TDC (YouSee) reports first half 2008 results

TDC (Copenhagen:TDC)’s revenue declined by 1.3% to DKK 19.5bn compared with the first half of 2007.

YouSee

YouSee is the largest TV distributor in Denmark and provides TV signals for approximately 43% of all Danish households. YouSee offers cable TV, broadband services and telephony.

Subscriber base (end-of-period) (‘000):

                     2004   2005   2006   2007  1H 2007  1H 2008
                    -----  -----  -----  -----  -------  -------
TV customers          982  1,030  1,062  1,105    1,092    1,124

The new DTT gatekeeper will increase the competitive pressure on YouSee

YouSee is expected to face increasing competition from sources, also including DTT. Competition is driven by price, convenience and the range of channels offered.

I/S DIGI-TV, an entity owned by the Danish state broadcasting services and TV2/Danmark A/S, launched DTT in March 2006, which utilizes digital technology to provide a greater number of channels and picture and sound enhancements such as HDTV and Dolby Digital through a conventional antenna.

By the end of March 2008, Swedish operator Boxer was elected as commercial gatekeeper for DTT. Boxer has announced that they will offer 29 channels in multiple packets from November 1, 2009.

From November 1, 2009, DIGI-TV will also utilize an additional multiplex that will double their current
channel offering. All in all, the DTT network will be expanded, with up to 30-35 channels, by the end of 2009. The increased range of channels in the generally accessible terrestrial network will significantly increase competition.

In the long term, increased competition in the Danish cable-TV market may also arise from new technology, mainly from future internet-based content providers. Failure by YouSee to meet these challenges may have a materially adverse effect on TDC’s market share of the Danish cable-TV market.

More: Earnings Releases