COPENHAGEN, Denmark, Jan. 23, 2002 (PRIMEZONE) -- As mentioned in our quarterly reports in 2001, Talkline's performance in the early part of 2001 was not satisfactory, which led TDC (NYSE:TLD) to investigate Talkline's strategic options. The result was a decision to plan for a closure of the landline and Internet activities. Mobile and Talkline Infodienste, which are profitable, will continue as operating activities.
The negotiations with the workers' council regarding the planned closure have now been finalized, which allows TDC to assess the financial implications of the restructuring.
Talkline one-time items amounts to a loss of DKK 2.1bn, comprising a non-cash impairment writedown of goodwill and fixed assets of DKK 1.4bn as well as a provision for the closure of landline and Internet activities of DKK 0.7bn, related to fulfillment of obligations toward employees, resellers, etc.
"Talkline has restructured rapidly and is now a strong, focused and profitable mobile business in Germany. With the new structure Talkline will have a positive performance in 2002." says president and CEO Henning Dyremose.
During 2001, TDC realized other one-time items, which are expected to be financially neutral to the TDC Group. A capital gain on the sale of shares in Pannon is not included in 2001.
The accounts for 2001 are not yet finalized, but will, as announced earlier, be released on February 27, 2002. The outlook for 2001 was last updated with the 3Q 2001 report released on November 2, 2001, and existing knowledge as of today raises no need for further updating.
TDC, formerly Tele Danmark, is a Danish-based European full-service provider of communications solutions. It is organized in seven main business lines; TDC Tele Danmark, TDC Mobile International, TDC Internet, TDC Swit-zerland, TDC Cable TV, TDC Services and TDC Directories. TDC is the leading provider of communications services in Denmark, the second-largest communications provider in Switzerland and holds significant interests in a range of communications companies across Northern and Continental Europe. TDC was privatized in 1994. Today, SBC Communications owns a 41.6% stake in TDC and the remaining shares are held by individual and institutional shareowners all over the world.