January 2000 -- El Tele 0st, a Norwegian backbone and business customer provider, of which we acquired 51% -- Mediaforlaget Foretagstele AB, a Swedish directory service, of which we acquired 100% effective January 2000 -- DanNet A/S, Denmark, our electronic data interchange provider, in which we increased our ownership stake from 50% to 100% By the end of 1999, Tele Danmark's domestic operations had 3.6 million subscriber lines The line from the customer site to the local telephone company. See subscriber network. , 1,311,000 cellular users, 393,000 Internet dial-up subscribers, 240,000 ISDN2 subscribers and 825,000 cable-TV users. In domestic operations, we are continuously improving our communications platform and the solutions we provide in order to establish tomorrow's growth drivers. This is evidenced by our successful launch in the second half of 1999 of CellFun, an SMS-based content service; our launch of the Net Express ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line service; our introduction of advanced business communications solutions such as Bornholm Bornholm (bôrn`hôlm), county (1992 pop. 45,541), 227 sq mi (588 sq km), extreme E Denmark, in the Baltic Sea, near Sweden, consisting mainly of the island of Bornholm, which constitutes almost all of the land area and population of the Net and Plus Net; and web-hosting and web-design activities. Accommodating customer needs for integrated, task-specific communications solutions not only enhances customer loyalty and enthusiasm, but also moves our services up the value chain by differentiating our services and products from those of our competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. . Our convergent con·ver·gence n. 1. The act, condition, quality, or fact of converging. 2. Mathematics The property or manner of approaching a limit, such as a point, line, function, or value. 3. business platform will ensure that our technological and strategic strengths are optimized in order to capture as much future growth as possible. Domestic operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 3.4% to DKK 14.1bn in 1999. This growth is related to expanding data and cellular activities. An increased educational effort reflects our comprehensive focus on developing our human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. .
International activities
DKKm 1998 1999 % Change
Net revenues
Talkline 5,751 7,042 22.4
Other activities 7,207 9,101 26.3
Net revenues (1) 12,958 16,143 24.6
Total revenues 13,460 16,801 24.8
Total operating expenses (11,645) (14,449) (24.1)
EBITDA
Talkline (139) 270 NM
Other activities 1,954 2,082 6.5
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)(1) 1,815 2,352 29.6
Depreciation, amortization, etc. (1,595) (1,873) (17.4)
Total operating income before
one-time items 220 479 117.5
One-time items(2) 988 0 NM
Total operating income (EBIT) 1,208 479 NM
(1) Adjusted for the discontinued activities in Pannon, which were
divested in 1998, net revenues increased by 26.5% from FY98 to
FY99. Adjusted EBITDA grew by 35.4%.
(2) Includes the sale of shares in Pannon resulting in income of DKK
1,007m and write-downs on property, plant and equipment of DKK
(19)m.
NM = Not meaningful
With regard to continuing international operations, net revenues increased 26.5% to DKK 16.1bn in 1999; earnings before interest, tax, depreciation and amortization (EBITDA) totaled DKK 2.4bn, an increase of 35%. Total operating income before one-time items was DKK 479m, an increase of 118%. The strong increase in revenues and income reflects rapid growth in all of Tele Danmark's international activities. International activities generated 42% of the Group's net revenues in 1999, compared with 38% in 1998. The number of pro-rata customers in our international operations grew 38% to 3.4m. In cellular we saw an increase of 47% to 1.9m, in landline 15% growth to 1.2m and in Internet 147% growth to 264,000 subscribers. Tele Danmark 1999 international highlights: -- Contactel, Czech Republic, an Internet service provider we established as a 50/50 joint venture with Ceske Radiokomunikace -- Sunrise, Switzerland, the landline and Internet provider in which we increased our ownership stake from 37.2% to 43.9% -- Talkline NL, Holland, the Internet and cellular provider in which we increased our ownership stake from 90% to 100% -- NetCom ASA, Norway, an acquisition of 20.4% -- Lokaldelen AB, the second-largest directory service in Sweden, of which we acquired 100% -- InterNordia, Sweden, our terminal equipment provider, in which we increased our ownership stake from 50% to 100% -- Bite, Lithuania, our cellular operator, in which we increased our ownership stake from 71.6% to 100% as of January 2000 -- El Tele 0st, a Norwegian backbone and business customer provider, of which we acquired 51% -- Mediaforlaget Foretagstele AB, a Swedish directory service, of which we acquired 100% effective January 2000 -- DanNet A/S, Denmark, our electronic data interchange provider, in which we increased our ownership stake from 50% to 100% Specifically, we achieved outstanding results in Talkline as net revenues increased by 22.4% to DKK 7.0bn. As a consequence of the new management team and a more focused business model, Talkline income saw very strong improvement in 1999. EBITDA was DKK 270m, compared with negative DKK 139m in 1998, an impressive EBITDA improvement. Tele Danmark's strong growth in the 18 international operations is the result of our focus on synergies and shared solutions. We are actively involved in day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. business and strategy development and continuously pursue new opportunities to complement and strengthen our current portfolio. In 1999, we introduced the Prego Prego® is a trade mark brand name pasta sauce of Campbell Soup Company. It was introduced in 1981 internationally and is based on a family recipe of one of the chefs. Eventually they became the number one selling dry grocery product of the decade. concept, which enables us to deliver a fast-to-market Internet service provider Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. infrastructure for the international units international units, n.pl a unit of measurement that evaluates the potency of a substance. Because it measures potency instead of quantity, there is a different international unit-to-mg conversion ratio for each particular substance. engaged in this area. Acquisitions in 1999 During 1999, we completed ten transactions, of which nine were to complement our international expansion and one was to strengthen our data services in Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. . The transactions in 1999 were: -- Contactel, Czech Republic, an Internet service provider we established as a 50/50 joint venture with Ceske Radiokomunikace -- Sunrise, Switzerland, the landline and Internet provider in which we increased our ownership stake from 37.2% to 43.9% -- Talkline NL, Holland, the Internet and cellular provider in which we increased our ownership stake from 90% to 100% -- NetCom ASA, Norway, an acquisition of 20.4% -- Lokaldelen AB, the second-largest directory service in Sweden, of which we acquired 100% -- InterNordia, Sweden, our terminal equipment provider, in which we increased our ownership stake from 50% to 100% -- Bite, Lithuania, our cellular operator, in which we increased our ownership stake from 71.6% to 100% as of January 2000 -- El Tele 0st, a Norwegian backbone and business customer provider, of which we acquired 51% -- Mediaforlaget Foretagstele AB, a Swedish directory service, of which we acquired 100% effective January 2000 -- DanNet A/S, Denmark, our electronic data interchange provider, in which we increased our ownership stake from 50% to 100% Net financials Income before income tax from investments in other associated enterprises resulted in a gain of DKK 51m in 1999, compared with a loss of DKK 26m in 1998. This increase of DKK 77m reflects an overall improvement in the results of these companies. Interest and other financial income totaled DKK 1,080m in 1999 against 1,085m in 1998, equaling a decrease of DKK 5m. Interest and other financial expenses amounted to DKK 1,346m in 1999, compared with DKK 1,167m in 1998, representing an increase of DKK 179m against 1998. The net reduction in interest and other financial income of DKK 184m is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in the debt position during 1998 and 1999. The build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of the debt portfolio is the result of the Tele Danmark share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. from the Danish Government in 1998, amounting to DKK 10bn, and the international investments and other investment activities in 1999, primarily NetCom in Norway Norway, Nor. Norge, officially Kingdom of Norway, constitutional monarchy (2005 est. pop. 4,593,000), 125,181 sq mi (324,219 sq km), N Europe, occupying the western part of the Scandinavian peninsula. and Lokaldelen in Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. . Marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has and currency translation adjustments amounted to a gain of DKK 89m compared with a loss of DKK 32m in 1998. Income taxes In 1999, income taxes totaled DKK 2,622m against DKK 1,876m in 1998. The effective tax rate, calculated as income taxes for the year, as a percentage of income before income tax, increased to 42.7% in 1999, against 31.9% in 1998. The difference between the effective tax rate in 1999 and the Danish statutory corporate tax rate of 32% was primarily attributable to non-capitalized tax deficits in foreign enterprises and non-tax deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). amortization of goodwill. One-time items A number of one-time items impact on the comparison of 1999 and 1998. There were no one-time items in 1999. However, 1998 included a one-time tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. gain of DKK 221m from the sale of DanaData, a one-time tax-free gain of DKK 1,007m from the sale of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 70% of our shares in Pannon, and a one-time pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. on property, plant and equipment of DKK 529m. Outlook In 2000, Tele Danmark expects continued growth in both domestic and international activities. For 2000, net revenues and earnings per share, excluding one-time items, are expected to generate double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth compared with 1999. Increasing traffic volumes and customer intake intake /in·take/ (in-tak´) the substances, or the quantities thereof, taken in and utilized by the body. intake, n the substance or quantities thereof taken in and used by the body. in Internet, as well as data and cellular revenues will drive growth in domestic activities. Tele Danmark expects solid growth in total operating income from domestic activities as our focus on customer demands, new products and stringent cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. is expected to have a positive impact on our income. Tele Danmark has prepared its sales and marketing activities, customer service activities and cost structure for success in the most competitive telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. market in Europe. The challenge of fierce competition is expected to be countered by high growth in cellular services, data communication, Internet and international activities in 2000. As a consequence of the anticipated rapid growth from recent acquisitions, revenues from international activities are expected to increase in the year ahead. Revenue growth from international activities is expected to exceed operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. growth, which in 2000 is expected to result in a solid growth in operating income in this segment, adjusted for possible one-time items. Net financials (expenses) are expected to increase in 2000 compared with 1999 as a consequence of our higher net debt levels after the acquisitions in the second half of 1999. Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement Certain sections of this Earnings Release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the Management's current views with respect to certain future events and financial performance. Statements concerning the outlook for 2000 naturally involve uncertainties, and consequently actual results may differ materially from those projected or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the forward-looking statements. Further, certain forward-looking statements are based on assumptions of future events, which may prove not to be accurate. Factors that may cause actual results to differ materially from those projected or implied in the forward-looking statements include - but are not limited to - economic trends and developments in financial markets; technological developments; changes in applicable Danish regulation and EU regulation; changes in interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. rates; developments in competition within domestic and international telephone services; introduction of and demand for new services and products; developments in the demand, product mix and prices in the cellular market, including marketing expenses; developments in the market for multimedia services; the possibilities of being awarded licenses abroad; developments in the Company's international activities, which also involve certain political risks; and investments and divestitures in domestic and foreign companies. Resolutions passed by the Board of Directors At its meeting today, the Board of Directors of Tele Danmark approved the Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for 1999. The Board of Directors also proposes a 5.3% increase in dividends - to DKK 10.00 from DKK 9.50 per share. Tele Danmark's 1999 Annual Report is scheduled for distribution after March 22, 2000. The Report will also be accessible via the Internet at the following address: www.teledanmark.com. The Annual General Meeting will be held in Copenhagen on April 13, 2000. The Board of Directors also decided to offer support to Ceske Radiokomunikace in its attempt to optimize optimize - optimisation the outcome of an option transaction regarding shares in the cellular operator RadioMobil. The offer is subject to satisfactory agreements with the involved parties. February February: see month. 23, 2000 Knud Heinesen Henning Dyremose Chairman of the President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Board Tele Danmark is the principal provider of a full range of telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. in Denmark and holds significant interests in a range of telecom companies across Northern and Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. . Domestic activities include landline and cellular telephone services, data services, Internet, leased lines A private communications channel leased from a common carrier. Most digital lines require four wires (two pairs) for full-duplex transmission. (communications, networking) leased line , cable television and directory services. The number of employees in Tele Danmark A/S and 100% owned subsidiaries is 17,464 in 1999. Tele Danmark has DKK 54.6bn in assets in 1999. The Company was privatized in 1994 and today SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications owns 42% of the shares, with the remaining shares held by individual and institutional shareowners all over the world. The market value of Tele Danmark's shares is presently approximately DKK 147bn (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 20bn).
TLD Listings
Shares: Copenhagen Stock Exchange.
Reuters TLD.CO.
Bloomberg TLD DC.
Nominal value DKK 5.
ISIN DK00-1020242-3. SEDOL 4889874.
ADRs: New York Stock Exchange
One ADR represents half of one common share
Reuters TLD.N.
Bloomberg TLD US.
SEC 1-12998.
Half of one common share.
CUSIP 879242105.
SEDOL 2883094.
Statements of Income
Tele Danmark Group (DKKm) 1998 1999 % Change
Net revenues from domestic activities:
Landline and Internet dial-up
subscriptions 4,014 4,337 8.0
Landline and Internet dial-up traffic 4,697 4,840 3.0
International traffic 2,021 1,866 (7.7)
Cellular subscriptions 640 712 11.3
Cellular traffic 2,276 2,615 14.9
Data communications services, etc. 666 870 30.7
Leased lines 1,196 1,285 7.5
Operator services 609 627 2.9
Directory services 718 775 8.0
Cable television 888 927 4.4
Terminal equipment, etc. 2,857 2,786 (2.5)
Other domestic business activities 449 423 (5.8)
Domestic activities, total 21,031 22,063 4.9
International activities, total 12,958 16,143 24.6
Total group net revenues 33,989 38,206 12.4
Work performed for own purposes and
capitalized 1,051 1,267 20.6
Other operating income 641 743 15.9
Total revenues 35,681 40,216 12.7
Raw materials and supplies (3,505) (3,774) (7.7)
Other external charges (14,367) (17,122) (19.2)
Wages, salaries and pension costs (7,420) (7,665) (3.3)
Total operating expenses (25,292) (28,561) (12.9)
Earnings before interest, taxes,
depreciation and amortization 10,389 11,655 12.2
Depreciation, amortization and
write-downs (5,091) (5,305) (4.2)
Total operating income before one-time
items 5,298 6,350 19.9
One-time items, net 699 0 NM
Total operating income (EBIT) 5,997 6,350 5.9
Income before income taxes from
invests. in associated enterprises (26) 51 NM
Interest and other financial income 1,085 1,080 (0.5)
Interest and other financial expenses (1,167) (1,346) (15.3)
Net financials (108) (215) (98.1)
Income before income taxes 5,889 6,135 4.2
Income taxes (1,876) (2,622) (39.8)
Net income 4,013 3,513 (12.5)
Net income before one-time items 3,140 3,513 11.9
Earnings per share before one-time items 13.61 16.23 19.2
Pro forma EPS (before goodwill
amortization and one-time items) 16.49 19.41 17.7
Assets
Tele Danmark Group (DKKm) 1998 1999
Goodwill 6,607 7,572
Rights, etc. 1,840 1,964
Intangible assets, net 8,447 9,536
Land and buildings 2,579 2,767
Telecommunications installations 18,201 19,593
Other installations 1,859 2,182
Installation materials 309 414
Property, plant and equipment under
construction 1,023 960
Property, plant and equipment, net 23,971 25,916
Investments in associated enterprises 267 3,491
Other marketable securities and
investments 720 187
Other investments 452 288
Investments and other assets, net 1,439 3,966
Total fixed assets 33,857 39,418
Merchandise inventories 740 837
Work in process for the account of
third parties 99 116
Total inventories 839 953
Trade accounts receivable 8,058 9,402
Other accounts receivable 1,653 2,997
Prepaid expenses 683 648
Total accounts receivable 10,394 13,047
Marketable securities 280 236
Treasury shares 0 0
Cash 446 971
Total current assets 11,959 15,207
Total assets 45,816 54,625
Liabilities and shareholders' equity
Tele Danmark Group (DKKm) 1998 1999
Common shares 1,082 1,082
Capital in excess of par value 8,652 8,652
Revaluation surplus for unrealized
gains on marketable securities 4 41
Retained earnings 10,419 11,681
Total shareholders' equity 20,157 21,456
Pension provisions, etc. 3,397 2,820
Deferred tax 646 1,151
Other provisions 614 349
Total provisions 4,657 4,320
Bonds and long-term bank loans 4,762 8,463
Other long-term debt 1,143 1,122
Total long-term debt 5,905 9,585
Current maturities of long-term debt 289 828
Short-term bank loans 3,113 4,438
Prepayments from customers 186 189
Trade accounts payable 4,863 6,084
Other accounts payable 3,355 4,344
Deferred income 1,237 1,222
Proposed dividends for the fiscal year 2,054 2,159
Total short-term debt 15,097 19,264
Total debt 21,002 28,849
Total liabilities 25,659 33,169
Total liabilities and shareholders'
equity 45,816 54,625
Key Figures 1995-99
Tele Danmark Group 1995 1996 1997 1998 1999
Statements of Income DKKm
Net revenues 19,110 23,608 29,386 33,989 38,206
Total revenues 19,993 24,883 30,926 35,681 40,216
Total operating expenses (12,216)(15,874)(21,139)(25,292)(28,561)
Earnings before interest,
taxes, deprec. & amortizat. 7,777 9,009 9,787 10,389 11,655
Depreciation, amortization,
etc. (3,505) (4,481) (5,103) (5,091) (5,305)
Total operating income
before one-time items 4,272 4,528 4,684 5,298 6,350
One-time items, net - - (1,818) 699 0
Total operating income (EBIT) 4,272 4,528 2,866 5,997 6,350
Net financials 1,165 520 21 (108) (215)
Income before income taxes 5,437 5,048 2,887 5,889 6,135
Income taxes (1,957) (1,957) (1,348) (1,876) (2,622)
Net income 3,480 3,091 1,539 4,013 3,513
Net income before one-time
items 3,480 3,091 2,685 3,140 3,513
Balance Sheets DKKbn
Total assets 38.8 48.2 51.6 45.8 54.6
Total shareowners' equity 26.7 28.6 28.3 20.2 21.5
Shares issued (million) 262.0 262.0 262.0 216.5 216.5
Cash Flows DKKbn
Operating activities 7.8 7.4 7.6 8.6 8.0
Investing activities (3.3) (10.0) (8.8) (5.5) (10.8)
Financing activities (3.2) (0.7) (1.0) (8.8) 3.0
Change in cash and cash
equivalents 1.3 (3.3) (2.2) (5.8) 0.2
Financial ratios
EPS before one-time items DKK 13.28 11.80 10.25 13.61 16.23
Pro forma EPS1) DKK 14.10 13.51 12.58 16.49 19.41
Dividends Per Share (DPS) DKK 8.00 8.50 9.00 9.50 10.00
Net interest-bearing debt DKKbn (8.9) (2.6) 0 8.6 13.6
Operating profit margin
(EBIT-margin) % 22.4 19.2 9.8 17.6 16.6
Return On Equity (ROE) % 14.1 11.5 5.5 16.5 16.9
Return On Capital Employed
(ROCE) 2) % 22.1 17.6 15.8 19.4 22.7
Other data, domestic activities
(`000, end of period):
- Subscriber lines 3,220 3,279 3,368 3,465 3,628
- Cellular users 550 806 894 995 1,311
- Cable-TV users 705 752 765 812 825
Traffic volume
(million minutes):
- Total domestic landline
traffic 12,734 13,409 14,407 17,511 21,608
- International traffic 1,175 1,302 1,396 1,506 1,698
- Cellular traffic 734 958 1,242 1,656 2,046
Number of employees 16,476 16,763 17,268 16,410 17,464
Capital expenditures (DKKm) 3,274 10,539 9,201 7,617 11,013
USD/DKK exchange rate 5.55 5.94 6.83 6.39 7.40
Note (1): Pro forma EPS is defined as net income before goodwill
amortization related to acquisitions, etc. and one-time items.
Note (2): Return On Capital Employed (ROCE) is defined as income
before income tax, one-time items and interest expenses divided
by total shareowners' equity plus gross interest-bearing debt.
Changes in shareholders' equity
Tele Danmark Group (DKKm) 1998 1999
Shareholders' equity at beginning
of period 28,338 20,157
Capital reduction (10,052)
Net income 4,013 3,513
Currency translation adjustments 1 61
Write-down on treasury shares (89) (116)
Proposed dividends for the fiscal year (2,054) (2,159)
Shareholders' equity at end of period 20,157 21,456
Tele Danmark reduced its share capital through the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 2,277,023 A shares (corresponding to 22,770,230 B shares) from the Danish Government, effective April 24, 1998. After June June: see month. 1, 1998, there is only one class of shares. On June 2, 1999, Tele Danmark's shares were split two-for-one from DKK 10 per share to DKK 5 per share. The number of issued shares was 216,459,540 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1999. Accounting policies, etc. Tele Danmark's accounting policies comply with the accounting requirements of the Copenhagen Stock Exchange Copenhagen Stock Exchange The only securities exchange in Denmark. It features electronic trading of stocks, bonds, futures, and options. and generally accepted Danish accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . The accounting policies are unchanged from 1998. Enterprises jointly owned and operated with third parties and in which the parties have joint dominant influence are proportionally pro·por·tion·al adj. 1. Forming a relationship with other parts or quantities; being in proportion. 2. Properly related in size, degree, or other measurable characteristics; corresponding: consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: in the Consolidated Financial Statements. Other associated enterprises in which the Group has a significant influence are stated under the equity method. |
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