In brief Financial review ESG Consolidated Financial statements Disclaimer
DKT Holdings ApS Annual Report 2024 1
Annual report
2024
c/o TDC Holding A/S
CVR.no. 3918682 9
Approved at the Companys annual general meeting on 2 April 2025
Chair at the meeting: Signe Johanne Helbo
In brief Financial review ESG Consolidated Financial statements Disclaimer
DKT Holdings ApS Annual Report 2024 2
DKTH group in brief 3
Legal structure of DKTH group 4
Financial review 6
Five-year overview 6
Financial review 7
Risk management 9
Risk management Nuuday 10
Risk management TDC NET 16
ESG 21
ESG 21
Sustainability highlights 22
Addressing our material impacts 24
Our sustainability priorities 25
Financial statements
Financial statements 28
Consolidated financial statements 29
Parent company financial statement 90
Other
100
Forward-looking statements 103
Content
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DKT Holdings ApS Annual Report 2024 3
The business
innovative, open model to ensure all of Denmark
connects to the new digital opportunities.
To achieve our mission, we have two stand-alone
businesses, Nuuday and TDC NET.
Nuuday’s business model produces reliable
high-quality solutions for nearly six million cus-
tomers across consumer and business segments
through a strong brand, product and services
portfolio, being the leading telecommunications
provider in Denmark.
brands provide Danish consumers and
businesses with high-speed broadband and best-
in-class mobile connectivity, flexible TV & stream-
ing options, and a comprehensive range of
advanced business solutions, including cyber-
security, unified communications and digital
collaboration.
TDC NET’s business model takes responsibility
for ensuring the continued development and
building of high-speed mobile and fixed connec-
gress, because societies with strong infrastruc-
ture do better both socially and economically.
As an end-to-end infrastructure provider, TDC
NET owns and operates all critical assets neces-
sary for operating the mobile network and fixed
connections in order to offer service providers
infrastructure and
services.
TDC Holding’s activities comprise, in addition to
holding activities related to the ownership of TDC
NET Holding A/S and Nuuday A/S, certain facility
management activities and the TDC Pension fund.
TDC Holding is subleasing properties and vehi-
cles to Nuuday and TDC NET and properties to
external parties. TDC Holding has assumed the
pension obligations for the defined benefit plan
of TDC Pension fund, TDC Pensionskasse.
Nuuday, TDC NET and external parties employ a
number of employees who are members of the
pension fund and are liable to pay wages as well
as certain costs in case of early retirement for
other reasons than age or illness. Approximately
94
now or left the group as the pension fund closed
for new members in 1990.
related to
Nuuday, TDC NET and TDC Holding. The purpose
of the three DKT holding companies is to sup-
port the HoldCo loan in DK Telekommunikation.
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DKT Holdings ApS Annual Report 2024 4
DKT Holdings ApS (DKTH) was established on
22 December 2017 with the purpose of running
an investment business through its 100%
owned subsidiaries, DKT Finance ApS (DKTF) and
DK Telekommunikation ApS (DKT). DKTH is
owned by a consortium comprising:
DKTUK Limited (50%), managed by Macquarie
Asset Management (MAM)
Arbejdsmarkedets Tillægspension (ATP)
(16.7%)
PFA Ophelia InvestCo I 2018 K/S (16.7%),
managed by PFA Asset Management A/S
PKA Ophelia Holding K/S (16.7%), managed by
AIP Management P/S.
MAM
ATP
PFA
PKA
DKT Holdings ApS
DKT Finance ApS
DK Telekommunikation ApS
TDC Holding A/S
Nuuday A/S
TDC Net Holding A/S
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DKT Holdings ApS Annual Report 2024 5
DKTH group
On 10 February 2023, the refinancing of the
group was completed and no material changes to
the financing in 2024.
TDC NET
Denmark's best mobile network for the ninth
year in a row
For the ninth consecutive year, we were recog-
nised by the Danish Technological Institute for
having the best mobile network experience in
Denmark, with 99.9% coverage.
First ultra high-speed fibre networks for
households in Denmark
We were the first digital infrastructure provider in
Denmark to launch 2Gbit (across all addresses on
our network) and 10Gbit fibre (in 3 big cities cov-
ering 40% of our network) for households.
Our fibre footprint end 2024
We have ~820,000 household addresses and
businesses on our high-speed fibre network,
significantly advancing our mission to bring light-
ning-fast broadband to Denmark.
Nuuday
TDC Erhverv launches Security Suite
TDC Erhverv expands its cybersecurity business
with the launch of Security Suite, providing Dan-
ish business with the most complete cyber pro-
tection in the market.
Launch of 5G+ for our business customers
TDC Erhverv launches Denmark´s first 5G+ net-
work, delivering enhanced security, lower latency
and improved stability to benefit Danish compa-
nies.
Key milestones for our digital challenger
brands
Relatel reaches the key milestone of 25.000 sub-
scribers, while eesy moves past the 100.000 sub-
scribers landmark, showcasing their growth as
top digtal service providers in the SMB and B2C
segments.
Dawn goes live for fixed customers
Nuuday new IT stack, Dawn, goes live for fixed
customers paving the way for the overall B2C
transformation to be completed in 2025.
Significant bNPS progress for 4
th
consecutive year
Nuuday continued progressing as the preferred
choice for Danish customers, achieving another
all-time high bNPS, up 3 points compared to last
year and +20 points since 2020.
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DKT Holdings ApS Annual Report 2024 6
¹ Net interest-bearing debt excluding shareholder funding and EBITDA for the last twelve month.
Key figures (DKKm)
2024
2023
2022
2021
2020
Income statement
Revenue
15,817
15,819
16,042
16,002
16,089
Gross profit
10,937
10,951
11,067
11,088
11,463
EBITDA
6,194
6,351
6,290
6,419
6,412
Operating profit/(loss) (EBIT)
912
1,076
1,139
928
-
Net financials
(4,313)
(4,722)
(2,504)
(3,574)
(3,206)
Profit/(loss) before income taxes
(3,401)
(3,646)
(1,365)
(2,597)
(3,208)
Profit/(loss) for the year
(3,366)
(3,786)
(1,440)
(2,707)
(3,028)
Income statement, excluding special
items
Operating profit/(loss) (EBIT)
1,172
1,250
1,344
1,352
180
Profit/(loss) before income taxes
(3,141)
(3,472)
(1,160)
(2,173)
(3,028)
Profit/(loss) for the year
(3,132)
(3,634)
(1,245)
(2,391)
(2,885)
Balance sheet
Total assets
70,018
71,926
74,906
70,079
67,889
Net interest-bearing debt (NIBD), excl. share-
holder funding
34,361
33,931
38,054
37,838
37,206
Shareholder funding
28,383
26,064
23,985
22,054
20,281
Total equity
(8,658)
(5,742)
(4,787)
(4,577)
(4,141)
Capital expenditure
(4,450)
(4,283)
(4,589)
(4,399)
(5,547)
Capital expenditures mobile licences
-
-
-
(671)
-
Statement of cash flows
Operating activities
4,091
4,766
4,394
4,714
4,573
Investing activities
(4,294)
(5,063)
(4,637)
(4,474)
(4,714)
Financing activities
(656)
(839)
3,636
173
(1,005)
Total cash flow
(859)
(1,136)
3,393
413
(1,146)
Key financial ratios
2024
2023
2022
2021
2020
Financial ratios
Gross margin (%)
69.1
69.2
69.0
69.3
71.2
EBITDA margin (%)
39.2
40.1
39.2
40.1
39.9
Adjusted NIBD/EBITDA¹ (x)
5.5
5.3
6.0
5.9
5.8
Employees
FTEs (end of year)
5,599
5,823
6,433
6,659
7,032
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DKT Holdings ApS Annual Report 2024 7
Revenue
In 2024, DKTwas stable com-
pared with 2023, amounting to DKK 15,817m.
The decline of DKK 2m was primarily caused by
lower sales in Nuuday of landline, TV and terminal
equipment in both the consumer and business
segments offset by increasing revenue from mo-
bile services and high-speed broadband.
Gross profit
DKTslightly by
0.1% or DKK 14m, to DKK 10,937m in 2024. The
decline was driven primarily by lower internet &
network gross profit largely offset by improved
gross profit in TV and mobile services.
Operating expenses
In 2024, operating expenses increased by 3.1%
or DKK 143m to DKK 4,743m. The increased
operating expenses are mainly related to higher
transformation cost in Nuuday partly offset by
lower consultancy costs in both TDC NET and
Nuuday.
EBITDA
In 2024, EBITDA decreased by 2.5% or
DKK 157m to DKK 6,194m. The development is
primarily affected by increased costs to the IT
transformation and the one-off payout of the his-
toric TDC incentive scheme.
Financial income and expenses
Financial income and expenses represented a
net expense of DKK 4,313m, a decrease of
DKK 409m compared with 2023. The develop-
ment was driven primarily by changes in market
value (including interest received) related to the
hedge of the floating Senior Term Facility loans.
DKTH group hedges the risk of future interest in-
creases via interest rate derivatives and fixed rate
loans. In 2024, there is a market value (including
interest received) gain on the hedging derivatives
of DKK 264m, compared with a loss of DKK 454m
in 2023. The fair value fluctuations year to year
reflect a longer-term hedging strategy, which is
affected by the development in long-term inter-
ests.
Income taxes
Income taxes are affected by the Danish rules
on limitation on the tax deductibility of interest
expenses. DKTH g
are effectively not tax deductible due to the limi-
tations and furthermore, DKT, DKTF and DKTH
are impacted by the rules regarding thin capitali-
sation applicable for the joint taxation. Conse-
quently, the group is incurring tax expenses even
though the group makes a loss before income
taxes.
Key figures
2024
2023
Change
in %
Income statement
(DKKm)
Revenue
15,817
15,819
(0.0)
Gross profit
10,937
10,951
(0.1)
Operational expenses
(4,743)
(4,600)
3.1
EBITDA
6,194
6,351
(2.5)
Net financial expenses
(4,313)
(4,722)
(8.7)
Hereof accruing interest on shareholder funding
(2,319)
(2,130)
8.9
Loss for the year
(3,366)
(3,786)
(11.1)
Comprehensive loss
(2,916)
(4,488)
(35.0)
Capital expenditure
(4,450)
(4,283)
3.9
Cash flows
(DKKm)
Total cash flow from operating activities
4,091
4,766
(14.2)
Total cash flow from investing activities
(4,294)
(5,063)
(15.2)
Total cash flow from financing activities
(656)
(839)
(21.8)
Total cash flow
(859)
(1,136)
(24.4)
Key financial ratios
Gross margin
%
69.1
69.2
(0.1)-point
EBITDA margin
%
39.2
40.1
(0.9)-point
Adjusted net interest-bearing debt (NIBD)¹
DKKm
34,361
33,931
1.3
Adjusted NIBD¹/EBITDA
x
5.5
5.3
-
¹ Net interest-bearing debt excluding shareholder funding
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DKT Holdings ApS Annual Report 2024 8
Loss for the year
The loss for the year amounted to DKK 3,366m
compared with DKK 3,786m in 2023. The im-
provement was driven primarily by an unrealised
fair value adjustment of DKK 540m related to the
hedge of the floating Senior Term Facility loans in
TDC NET. The loss comprised a loss for Nuuday,
TDC NET and TDC Holding totalling DKK 597m
(2023: DKK 1,025m) and a combined loss in
DKT, DKTF and DKTH of DKK 2,769m (2023:
DKK 2,761m) related primarily to the net financial
expenses.
Comprehensive loss
Total comprehensive loss improved by
DKK 1,572m to DKK 2,916m. In addition to the
improvement of DKK 420m in loss for the year
compared with last year, there was a positive
development in defined benefit plans of net
DKK 450m.
Capital expenditure
Capital expenditure totalled DKK 4,450m in 2024,
up by 3.9% or DKK 167m, related primarily to
TDC NET. The increase in investment is driven by
cross-functional transformation to simplify pro-
cesses, optimise IT and modernise network infra-
structure. The investment level in core business
and key strategic priorities remained at the same
high level as in 2023, as the group continued
focus on ensuring Denmark's best mobile net-
work and rolling out fibre as well as connecting
more homes to our high-speed platforms.
Cash flow
Total cash flow
Total cash flow improved by DKK 277m to a cash
outflow of DKK 859m in 2024.
Cash flow from operating activities
Cash flow from operating activities decreased
by DKK 675m to DKK 4,091m in 2024, primarily
due to negative impact from net working capital
(DKK 621m) and higher net interest payments
(DKK 302m) partly offset by and lower tax pay-
ments (DKK 109m) and higher (DKK 325m) distri-
bution of excess capital from the
TDC Pension Fund.
Cash outflow from investing activities
The DKK 769m decrease in cash outflow from
investing activities, to DKK (4,294)m in 2024,
was driven primarily by lower net investments in
short-term bonds (movement of DKK 1,155m),
partly offset by higher investments in intangible
assets and property, plant and equipment in
TDC NET and Nuuday (movement of DKK 389m).
Cash outflow from financing activities
The cash outflow from financing activities devel-
oped from an outflow of DKK 839m in 2023 to an
outflow of DKK 656m in 2024 related to net debt
repayment of long-term loans and lease repay-
ments. Last year, cash flow from financing activi-
ties was affected larger net repayment of long-
term loans DKK (4,004)m offset by capital contri-
bution of DKK 3,533m.
Equity
8,658)m
from DKK (5,742)m. The loss in 2024 (DKK
3,366m) was partly offset by remeasurement ef-
fects net of tax related to defined benefit plans
(DKK 450m). The negative equity of the group is
impacted by the accumulated accrued interests
on shareholders funding, maturing in December
2029.
strategy for continued investments in future-
proved infrastructure in Denmark. The group has
sufficient cash and credit facilities to fund its op-
erations in accordance with the business plans
for the group companies.
DKK 8,041m from DKK 7,985m as a result of
profit for the year of DKK 56m.
Net interest-bearing debt
In 2024, net interest-bearing debt excluding
shareholder funding increased by DKK 430m. The
increase was due to continued investments in our
core business as well as our one-off investment
in our end-to-end transformation which our oper-
ating cash flow cannot fully support. The resulting
leverage ratio increased from 5.3x in 2023 to
5.5x in 2024.
Pension assets and deferred tax
Pension net assets and deferred tax have been
corrected for a material error in the pension as-
sets related to the yearly wage inflation and pen-
sion adjustment relating to the financial
year 2023.
The material error has been reflected negative on
pension net assets amounts to DKK (1,169)m,
deferred tax amounts to DKK 257m in the com-
parative figures for the financial year 2023, and
the effect on equity amounts to DKK (912)m. As
such, comparative figures have been restated to
reflect the error.
Guidance 2024 follow-up
2024 guidance as set of in the Annual Report
2023 assumed flat development in revenue and
slightly lower EBITDA.
DKTH group delivered on the guided revenue pa-
rameter with the 0.0% decrease YoY. The 2.5%
decrease in EBITDA was slightly lower than ex-
pected, driven primarily by an increase in operat-
ing expenses in 2024 caused by reach of peak in-
vestment level of Nuudays transformation.
Guidance 2025
2025 guidance assumes a flat-to-slightly higher
revenue and a slightly lower EBITDA.
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DKT Holdings ApS Annual Report 2024 9
DKTH group faces both internal and external risks
in the short, medium and long term. Risk manage-
ment is an integrated, structured, and dynamic
tions and planning. The most essential risks and
tions are described in the following pages.
DKTH has assessed that potential ESG risks for
the full group, including the topics of human
rights, anti-corruption, climate and environment
and employee matters, are related primarily to
the business activities of TDC Net and Nuuday.
Therefore, separate detailed sections on ESG
risks for these companies are included in the fol-
lowing pages.
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DKT Holdings ApS Annual Report 2024 10
Risk management governance
Nuuday involves all layers of the organisation in
its risk management approach. From enterprise
goals to operational or technical risks affecting
our IT landscape, we use risk management to
weigh options and support informed decision
making. Based on internationally recognised
standards such as ISO 31000, COSO ERM and
FAIR, our policy framework is underpinned by pro-
cedures and guidance, thus creating a strong
foundation for our risk management governance.
accountable for risk management and compli-
ance, we work with a three lines of defence
model. The first line comprises our business
units, each of which are responsible for effective
risk management (identification, assessment,
mitigation, etc.).
Nuuday has established an independent second
line Risk & Compliance team to ensure a contin-
ued focus on development and digitalisation of
risk management at Nuuday. The second line also
consists of risk & compliance specialists with
both our Data Privacy Officer and the Security &
Fraud team.
These teams provide a clear second line function
and ensure that Nuuday follows the standardised
risk management lifecycle while receiving cen-
trally aligned risk and compliance support across
all business units from subject matter experts.
The second line assists the first line with assess-
ments and offers guidance regarding mitigation
plans as well as setting the overall policies and
guidelines within the risk management area to
ensure alignment across the organisation.
Risk appetite
Pursuing our business objectives involves taking
risks, with a potential for risks affecting the out-
come of these objectives. We have defined a risk
appetite for each of the nine domain areas, ap-
proved by the Executive Leadership Team and the
Board of Directors.
risk exposure and risk reluctance, thus avoiding
both excessive risk taking and excessive caution.
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DKT Holdings ApS Annual Report 2024 11
Risk management lifecycle
Identification
Risks are identified in various ways, including via
targeted surveys, workshops, management meet-
ings, or ad hoc. Identified risks are reported
through defined channels, depending on the type
of risk.
Assessment
Risk assessments take various forms but have
the same goal: to measure the likelihood and im-
pact of an identified risk being realised.
Response
Based on the risk assessment, one or multiple re-
sponses are appropriate. A response might be to
risk is an acceptable solution only if the risk as-
sessment score indicates the risk is within the ap-
proved risk appetite.
Action
Here we fulfil the action determined as the appro-
priate response. This step also involves reviewing
the strategy to ascertain the efficacy of the
response and determine whether another re-
sponse activity is required.
Monitor
The risk picture, including relevant vulnerabilities
or threats that could affect the treatment or reali-
sation of a given risk, is monitored after actions
have been completed. Continuously, a minimum
of once annually or if the risk picture changes sig-
nificantly, the risk returns to the Assessment
stage of the Risk Management Process.
Documentation
To ensure accountability, the identification, as-
sessment, response to and treatment of risks is
documented.
The documentation can be made available to in-
ternal and external stakeholders on a need-to-
know basis unless there are concerns of confi-
dentiality. In such cases, management approval is
required.
Input
“Disclosure of information due to
an external attack”
Questionnaire
System/application/service
Risk details
1-6 x 1-6 Scale
Treat, tolerate, terminate
or transfer?
The process
Output
How does the risk compare
with other risks?
“Validate that X, Y, Z have been
implemented to…”
Are we within risk appetite, or do
we need another response task?
Ensure the risk stays at the
expected level
Risk statements
Risk assessments
Entity
Risk criteria
Heatmap
Risk response task
Risk identification
– something worries us
Evaluation
– How severe?
Respond to risk
– Action to take?
Strategy
implemented
– how do the actions affect the
risk?
Monitor risk
– regular checks and
surveillance for change
in status
Risk description
Heatmap
Risk response task
Result
Reports and
dashboards
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DKT Holdings ApS Annual Report 2024 12
Integrated risk management
& reporting
management. This is achieved by ensuring that
appropriate stakeholders are aware of risks.
Risks associated with e.g. incidents, changes or
system operations are handled as an integrated
part of the given process to ensure that the po-
tential impact on the organisation is documented,
and a plan is in place in case the risk materialises.
Risks associated with programmes and projects
are handled by the steering committees, with pro-
ject/programme managers receiving assistance
from the second line risk management team
when or if necessary.
Third-party risks are handled in collaboration with
the suppliers, i.e. we stipulate controls for the
suppliers, depending on the service provided. We
mitigate any identified risks before entering con-
tracts. Where this is not possible, remaining risks
are documented and handled systematically.
Strategic risks identified in other contexts, includ-
ing management meetings, are discussed and
documented, so appropriate response tasks can
be established in the relevant organisational
areas.
For each risk identified, responsibilities are as-
signed, and progress is monitored and evaluated.
Risks identified are consolidated and presented
terly basis. Any risks falling outside the defined
appetite are presented for approval.
The Nuuday Audit Committee receives a consoli-
dated risk overview and status as well as infor-
mation about the most critical risks on a quarterly
basis.
On the following pages, we describe the top
eleven risks that Nuuday faces, with information
tiatives.
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DKT Holdings ApS Annual Report 2024 13
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
New or current competitors
taking market share
Stable
Commercial
Denmark has a competitive telecommunications landscape. Increased
B2C and B2B markets. In addition, we have seen an ongoing trend of
aggressive pricing pressure in 2024 impacting on both our B2B and
B2C markets
Improve customer experience through fully digital customer journeys
Retain best network status
Continue to provide high-quality services and improve NPS
Release new attractive products
Increased adoption of differentiating offerings, reducing B2B churn
Consumer savings – “downspin”
Stable
Commercial
We are seeing less inflation, but people are still choosing to save on,
for example, mobile phone subscriptions by choosing cheaper pack-
ages. However, we see the market moving into higher data bundles/un-
limited packages, which results in customers cherry-picking bundles as
well as Average Revenue Per Unit (ARPU) pressure overall. This could
potentially spread into TV and broadband segments.
Monitoring market tendencies
Continue to strengthen areas of differentiation
(network quality and 5G)
Offer highly competitive and attractive propositions across all
consumer brands
Address the entirety of the consumer and business mobile market
Entertainment content: price increases and
taxation
Stable
Commercial
Content producers continue to raise their prices for entertainment,
which particularly affects the YouSee & Telmore brands. We are also
seeing increasing costs within music.
In the TV segment, increasing price pressure from streaming providers
coupled with increasing content costs (especially related to premium
sports) could further accelerate existing downward trends, with cus-
subscriptions
Optimise products and pricing to ensure that TV packages remain
relevant for as many customers as possible
Invest in developing attractive next-generation entertainment
products to cater for the rapidly growing combi-viewer segment,
which values both streaming and TV channel content
Pursue a full household strategy and incentivise purchasing multiple
services and products
Large antenna association market in turmoil
Stable
Commercial
VIOS, ASOM and others are "pitching" to antenna associations to
"retake ownership of their network" and start producing own broad-
band rather than relying on Norlys, TDC Net and YouSee. This margin-
alises YouSee to a TV-only provider if not dealt with and could even put
pressure on TV pricing as VIOS et al. aggregate content demand/bar-
gaining power across associations.
In addition, alternative parties are offering connectivity in the O-cus-
tomer segment at very low prices, making competition challenging.
Launch more attractive offers to keep associations in the
TDC Net/YouSee fold
Offer, through Dawn, a larger array of services such as association
admin and white label
Own Nuuday broadband/TV production
Potentially partner with OpenNet to have an alternative to TDC Net as
network enabler
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DKT Holdings ApS Annual Report 2024 14
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
Telco service downtime
Increasing
Operations
Nuuday depends on telco services for mobile, internet and entertain-
ment services. The majority of the core services are provided by TDC
to make telephone calls, use the internet or consume entertainment
services.
Working with infrastructure providers to ensure redundancy and high
availability
Working with infrastructure providers to ensure fast service restora-
tion in case of an outage
IT & business transformation
Increasing
Transformation Execution
Nuuday is progressing with its transformation, which is key in engaging
customers, increasing productivity and guaranteeing high-quality ser-
vices in the future.
A number of risks are associated with this transformation, such as em-
ployee engagement, human resource management, partner collabora-
tion, technical integrations and de-coupling of legacy IT.
stack and business is in focus, and the identified risks are being broken
down at programme and project level to prioritise appropriate mitiga-
tion efforts before the risks are realised.
.
strategic objectives at town hall meetings to inspire confidence in
direction and journey
Handle programme risks in collaboration with risk domains and
steering groups to find suitable solutions
Seconding of workforce supporting legacy IT systems to calm
employee concerns
Use feedback from employee surveys to strengthen satisfaction,
motivation, loyalty and culture
Ensure targets and expectations are clear to all employees
Reinforce a culture of ongoing feedback and focus on continuous
development
Regulatory Compliance
New
Legal, Risk Management
& Compliance
Nuuday faces increased regulatory compliance risk due to stricter EU
requirements, including NIS2 and expanded reporting on ESG. Meeting
these demands may strain resources and require enhanced systems
and processes. Non-compliance could result in financial penalties and
reputational harm, emphasising the need for robust governance and
due diligence frameworks.
Enhanced governance frameworks: strengthening policies for anti-
bribery and human rights
Focused implementation of EU-directives: upskilling and ensuring
that necessary requirements are in place to meet EU reporting
standards, including ESG and supply chain transparency
Based on a thorough risk assessment, we conduct audits at our
suppliers each year, particularly screening for adherence to the UN
Global Compact
Partner Code of Conduct for suppliers, partner organisations and
employees
Whistleblower policy that allows for anonymous reporting of
suspected wrongdoings at the company
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 15
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
IT security management
Increasing
Security & Fraud
Danish telecommunication sector indicates that the threat of cyber
Depending on the nature of the security incident, the processing, confi-
dentiality, integrity, availability, stability, capacity, performance, conti-
nuity and/or the resilience of
the information technologies Nuuday uses can be impacted.
Focused efforts on network resilience through risk and incident
management
Mapping IT Security Best Practice Framework to Nuuday's GRC
system, and digitalisation of security controls
Continued dialogue with Danish authorities and customers to ensure
data protection and confidentiality
Crisis Management testing and continuous improvement loop to
improve and better Nuuday crisis management
Upskilling employees continuously
Environment and climate
Stable
Image, PR & Public Affairs
Several potential environmental and climate risks may be linked to our
operations and supply chain. Nuuday has a responsibility to try to
reduce its own resource consumption, emissions and waste in produc-
tion and to influence partners and suppliers to act equally responsibly.
If Nuuday does not show credible action on environment and climate
matters, it may generate bad publicity and customer reactions, nega-
tively impacting Nuuday.
Nuuday has set ambitious carbon emissions reduction targets for
Scopes 1, 2 & 3
ISO 14001 certification covering our whole operation
Detailed ESG reporting on climate and environment metrics
Nuuday has embarked on a sustainability strategy with sustainable
procurement and products as a key pillar
Nuuday is investing in preparations for CSRD compliance during 2025
Financial risks
Finance
See Financial Statements
N/A
Social and employees
Stable
Human Resources
Nuuday focuses on retaining the services of its key personnel and
invests in attracting suitable, qualified talents to ensure a good work-
ing environment e.g., with no accidents or stress incidents. Nuuday's
success depends largely on its ability to attract and retain key person-
nel. The competition for qualified personnel is intense, with limited
availability of candidates with the required knowledge of the telecoms
industry and relevant experience in Denmark.
88% of our employees are covered by collective agreements
Occupational health and safety policy, and certification to ISO 45001
standard
Flexible working conditions
Projects to increase personal resilience and prevention of abuse of
substances
Quarterly employee engagement surveys
Diversity, equity, inclusion & belonging (DEIB) Policy
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 16
The purpose of risk management
Risks are an inherent part of our business activi-
ties, and therefore the aim of Enterprise Risk
Management (ERM) is to continuously manage
these risks as the corporate risk exposure
evolves, ensuring the integration of risk and
opportunity management in our business activi-
ties. Our risk management approach extends to
maintaining a portfolio of risks that fosters an
information flow to ensure that key risk insights
Our risk management process
The risk management framework deployed at
TDC NET enables a consistent process for identi-
fying, assessing, documenting and responding to
risks with mitigation activities and plans as well
as implementing those plans, and reassessing
the outcomes. Risks are assessed based on their
potential financial impact considering factors
such as regulatory fines, operational costs and
potential revenue changes and probability of
occurring and are captured in risk registers
across the organisation. Results are visualised
on a risk matrix for prioritisation and decision
making. Our Enterprise Risk Manager oversees
the entire process, reviewing the status of risks
and ensuring prompt action on emerging risks.
Each business line has its own risk coordinator
responsible for its risk register. In collaboration
with risk owners, the risk coordinators ensure
that risks are assessed and mitigation strategies
established. As part of risk management across
business units, internal control procedures
ensure ongoing monitoring and reporting.
A member of the Executive Leadership Team is
accountable for each sub risk register, and bian-
nually, all risk registers are consolidated centrally
and reviewed by the Executive Leadership Team
to secure alignment on key risks and opportuni-
ties according to our strategic objectives, as well
as to ensure execution of mitigating plans. The
overall risk exposure and status of the mitigating
activities are submitted and reviewed by the
Audit Committee and Board of Directors biannu-
ally. Every year the key risks related to TDC NETs
Long Term Business Plan are identified and
assessed and afterwards mapped to the risks
identified through the ERM risk register.
The top eight risks for TDC NET identified in 2024
are listed in the figure "Top 8 business risks" and
described on the following pages. For each of
these risks, we have provided content on the risk,
its potential impact and mitigating actions.
As a critical infrastructure provider, we navigate a landscape with
many risks. From macroeconomic uncertainties associated with build-
ing a digital network in Denmark to the challenges posed by our tech-
nological transformation, our exposure is diverse.
Top 8 business risks:
#1
Commercial trends and competition
#2
Funding and capital market risk
#3
Cyber and information security
#4
IT landscape
#5
Supply chain conduct
#6
Legal compliance and data privacy
#7
Recruiting a skilled workforce
#8
Climate change adaptation
Read more on the following pages
Environment
Social
Governance
Not ESG
No new risks are added compared with our
risk reporting in our Annual Report 2023.
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 17
Risk #1
Commercial trends and competition
Risk #2
Funding and capital markets risk
Description
Over the years, we have created a strong commercial position within our broadband and mobile infra-
structure market. We own and operate a broad range of different technologies. As the industry is fac-
ing increasing consumer demand for faster connectivity, we embrace the deployment of high-speed
infrastructure in our platforms. Simultaneously, we foresee a decrease in relevance over time for leg-
acy technologies and products, as more consumers can connect to the new infrastructure offerings.
Potential impact
If we become unsuccessful in anticipating and aligning with market demands, we may encounter added
operating costs linked to the continued use of legacy technologies. Conversely, decommissioning our
legacy platforms at a pace exceeding market demand could potentially result in the loss of customers
and missed business opportunities.
Mitigation action
We actively track market trends and the shift from legacy to future-proof technologies, which enables
us to anticipate and respond to technological developments. This positions us to align our portfolio
with prevailing market dynamics. Hence, we prioritise the decommissioning of legacy platforms, ensur-
ing customers are seamlessly connected to resilient new infrastructure. Simultaneously, we concen-
trate on enhancing the customer experience in our fibre roll-out, adopting a "first time right" approach.
Our commitment to delivering fast fixed connections and maintaining Denmark’s premier mobile
network remains central to our overall strategy.
Not ESG
Description
As part of the transformation, we have an extensive investment programme. Our capital expenditure is
funded with the strong resilient cash flow from operations. Our debt portfolio consists of loans, bonds
and credit facilities and depends on stable access to capital markets for funding and liquidity manage-
ment. This also includes derivatives for hedging interest-rate and foreign currency exposure..
Potential impact
Fluctuating interest rates may adversely impact on future interest costs, and fluctuations in foreign
currency prices may impact on procurement costs, debt levels or interest costs.
Mitigation action
We apply treasury management to ensure stable financial risks. We regularly monitor our financial ex-
posures and follow an active hedging strategy whereby interest rates are hedged for more than four
years, and foreign currency risks are hedged to DKK or EUR with very limited room for other expo-
sures. Intra quarter cash flow movements are mitigated through cash and revolving credit facilities.
Moreover, we plan our liquidity, refinancing, leverage, and cash flows with caution to ensure a sustain-
able financial position. On an ongoing basis, we optimise debt issuances depending on developments
in the capital markets and the funding needs of TDC NET.
Not ESG
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 18
Risk #3
Cyber and information security
Risk #4
IT landscape
Description
We greatly rely on information systems and technologies to facilitate our daily operations. As a ma-
jor provider of national critical infrastructure, we are aware of the risks associated with cyberat-
tacks.
Potential impact
A cybersecurity breach could pose a concern for our integrity, with the possibility of sensitive data
being at risk, service disruptions, financial impacts and damage to our reputation. Furthermore, a
cyber security incident might have the potential to escalate beyond our organisation.
Mitigating actions
To enhance our resilience against cyber threats, we have implemented key strategic measures to
strengthen risk management and reinforce disaster recovery and business continuity planning. Our
Cyber Defence Centre has earned a top industry certification in incident response, marking us as a
leader in cybersecurity in Denmark. Adhering to NIST and ISO frameworks, we systematically man-
age and prioritise cyber security, ensuring our preparedness against emerging threats. Our compre-
hensive approach ensures that we remain a steadfast and trustworthy partner for our customers,
protecting their interests and our own with immense dedication and expertise.
We train all our employees within cyber and information security to increase risk awareness.
Governance
Description
Our current IT landscape includes several legacy applications that may raise concerns about system
efficiency and security. We are also currently separating our remaining shared systems with
Nuuday. Our ongoing IT transformation to address these issues involves complexities that require
meticulous management.
Potential impact
As operating legacy IT applications could potentially entail risks such as security vulnerabilities and
operational challenges we rely on specific personnel and incur ongoing expenses to support and
manage ageing systems. Sharing systems with Nuuday can introduce some additional considera-
tions, and if our transformation efforts overlap, unexpected costs may arise, and shared systems
could potentially raise security concerns and reliance on Nuuday for vulnerability management.
Mitigating actions
Our IT transformation is designed to handle the challenges that our organisation faces when en-
hancing our operational efficiency and future strategic position. Our plans to decommission legacy
applications and introduce new solutions is expected to yield efficiency gains, improve workflow effi-
ciency and increase productivity. We adhere to the highest cybersecurity and general IT standards
and proactively collaborate with Nuuday while as we continuously monitoring and addressing po-
tential threats to ensure that our IT ecosystem remains robust and secure. Our proactive approach
is integral to maintaining uninterrupted operations and protecting our organisation from any un-
foreseen challenges.
Governance
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 19
Risk #5
Supply chain conduct
Risk #6
Legal compliance and data privacy
Description
We rely on an international network of suppliers that operates in diverse legislative jurisdictions and
with varying degrees of maturity across various practices, including sustainability and compliance.
Sustainability practices encompass considerations related to the environment, health and safety,
labour, and human rights and anti-corruption measures. We face risks related to labour-intensive
services resulting from general cost and wage inflation, locally and internationally.
Potential impact
The risk of suppliers being non-compliant with environmental and social legislation poses an ongo-
ing threat to our operations, integrity and reputation. Such instances may give rise to legal disputes
and require supply chain changes. The risk of price increases on labourintensive services could add
pressure to our financial and business activities..
Mitigating actions
Our process for supplier selection employs a risk-based vendor management approach. Based on
their sustainability practices, it identifies suppliers for focused scrutiny. Sustainability assessments
are conducted for mid- and high-risk suppliers, with selected high-risk suppliers undergoing addi-
tional audits through the Joint Alliance for CSR. Ongoing category and supplier performance man-
agement, competitive sourcing processes and standardised contracts with our suppliers are instru-
mental tools in responding to increasing price pressure and securing a stable cost base.
Environment Social Governance
Description
Our strong market position in specific areas subjects us to sector-specific regulations, including
emergency communications, security measures, sanctions aligned with EU, US and Danish legisla-
tion, and compliance with data privacy rules, notably GDPR.
Potential impact
Non-compliance may result in fines and adverse decisions from the Danish Business Authority, as
well as the Danish Competition and Consumer Authority. Legal requirements for investors, custom-
ers and suppliers could be affected by Danish authorities. The Danish Centre for Cybersecurity and
the Danish Data Protection Agency could impose restrictions on agreements and arrangements in
relation to our infrastructure. Furthermore, any GDPR compliance shortfalls could lead to potential
legal disputes and reputational damage.
Mitigating actions
We have implemented a comprehensive compliance programme that involves security and privacy
training for all new employees, and prompt all employees to conduct regulatory checks to ensure a
proactive approach. We monitor legal and political developments in the market, which allows us to
adapt swiftly, and we conduct desktop studies on contractual relations in alignment with sanction
regulations. Furthermore, we have implemented security and data protection measures aligned with
GDPR and Danish security regulations regarding security breaches and threats to personal data. Fi-
nally, we have strong governance with a central privacy team and a data protection manager in each
business unit.
Governance
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 20
Risk #7
Recruiting a skilled workforce
Risk #8
Legal compliance and data privacy
Description
Recruiting resources with a background in IT, artificial intelligence, data, cloud and transformation
with hands-on experience is continuously challenging. This is due to the rapidly evolving technologi-
cal landscape, and overall high demand for specialised skill sets globally. Additionally, female re-
sources in IT with the right capabilities are scarce in the industry, which makes recruitment of a di-
verse workforce challenging.
Potential impact
Recruiting challenges for IT and transformation backgrounds may result in a skills gap, potentially
hindering our transformation initiatives. The difficulty in recruiting international and female re-
sources in IT hampers gender diversity, potentially limiting the organisation’s ability to tap into a
diverse talent pool.
Mitigating actions
We have adjusted our strategic recruitment approach and maintained our value proposition in the
market to attract national and international resources with IT and artificial intelligence backgrounds
and have furthermore invested heavily in establishing and launching the TDC NET Academy, encom-
passing relevant training programmes to bridge skill gaps and ensure the workforce remains adapt-
able to evolving technologies. We prioritise succession planning by identifying key roles, and cross-
train existing specialists to bridge technological gaps. In addition, we actively promote diversity and
inclusion initiatives internally and externally to address the challenges of diversity. This involves
fostering an inclusive workplace culture and establishing outreach programmes through partner-
ships to attract a more diverse talent pool.
Social
Description
Climate change and weather-related disasters pose a potential threat to our infrastructure, specifi-
cally heavy downpours causing flooding or landslides on our mobile equipment and crucial infra-
structure at our sites, which are essential for maintaining uninterrupted telecommunication ser-
vices..
Potential impact
The impacts of climate-induced events, such as flooding, can be severe. Direct exposure to water
poses a threat to mobile equipment, power switchboards and batteries across our sites. Such dam-
age can disrupt our operational capabilities and result in service outages. Furthermore, the financial
implications of repairing or replacing equipment, coupled with potential service disruptions, could
result in revenue losses and reputational damage.
Mitigating actions
Establishing three physical locations for our mobile network operation ensures full redundancy. In
the event of a site being flooded, seamless continuity is assured through failover datacentres safe-
guarding against service disruptions. Furthermore, multiple climate protection activities at exposed
sites are carried out, with more to come in the short-term future.
Environment
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 21
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 22
Annual Report addresses the reporting
requirements under sections 99a and 99d of the
Danish Financial Statements Act.
achievements throughout 2024 within the
Annual
Report 2024.
Our approach
We believe this is both vital for the long-term sus-
tainability of our business and a necessity for
existing and competing in modern society. As a
company, we seek to address our most material
issues, and we take a stand to make a difference
and ensure that technology is a force for good.
Since 2009, we have been a signatory to the UN
Global Compact, and our approach to sustainabil-
ity is based on the ten principles on human rights,
labour rights, environment and anti-corruption.
Since 2022, we have been a member of the telco
industry Joint Alliance for CSR (JAC), which
serves as a multilateral forum, in addition to our
individual efforts to enhance sustainability.
Our sustainability framework
three key pillars: combating climate change; chil-
products. These pillars are anchored in responsi-
ble operations and diversity, equity, inclusion and
belonging (DEIB), which are deeply ingrained in
the way Nuuday operates its business internally.
We will update our sustainability framework dur-
ing 2025 as part of preparing for CSRD reporting.
We are committed to the UN Sustainable Devel-
opment Goals and have aligned our sustainability
strategy with the following goals: Quality Educa-
tion (SDG #4), Gender Equality (SDG #5), Decent
Work & Economic Growth (SDG #8), Responsible
Consumption and Production (SDG #12) and
Climate Action (SDG #13).
Strategic focus areas
Foundation
Sustainability framework
Sustainable procure-
ment & products
Maximise supply chain
sustainability by engag-
ing with top suppliers,
while offering a range of
sustainable solutions
and integrating efforts
into our brand proposi-
tions
Children’s
digital lives:
Offer support to chil-
dren so they can have a
safe digital life, and
provide IT development
learning opportunities
for pupils acquiring
skills for a digital future
Combating
climate change
Eliminate Scopes 1 & 2
emissions by 2028, and
achieve net zero across
the entire value chain
(Scope 3) by 2040
Responsible operations
Ensure the highest standards for
issues such as safety, security,
employee well-being, GDPR, privacy
and tax transparency to take care of
our employees and meet stake-
holder expectations
Diversity, equity, inclusion
& belonging (DEIB)
Ensure equal opportunities, build an
inclusive workplace where our col-
leagues feel they belong, develop
leaders and employees, and strive to
obtain gender equality in senior man-
agement
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 23
Key activities combating
climate change
After having met our 2023 interim target of re-
ducing Scopes 1 & 2 emissions by 50% in 2023,
we took further measures in 2024 to achieve Net
Zero by 2028. Most importantly, we adopted a
new guideline for our car fleet so that newly
leased company cars will be non-combusting, en-
suring a gradual transition of the overall car fleet
to EVs by the end of 2027. Phase out of natural
gas and oil for heating continues as planned.
For Scope 3 emissions, Nuuday crafted a compre-
hensive decarbonisation plan towards achieving
Net Zero in 2040 with the interim target of
achieving a 70% reduction by 2030. Subse-
quently, we have submitted this plan, including a
set of reduction levers, to the Science Based Tar-
get initiative (SBTi) for external validation. In
2024, we reduced Scope 3 emissions with 19%
compared to 2023.
In 2024, we recycled 72% of our waste. A total of
28% of our waste went to energy recovery (incin-
eration), and less than 0.51% ended in landfills.
We managed to reduce the lifecycle impact of our
customer premises equipment by promoting
circular processes through refurbishment and
reuse. In 2024, we refurbished 193,930 units a
refurbishment rate of 49% for TV and broadband,
and 47% for mobile broadband. This achieve-
ment avoided 79.2 metric tons of e-waste in
2024, thereby reducing the need to manufacture
new equipment.
Key activities c
Through financial support, Nuuday supported
and social media, especially the development of a
new screen guide.
As we have done since the establishment in
(Børnetelefonen) through financial and technical
assistance needed to operate the Helpline. The
Helpline effectuated more than 64,000 counsel-
ling conversations with children and youngsters,
making sure that children and adolescents have
access to the help and guidance they need from
trained voluntary counsellors. The partnership
highlights the important benefits to Danish soci-
ety of matching our products and services with
those in need.
In response to the debate about smartphones,
YouSee and Telmore launched a new universe
that provides solutions for families looking for
simpler offers for their young children and wish-
ing to limit excessive use of screens and social
media.
Nuuday spearheaded the development of a spe-
tions between children and adults about digital
safety and security, a key step in strengthening
eracy.
For the 9th time, we hosted school classes at our
Copenhagen offices to explore programming-
based solutions for YouSee. Again, Nuuday
young women came to visit Nuuday for a talk
about careers, education and jobs within IT.
Key activities sustainable
procurement & products
In 2024, we applied a still more circular flow to
mobile phones in YouSee, and YouSee is now a
frontrunner on mobile trade-in programmes. Con-
sequently, during 2024, we took back 13.000
mobile terminals from customers and prepared
the set-up for launching sales of used phones on
our new IT stack.
We established a take-back programme for all
hardware in TDC Erhverv promoting a circular ap-
proach and strengthened sustainability collabora-
tion with key partners in the B2B space, namely
Cisco. TDC Erhverv adopted the Cisco Meraki en-
ergy saving feature to
sustainability efforts and is taking part in the
ware take-back programme.
We continued our risk and indicator-based en-
gagement with top suppliers in search of sustain-
able business practices throughout the value
chain. This includes top supplier self-assessment
questionnaires and our 2024 auditing campaign.
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 24
TDC NETs double materiality assessment
helps us identify environmental, social and
governance (ESG) issues that are highly
relevant for us to focus on. We respond to
the most material issues via sustainability
programmes for each of our sustainability
priorities.
Double Materiality process
Our materiality approach is aligned with guidance in CSRD ESRS 1. A
thorough due diligence process pertaining to sustainability matters
has been conducted. This process was designed to identify, assess
and manage impacts, risks and opportunities related to our opera-
tions.
For a full account of TDC NET
out 2024 within the areas of sustainability, see TDC NETAnnual
Report 2024.
1
Material sub-sub-topics under S1 – Own workforce covered under Health & Safety
and Diversity & Inclusion –remaining covered by regulation in Denmark
2
Internally we call this area Wellbeing, Health and Safety
3
Internally we call this area Diversity, Equity, Inclusion and Belonging
Source: TDC NET Double Materiality Assessment
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 25
Our most material issues are addressed via the
following sustainability priorities:
Climate and nature
Health and safety
Diversity and inclusion
Digital trust
Ambitions, targets and initiatives have been de-
fined for these four priority areas – and we closely
monitor progress towards targets to deliver clear
results. The four sustainability priorities are built
on a foundation of 'Governance, compliance and
conduct' as well as ‘futureproof digital infra-
structure’, aiming at building a reliable, resilient
and sustainable, digital infrastructure for Den-
mark
1
.
Our direction for sustainability
Our 2030 corporate strategy Connectivity Pioneers
sets the strategic direction for our sustainability work towards 2030.
1
Decision making related to our sustainability priorities is anchored with our
Executive Leadership Team and Board of Directors, including Board-level committees.
Build reliable, resilient and sustainable digital infrastructure
Connectivity Pioneers
Sustainability as a core element of our corporate strategy and
transformation to become the leading customer-centric green TechCo
Protect the network,
personal data and
privacy rights
Diversity and
inclusion
Ensure equal
opportunities and
an inclusive culture
Become one of the
Achieve zero neg-
ative climate and
nature impacts
from our business
Governance, compliance and conduct
Ensure strong governance, compliance and good business conduct
In brief Financial review Risk management ESG Consolidated Financial statements
DKT Holdings ApS Annual Report 2024 26
Health and safety
Become one of the
safest places
to work with a strong wellbeing,
health and safety mindset
Target
1
· Zero fatality tolerance: reduce total
recorded injury frequency to 10 in 2030
from 23.5 in 2023
· Build a proactive wellbeing, health and
safety culture, striving to maximise learn-
ings from incidents and near misses to
prevent injuries to work.
2024 performance
⚫ Decline in total recordable injury frequency
rate from 23.5 in 2023 to 19.0 in 2024
⚫ Increase in registered near-miss reports,
up by 62% compared with 2023
⚫ 0 fatalities
SDGs 8
Promote a safe and secure working
environment for all workers.
Diversity and inclusion
Foster an Inclusive culture,
equal opportunities and a diverse
workforce
Target
1
· Maintain a balanced gender representa-
tion on the Board of Directors with no
less than 40% of the underrepresented
gender.
· Move towards a more balanced gender
distribution, targeting 35% women at all
leadership levels by 2030.
2024 performance
⚫ 56% women out of the total number of
Board members and 50% women out of
shareholder-elected Board members.
⚫ 12.5% woman at executive leadership
level.
⚫ 30% women at senior leadership level.
⚫ 24% women in all leadership positions.
SDGs 5
Achieve equal opportunities for
leadership at all levels.
Climate and nature
Achieve zero negative climate
and nature impacts from our business
Target
· 100% renewable energy in operations
by 2028
· Net-zero CO
2
on Scopes 1 and 2 by 2028
and Scopes 1,2 and 3 by 2030
· 30% preserved TDC Net land by 2023
2024 performance
⚫ 4 solar parks, covering 65% of our energy
consumption
⚫ 12% reduction in Scope 1 and 2 emissions
compared with 2023
⚫ 9% reduction in Scope 3 emissions com-
pared with 2023
⚫ 9.6% preserved TDC NET land.
SDGs 7, 13 & 15
Ensure affordable and clean energy
& climate action and halt for loss
of biodiversity
Digital trust
Protect the network, personal
data and the right to privacy
Target
1
· All employees complete to GDPR
e-learning course.
· All employees complete to security
e-learning course.
2024 performance
⚫ 96% of employees complete a GDPR
e-learning course.
⚫ 98% employees complete to security
e-learning course.
SDGs 12 & 16
Promote responsible consumption and
justice in societies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 28
Consolidated financial statements ............................................ 29
Income statement .................................................................................29
Statement of comprehensive income .................................................29
Balance sheet ........................................................................................30
Statement of cash flows .......................................................................31
Statement of changes in equity ...........................................................32
Notes to consolidated financial statements ............................ 33
Parent company financial statement ........................................ 90
Management statement and independent
........................................................................... 100
Management statement .................................................................... 100
........................................................... 101
Basis of preparation
1.1. Material accounting policies ...................... 34
1.2. Climate related matters .............................. 35
1.3. Critical accounting estimates and
judgements .................................................. 36
1.4. New accounting standards ......................... 36
Profit/(loss) for the year
2.1. Segment reporting ...................................... 38
2.2. Revenue ........................................................ 41
2.3. Cost of sales ................................................ 43
2.4. External expenses ....................................... 43
2.5. Personnel expenses .................................... 44
2.6. Depreciation, amortisation and
impairment losses ....................................... 45
2.7. Special items ................................................ 46
2.8. Income taxes ................................................ 48
Operating assets and
liabilities
3.1. Impairment ................................................... 52
3.2. Intangible assets ......................................... 55
3.3. Property, plant and equipment .................. 58
3.4. Lease assets and liabilities......................... 60
3.5. Trade receivables ........................................ 62
3.6. Contract assets and liabilities .................... 63
3.7. Provisions ..................................................... 64
3.8. Pension assets and pension
obligations ................................................... 66
Capital structure and
financing costs
4.1. Equity ............................................................ 71
4.2. Loans and derivatives ................................. 72
4.3. Financial risks ............................................... 76
4.4. Credit ratings and net interest-
bearing debt ................................................. 77
4.5. Financial income and expenses ................. 78
4.6. Maturity profiles of financial
instruments .................................................. 80
Cash flow
5.1. Adjustment for non-cash items ............... 83
5.2. Change in working capital ........................... 83
5.3. Changes in liabilities arising from
financing activities ....................................... 84
Other disclosures
6.1. Incentive programmes ................................ 86
6.2. Related parties ............................................. 87
6.3. Fees to auditors ........................................... 88
6.4. Other financial commitments .................... 88
6.5. Pledges and contingences .......................... 89
6.6. Events after the balance sheet date .......... 89
6.7. Overview of group companies at 31
December 2024 ........................................... 89
Content
Notes to consolidated financial statements
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 29
Income statement Statement of comprehensive income
(DKKm)
Note
2024
2023
Revenue
2.1,2.2
Cost of sales
2.3
(4,880 )
(4,868 )
Gross profit
External expenses
2.4
(2,131 )
(2,066 )
Personnel expenses
2.5
(2,837 )
(2,795 )
Other income
2.2
Operating profit before depreciation, amortisation and special items
(EBITDA)
Depreciation, amortisation and impairment losses
2.6
(5,022 )
(5,101 )
Special items
2.7
(260 )
(174 )
Operating profit (EBIT)
Financial income and expenses
4.5
(4,313 )
(4,722 )
Loss before income taxes
(3,401 )
(3,646 )
Income taxes
2.8
(140 )
Loss for the year
(3,366 )
(3,786 )
Attributable to:
Shareholders
(3,366 )
(3,786 )
Loss for the year
(3,366 )
(3,786 )
(DKKm)
Note
2024
2023
Loss for the year
(3,366 )
(3,786 )
Items that may subsequently be reclassified to the income statement:
Change in fair value adjustments of cash flow hedges transferred to finan-
cial expenses
4.5
Items that cannot subsequently be reclassified to the income statement:
Remeasurement of defined benefit pension plans
3.8
(901 )
Income tax relating to remeasurement of defined benefit pension plans
2.8
(126 )
Other comprehensive income/(loss)
(702 )
Total comprehensive loss
(2,916 )
(4,488 )
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DKT Holdings ApS Annual Report 2024 30
Balance sheet
Assets (DKKm)
Note
2024
2023
Non-current assets
Intangible assets
3.1,3.2
Property, plant and equipment
3.3
Lease assets
3.4
Joint ventures, associates and other investments
Pension assets
3.8
Other receivables
Prepaid expenses
Total non-current assets
Current assets
Inventories
Trade receivables
3.5
Other receivables
Contract assets
3.6
Derivative financial instruments
Prepaid expenses
Short-term bonds
Cash
Total current assets
Total assets
Equity and liabilities (DKKm)
Note
2024
2023
Equity
Share capital
Retained earnings
(8,658 )
(5,742 )
Total equity
4.1
(8,658 )
(5,742 )
Non-current liabilities
Shareholder funding
4.2,4.6
Deferred tax liabilities
2.8
Provisions
3.7
Loans
4.2,4.6
Spectrum licence fee liabilities
4.6
Lease liabilities
3.4
Other payables
Total non-current liabilities
Current liabilities
Spectrum licence fee liabilities
4.6
Lease liabilities
3.4
Trade payables
Other payables
Contract liabilities
3.6
Income tax payable
2.8
Derivative financial instruments
Provisions
3.7
Total current liabilities
Total liabilities
Total equity and liabilities
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 31
Statement of cash flows
(DKKm)
Note
2024
2023
Operating activities
Operating profit before depreciation, amortisation and special items
(EBITDA)
Adjustment for non-cash items
5.1
Pension contributions
Payments related to provisions
3.7
(29 )
(23 )
Special items
2.7
(163 )
(142 )
Change in working capital
5.2
(495 )
Interest received
4.5
Interest paid
4.5
(2,981 )
(2,371 )
Income tax paid
2.8
(233 )
(342 )
Total cash flows from operating activities
Investing activities
Investment in property, plant and equipment
3.3
(2,862 )
(2,680 )
Investment in intangible assets
3.2
(1,713 )
(1,506 )
Investment in other non-current assets
(2 )
(2 )
Investment in short-term bonds
(914 )
(1,876 )
Sale of other non-current assets
Sale of short-term bonds
Total cash flows from investing activities
(4,294 )
(5,063 )
(DKKm)
Note
2024
2023
Financing activities
Proceeds from long-term loans
5.3
Repayment of long-term loans
5.3
(3,990 )
(19,599 )
Settlement of derivatives related to long-term loans
Cost related to long-term loans
(8 )
Repayment of lease liabilities
5.3
(384 )
(368 )
Capital contribution
Total cash flows from financing activities
(656 )
(839 )
Total cash flows
(859 )
(1,136 )
Cash and cash equivalents (beginning of period)
Effect of exchange-rate changes on cash and cash equivalents
Cash and cash equivalents end of year
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 32
Statement of changes in equity
(DKKm)
Share capital
Reserve for
cash flow
hedges
Retained
earnings
Total
Equity at 1 January 2023
(1 )
(4,786 )
(4,787 )
Loss for the year
(3,786 )
(3,786 )
Change in fair value adjustments of cash flow hedges transferred to financial expenses
Remeasurement effects of defined benefit pension plans
(901 )
(901 )
Income tax relating to remeasurement effects of defined benefit pension plans
Total comprehensive loss
(4,489 )
(4,488 )
Capital contribution
Total transactions with shareholders
Equity at 31 December 2023
(5,742 )
(5,742 )
Loss for the year
(3,366 )
(3,366 )
Remeasurement effects related to defined benefit pension plans
Income tax relating to remeasurement effects from defined benefit pension plans
(126 )
(126 )
Total comprehensive loss
(2,916 )
(2,916 )
Equity at 31 December 2024
(8,658 )
(8,658 )
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DKT Holdings ApS Annual Report 2024 33
Section 1
This section sets out the basis of preparation, which relates to the
financial statements as a whole. Where an accounting policy is spe-
cific to one note, the policy is described in the note to which it relates.
Similarly, critical sources of estimation uncertainty are described in
the notes to which they relate.
1. In this section
1.1. Material accounting policies ...................................... 34
1.2. Climate-related matters ............................................. 35
1.3. Critical accounting estimates and
judgements ................................................................... 36
1.4. New accounting standards ......................................... 36
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 34
these consolidated financial statements on
2 April 2025.
DKT Holdings ApS
ments for 2024 have been prepared in accord-
ance with IFRS Accounting Standards as adopted
by the European Union (EU) and further disclo-
sure requirements in the Danish Financial State-
ments Act.
The consolidated financial statements are based
on the historical cost convention, except for fi-
nancial assets and liabilities that are initially
measured at fair value adjusted for transaction
costs if they are not subsequent measured at fair
value through the income statement. Trade re-
ceivables are measured at their transaction price
When preparing the consolidated financial state-
ments, Management makes assumptions that af-
fect the reported amount of assets and liabilities
at the balance sheet date, and the reported in-
come and expenses for the accounting period.
The accounting estimates and judgements con-
sidered critical to the preparation of the consoli-
dated financial statements are shown in note 1.3.
Presentation of loans as non-current
As a result of amended IAS 1, DKTH Group has
changed the presentation of loans under current
liabilities. The group has an option to extend the
STF loan and consequently the loan is presented
as non-current.
The presentation of accrued interests related to
shareholder funding is changed with effect from 1
January 2024. All accrued interests are now pre-
sented as non-current shareholder funding as in-
terest are accruing on a current basis. Previously,
accrued interests for the past year were pre-
sented as current liabilities.
The comparative figures have been restated ac-
cordingly. The reclassifications do not impact
EBITDA, profit/loss for the year and equity.
Except for the above, the accounting policies are
unchanged compared with the policies applied in
the Annual Report 2023.
Pension assets and deferred tax
Pension assets and deferred tax have been cor-
rected for a material error in the pension assets
related to the yearly wage inflation and pension
adjustment relating to the financial year 2023.
The material error has been reflected negative
on pension assets amounts to DKK (1,169)m,
deferred tax amounts to DKK 257m in the com-
parative figures for the financial year 2023, and
the effect on equity amounts to DKK (912)m. As
such, comparative figures have been restated to
reflect the error.
The comparative figures have been restated
accordingly.
Consolidation policies
The consolidated financial statements include the
financial statements of the Parent Company and
subsidiaries in which DKT Holdings ApS has direct
or indirect control. Joint ventures in which the
group has joint control and associates in which
the group has significant influence are recognised
using the equity method.
The consolidated financial statements have been
prepared on the basis of the financial statements
of DKT Holdings ApS and its consolidated compa-
nies, which have been restated to group account-
ing policies, combining items of a uniform nature.
On consolidation, intra-group income and
expenses; shareholdings, dividends, internal bal-
ances; and realised and unrealised profits and
losses on transactions between the consolidated
enterprises have been eliminated.
1.1 | Material accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 35
Climate-related disclosures
The group considers potential significant climate-
related matters in estimates and assumptions,
where appropriate. These assessments are re-
flected in the long-term business plan even
though the group believes its business model and
products will still be viable after the transition to
a low-carbon economy. Climate-related matters
increase the uncertainty of estimates and as-
sumptions underpinning several items in the fi-
nancial statements. Even though climate-related
risks might not currently have a significant impact
on measurement, the group closely monitors rel-
evant changes and developments, such as new
climate-related legislation.
In line with our ambition to become a leader in cli-
mate and biodiversity, efforts are continuously
being made to explore ways to reuse and transi-
tion to renewable energy, so that the company
can stay ahead and address any new climate reg-
ulations in advance.
Our activities to manage the energy impacts and
costs, include:
energy-saving initiatives, accelerating the
phase-out of natural gas at our locations and
renewal of carpark with electric cars over the
coming years
increasing energy efficiency through new net-
work hardware and power saving features
managing power consumption through decom-
missioning legacy networks and modernising
sites, for example relevant units are placed out-
doors to reduce the need for cooling
mainly using renewable electricity when power-
ing our operations secured through long-term
Power Purchasing Agreements for solar power
energy looking for alternatives to remaining
fossil-based energy sources and
enabling the reuse of electronic devices sup-
porting a reduced use of resources.
In 2023 and 2024, the group issued sustainabil-
ity-linked bonds. See note 4.2.
The group has entered into power purchase
agreements for renewable energy. See note 6.4.
1.2 | Climate-related matters
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DKT Holdings ApS Annual Report 2024 36
requires Management to exercise judgement in
applying the g
requires the use of estimates and assumptions
that affect the reported amount of assets, liabili-
ties, income and expenses. Actual results may dif-
fer from those estimates.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions are
recognised during the period in which the esti-
mates are revised and during any future periods
affected.
The following areas involve a higher degree of
estimates and judgements or complexity and are
outlined in more detail in the related notes:
DKTH Group has adopted the new standards,
amendments to standards and interpretations
that are effective for the financial year 2024.
Non-current liabilities with covenants amended
IAS 1 Presentation of Financial Statements. As a
result of amended IAS 1, the group has changed
the presentation of loans under current liabilities.
The group has an option to extend the STF loan.
As a consequence hereof, the loan is presented
as non-current. The change does not impact
recognition or measurement.
The presentation has been made retrospectively.
The following new amendments are effective
from 2024 but do not have any impact on the fi-
nancial statements:
Lease liability in a sale and leaseback
amended IFRS 16 Leases
Supplier finance agreements amended IAS 7
Statement of cash flows and IFRS 7 financial in-
struments: disclosures.
IASB has approved a new accounting standard
not yet effective.
IFRS 18 introduce requirements for presentation
of defined subtotals in the income statement and
allocation of items in the income statement to
specified categories, with the operating category
being the default category. Further, the standard
introduces disclosure requirements on manage-
ment-defined performance measures (MPMs) in
the notes to the financial statements.
An entity is required to apply IFRS 18 for annual
reporting periods beginning on or after 1 January
2027. IFRS 18 requires retrospective application
with specific transition provisions.
Management anticipates that the application of
these amendments will have an impact on the
presentation of the income statement and note
disclosures in the group's consolidated financial
statements in future periods. Other new or
amended standards not yet effective are not ex-
dated financial statements.
1.3 | Critical accounting estimates and judgements
Notes
Critical accounting estimates
and judgements
Estimates
/judgements
2.2
Revenue
Assessment of principal or agent
Judgement
Assessment of contracts involving complex sale of
goods and services
Estimate/
Judgement
2.7
Special items
Assessment of special events or transactions
Judgement
3.1
Impairment
Assumptions used for impairment testing
Estimate/Judgement
3.2
Intangible assets
Assumptions for useful lives
Estimate
3.3
Property, plant and equip-
ment
Assumptions for useful lives
Estimate
3.4
Lease assets
Assumptions related to write-down of lease assets
re. vacant tenancies
Estimate
Assumptions related to extension options
Judgement
3.5
Trade receivables
Assessment of expected losses
Estimate
3.8
Defined benefit plans
Assumptions for discount rates, wage inflation and
mortality
Estimate
1.4 | New accounting standards
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DKT Holdings ApS Annual Report 2024 37
Section 2
results for the year, including segment reporting, special items and taxa-
tion. A detailed review of revenue, EBITDA and profit/(loss) for the year
Financial review
2. In this section
2.1. Segment reporting ...................................................... 38
2.2. Revenue ......................................................................... 41
2.3. Cost of sales ................................................................. 43
2.4. External expenses ........................................................ 43
2.5. Personnel expenses .................................................... 44
2.6. Depreciation, amortisation and impairment
losses ............................................................................. 45
2.7. Special items ................................................................. 46
2.8. Income taxes ................................................................. 48
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DKT Holdings ApS Annual Report 2024 38
Worth noting
DKTH Group consists of the three operat-
ing segments, Nuuday, TDC NET and Group
Functions, respectively.
Nuuday develops and markets the best
communications and entertainment ser-
vices, including the development of new
innovative products and digital solutions.
TDC NET designs, builds, and runs
networks and delivers highly qualified
technical support to customers and the
networks.
Group Functions governs, advises and
delivers shared services to the business
units including property services.
Operating segments are reported in a manner
consistent with the internal management and
reporting structure.
Profit before depreciation, amortisation and spe-
cial items (EBITDA) represents the profit earned
by each segment. The operating segments are
managed primarily on the basis of EBITDA.
Segment results are accounted for in the same
way as in the consolidated financial statements.
Segment income and segment expenses are
those items that, in our internal management
reporting, are directly attributable to individual
segments. Intersegment transactions are con-
ducted on market terms.
2.1 | Segment reporting
Accounting policies
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DKT Holdings ApS Annual Report 2024 39
2.1 | Segment reporting (continued)
Nuuday
TDC NET
Group functions
Activities (DKKm)
2024
2023
2024
2023
2024
2023
Landline voice
652
693
86
96
-
-
Mobile services
5,287
5,169
5
26
-
-
Internet & network
3,574
3,535
885
919
-
-
TV
3,294
3,316
6
-
-
-
Other services
1,670
1,708
358
357
-
-
External revenue
14,477
14,421
1,340
1,398
-
-
Revenue across segments
83
57
5,115
5,063
-
-
Total revenue
14,560
14,478
6,455
6,461
-
-
Cost of sales
(9,781)
(9,673)
(287)
(305)
-
-
Gross profit
4,779
4,805
6,168
6,156
-
-
Operating expenses
(3,382)
(3,305)
(1,792)
(1,839)
(300)
(280)
Other income and expenses
47
71
316
378
683
731
EBITDA
1,444
1,571
4,692
4,695
383
451
Eliminations
Total
2024
2023
2024
2023
Landline voice
-
-
738
789
Mobile services
-
-
5,292
5,195
Internet & network
-
-
4,459
4,454
TV
-
-
3,300
3,316
Other services
-
-
2,028
2,065
External revenue
-
-
15,817
15,819
Revenue across segments
(5,198)
(5,120)
-
-
Total revenue
(5,198)
(5,120)
15,817
15,819
Cost of sales
5,188
5,110
(4,880)
(4,868)
Gross profit
(10)
(10)
10,937
10,951
Operating expenses
506
563
(4,968)
(4,861)
Other income and expenses
(821)
(919)
225
261
EBITDA
(325)
(366)
6,194
6,351
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DKT Holdings ApS Annual Report 2024 40
2.1 | Segment reporting (continued)
Reconciliation of EBITDA to profit/(loss)
before income taxes (DKKm)
2024
2023
Total EBITDA from reportable segments
6,194
6,351
Unallocated:
Depreciation, amortisation and impairment losses
(5,022)
(5,101)
Special items
(260)
(174)
Financial income and expenses
(4,313)
(4,722)
Consolidated profit/(loss) before income taxes
(3,401)
(3,646)
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DKT Holdings ApS Annual Report 2024 41
The revenue is from domestic operations.
Revenue recognition for a telecom operator is a
complex area of accounting that requires man-
agement estimates and judgements.
Recognition of revenue depends on whether the
group acts as a principal in a transaction or an
agent representing another company. Whether
the group is considered to be the principal or
agent in a transaction depends on an analysis of
both the form and substance of the customer
agreement. When the group acts as the principal,
revenue is recognised at the agreed value,
whereas when the group acts as an agent, reve-
nue is recognised as the commission the group
receives for providing the service.
Judgements of whether the group acts as a prin-
cipal or as an agent impact the amounts of recog-
nised revenue and operating expenses, but do
not impact net profit for the year or cash flows.
Judgements of whether the group acts as a prin-
cipal are used primarily in transactions covering
content.
When the group concludes contracts involving
complex sale of goods and services, management
judgements are required to determine whether
goods and services shall be recognised together
or as separate goods and services.
Management estimates are also used for allocat-
ing the transaction price to the individual ele-
ments based on their respective fair values, if
judged to be recognised separately. For example,
business customer contracts can comprise sev-
eral elements related to mobile phones, subscrip-
tions, leases, etc.
2.2 | Revenue
(DKKm)
2024
2023
Sales of goods recognised at a point in time
1,103
1,157
Sales of services recognised over time
14,714
14,662
Total
15,817
15,819
Critical accounting estimates and judgements
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DKT Holdings ApS Annual Report 2024 42
Revenue is measured at the fair value of the consid-
eration to which the group expect to be entitled after
deduction of sales tax and discounts relating directly
to sales. Revenue comprises goods and services
provided during the year. Goods and services may
be sold separately or in bundled packages. Services
include traffic and subscription fees, interconnec-
tion and roaming fees, fees for leased lines, net-
work services, TV distribution as well as connection
and installation fees. Goods include customer prem-
ises equipment, telephony handsets, PCs, set-top
boxes, etc.
Nuuday Consumer sells to households and the
contracts are primarily perpetual, with the same
service provided until the customer terminates
the contract. Some of the contracts include a
non-cancellation period of 6 months. Consumer
also has contracts with antenna associations for
longer periods.
Nuuday Business sells digital solutions to enter-
prises and public segments. Business offers mod-
ular solutions for small and medium-sized enter-
prises, as well as customised solutions for public
and large enterprises. Modular self-service con-
tracts are perpetual, and contracts with custom-
ised solutions are for longer periods, i.e. 3-5
years.
TDC NET delivers services from plain access to
full service packages to service providers. Whole-
sale revenue is partly regulated.
The significant sources of revenue are recog-
nised in the income statements as follows:
• revenues from subscription fees and flat-rate
services are recognised over the subscription
period
• revenues from telephony are recognised at the
time the calls are made
• sales related to prepaid services are deferred,
and revenues are recognised at the time of use
• revenues from leased lines are recognised over
the rental period
• revenues from the sale of equipment are rec-
ognised on delivery. Revenues from equipment
maintenance are recognised over the contract
period
• revenue arrangements with multiple delivera-
bles are recognised as separate units of ac-
counting, independent of any contingent ele-
ment related to the delivery of additional items
or other performance conditions. Such reve-
nues include the sale of equipment located at
customer premises, e.g. switchboards and
handsets.
The transaction price in revenue arrangements
with multiple deliverables, such as handsets and
subscriptions, are allocated to each performance
obligation based on the stand-alone selling price.
Where the selling price is not directly observable,
it is estimated based on expected cost plus a
margin. Discounts on bundled sales are allocated
to each element in the contract.
Contracts with similar characteristics have been
evaluated using a portfolio approach due to the
large number of similar contracts.
In case of contracts for longer periods and if the
payment exceeds the services rendered, contract
liabilities are recognised, see note 3.6.
Revenues are recognised gross when DKTH
Group acts as the principal in a transaction. For
content-based services and the resale of services
from content providers where the group acts as
the agent, revenues are recognised net of
direct costs.
The percentage-of-completion method is used to
recognise revenue from contract work in progress
based on an assessment of the stage of comple-
tion. Contract work in progress includes installa-
tion of telephone and IT systems, systems inte-
gration and other business solutions.
Non-refundable up-front connection fees are in-
cluded in the total transaction price for the con-
tract with the customer and are thereby allocated
to the identified performance obligations (ser-
vices).
The period between the transfer of the service to
the customer and the payment by the customer is
not of an extent that gives reason to adjust the
transaction prices for the time value of money.
Other income
Other income comprises mainly accounting items
of a secondary nature such as rental income,
compensation for cable breakages, investment
advisory fees from the related pension funds as
well as profit relating to divestment of property,
plant and equipment.
2.2 | Revenue (continued)
Accounting policies
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DKT Holdings ApS Annual Report 2024 43
Accounting policies
Cost of sales includes transmission costs and
cost of goods sold. Transmission costs include
external expenses related to operation of mobile
and landline networks and leased transmission
capacity as well as interconnection and roaming
costs related directly to the g
income.
Cost of goods sold includes terminal equipment
and transmission material as well as TV-pro-
gramme rights and other content costs.
Power purchase agreements (PPAs)
As described in note 6.4 Other commitments, the
subsidiary TDC NET has entered into 10-year
PPAs. These agreements are fixed price agree-
ments and are generally regarded as derivatives
at fair value with gains and losses in the income
statement according to IFRS 9 Financial Instru-
ments. However, an exemption is given for fixed-
price commodity contracts
power purchase agreements to fall under the so
-
quently not accounted for the agreements as de-
rivative financial instruments. As a result, they
are recognised as power costs (refer notes 2.3
and 2.4) when the electricity is delivered and
used.
Accounting policies
External expenses include expenses related to
marketing and advertising, IT, property, expenses
related to staff, capacity maintenance and service
contracts, etc. Contracts regarding solar parks
are accounted as external expenses.
2.3 | Cost of sales
(DKKm)
2024
2023
Mobile services
(858)
(853)
Landline voice
(50)
(66)
Internet & network
(564)
(460)
TV
(1,875)
(1,913)
Other services
(1,533)
(1,576)
Total
(4,880)
(4,868)
2.4 | External expenses
(DKKm)
2024
2023
Marketing and advertising
(207)
(216)
Subscriber acquisition and retention, cf. note 3.6
(232)
(200)
Properties
(400)
(393)
Contractors and consultants
(281)
(311)
IT
(537)
(424)
Temps and personnel-related expenses
(128)
(151)
Other
(346)
(371)
Total
(2,131)
(2,066)
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DKT Holdings ApS Annual Report 2024 44
Key management consists of the member of the
Executive Committee of TDCH as well as the CEOs
and CFOs of Nuuday and TDC NET. The member
of the Executive Committee in DKTH does not
receive remuneration.
The Management incentive programme (MIP) cov-
ering the period 2019-2023 was settled in 2024.
See note 6.1 for a description of the incentive
programmes.
2.5 | Personnel expenses
(DKKm)
2024
2023
Wages and salaries (including short-term and long-term bonuses)
(3,669)
(3,599)
Pensions:
defined benefit plans
(49)
(50)
defined contribution plans
(319)
(297)
Social security
(59)
(67)
Total
(4,096)
(4,013)
Of which capitalised as tangible and intangible assets
1,259
1,218
Total personnel expenses recognised in the income statement
(2,837)
(2,795)
Remuneration for the key management of DKTH and
the Board of Directors of DKTH¹ (DKKm)
2024
2023
Base salary (incl. benefits)
18.6
16.8
Cash bonus
5.9
9.1
Pensions
2.7
2.4
Long-term incentive programme
21.8
12.0
Management incentive programme (cf. note 6.1)
-
0.1
49.0
40.4
Redundancy compensation²
-
2.7
Key management in total
49.0
43.1
Fee to the Board of Directors
12.4
16.5
Total
61.4
59.6
1
During 2024, the remuneration to the key management comprised of 4 members on average
(2023: 4 members). Management in TDC Holding, DK Telekommunikation, DKT Finance and DKT Holdings receive no remuneration.
2
Redundancy compensation in 2023 comprised of the CFO of Nuuday A/S, who retired in Q1 2022, and the CFO of TDC NET A/S, who retired
in Q1 2023. The Redundancy compensations are in accordance with the employment contracts.
Number of full-time employee equivalents¹
2024
2023
1 January
5,823
6,433
Redundancy programmes
(262)
(277)
Outsourcing
-
(169)
Hirings and resignations
38
(164)
31 December
5,599
5,823
Former Danish civil servants
36
40
435
492
Other employees
5,128
5,291
31 December
5,599
5,823
Average number of full-time employee equivalents, DKTH Group²
5,668
5,960
1
The reported number of full-89 in
2024 and 167 in 2023).
2
The average number of full-time employee equivalents seconded to external parties in connection with outsourcing of tasks or divest-
ment of operations and entitled to pensions on conditions similar to those provided for Danish civil servants, is not included in the
reported figures (17 in 2024 and 18 in 2023).
Comments
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 45
Wages, salaries, social security contributions,
paid leave and sick leave, bonuses and other em-
ployee benefits are recognised in the year in
which the employee renders the related services.
Pension costs
See note 3.8.
Full-time employee equivalents
The number of full-time employee equivalents in-
cludes permanent employees and trainees.
Employees who are entitled to pensions on condi-
tions similar to those provided for Danish civil
servants and who are seconded to external par-
ties in connection with outsourcing of tasks or di-
vestment of operations are not included in the re-
ported numbers.
Employees in acquired enterprises are included
as the average number of full-time employee
equivalents from the time of acquisition until
31 December. Employees in divested enterprises
are included as the average number of full-time
employee equivalents from 1 January until the
time of divestment.
Employees in discontinued operations are not in-
cluded in the number of full-time employee equiv-
alents. The total number of full-time employee
equivalents including discontinued operations is
disclosed in a footnote.
Impairment losses in 2023 were affected by reas-
sessment of software that led to a write-down of
DKK 279m.
Depreciation, amortisation and impairment
losses amounted to DKK 5,022m (2023: DKK
5,101m). Hereof DKK 834m (2023: DKK 877m)
was depreciation and amortisation of assets rec-
ognised in connection with the purchase price al-
location performed in connection with the acqui-
sition of TDC Holding. This included primarily
amortisation of customer relationships, brands
and software, recognised as separate assets as
part of the purchase price allocation performed in
connection with the acquisition of TDC Holding.
The customer relationships are amortised over
the estimated useful lives of such relationships.
Brands with finite useful lives are amortised over
the useful livers of such brands. The useful life of
the TDC brand is deemed indefinite and conse-
quently, DKTH does not amortise the value of this
brand.
2.5 | Personnel expenses (continued)
Accounting policies
2.6 | Depreciation, amortisation
and impairment losses
(DKKm)
2024
2023
Amortisation of intangible assets, cf. note 3.2
(2,173)
(2,296)
Depreciation of property, plant and equipment, cf. note 3.3
(2,399)
(2,373)
Depreciation of lease assets, cf. note 3.4
(401)
(391)
Impairment losses, cf. note 3.2, 3.3 and 3.4
(79)
(326)
Reversal of impairment losses, cf. note 3.4
-
258
Of which capitalised as tangible or intangible assets
30
27
Total
(5,022)
(5,101)
Comments
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 46
Worth noting
Special items are significant amounts that
Management considers are not attributa-
ble to normal operations such as restruc-
turing costs and special write-downs for
impairment of intangible assets and prop-
erty, plant and equipment. Special items
also include gains and losses related to
divestment of enterprises, as well as trans-
action costs and adjustments of purchase
prices relating to the acquisition of enter-
prises. Special items consist of both recur-
ring and non-recurring items.
2.7 | Special items
(DKKm)
2024
2023
Costs related to redundancy programmes
(150)
(113)
Other restructuring costs, etc.
(9)
(7)
Distribution of excess capital from TDC Pension Fund to its members
(64)
(38)
Loss from rulings
1
(6)
Costs related to sale of enterprises
(21)
-
Costs related to acquisition of enterprises
(17)
(10)
Special items before income taxes
(260)
(174)
Income taxes related to special items
26
22
Total special items
(234)
(152)
Cash flow from special items (DKKm)
2024
2023
Redundancy programmes
(127)
(113)
Rulings
-
(5)
Other
(36)
(24)
Total
(163)
(142)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 47
Critical accounting judgements
In the g
are presented as a separate item. Special items
judgement shall be disclosed separately by virtue
of their size, nature or incidence. In determining
whether an event or transaction is special, Man-
agement considers quantitative as well as quali-
tative factors such as the frequency or predicta-
bility of occurrence of the transaction or event, in-
cluding whether the event or transaction is recur-
ring. This is consistent with the way that financial
performance is measured by Management and
reported to the Board of Directors and facilitates
a meaningful analysis of the operating results of
the group.
Accounting policies
Special items, as described above, are disclosed
on the face of the income statement. Items of a
similar nature for in joint ventures and associates
are recognised in profit from joint ventures and
associates.
2.7 | Special items (continued)
2024
2023
Special items bridge (DKKm)
Reported
income
statement
Special items
Adjusted
income
statement
Reported
income
statement
Special items
Adjusted
income
statement
Revenue
15,817
-
15,817
15,819
-
15,819
Cost of sales
(4,880)
-
(4,880)
(4,868)
-
(4,868)
Gross profit
10,937
-
10,937
10,951
-
10,951
External expenses
(2,131)
(8)
(2,139)
(2,066)
(19)
(2,085)
Personal expenses
(2,837)
(214)
(3,051)
(2,795)
(143)
(2,938)
Other income
225
(38)
187
261
(12)
249
Operating income before depreciation and amortisa-
tion
6,194
(260)
5,934
6,351
(174)
6,177
Depreciation, amortisation and impairment
(5,022)
-
(5,022)
(5,101)
-
(5,101)
Special items
(260)
260
-
(174)
174
-
Operating profit
912
-
912
1,076
-
1,076
Financial income and expenses
(4,313)
-
(4,313)
(4,722)
-
(4,722)
Loss before income taxes
(3,401)
-
(3,401)
(3,646)
-
(3,646)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 48
Worth noting
liabilities relates to assets that are not
expected to be taxed in the foreseeable
future (pension assets, customer relations
and brands). The deferred tax liabilities
relating to customer relationships and
brands stem primarily from the acquisition
of TDC A/S (TDC Holding A/S) in May 2018
and the resulting purchase price allocation.
The Group is within the scope of the OECD Pillar
Two legislation which became effective for the
The Group has performed an assessment of the
The assessment is based on the most recent in-
formation available regarding the financial perfor-
mance of the entities in the Group. As a main rule,
Top-up taxation only applies if the effective tax
rate for a country with positive income is lower
than the minimum rate of 15%. Based on the as-
sessment performed, the Group is incurring tax
expenses even though the Group is making a loss
before income taxes. As for the subsidiary in the
Netherlands, the Group is of the opinion that the
entity falls under the De minimis-rule. Therefore,
the Group does not expect potential exposures to
Pillar Two top-up taxes.
2.8 | Income taxes
2024
2023
Income taxes (DKKm)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
Income tax
income/
(expense)
Income tax
payable/
(receivable)
Deferred tax
liabilities/
(assets)
At 1 January
72
3,857
87
4,242
Income taxes for the year
27
152
(179)
(147)
305
(158)
Adjustment of tax for previous years
8
16
(24)
7
22
(29)
Tax relating to remeasurement effects from defined
benefit plans
-
-
126
-
-
(198)
Income tax paid
-
(233)
-
-
(342)
-
Total
35
7
3,780
(140)
72
3,857
Shown in the balance sheet as:
Tax payable/deferred tax liabilities
-
7
3,780
-
72
3,857
Tax receivable/deferred tax assets
-
0
0
-
0
0
Total
-
7
3,780
-
72
3,857
Income taxes are specified as follows:
Income excluding special items
9
-
-
(162)
-
-
Special items
26
-
-
22
-
-
Total
35
-
-
(140)
-
-
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 49
DKT Holdings ApS participates in joint taxation
with all its Danish group companies. DKT Hold-
ings ApS is the administration company in the
joint taxation. The jointly taxed companies are
jointly and severally liable for the total income
taxes, taxes paid on account and outstanding
residual tax (with additional payments and inter-
est) relating to the joint taxation.
2.8 | Income taxes (continued)
2024
2023
Deferred tax (DKKm)
Deferred tax
assets
Deferred tax
liabilities
Total¹
Intangible assets
-
157
157
158
Other
-
22
22
(8)
Current
-
179
179
150
Intangible assets
-
1,764
1,764
1,805
Property, plant and equipment
(177)
-
(177)
(161)
Lease assets and liabilities
(178)
-
(178)
(163)
Pension assets and pension
liabilities
-
2,184
2,184
2,172
Other
-
8
8
54
Non-current
(355)
3,956
3,601
3,707
Deferred tax at 31 December
(355)
4,135
3,780
3,857
1 The total net deferred tax is recognised as a liability in the balance sheet.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 50
The change in effective tax rate (excluding special
items) was due primarily to a decreased impact
of the Danish limitation on the deductibility of
interest
Tax for the year comprises current income tax,
changes in deferred tax and adjustments from
prior years and is recognised in the income state-
ment, except to the extent that it relates to items
recognised in other comprehensive income.
Current income tax liabilities and current income
tax receivables are recognised in the balance
sheet as income tax payable or income tax receiv-
able.
Deferred tax is measured under the balance-
sheet liability method on the basis of all tempo-
rary differences between the carrying amounts
and the tax bases of assets and liabilities at the
balance sheet date. However, deferred tax is not
recognised if the temporary difference arises
from the initial recognition of goodwill or if it
arises from initial recognition of an asset or liabil-
ity in a transaction other than a business combi-
nation that affects neither accounting nor taxable
profit/loss. Deferred income tax is provided on
temporary differences arising on investments in
subsidiaries, joint ventures and associates, ex-
cept where the timing of the reversal of the tem-
porary difference is controlled by DKT Holdings
Group and it is probable that the temporary dif-
ference will not reverse in the foreseeable future.
Deferred tax assets including the tax value of tax-
losses carried forwards are recognised when it is
likely that these will be utilised in the foreseeable
future.
Deferred tax is adjusted concerning elimination of
unrealised intra-group profit and losses.
Deferred tax is measured on the basis of the tax
rules and tax rates effective under the Danish leg-
islation at the balance sheet date when the de-
ferred tax is expected to be realised as current in-
come tax. Changes in deferred tax as a result of
changes in tax rates are recognised in the income
statement except for the effect of items recog-
nised directly in other comprehensive income.
Deferred tax assets and liabilities are offset in the
consolidated balance sheet.
2.8 | Income taxes (continued)
2024
2023
Effective tax rate (DKKm)
DKKm
%
DKKm
%
Tax on profit for the year before special
items
691
22.0
764
22.0
Limitation on the tax deductibility of in-
terest expenses
(696)
(22.2)
(932)
(26.8)
Adjustment of tax for previous years
8
0.3
7
0.2
Other
6
0.2
(1)
(0.1)
Effective tax excluding special items
9
0.3
(162)
(4.7)
Special items
26
-
22
-
Effective tax including special items
35
1.0
(140)
(3.8)
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 51
Section 3
This section shows the assets used to generate the g
mance and the resulting liabilities incurred. Assets and liabilities
relating to the gsection 4.
Deferred tax assets and liabilities are shown in note 2.8.
3. In this section
3.1. Impairment.................................................................... 52
3.2. Intangible assets .......................................................... 55
3.3. Property, plant and equipment.................................. 58
3.4. Lease assets and liabilities ........................................ 60
3.5. Trade receivables ......................................................... 62
3.6. Contract assets and liabilities ................................... 63
3.7. Provisions ...................................................................... 64
3.8. Pension assets and pension obligations ................. 66
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 52
Impairment test of assets
Goodwill and intangible assets with indefinite
of TDC Holding A/S. The carrying amount of
goodwill relating to the acquisition of TDC
amounted to DKK 21,913m and the carrying
value of intangible assets with indefinite useful
lives amounted to DKK 833m. The carrying
amount of assets with indefinite useful lives is
tested for impairment annually and if events or
changes in circumstances indicate impairment.
The annual tests were carried out at 1 October
2024 and at 1 October 2023, respectively.
Management has concluded that any reasonably
possible changes in the key assumptions are not
expected to cause the carrying amount of assets
to exceed the recoverable value.
There are identified two cash-generating units in
DKTH Nuuday and TDC NET which reflects the
way management makes decisions for future ac-
tivities and assesses business performance.
Impairment testing is an integral part of DKTH
based on long-term business plans with projec-
tion until 2030 to reflect the completion of the
long-term investments in fibre infrastructure. The
discount rates applied reflects specific risks relat-
ing to the individual cash-generating unit. The re-
coverable amount is based on the value in use
determined on expected cash flows based on
long-term business plans approved by Manage-
ment. The business plans approved by Manage-
ment follow the operating segments as described
in note 2.1.
Approved forecasts consider potential significant
climate-related risks as well as other types of
ing activities. Climate-related risks are considered
through, for example, the sales growth forecasts
which include offerings based on circular busi-
ness models to enable reuse and recycling. The
group assumes that these risks have no impact
on the assumptions.
Projections for the terminal period are based
on general expectations and risks, taking into
account the general growth expectations for the
telecoms industry in Denmark.
Our long-term business plans are based on cur-
rent trends. The budget period includes cash flow
effects from completed restructurings combined
with effects of strategic initiatives aimed at im-
proving or maintaining trend lines.
For the impairment testing of goodwill, DKTH
Group uses a pre-tax discount rate for each cash-
generating unit.
Goodwill and intangible assets with indefinite
useful lives relate to Nuuday and TDC NET. The
assumptions for calculating the value in use for
the most significant goodwill amounts are given
below.
3.1 | Impairment
Nuuday
TDC NET
Total
Key assumptions for calculating the value in use for the significant goodwill amounts (DKKm)
2024
2023
2024
2023
2024
2023
Carrying amount of goodwill at 31 December (DKKm)
4,883
4,883
17,318
17,318
22,201
22,201
Market-based growth rate applied at 1 October to extrapolate projected future cash flows for the period following 2030
2.3%
2.3%
2.3%
2.3%
Applied pre-tax discount rate at 1 October
9.0%
10.6%
7.1%
8.2%
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 53
Assumptions regarding recoverable
amounts and projected earnings
The impairment test is sensitive to possible
changes in the key assumptions, which may
result in future impairments. A sensitivity analy-
sis indicates that a 10% increase/decrease in
EBITDA during the forecast period as well as the
terminal period would change the value in use by
DKK 10.9bn. If the weighted average cost of capi-
tal (WACC) applied as the discounting factor in
the calculations increases/decreases by 1.0%, all
other things being equal, the value in use would
decrease/increase by DKK 15.3bn and 27.9bn, re-
spectively (2023: DKK 12.0bn and 19.2bn, re-
spectively). Under the same assumptions, a 1.0%
decrease/increase in the market-based growth
rate would cause the value in use to decrease/in-
crease by DKK 13.1bn and 23.8bn, respectively
(2023: DKK 9.5bn and 15.2bn, respectively). With
the present relation between WACC and the
growth rate, the WACC can increase approxi-
mately 1.3 percentage points (pre-tax) before the
carrying amount of net assets in one of the seg-
ments will exceed the recoverable value (2023:
approx. 1.3%-points (pre-tax)). The impairment
test has been prepared on the basis that the
company continues to operate with the current
set-up.
Nuuday
Sensitivity driven by reasonably possible changes in
the key assumptions are disclosed below.
Projections are based on the assumption steadily
declining EBITDA in the beginning of the pro-
jected period in YouSee and steadily increasing
EBITDA in Nuubrands and Business in the long-
term business plan based on the following as-
sumptions:
• Landline voice RGU will decline in line with mar-
ket trends however partly offset by slightly in-
creasing ARPU development due to the price
development in the market. Expectation that
landline will be decommissioned in towards the
end of the forecast period.
• A stable increase in mobility services gross
profit from price increases, partly offset by a
slight decline in customer base on mobile
voice. Mobile broadband is expected to grow
throughout the projected period.
• An early decline in broadband gross profit fol-
lowed by a stabilisation due to decommission-
ing of the cobber network, partly offset by an
increasing fibre RGU base. Price increases
throughout the projected period are expected
to contribute positively to the gross profit de-
velopment
• TV gross profit expected to decline slightly to-
wards 2030, however the large RGU decline is
partly offset by increasing ARPUs
• Savings throughout the planning
period driven by savings in both external and
personnel expenses, driven by the extensive IT
transformations and general cost focus, re-
spectively.
TDC NET
Any reasonably possible changes in the key
assumptions are not expected to cause the carry-
ing amount of assets to exceed the recoverable
value. Projections show steady EBITDA growth
and an increasing EBITDA margin in the long term
based on the following assumptions:
• Steady growth in mobility services gross profit
• Increased gross profit from high-speed broad-
band, stemming from the group’s growing fibre
footprint, continued large coax customer base
and increased ARPU from higher average
speed on products
• Customer base for legacy products such as
landline, TV and DSL assumed to decrease at
higher rates than historically
• Cost savings driven by initiatives in our end-to-
end transformation programme with reduc-
tions of both external and personnel expenses
• Steady decrease in capex due to cost optimisa-
tion and optimisation of ongoing investments
to maintain capacity while keeping quality in
the networks. Ongoing investments in our end-
to-end transformation to deliver long-term sav-
ings in both capital expenditure and opera-
tional expenses.
3.1 | Impairment (continued)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 54
Intangible assets comprise a significant portion
of DKTH Group's total assets. The measurement
of the recoverable amount of intangible assets is
a complex process that requires significant Man-
agement judgements in determining various as-
sumptions to be used in the calculation of cash-
flow projections, discount rates and terminal
growth rates.
The sensitivity of changes in the assumptions
used to determine the recoverable amount may
be significant. Furthermore, the use of other esti-
mates or assumptions when determining the re-
coverable amount of the assets may result in
other values and could result in required impair-
ment of intangible assets.
The assumptions used for the impairment testing
of goodwill are shown in the section Impairment
testing of goodwill and intangible assets with
indefinite useful lives.
The carrying amount of goodwill and assets with
indefinite useful lives is tested for impairment an-
nually and other assets are tested for impairment
if events or changes in circumstances indicate
impairment.
3.1 | Impairment (continued)
Critical accounting estimates and
judgements
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 55
3.2 | Intangible assets
2024
2023
(DKKm)
Goodwill
Customer re-
lationships
Brands
Rights and
software, etc.
Total
Goodwill
Customer re-
lationships
Brands
Rights and
software, etc.
Total
Cost at 1 January
22,201
10,467
2,535
13,518
48,721
22,201
10,573
2,539
12,233
47,546
Additions
-
-
-
1,442
1,442
-
-
-
1,314
1,314
Assets disposed of or fully amortised
-
(1)
-
(28)
(29)
-
(106)
(4)
(29)
(139)
Cost at 31 December
22,201
10,466
2,535
14,932
50,134
22,201
10,467
2,535
13,518
48,721
Amortisation and impairment losses at 1 January
-
(7,053)
(970)
(8,053)
(16,076)
-
(6,441)
(803)
(6,396)
(13,640)
Amortisation
-
(615)
(169)
(1,389)
(2,173)
-
(718)
(171)
(1,407)
(2,296)
Impairment losses for the year
-
-
-
(25)
(25)
-
-
-
(279)
(279)
Assets disposed of or fully amortised
-
1
-
26
27
-
106
4
29
139
Amortisation and impairment losses at 31 De-
cember
-
(7,667)
(1,139)
(9,441)
(18,247)
-
(7,053)
(970)
(8,053)
(16,076)
Carrying amount at 31 December
22,201
2,799
1,396
5,491
31,887
22,201
3,414
1,565
5,465
32,645
Worth noting
largely to goodwill, customer relations and
brands stemming from the acquisition of
TDC A/S (TDC Holding A/S) in May 2018,
and the resulting purchase price allocation.
Cash flow (DKKm)
2024
2023
Additions, cf. table above
(1,442)
(1,314)
Instalments regarding mobile licences
(271)
(192)
Cash flow from investment in intangible assets
(1,713)
(1,506)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 56
Impairment of intangible assets, etc. totalled
DKK 25m (2023: DKK 279m), of which DKK 22m
related to termination of various software pro-
jects in TDC NET.
Assets with indefinite useful lives other than
goodwill related to the TDC brand and were un-
changed at DKK 833m compared with 2023.
The carrying amount of software amounted
to DKK 2,934m (2023: DKK 2,698m). Of this,
DKK 348m relates to software in progress. The
addition of internally developed software totalled
DKK 492m (2023: DKK 492m).
The carrying amount of individually material Dan-
ish spectrum mobile licences included in rights,
software, etc., amounted to DKK 2,490m (2023:
DKK 2,672m) and is shown in the next table. Of
this, DKK 131m relates to licences not yet in use.
Useful lives
Management estimates useful lives for intangible
assets based on periodic studies of customer
churn or actual useful lives and the intended use
for those assets. Such studies are completed or
updated when new events occur that may have
the potential to impact the determination of the
useful life of the asset, i.e. when events or circum-
stances occur that indicate that the carrying
amount of the asset may not be recoverable and
should therefore be tested for impairment. Any
change in customer churn or the expected useful
lives of these assets is recognised in the financial
statements, as soon as any such change has
been ascertained, as a change of a critical
accounting estimate.
3.2 | Intangible assets (continued)
Comments
Spectrum licences
Spectrum (MHz)
Bandwidth (MHz)
Licence expiry
700
2 x 15 + 1 x 20
2040
800
2 x 20
2034
900
2 x 10
2034
1500
45
2042
1800
2 x 20
2032
2100
2 x 20
2042
2300
100
2041
2600
2 x 20
2030
3500
130
2042
26000
1250
2042
Critical accounting estimates and
judgements
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 57
Goodwill and brands with indefinite useful lives
are recognised at cost less accumulated impair-
ment losses. Impairment of goodwill are not re-
versed. For the purpose of impairment testing in
the consolidated financial statement, goodwill is
allocated to the g-generating units.
The determination of cash-generating units is
based on the operating segments in the g
internal management reporting.
Brands with finite useful lives, licences, proprie-
tary rights, etc. are measured at cost less accu-
mulated amortisation and impairment losses,
and are amortised on a straight-line basis over
their estimated useful lives.
Customer-related assets are measured at cost
less accumulated amortisation and impairment
losses, and are amortised using the diminishing-
balance method based on the percentage of
churn (17% to 23%) corresponding to the ex-
pected pattern of consumption of the expected
future economic benefits.
Development projects, including costs of com-
puter software purchased or developed for inter-
nal use, are recognised as intangible assets if the
cost can be calculated reliably and if they are
expected to generate future economic benefits.
Costs of development projects include wages,
external charges, depreciation and amortisation
that are directly attributable to the development
activities as well as interest expenses in the pro-
duction period.
Development projects that do not meet the crite-
ria for recognition in the balance sheet are e
xpensed as incurred in the income statement.
The main amortisation periods are as follows:
Brands
Mobile licences
Software
10 years
16-22 years
3-7 years
Goodwill, development projects in process and
intangible assets of indefinite useful lives are
tested for impairment annually and written down
to recoverable amounts in the income statement
if exceeded by the carrying amount.
Intangible assets are recorded at the lower of
recoverable amount and carrying amount.
3.2 | Intangible assets (continued)
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 58
In 2024, impairment losses totalled DKK 10m
(2023: DKK 47m) primarily related to assets
operated by TDC NET.
3.3 | Property, plant and equipment
2024
2023
(DKKm)
Land and
buildings
Network
infra-
structure
Equipment
Assets under
construction
Total
Land and
buildings
Network
infra-
structure
Equipment
Assets under
construction
Total
Cost at 1 January
413
29,256
1,661
427
31,757
414
26,770
1,484
488
29,156
Transfers (to)/from other items
-
593
38
(631)
-
1
465
77
(543)
-
Additions
4
2,094
113
677
2,888
1
2,180
138
482
2,801
Assets disposed of
-
(170)
(3)
(13)
(186)
(3)
(159)
(38)
-
(200)
Cost at 31 December
417
31,773
1,809
460
34,459
413
29,256
1,661
427
31,757
Depreciation and impairment losses at 1 January
(117)
(11,842)
(1,046)
(36)
(13,041)
(117)
(9,853)
(831)
(19)
(10,820)
Depreciation
(2)
(2,158)
(239)
-
(2,399)
(2)
(2,119)
(252)
-
(2,373)
Impairment losses for the year
-
(8)
(1)
(1)
(10)
-
(29)
(1)
(17)
(47)
Assets disposed of
-
167
3
13
183
2
159
38
-
199
Depreciation and impairment losses at 31 De-
cember
(119)
(13,841)
(1,283)
(24)
(15,267)
(117)
(11,842)
(1,046)
(36)
(13,041)
Carrying amount at 31 December
298
17,932
526
436
19,192
296
17,414
615
391
18,716
Comments
Cash flow (DKKm)
2024
2023
Additions, cf. table above
(2,888)
(2,801)
Non-cash deductions/additions regarding decommissioning obligations
(14)
(39)
Additions not yet paid , net
(2)
125
Capitalised interest
12
8
Capitalised depreciations cf. note 2.6
30
27
Cash flow from investment in property, plant and equipment
(2,862)
(2,680)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 59
Depreciation is
of residual value, depreciation method and the
useful lives of property, plant and equipment. Esti-
mates may change due to technological develop-
ments, changes in market conditions and other
factors and may result in changes in the estimated
useful lives and depreciation charges. Technologi-
cal developments are difficult to predict and the
g
ment may change over time. The impact of ex-
pected developments in technology and markets
are critical estimates in the evaluation of useful
lives. The useful lives are reviewed at least annually
taking into consideration the factors mentioned
above and all other important relevant factors. A
change in estimated useful life is a change in ac-
counting estimate, and depreciation plans are ad-
justed prospectively.
Property, plant and equipment are measured at
cost less accumulated depreciation and impair-
ment losses.
Cost comprises purchase price and costs directly
attributable to the acquisition until the date on
which the asset is ready for use. The cost of self-
constructed assets includes directly attributable
payroll costs, materials, parts purchased, and ser-
vices rendered by sub-suppliers or contractors as
well as interest expenses in the construction pe-
riod. Cost also includes estimated decommission-
ing costs if the related obligation meets the condi-
tions for recognition as a provision.
Directly attributable costs comprise personnel ex-
penses together with other external expenses cal-
culated in terms of time spent on self-con-
structed assets.
The depreciation base is measured at cost less
residual value and any impairment. Depreciation
is provided on a straight-line basis over the esti-
mated useful lives of the assets. The main depre-
ciation periods are as shown in the next table.
The useful lives and residual values of the assets
are reviewed regularly. If the residual value
exceeds the carrying amount of an asset, depreci-
ation is discontinued.
Property, plant and equipment that have been
disposed of or scrapped are eliminated from
accumulated cost and accumulated depreciation.
Gains and losses arising from sale of property,
plant and equipment are measured as the
difference between the sales price less selling
expenses and the carrying amount at the time of
sale. The resulting gain or loss is recognised in
the income statement under other income.
Software that is an integral part of telephone
exchange installations, for example, is presented
together with the related assets. Useful lives are
estimated individually.
Installation materials to be used in construction
of assets are measured at the lower of weighted
average cost and recoverable amount.
Customer-placed equipment (e.g., set-top boxes)
is capitalised and depreciated over the estimated
useful life of the individual asset, not exceeding
five years.
3.3 | Property, plant and equipment (continued)
Accounting policies
Critical accounting estimates
Buildings
20 years
Network infrastructure:
mobile networks
20 years
copper
1-20 years
coax
20 years
fibre
30 years
exchange equipment
8-10 years
other network equipment
3-15 years
Equipment (computers, tools and
office equipment)
3-8 years
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 60
The group leases various offices, exchanges,
mobile sites, retail stores, vehicles and equip-
ment. Rental contracts are typically made for
fixed periods of 3 to 15 years but may have
extension options.
Lease terms are negotiated on an individual basis
and contain a wide range of different terms and
conditions. The lease agreements do not impose
any covenants other than the security interests in
the leased assets that are held by the lessor.
Leased assets may not be used as security for
borrowing purposes.
The total cash outflow for leases in 2024 was
DKK 557m (2023: DKK 550m). The amount is
excluding short-term leases and leases of low-
value assets.
At 31 December 2024, the future sublease
payment amounted to DKK 547m (2023:
DKK 514m).
3.4 | Lease assets and liabilities
2024
2023
Lease assets (DKKm)
Land and
buildings
Network in-
frastructure
Vehicles and
equipment
Total
Land and
buildings
Network in-
frastructure
Vehicles and
equipment
Total
Carrying amount at 1 January
2,916
5
191
3,112
2,870
7
217
3,094
Additions
55
-
65
120
94
-
73
167
Disposals
-
-
(38)
(38)
-
-
(16)
(16)
Impairment losses
(44)
-
-
(44)
-
-
-
-
Reversal of impairment losses
-
-
-
-
258
-
-
258
Depreciation
(324)
(1)
(76)
(401)
(306)
(2)
(83)
(391)
Carrying amount at 31 December
2,603
4
142
2,749
2,916
5
191
3,112
Lease liabilities (DKKm)
2024
2023
Recognised in the balance sheet at present value
3,556
3,856
Of which presented as current
(507)
(517)
Total non-current
3,049
3,339
Maturing between 1 and 3 years
831
848
Maturing between 3 and 5 years
638
700
Maturing between 5 and 10 years
1,067
1,108
Maturing between 10 and 20 years
513
683
Total non-current
3,049
3,339
Amounts recognised in the income statement (DKKm)
2024
2023
Expense relating to short-term leases
(80)
(77)
Expense relating to leases of low-value assets
(1)
(1)
Income from sublease
153
148
Reversal of impairment losses
-
258
Depreciation charge of lease assets, cf. above
(401)
(391)
Impairment losses of lease assets, cf. above
(44)
-
Interest expense (included in financing costs)
(173)
(182)
Comments
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 61
Impairment tests of lease assets require manage-
ment to make significant estimates related to
vacant tenancies. Management has estimated the
expected sublease income net of operating cost.
For each category of lease assets (offices,
exchanges, etc.) and in consideration of the geo-
graphical location, the probability of obtaining
income from sublease and expected sublet rent
rates is estimated. The most critical assumptions
used in determining the write-down relate to the
probability of sublease and expected sublet rent
rates that will be impacted by e.g., changed mar-
ket conditions for subletting.
The group has 197,662 square metres of leased
tenancies no longer used by the group (2023:
193,544). Of this, 127,127 square metres were
sublet (2023: 120,422). The leases terminate in
2041 at the latest.
The group is expected to vacate and sublet addi-
tional tenancies in the future, following further
reductions in the number of employees and up-
grading to technical equipment that requires
fewer square metres.
Significant judgements are involved when as-
sessing the future capacity needs for leases and
as such, the use of extension options.
Assets and liabilities arising from a lease are ini-
tially measured on a present value basis. Lease
liabilities include the net present value of the fol-
lowing lease payments:
fixed payments (including in-substance fixed
payments), less any lease incentives receivable
variable lease payments that are based on an
index or a rate, initially measured using the
index or rate as at the commencement date
amounts expected to be payable by the group
under residual value guarantees
the exercise price of a purchase option if the
group is reasonably certain to exercise that
option
payments of penalties for terminating the
lease, if the lease term reflects the group exer-
cising that option.
The lease payments to be made under reasona-
bly certain extension options are also included
when measuring of the liability.
The lease payments are discounted using the in-
terest rate implicit in the lease. If that rate cannot
be readily determined, which is generally the case
for leases in the g
borrowing rate is used, i.e. the rate that the les-
see would have to pay to borrow the funds neces-
sary to obtain an asset of similar value to the
lease asset in a similar economic environment
with similar terms, security and conditions.
The incremental borrowing rates are based on
our existing credit facilities and observable mar-
ket data.
The group is exposed to potential future
increases in variable lease payments based on an
index or rate, which are not included in the lease
liability until they take effect. When adjustments
to lease payments based on an index or rate take
effect, the lease liability is reassessed and ad-
justed against the lease asset.
Lease payments are allocated between instal-
ments and financing costs. The financing costs
are charged to the income statement over the
lease period to produce a constant periodic rate
of interest for the remaining balance of the liabil-
ity for each period.
Lease assets are measured at cost less accumu-
lated depreciation and write-downs for impair-
ment. Cost comprises the following:
the amount of the initial measurement of lease
liability
any lease payments made at or before the
commencement date less any lease incentives
received
any initial direct costs
decommissioning costs.
Lease assets are generally depreciated over the
term on a straight-line basis. If the group is rea-
sonably certain to exercise a purchase option, the
lease asset is depreciated over the underlying
3.
Impairment tests on lease assets are performed
at least annually and, if necessary, when circum-
stances indicate their carrying amounts may not
be recoverable. Write-downs of lease assets
related to vacant tenancies are based on expecta-
tions concerning timing and scope, future cost
level, etc. The calculation of the write-downs com-
prises rent and operating costs for the contract
period minus the expected rental income from
subleases.
Payments associated with short-term leases of
equipment and vehicles and all leases of low-
value assets are expensed as incurred. Short-
term leases are leases with a lease term of 12
months or less. Low-value assets comprise IT
equipment and small items of office furniture.
3.4 | Lease assets and liabilities (continued)
Critical accounting estimates and
judgements
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 62
Comments
mated fair value is due to the short maturity of
amounts receivable.
Expected credit losses are assessed for portfolios
of trade receivables based on customer seg-
ments, historical credit loss experience combined
with forward-looking information on macroeco-
nomic factors affecting the credit risk. The ex-
pected loss rates are updated at each reporting
date.
Accounting policies
Trade receivables are amounts due from custom-
ers for goods sold or services performed in the
ordinary course of business. DKTH operates with
standard customer payment terms where cus-
tomer subscriptions are billed and paid in ad-
vance of the subscription period, while usage and
one-off services are billed and paid after the sub-
scription period. The receivables are generally
due for settlement within 20-30 days and are
therefore all classified as current. Trade receiva-
bles are recognised initially at the amount of con-
sideration that is unconditional. The group holds
the trade receivables with the objective of collect-
ing the contractual cash flows and therefore
measures them subsequently at amortised cost
using the effective interest method.
DKTH applies the simplified approach to measure
expected credit losses, which uses a lifetime
expected loss allowance for all trade receivables,
contract assets and lease receivables. To meas-
ure the expected credit losses, receivables have
been grouped based on shared credit risk charac-
teristics and the days past due. The expected loss
rates are based on the payment profiles of sales
and the corresponding historical credit losses
experienced. The historical loss rates are ad-
justed to reflect current and forward-looking
information on macroeconomic factors affecting
the ability of the customers to settle the receiva-
bles.
3.5 | Trade receivables
(DKKm)
2024
2023
Trade receivables
1,513
1,557
Expected credit losses
(126)
(117)
Trade receivables, net
1,387
1,440
Expected credit losses at 1 January
(117)
(111)
Expected credit losses
(54)
(48)
Realised credit losses
20
22
Reversed expected credit losses
25
20
Expected credit losses at 31 December
(126)
(117)
Trade receivables (DKKm)
Not yet due
Less than
1 month
past due
More than
1 month
past due
More than
3 months
past due
More than
6 months
past due
Total
2024
Expected loss rate
2%
1%
7%
42%
66%
8%
Gross carrying amount
903
348
90
38
134
1,513
Expected credit losses
(14)
(2)
(6)
(16)
(88)
(126)
2023
Expected loss rate
2%
1%
9%
29%
65%
8%
Gross carrying amount
1,084
265
57
24
127
1,557
Expected credit losses
(19)
(3)
(5)
(7)
(83)
(117)
Critical accounting estimates
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 63
Of the deferred subscription income, DKK 50m
(2023: DKK 26m) will be recognised as income
after more than one year.
Revenue recognised in 2024 that was included
in deferred subscription income at the beginning
of the period amounted to DKK 2,282m (2023:
DKK 2,346m).
Costs recognised in 2024 that were included in
assets recognised from costs to obtain a contract
(SAC) at the beginning of the period amounted to
DKK 175m (2023: DKK 140m). Assets to fulfil a
contract at the beginning of the period DKK 64m
(2023 DKK 51m) were recognised as costs in
2024.
Of the assets recognised from costs to obtain a
contract (SAC), DKK 213m (2023: DKK 160m)
and DKK 127m (2023: DKK 137m) of costs to ful-
fil a contract will be recognised as costs after
more than one year.
Subscriber acquisition costs
and fulfilment costs
The most common subscriber acquisition costs
are dealer commissions. Subscriber acquisition
costs and fulfilment costs are capitalised and rec-
ognised as expenses in external expenses and
personnel expenses over the expected term of
the related customer relationship. The term is es-
timated using historical customer churn rates.
Change of management estimates may have a
significant impact on the amount and timing of
the expenses for any period.
Deferred subscription income recognised as a lia-
bility comprises payments received from custom-
ers covering income in subsequent years.
3.6 | Contract assets and liabilities
(DKKm)
2024
2023
Assets recognised from costs to obtain a contract (SAC)
430
336
Assets recognised from costs to fulfil a contract
197
201
Work in progress for the account of third parties
44
69
Total contract assets
671
606
Deferred subscription income
2,330
2,308
Other deferred income
96
105
Work in progress for the account of third parties, liabilities
5
4
Total contract liabilities
2,431
2,417
Comments
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 64
3.7 | Provisions
2024
2023
(DKKm)
Decom
missioning
obligations
Restructuring
obligations
Other
provisions
Total
Provisions at 1 January
260
71
159
490
511
Provisions made
4
164
-
168
143
Change in present value
(4)
-
-
(4)
(29)
Provisions used (payments)
(1)
(141)
(2)
(144)
(128)
Reversal of unused provisions
-
-
(3)
(3)
(1)
Currency translation adjustments
-
-
(5)
(5)
(6)
Provisions at 31 December
259
94
149
502
490
Of which recognised through special items in the income statement
-
87
89
176
155
Recognised as follows in the
balance sheet:
Non-current liabilities
259
10
61
330
336
Current liabilities
-
84
88
172
154
Total
259
94
149
502
490
Specification of how payments regarding provisions are
recognised in the statements of cash flow (DKKm)
2024
2023
Payments related to provisions
(29)
(23)
Cash flow related to special items
(115)
(105)
Total
(144)
(128)
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 65
Provisions for decommissioning obligations re-
late to the future dismantling of mobile stations
and restoration of property owned by third par-
ties. The uncertainties relate primarily to the tim-
ing of the related cash outflows. The majority of
these obligations are not expected to result in
cash outflow within the next five years.
Provisions for restructuring obligations relate pri-
marily to redundancy programmes. The majority
of the provisions for redundancy programmes are
expected to result in cash outflows in the next five
years. The uncertainties relate primarily to the es-
timated amounts and the timing of the related
cash outflows.
Other provisions relate mainly to onerous con-
tracts and jubilee benefits for employees as well
as legal claims. The majority of these provisions
are expected to result in cash outflows in the next
five years. The uncertainties regarding legal
claims and onerous contracts relate to both tim-
ing and estimated amounts. The uncertainties
regarding jubilee benefits relate to both salary
and the number of employees included.
In pursuance of Section 32 of the Danish Civil
Servants Act, the group has a termination benefit
obligation to former Danish civil servants and to
employees with civil-servant status hired before
1 April 1970 who are members of the related
Danish pension fund. In the event of termination,
such employees have a right to special termina-
(tied-
and two-thirds of their full monthly salary for four
years and nine months (stand-off pay).
The g
wages during the notice period, severance pay,
stand-off pay, payments pursuant to the Danish
Salaried Employees Act, special termination ben-
efits (in accordance with IAS 19 Employee Bene-
fits), social security contributions and out-place-
ment costs. The average redundancy cost per full-
time employee equivalent, calculated as the total
cost divided by the number of full-time employee
equivalents included in the redundancy pro-
grammes during this period, is shown in the table
below.
Provisions are recognised when the group has a
legal or constructive obligation arising from past
events, it is probable that economic benefits must
be sacrificed to settle it, and the amount can be esti-
mated reliably.
Provisions for restructuring, etc. are recognised
when a final decision thereon has been made be-
fore or on the balance sheet date and has been an-
nounced to the parties involved, provided that the
amount can be measured reliably. Provisions for
restructuring are based on a defined plan, which
means that the restructuring commences immedi-
ately after the decision has been made.
When the group is under an obligation to demolish
an asset or re-establish the site where the asset
was used, a liability corresponding to the present
value of estimated future costs is recognised and
an equal amount is capitalised as part of the initial
carrying amount of the asset. Subsequent changes
in such a decommissioning liability that results
from a change in the current best estimate of cash
Provisions are recognised when the group has a
legal or constructive obligation arising from past
events, it is probable that economic benefits must
be sacrificed to settle it, and the amount can be esti-
mated reliably.
Provisions are measured at m
estimate of the amount at which the liability is
expected to be settled. Provisions are discounted if
the effect is material to the measurement of the li-
ability.
3.7 | Provisions (continued)
Comments
Average redundancy cost per full-time employee equivalent¹
(DKK thousands)
2024
2023
Non-civil servants
447
363
Former Danish civil servants
2,138
1,635
Employees with civil-servant status
680
583
Weighted average per full-time employee equivalent
491
421
Number of redundancies
289
249
1 Excluding corporate management.
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 66
Defined benefit plan
Under conditions similar to those provided by the
457 of DKTH
23: 524) were entitled to
pensions from the pension fund related to the
group. Of these, 15 (2023: 19) employees were
seconded to external parties in connection with
outsourcing tasks or divesting operations. In ad-
dition, 7,128 (2023: 7,257) members of the pen-
sion fund receive or are entitled to receive pen-
sion benefits. The pension benefits comprise life-
long old-age and disability pensions as well as
certain benefits for spouses and children. Future
pension benefits are based primarily on years of
credited servic
tion at the time of retirement. Since 1990, no new
members have joined the pension fund plans,
and the pension fund is prevented from admitting
new members in the future due to the articles of
association.
The pension fund operates defined benefit plans
via a separate legal entity supervised by the
Danish Financial Supervisory Authority (FSA). In
accordance with existing legislation, articles of
association and the pension regulations, the
group is required to make contributions to meet
the capital adequacy requirements. When all pen-
sion obligations have been met, the remaining
funds will be distributed from the pension fund to
DKTH Group.
With effect from 2019, TDC Pension Fund can un-
der certain circumstances distribute excess
capital to DKTH Group triggering a payment to
members of the pension fund as well. The mem-
bers of the pension fund receive 7.5% of a poten-
tial future distribution from TDC Pension Fund.
Pensioners receive the distribution as part of the
current pension payments, while employees in
service receive a supplement to their future pen-
sion benefits. The pension members shares of
distribution are expensed when incurred and rec-
ognised in special items. In 2024, TDC Pen-
sions Fund distributed DKK 850m (2023: DKK
500m), of which DKTH Group received DKK 786m
(2023: DKK 437m).
Ordinary monthly contributions to the pension
fund are made corresponding to a percentage of
wages. The ordinary contributions have been
reduced from 1 January 2018. This decision was
made due to the positive funding situation of the
pension fund. Extraordinary contributions are
made in connection with redundancy pro-
grammes and other retirements. Overall, the risk
of additional capital contributions to the pension
fund can be categorised as investment, longevity
and regulatory risks.
Investment risk is managed within risk tolerance
limits to mitigate excessive risk that could lead to
contributions. The fund invests in a wide variety
of marketable securities (predominantly fixed-in-
come securities) and the return on the invest-
ments has implications for DKTH
cial results. Uncompensated risk related to nomi-
nal interest rates and inflation has been hedged.
In 2011, the Danish FSA introduced the longevity
actuary has since on a yearly basis conducted a
detailed longevity statistical analyses that have
regarding observed current longevity. In line with
the sector, however, the fund has increased its
provisions for future expected improvements to
longevity corresponding to the updated Danish
FSA benchmark.
Other risks relating to capital contributions in ex-
cess of the planned ordinary contributions and
extraordinary contributions in connection with re-
dundancies going forward, relate primarily to fu-
ture changes to pension regulation and benefits
over which the group does not have full control.
The surplus under the Danish FSA pension regu-
lation amounted to approximately DKK 4.6bn
(2023: DKK 4.7bn). The equity of the pension
fund amounted to approx. DKK 5.4bn (2023:
DKK 5.6bn). The equity differs from the pension
assets recognised in accordance with IFRS due to
specific FSA pension regulation requirements re-
sulting in a higher pension obligation for regula-
tory purposes. The method for determining the
fair value of plan assets is identical under the two
requirements. The pension assets recognised in
accordance with IFRS amounted to approximately
DKK 9.9bn (2023: 9.9bn).
3.8 | Pension assets and pension obligations
Worth noting
In a defined contribution plan, DKTH Group
pays fixed contributions to a third party on
behalf of the employees and has no further
obligations towards the employees. The ben-
efits for the employees ultimately depend on
In a defined benefit plan, members receive
cash payments on retirement, the values of
which depends on factors such as salary and
length of service. The group underwrites in-
vestment, mortality and inflation risks neces-
sary to meet these obligations. In the event of
returns not being sufficient to honour obliga-
tions towards the employees, DKTH Group
needs to address this through increased
levels of contribution. The group has defined a
benefit plan in TDC Pension Fund. In total, 457
of TDCH G
defined benefit plan, while all other employees
are covered by defined contribution plans.
DKTH Group makes contributions to TDC Pen-
sion Fund, which is not consolidated in these fi-
nancial statements, but are reflected in the bal-
ance sheet in pension assets. TDC Pension
Fund can, under certain circumstances, distrib-
ute excess capital to DKTH Group, triggering a
payment to members of the pension fund as
obligations are outlined in more detail in the
following.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 67
3.8 | Pension assets and pension obligations (continued)
Assets and obligations (DKKm)
2024
2023
Specification of pension assets
Fair value of plan assets
26,226
27,459
Defined benefit obligation
(16,300)
(17,585)
Pension assets recognised in the balance sheet
9,926
9,874
Change in defined benefit obligation
Defined benefit obligation at 1 January
(17,585)
(16,668)
Service cost
(32)
(38)
Administrative expenses
(17)
(12)
Interest cost on the defined benefit obligation
(530)
(645)
Termination benefits
(9)
(5)
Past service cost - distribution of excess capital
(10)
(7)
Remeasurement effect:
Demographic experience
170
264
Financial assumptions
579
(1,579)
Benefit paid
1,134
1,105
Projected benefit obligations at 31 December
(16,300)
(17,585)
Change in fair value of plan assets
Fair value of plan assets at 1 January
27,459
27,561
Interest income on plan assets
899
1,071
Actual return on plan assets greater/(less) than discount rate
(173)
414
(remeasurement effect)
Distribution of excess capital
(839)
(493)
14
11
Benefit paid
(1,134)
(1,105)
Fair value of plan assets at 31 December
26,226
27,459
Change in pension assets
Pension assets at 1 January
9,874
10,893
Pension (costs)/income
312
371
Remeasurement effects
576
(901)
Distribution of excess capital
(850)
(500)
14
11
Pension assets recognised in the balance sheet
9,926
9,874
Asset allocation by asset categories at 31 December (DKKm)
2024
2023
Assets with quoted prices:
Danish Covered Bonds and Government Bonds
8,383
7,979
High Yield
1,721
1,298
Investment Grade
336
613
Emerging Markets Debt
1,817
1,704
Collateralized Loan Obligation (CLO)
4,856
5,434
Equity
934
33
Cash
437
153
Assets without quoted prices:
Danish Covered Bonds and Government Bonds
(38)
1,552
High Yield
2,789
3,509
Investment Grade
(49)
(3)
Emerging Markets Debt
157
1
Real Estate
3,889
4,297
Collateralized Loan Obligation (CLO)
(41)
14
Equity
89
129
Other
946
746
Fair value of plan assets
26,226
27,459
Assumptions used to determine defined benefit obligations
(balance sheet) (%)
2024
2023
Discount rate
3.49
3.33
General price/wage inflation (first year)
3.30
7.70
General price/wage inflation (following years)
1.97
2.19
Assumptions used to determine pension
(costs)/income (%)
2025
2024
2023
Discount rate
3.49
3.33
3.99
General price/wage inflation
1.97
2.19
2.58
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 68
The basis for determining the discount rate is the
yield of AA-rated euro-denominated corporate
bonds with an average maturity of 13 years, tak-
ing into account that the pension liability is in
Danish kroner. For purposes of determining
count rate was 3.33% (3.99% in 2023) and infla-
tion was 2.19% (2.58% in 2023). The assump-
tions for 2025 reflect a discount rate increase to
3.49% and a decrease in the assumed inflation
rate to 1.97%.
In 2025, with these changed assumptions, pen-
sion costs from the domestic defined benefit plan
is expected to amount to DKK 305m (2024: cost
of DKK 323m expected), assuming all other fac-
tors remain unchanged. The g
is expected to amount to DKK 7m (2024: DKK
11m expected).
The remeasurement effects of DKK 576m in
2024 covered primarily a gain related to the fi-
nancial assumptions (DKK 579m) as a result from
the increasing discount rate (from 3.33% to
3.49%) and decreasing inflation rate (from 2.19%
to 1.97%).
The remeasurement effects of DKK (901)m in
2023 covered primarily a gain related to the plan
assets, DKK 414m, as the actual return was
higher than the expected return. This was more
than offset by a loss related to the benefit obliga-
tion, DKK (1,315)m, resulting from the decreasing
discount rate (from 3.99% to 3.33%) partly offset
by decreasing inflation rate (from 2.58% to
2.19%).
The mortality assumptions are based on yearly
mortality studies. If TDC Pension Funds own ob-
served mortality deviates significantly from the
Danish FSAs benchmark mortality, TDC Pension
Funds own observed mortality is used. Other-
wise, the Danish FSAs benchmark mortality is
used. The studies in 2024 and 2023 showed that
the benchmark mortality should be used for men
and own observed mortality for women. In addi-
tion, the allowance for future improvement is in
accordance with the Danish FSAs guidelines. The
mortality assumptions provide the best estimate
for the g
ance for future improvement.
The table on the right side shows the estimated
impact of some of the risks to which DKTH Group
is exposed. The group is also exposed to fluctua-
tions in the market value of assets. For some of
these risks, if the defined benefit obligation rises
or falls, the market value of assets may move in
the opposite direction, thereby eliminating some
part of the risk.
3.8 | Pension assets and pension obligations (continued)
Pension (costs)/income (DKKm)
Expected
2025
2024
2023
Service costs
(24)
(32)
(38)
Administrative expenses
(17)
(17)
(12)
Personnel expenses (included in EBITDA)
(41)
(49)
(50)
Interest on pension assets
346
369
426
Pension (costs)/income (excluding special items)
305
320
376
Domestic redundancy programmes recognised in special
items
(9)
(5)
Members part of distribution of excess capital
(64)
(38)
Total pension (costs)/income recognised in the income
statement
247
333
Sensitivity analysis (DKKm)
2024
2023
Reported defined benefit obligation
16,300
17,585
Discount rate sensitivity
3.49%
3.33%
Assumption -0.5%
17,155
18,568
Assumption +0.5%
15,515
16,685
General price/wage inflation sensitivity
1.97%
2.19%
Assumption +0.25%
16,737
18,095
Assumption 0.25%
15,880
17,095
Mortality sensitivity
Assumption +1 year longevity
16,970
18,306
Assumption -1 year longevity
15,633
16,868
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 69
Other information
Ultimately, 436 members of the defined benefit
plans will have part of their pension payments
reimbursed by the Danish government. (2023:
454 members).
The related benefit obligations of DKK 259m
(2023: DKK 272m) have been deducted in the
projected benefit obligation.
The comparative figures have been restated as
consequence of material error, see note 1.1 for
further description.
Also, certain comparative figures have been re-
classified in the notes. The reclassifications do
not impact EBITDA, profit/loss for the year, other
comprehenvise income, balance sheet and/or
equity.
Defined benefit plans
The pension liability regarding defined benefit
plans is estimated based on certain actuarial as-
sumptions, the most significant of which relate to
discount rates, wage inflation and mortality. The
discount rate applied is based on the yield of cor-
porate bonds and may change over the years de-
pending on interest rate developments. Manage-
ment estimates of actuarial assumptions illus-
trate current market conditions. See the separate
section Sensitivity analysis for a statement on the
sensitivity of the defined benefit obligation to the
discount rate, inflation and mortality.
In a defined benefit plan, DKTH Group is obliged
to pay a specific benefit at the time of retirement.
A pension asset or pension obligation corre-
sponding to the present value of the obligations
value is recognised for these benefit plans.
The obligations are determined annually by inde-
pendent actuaries using the projected unit credit
method assuming that each year of service gives
rise to an additional unit of benefit entitlement,
and each unit is measured separately to build up
the final obligations. Estimation of future obliga-
tions is based on the g
velopments in mortality, early retirement, future
wages, salaries and benefit levels, interest rate,
etc. The obligation does not take into account
potential distributions of "excess capital" which is
under DKTH's control. The defined pension plan
assets are estimated at fair value at the balance
sheet date.
Differences between the projected and realised
developments in pension assets and pension ob-
ligations are referred to as remeasurement ef-
fects and are recognised in other comprehensive
income when gains and losses occur.
Pension assets are recognised to the extent that
they represent future repayments from the pen-
sion plan.
Pension income/costs from defined benefit plans
comprise the items: service cost, administrative
expenses and interest on pension assets. Service
cost and administrative expenses are recognised
in personnel expenses, whereas interest on pen-
sion assets is presented as an item in financial in-
come and expenses.
Past service costs are recognised as an expense
when a plan amendment or curtailment occurs.
For the defined contribution plans, the group will
pay in a fixed periodic contribution to separate le-
gal entities and will have no further obligations
after the payment has been made.
3.8 | Pension assets and pension obligations (continued)
Projected benefit payments
1
DKKm
1
The duration of the pension plan is approximately 11 years.
Critical accounting estimates
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 70
Section 4
This section includes disclosures related to the g
and related financing costs, net interest-bearing debt as well as finance
related risks and how these are managed.
4. In this section
4.1. Equity ............................................................................. 71
4.2. Loans and derivatives ................................................. 72
4.3. Financial risks ............................................................... 76
4.4. Credit ratings and net interest-bearing debt .......... 77
4.5. Financial income and expenses ................................. 78
4.6. Maturity profiles of financial instruments .............. 80
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 71
increased with
DKK 92,478 in 2023 from DKK 195,000 to DKK
287,478 divided into shares of DKK 1 each or
multiples thereof. All issued shares have been
fully paid up. All shares rank equally.
During 2024, total equity decreased by DKK
2,916m as a result of negative total comprehen-
sive income.
During 2023, total equity decreased by DKK
955m as a result of negative total comprehensive
income offset by capital contribution of DKK
3,533m.
The parent company statement of changes in eq-
uity specifies which reserves are available for dis-
tribution. The distributable reserves amounted to
DKK 8,041m at 31 December 2024 (2023: DKK
7,985m). At the Annual General Meeting, the
Board of Directors will not propose any dividend
for the financial year 2024.
There were no dividend payments during 2024
and 2023.
Dividends
Dividends expected to be distributed for the year
are recognised in a separate item in equity. Divi-
dends and interim dividends are recognised as a
liability at the time of adoption by the Annual
General Meeting and the meeting of the Board of
Directors, respectively.
4.1 | Equity
Comments
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 72
Capital management
DKTH Group consists of three ring-fenced groups,
insulating them from the rest of the TDC Group
with respect to financings.
In 2023, DK Telekommunikation established a
fixed rate term loan with a group of private lend-
ers in size of EUR 500m.
TDC NET
TDC NET has established a long-term secured in-
frastructure financing platform and under this
platform, TDC NET has issued Eurobonds, term
loans, revolving credit and additional liquidity fa-
cilities. As a general principle, funding instru-
ments rank pari passu and are governed by a
Common Terms Agreement defining financial and
legal covenants and Intercreditor Agreement.
TDC NET manages and monitors the capital struc-
ture in light of financial performance of the busi-
ness, changes in economic conditions and re-
quirements of the financial covenants.
In 2024, TDC NET has issued one fixed-rate Euro-
bond in benchmark size of EUR 500m with ma-
turity in 2029. In addition, in December 2024
TDC NET signed an Export Credit Agency (ECA)
loan financing of EUR 125m, which will be drawn
during 2025.
No changes were made in the objectives, policies
or processes for managing capital during the
years ended 31 December 2024 and 2023.
The policy is to target a leverage ratio below 6.0x,
while monitoring interest cover ratio.
The term loan facilities have, apart from one of
size DKK 400m, all been issued in EUR mainly
with floating interest rates.
Nuuday
to ensure the funding of investments in growth,
while maximising the return through optimisation
of the debt and equity balance. Nuuday is fi-
nanced through a EUR 500m term loan and a EUR
135m Revolving Credit Facility (RCF), with a num-
ber of banks and other investors. The financing is
governed by a common term agreement defining
financial and legal covenants.
The carrying amount of the liabilities related to
the financial covenants amounted to DKK 3,458m
as per 31 December 2024.
4.2 | Loans and derivatives
Loans¹ (DKKm)
2024
2023
Senior Term Facility (STF) loans
13,864
17,777
Holdco loan
3,654
3,623
EMTN
14,828
11,084
Total excl. shareholder funding
32,346
32,484
Shareholder funding
28,383
26,064
Total
60,729
58,548
1 For maturity profiles of expected cash outflows and fair value of debt, see note 4.6.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 73
EUR exposures are not considered a significant
risk due to the fixed EUR/DKK exchange rate
policy.
As of 31 December 2024, there were no drawings
on committed credit lines. Committed credit lines
in TDC NET totalling EUR 580m under the Senior
Facilities Agreement (SFA). Hereof, undrawn
Revolving Credit Facilities (RCFs) in TDC NET
amounted to EUR 350m, maturing February
2027. Undrawn RCF in Nuuday, EUR 135m, is
maturing July 2026.
Comments
Events after the balance sheet date:
In January 2025, EUR 610m of the EUR 650m
STF loan scheduled to mature in February 2025
was extended by a year (12 months) to February
2026, the remaining EUR 40m was repaid. An
additional, and final one-year extension option
exists and may be used at the discretion of
TDC NET.
4.2 | Loans and derivatives (continued)
2024
Loans
2025
2026
2026
2027
2027
2027
2028
2028
2029
2029
2030
2030
2031
Total
excl. SH
funding
2029
2029
Total SH
funding
Total
Maturity
Feb
2025²
Jun
2026
Jun
2026
Feb
2027
Feb
2027
Feb
2027
Feb
2028
May
2028
Jun
2029
Aug
2029
Feb
2030
Oct
2030
Jun
2031
Dec
2029
Dec
2029
Fixed/floating rate¹
Floating
Floating
Floating
Floating
Floating
Fixed
Floating
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Coupon
Margin +
floored
Euribor
Margin +
floored
Cibor
Margin +
floored
Euribor
Margin +
floored
Euribor
Margin +
floored
Euribor
11.750%
Margin +
floored
Euribor
5.056%
Margin +
floored
Euribor
5.186%
5.618%
5.870%
6.500%
8.810%
8.150%
Currency
EUR
DKK
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
DKK
DKK
Type
STF loan
STF loan
STF loan
STF loan
STF loan
Holdco
loan
STF loan
EMTN
bond
STF loan
EMTN
Bond
EMTN
Bond
EMTN
Bond
EMTN
bond
SHL loan
SHL loan
Issuing company
TDC NET
TDC NET
TDC NET
TDC NET
TDC NET
DK Tele
Nuuday
TDC NET
TDC NET
TDC NET
TDC NET
TDC NET
TDC NET
DKTH
DKTH
Nominal value (DKKm)
4,848
400
373
559
2,983
3,729
3,729
3,729
373
3,729
3,729
820
3,729
32,730
25,928
2,455
28,383
61,113
Nominal value (Cur-
rency)
650
400
50
75
400
500
500
500
50
500
500
110
500
25,928
2,455
Of which nominal
value swapped to or
with fixed interest rate
(currency)
650
-
50
75
400
500
400
500
50
500
500
110
500
25,928
2,455
1
EMTNs and STF loans are in EUR, apart from one STF loan nominated in DKK.
2
STF loans have a 0% Euribor or Cibor floor.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 74
4.2 | Loans and derivatives (continued)
2023
Loans
2024
2026
2027
2027
2027
2028
2028
2029
2030
2030
2031
Total
excl. SH
funding
2029
2029
Total SH
funding
Total
Maturity
Feb 2024
Jun 2026
Feb 2027
Feb 2027
Feb 2027
Feb 2028
May
2028
Jun 2029
Feb 2030
Oct 2030
Jun 2031
Dec 2029
Dec
2029
Fixed/floating rate
1
Floating
Floating
Floating
Floating
Fixed
Floating
Fixed
Floating
Fixed
Fixed
Fixed
Fixed
Fixed
Coupon
2
Margin +
floored
Euribor
Margin +
floored
cibor
Margin +
floored
Euribor
Margin +
floored
Euribor
11.750%
Margin +
floored
Euribor
5.056%
Margin +
floored
Euribor
5.618%
5.870%
6.500%
8.810%
8.150%
Currency
EUR
DKK
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
DKK
DKK
Type
STF loan
STF loan
STF loan
STF loan
Holdco
loan
STF loan
EMTN
bond
STF loan
EMTN
Bond
EMTN
Bond
EMTN
bond
SHL loan
SHL loan
Issuing company
TDC NET
TDC NET
TDC NET
TDC NET
DK Tele
Nuuday
TDC NET
TDC NET
TDC NET
TDC NET
TDC NET
DKTH
DKTH
Nominal value (DKKm)
5,106
400
559
6,709
3,727
3,727
3,727
745
3,727
820
3,727
32,974
23,796
2,268
26,064
59,038
Nominal value (Currency)
685
400
75
900
500
500
500
100
500
110
500
23,796
2,268
Of which nominal value swapped to or with
fixed interest rate (currency)
685
-
75
900
500
350
500
100
500
110
500
23,796
2,268
1
EMTNs, Senior Notes and STF loans are in or swapped to nominal EUR and fixed EUR interest rates.
2
STF loans have a 0% Euribor floor.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 75
Financial covenants
Loans in both TDC NET Group and Nuuday Group
are subject to financial covenants.
In TDC NET Group, the financial covenants are
monitored by using a leverage ratio, which is net
debt divided by EBITDA and an interest cover ra-
tio, which is EBITDA divided with net finance
charges; both as defined in the loan documents.
If the leverage ratio exceeds 6.75x or interest
cover ratio is lower than 3.0x then this leads to a
bution outside the Security Group. If the leverage
ratio is 8.25x or interest cover ratio is lower than
2.0x it will be an Event of Default. In case of an
Event of Default, a 12-month Standstill Period will
apply. Standstill Liquidity Facilities are in place to
ensure that debt can be serviced during the
standstill period.
The carrying amount of the liabilities related
to the financial covenants amounted to
DKK 25,174m as per 31 December 2024.
The financial covenants are tested half-yearly at
30 June and 31 December. There have been no
breaches of the financial covenants in 2024.
There are no indications that TDC NET will have
difficulties complying with the covenants in the
next twelve months from the balance sheet date.
In Nuuday Group, the financial covenants are
monitored quarterly by using a leverage ratio,
which is net debt divided by EBITDA as defined in
the facility agreement.
If leverage ratio exceeds 4.50x it will be an event
of default. Breaches in meeting the financial cove-
nants would permit the lenders to immediately
call loans and borrowings.
The financial covenant is tested quarterly, at 31
March, 30 June, 30 September and 31 Decem-
ber. There have been no breaches of the financial
covenants of any interest-bearing loans and bor-
rowing in the current period.
Nuuday is subject to the financial covenant de-
scribed above also for the coming 3 quarters,
whereas at 31 December 2025 the leverage ratio
is changed to 4.25x.
There are no indications that Nuuday would have
difficulties complying with the covenants in the
next twelve month.
The carrying amount of the liabilities related to
the above financial covenants amounted to
DKK 3,518m as per 31 December.
Sustainability-linked bonds
Since the establishment of the financing plat-
form, we have issued four sustainability-linked
Euro Medium Term Notes (EMTNs) of total EUR
2bn. The Eurobonds are linked to our sustainabil-
ity targets of becoming a net-zero carbon emis-
sion company across the full value chain (Scopes
1, 2 and 3) by 2030.
The sustainability-linked bonds are tied to Key
Scope 1, 2, and 3 emissions measured in metric
tonnes of CO2, as outlined in the Sustainability-
Linked Finance Framework. Sustainability Perfor-
mance Target 1 aims to achieve net-zero emis-
sions for Scopes 1 and 2 by 2028, while Sustain-
ability Performance Target 2 targets net-zero
emissions for Scope 3 by 2030, both from a
2020 baseline. Each of the currently outstanding
bonds is assigned a specific target observation
date on December 31st for either 2026, 2027, or
2028. For any bond with a 2026 target observa-
tion date, the reduction target is 70% for Scopes
1 and 2 emissions and 30% for Scope 3 emis-
sions. If the observation date is in 2027, the tar-
gets are an 80% reduction for Scopes 1 and 2
and a 35% reduction for Scope 3. For bonds with
a 2028 observation date, the targets are achiev-
ing net-zero (100% reduction) for Scopes 1 and
2, and a 40% reduction for Scope 3. Failure to
meet these specific reductions by the respective
observation date will result in an increase in the
interest rate for that bond.
Loans
Loans are recognised initially at the proceeds
received net of transaction expenses incurred. In
subsequent periods, loans are measured at
amortised cost so that the difference between
the proceeds and the nominal value is recognised
in the income statement over the term of the
loan.
Other financial liabilities are measured at amor-
tised cost.
Financial instruments
On initial recognition, financial derivatives are
recognised in the balance sheet at fair value and
subsequently remeasured at fair value in the bal-
ance sheet and in the income statement. Depend-
ing on the type of instrument, different recog-
nised measurement methods are applied for de-
rivative financial instruments.
The group does not apply hedge accounting.
4.2 | Loans and derivatives (continued)
Accounting policies
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 76
Interest-rate risks
We are exposed to interest-rate risks due to our
interest-bearing financial debt. We are mainly ex-
posed to interest-rate risks in the euro area, as
the majority of the nominal gross debt is denomi-
nated in or swapped to EUR.
Throughout 2024, the group monitored and man-
aged its interest-rate risks using financial instru-
targets.
The interest-rate risks are managed by hedging
the interest rate for the coming 4-6 years on av-
erage. This secures more stable interest costs.
The derivatives are market to market which im-
plies a short term risk of losses in valuation if in-
terest rates in general decrease.
The group is exposed to potential widening of
credit spread in future years. This exposure is
unhedged.
The group does not apply hedge accounting.
The interest-rate risk is monitored by the Treas-
ury functions for TDC NET, Nuuday and holding
companies, respectively.
A 1%-point increase in interest rates would result
in an extra interest cost of DKK 9m and an unreal-
ised market value gain of DKK 257m.
Exchange-rate risks
DKTH Group has very limited exchange-rate risks
in relation to its loan portfolio or RCF commit-
ment, as all are issued in or swapped to DKK or
EUR, and the DKK is pegged to EUR.
The USD exchange rate exposure relating to pay-
ables and receivables from mainly roaming and
interconnection agreements with foreign opera-
tors as well as equipment and handset suppliers
is handled in Treasury.
Counterparty risks
We have limited credit risks as a provider of
mobile network and landline connections in
Denmark, where most of its revenue stems from
large, well-established service providers.
Some exposure to counterparty risk emerge due
to cash and deposits held with financial institu-
tions and from unrealised gains on financial con-
tracts. This risk is managed through diversifica-
tion and by applying a nominal limit to the al-
lowed counterparty risk. Moreover, financial
counterparts are preferably Systemically Im-
portant Financial Institutions (SIFI) and/or Invest-
ment Grade rated.
Liquidity risks
We monitor the liquidity flow to ensure that we
have sufficient liquidity to meet payment obliga-
tions. Moreover, we are engaged in bank facilities
to secure liquidity for daily operations. As of
31 December 2024, the group holds a Revolving
Credit Facility (RCF) of EUR 485m to ensure suffi-
cient liquidity. In addition, the company also has a
Debt Service Reserve (DSR) Liquidity Facility
Agreement of EUR 165m and an Operational and
Capex Reserve (O&C) Liquidity Facility Agreement
of EUR 65m.
Undrawn credit lines
At year-end 2024, DKTH Group had undrawn
committed credit lines totaling EUR 715m
under the Senior Facilities Agreement (SFA)
including the RCF, DSR and O&C facilities.
4.3 | Financial risks
Worth noting
We are exposed to financial market and
credit risks when buying and selling goods
and services denominated in foreign cur-
rencies as well as due to the cash flow from
investing in the business and financing
activities. Because of our capital structure
and financing, the group faces interest rate
and ex-change rate risks. Treasury identi-
fies, monitors and manages these risks
through policies and procedures that are
revised and approved by the individual
Board of Directors in the operational sub-
sidiaries and the holding companies on an
annual basis.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 77
Separate external financings have been estab-
lished for Nuuday and TDC NET, respectively. The
senior secured credit facilities borrowed by
Nuuday contain customary change-of-control
provisions as well as cross-default provisions in
relation to other debt of the Nuuday Group. The
financing platform at TDC NET contains custom-
ary cross-default provisions in relation to other
debt of the TDC NET Group. In addition, certain
credit facilities borrowed by TDC NET under the fi-
nancing platform contains customary change of
control provisions.
4.4 | Credit ratings and net interest-bearing debt
DKTH G
31 December 2024
Fitch
S&P
Company
Instrument
Company
Instrument
Company
Instrument
Company
Nuuday
B2 (Stable)
B2
B (Stable)
BB-
B- (Stable)
B-
TDC NET
BB
BBB-
DKTH G
31 December 2023
Fitch
S&P
Company
Instrument
Company
Instrument
Company
Instrument
Company
Nuuday
B2 (Stable)
B2
B (Stable)
BB-
B- (Stable)
B-
TDC NET
BB
BBB-
Net interest-bearing debt
excluding shareholder funding (DKKm)
2024
2023
Total loans excl. shareholder funding, cf. note 4.2
32,346
32,484
Lease liabilities incl. short-term part
3,556
3,856
Spectrum licence liabilities incl. short-term part
1,460
1,685
Interest-bearing payables
2
2
Derivatives
-
4
Short-term bonds and interest-bearing receivables
(653)
(899)
Cash
(2,350)
(3,201)
Net interest-bearing debt excluding shareholder funding
34,361
33,931
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DKT Holdings ApS Annual Report 2024 78
In DKTH´s internal reporting, currency translation
adjustments and interest from derivatives are
reported as such, as specified in the adjacent
table:
Interest, currency translation adjustments and
fair value adjustments represented an expense of
DKK 4,682m in 2024. The decrease of DKK 465m
compared with 2023 was driven primarily by a
positive development in fair value adjustments
and currency translation adjustments partly off-
set by higher interest expense.
Fair value adjustments: The development was
driven primarily by an unrealised fair value adjust-
ment related to the hedge of the floating Senior
Term Facility loans. The Group hedges the risk of
future interest increases via interest rate deriva-
tives and fixed rate loans. As interest rates de-
creased in 2024, there is an unrealised market-
to-market loss on the hedging derivatives of
DKK 157m compared with a loss of DKK 729m in
2023 due to decreasing interest rates during
2023. The fair value fluctuations from year to
year reflect our long term hedging strategy, which
is affected by the development in interest rates.
Currency adjustments: The Group hedge its
USD future payables related to equipment and
handset suppliers as well as content providers,
these hedges resulted in a gain of DKK 40m
in 2024.
Interest: Higher level of Shareholder loans (due
to accruing interests) resulted in at higher inter-
est expense in 2024 compared with 2023.
4.5 | Financial income and expenses
Comments
(DKKm)
2024
2023
Interest income
58
70
Interest expenses
(4,999)
(4,718)
Net interest
(4,941)
(4,648)
Currency translation adjustments
(5)
(45)
Fair value adjustments
264
(454)
Interest, currency translation adjustments and fair value adjustments
(4,682)
(5,147)
Interest on pension assets
369
425
Total
(4,313)
(4,722)
2024
2023
(DKKm)
Net interest
Currency
translation
adjustments
Fair value
adjustments
Total
Net interest
Currency
translation
adjustments
Fair value
adjustments
Total
Shareholder funding¹
(2,319)
-
-
(2,319)
(2,130)
-
-
(2,130)
Senior Term Facility (STF) loans
(1,086)
(8)
(5)
(1,099)
(1,146)
(44)
(3)
(1,193)
Hedge of Senior Term Facilitiy loans/future debt issuance
350
3
(157)
196
273
(3)
(729)
(459)
Euro Medium Term Notes (EMTNs)
(789)
(6)
1
(794)
(572)
(20)
20
(572)
HoldCo loan
(476)
(1)
-
(477)
(406)
(4)
-
(410)
Senior Notes
-
-
-
-
(88)
(26)
(13)
(127)
Lease liabilities
(173)
-
-
(173)
(181)
-
-
(181)
Other
(96)
50
30
(16)
(110)
15
20
(75)
Total
(4,589)
38
(131)
(4,682)
(4,360)
(82)
(705)
(5,147)
¹ The interests are non-cash as they are continuously ascribed to the principal amount
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 79
Comments
Net interest of DKK 2,029m paid in 2024 repre-
sented a DKK 302m increase compared with
2023, driven primarily by changed the timing of
interest payments due to refinancing, e.g. the
HoldCo loan with only one semi-annual payment
.
4.5 | Financial income and expenses (continued)
Cash flow from net interest (DKKm)
2024
2023
Interest received
952
644
Interest paid
(2,981)
(2,371)
Net interest paid
(2,029)
(1,727)
Specified as follows:
Euro Medium Term Notes (EMTNs)
(705)
(423)
Senior Term Facility (STF) incl. Hedges
(690)
(800)
HoldCo loan
(447)
(210)
Senior Notes incl. hedges
-
(78)
Lease liabilities
(161)
(171)
Other
(26)
(45)
Net interest paid
(2,029)
(1,727)
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DKT Holdings ApS Annual Report 2024 80
Maturity profiles
The maturity analyses of financial assets and lia-
bilities are disclosed by category and class and
are allocated according to maturity period. All
interest payments and repayments of financial
liabilities are based on contractual agreements.
Interest payments on floating-rate instruments
are determined using forward rates.
Financial assets and liabilities measured at fair
value relate to derivatives. The fair value of these
derivatives is calculated based on observable
inputs such as interest rates, etc. (level 2 in the
IFRS fair value hierarchy).
4.6 | Maturity profiles of financial instruments
2024
Maturity profiles of expected cash flows¹ (DKKm)
< 1 year
1-3 years
3-5 years
> 5 years
Total
Fair value
Carrying
amount
Financial assets and liabilities measured at fair value
through profit or loss
Assets²:
Derivatives
Inflow
6,688
459
178
26
7,351
Outflow
(6,490)
(266)
(105)
(21)
(6,882)
Total derivatives, assets
198
193
73
5
469
438
438
Liabilities:
Derivatives
Inflow
2,022
103
43
-
2,168
Outflow
(2,013)
(194)
(80)
-
(2,287)
Total derivatives, liabilities
9
(91)
(37)
-
(119)
(115)
(115)
Total derivatives
207
102
36
5
350
323
323
Financial liabilities measured at amortised cost
Shareholder funding³
-
-
-
(43,431)
(43,431)
(28,383)
(28,383)
Euro Medium Term Notes (EMTNs)
-
-
(7,458)
(7,458)
(14,916)
(15,918)
(14,828)
Senior Term Facilities (STF) loan
-
(9,163)
(4,102)
(820)
(14,085)
(14,139)
(13,864)
HoldCo Loan
-
(3,729)
-
-
(3,729)
(3,878)
(3,654)
Total loans
-
(12,892)
(11,560)
(51,709)
(76,161)
(62,318)
(60,729)
Spectrum licence liabilities
(241)
(483)
(483)
(400)
(1,607)
(1,460)
(1,460)
Lease liability
(514)
(913)
(765)
(2,412)
(4,604)
(3,556)
(3,556)
Shareholder funding, SFA, Senior notes and EMTN, interest
4
(2,088)
(3,589)
(1,774)
(743)
(8,194)
(908)
(908)
Trade and other payables
5
(1,986)
-
-
-
(1,986)
(1,986)
(1,986)
Total financial liabilities measured at amortised cost
(4,829)
(17,877)
(14,582)
(55,264)
(92,552)
(70,228)
(68,639)
Total
(4,622)
(17,775)
(14,546)
(55,259)
(92,202)
(69,905)
(68,316)
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DKT Holdings ApS Annual Report 2024 81
4.6 | Maturity profiles of financial instruments (continued)
2023
Maturity profiles of expected cash flows¹ (DKKm)
< 1 year
1-3 years
3-5 years
> 5 years
Total
Fair value
Carrying
amount
Financial assets and liabilities measured at fair value
through profit or loss
Assets²:
Derivatives
Inflow
466
2,283
144
38
2,931
Outflow
(125)
(2,086)
(98)
(31)
(2,340)
Total derivatives, assets
341
197
46
7
591
574
574
Liabilities:
Derivatives
Inflow
654
5,912
73
13
6,652
Outflow
(649)
(5,964)
(133)
(19)
(6,765)
Total derivatives, liabilities
5
(52)
(60)
(6)
(113)
(130)
(130)
Total derivatives
346
145
(14)
1
478
444
444
Financial liabilities measured at amortised cost
Shareholder funding³
-
-
-
(43,431)
(43,431)
(26,064)
(26,064)
Euro Medium Term Notes (EMTNs)
-
-
(3,727)
(7,454)
(11,181)
(11,696)
(11,084)
Senior Term Facilities (STF) loan
(5,106)
(400)
(10,995)
(1,565)
(18,066)
(18,107)
(17,777)
HoldCo Loan
-
-
(3,727)
-
(3,727)
(3,876)
(3,623)
Total loans
(5,106)
(400)
(18,449)
(52,450)
(76,405)
(59,743)
(58,548)
Spectrum licence liabilities
(271)
(483)
(483)
(642)
(1,879)
(1,685)
(1,685)
Lease liability
(529)
(927)
(842)
(2,777)
(5,075)
(3,856)
(3,856)
(2,008)
(3,558)
(2,217)
(1,259)
(9,042)
(869)
(869)
(2,155)
-
-
-
(2,155)
(2,155)
(2,155)
Total financial liabilities measured at amortised cost
(10,069)
(5,368)
(21,991)
(57,128)
(94,556)
(68,308)
(67,113)
Total
(9,723)
(5,223)
(22,005)
(57,127)
(94,078)
(67,864)
(66,669)
1
All cash flows are undiscounted. The table reflects only the cash flow from financial liabilities and derivatives recognised as financial assets. Other cash flow from financial assets is not disclosed.
2
Both assets and liabilities measured at fair value through profit or loss are disclosed in the above table because some of the derivatives are used for hedging financial liabilities measured at amortised cost, see table.
3
The expected cashflow includes future interests as they are capitalized on the loan principal.
4
Fair value and carrying amount value consist of accrued interest on STF loans, HoldCo Loan and EMTNs at 31 December.
5
As not all trade and other payables recognised in the balance sheet are financial instruments (e.g., unbilled payables do not constitute a financial liability), the amount differs from the amount disclosed in the balance sheet.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 82
Section 5
This section provides information on the g
More information on development in the cash flow items is included
in note 2.7 Special items, note 3.2 Intangible assets, note 3.3 Property,
plant and equipment, 3.4 Lease assets and liabilities, 3.7 Provisions,
note 3.8 Pension assets and pension obligations as well as
note 4.5 Financial income and expenses.
5. In this section
5.1. Adjustment for non-cash items................................. 83
5.2. Change in working capital .......................................... 83
5.3. Changes in liabilities arising from financing
activities ........................................................................ 84
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 83
Cash flow from operating activities is presented
using the indirect method and is based on profit
before interest, taxes, depreciation, amortisation
and special items adjusted for non-cash operat-
ing items, cash flow related to special items,
changes in working capital, interest received
and paid as well as income taxes paid. Interest
received and paid includes settlement of interest-
hedging instruments.
Cash flow from investing activities comprises
acquisitions and divestments of enterprises, pur-
chases and sales of intangible assets, property,
plant and equipment as well as other non-current
assets, and purchases and sales of securities that
are not recognised as cash and cash equivalents.
Cash flows from acquired enterprises are recog-
nised from the time of acquisition, while cash
flows from enterprises divested are recognised
up to the time of divestment.
Cash flow from operating, investing and financing
activities of discontinued operations are pre-
sented with comparative figures in separate lines
of the statement of cash flow.
Cash flow from financing activities comprises
changes in interest-bearing debt, lease instal-
ments, purchase of treasury shares and divi-
dends to shareholders.
Cash and cash equivalents cover cash and
marketable securities with a remaining life not
exceeding three months at the time of acquisi-
tion, and with an insignificant risk of changes in
value.
The cash flow statement cannot be derived solely
from information presented in the financial state-
ments.
5.1 | Adjustment for non-cash items
(DKKm)
2024
2023
Pension costs regarding defined benefit plans
49
49
(Gain)/loss on disposal of property, plant and equipment, net
2
(1)
Other adjustments
11
16
Total
62
64
5.2 | Change in working capital
(DKKm)
2024
2023
Change in inventories
20
51
Change in receivables
76
24
Change in contract assets
(65)
(115)
Change in trade payables
(183)
(278)
Change in contract liabilities
14
(1)
Change in prepaid expenses
41
(17)
Change in other items, net
(398)
462
Total
(495)
126
Accounting policies
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DKT Holdings ApS Annual Report 2024 84
3 Currency and fair value adjustment effect from derivatives that hedge
long-term loans.
bilities arising from financing activities, including
both cash and non-cash changes. Liabilities aris-
ing from financing activities are those for which
cash flows were, or future cash flows will be, clas-
sifie
ment as cash flows from financing activities.
5.3 | Changes in liabilities arising from financing activities
Non-cash changes
2024 (DKKm)
At
1 January
2024
Cash flow from
financing
activities
Acquisitions
and disposals
Debt from leases
Currency
translation
adjustment
Other²
At
31 December
2024
Loans incl. short-term part¹
32,484
(273)
-
-
16
119
32,346
Lease liabilities incl. short term part
3,856
(384)
(36)
120
-
-
3,556
Corrections for derivatives
4
-
-
-
(4)
-
-
Total
36,344
(657)
(36)
120
12
119
35,902
Non-cash changes
2023 (DKKm)
At
1 January
2023
Cash flow from
financing
activities
Acquisitions
and disposals
Debt from leases
Currency
translation
adjustment
Other²
At
31 December
2023
Loans incl. short-term part¹
36,488
(4,189)
-
-
81
104
32,484
Lease liabilities incl. short term part
4,074
(368)
(17)
167
-
-
3,856
Corrections for derivatives and reversals of fixed fair values on loans due to hedge accounting
3
(21)
207
-
-
(182)
-
4
Total
40,541
(4,350)
(17)
167
(101)
104
36,344
¹ Excluding shareholder funding.
² Consistsof amortisation of borrowing costs, lease reassessment and fair value adjustments.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 85
Section 6
This section contains statutory notes or notes that are
presumed to be less important for understanding the
g
6. In this section
6.1. Incentive programmes ................................................ 86
6.2. Related parties ............................................................. 87
6.3. Fees to auditors ........................................................... 88
6.4. Other financial commitments .................................... 88
6.5. Pledges and contingencies ......................................... 89
6.6. Events after the balance sheet date ......................... 89
6.7. Overview of group companies at
31 December 2024 ...................................................... 89
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DKT Holdings ApS Annual Report 2024 86
In order to support the delivery of short- and
long-term financial results, the group has both
short- and long-term incentive programmes for
executives and managers. In June 2024, the his-
toric TDC incentive scheme was settled.
Short-term incentive programmes (STI)
The short-term bonus programmes are closely
linked to our strategy. The performance
measures are focused on EBITDA, capex, fibre
connection performance, dividend capacity
and NPS, but with variance between Nuuday
and TDC NET.
Bonus payments are calculated as the individual
percentage multiplied by the degree of target ful-
filment.
The bonus percentage for members of the Execu-
tive Committee is between 25% and 50%. For
other managers, the bonus percentage varies
within a range of 10%-33%. The target fulfilment
can be maximum 200%.
Long-Term Incentive programmes (LTI)
The LTI programme is cash based and its objec-
tives are linked to the long-term strategy. The
programme is revolving with grants given each
year but with a 1, 2 or 3-year vesting period, as
the goals are principally set for a 1, 2 or 3-year
period. The objectives are service revenue,
EBITDA, cash flow, fibre connection performance,
dividend capacity and NPS, but with variance
between Nuuday and TDC NET. The expenses are
recognised over the vesting period.
Bonus payments are calculated as the individual
centage multiplied by the degree of target fulfil-
ment. For participants in TDC NET the basic salary
may be eligible for a payout adjustment factor
between 0.9 and 1.75 subject to predefined key
performance indicators.
The LTI percentage usually varies within a range
of 12%-60%. The target fulfilment can be maxi-
mum 200%.
Long-Term Incentive programme 2024-
2026
In the strategic planning for our LTI programme
for 2024-2026, it has been important for us to in-
clude ESG key performance indicators other than
financial targets, which are fundamental for driv-
ing performance towards our sustainability com-
mitments:
Climate net-zero targets
Health & Safety targets
Diversity targets
6.1 | Incentive programmes
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DKT Holdings ApS Annual Report 2024 87
The group has annual contributions paid to the
pension fund, TDC Pensionskasse, see note 3.8.
The group has property lease contracts with
Arbejdsmarkedets Tillægspension (ATP) and PFA,
who are shareholders of the company. The lease
payments amounted to DKK 244m (2023: DKK
243m). The property lease contracts are a signifi-
cant part of the lease liabilities.
Related parties also included the g
ventures and associates shown in note 6.7.
The group has the following additional transac-
tions and outstanding balances with related
parties:
shareholder funding to the company. See note
4.2 for further information.
In 2023, the company received a capital contribu-
tion of DKK 3,533m from the owners of the com-
pany.
The members of the Board of Directors and the
Executive Committee do not receive remunera-
tion. Chairman of the Board of Directors of
Nuuday A/S, Michael Parton, provides consul-
tancy services to TDC Holding.
The DKT Holdings ApS Group's key management
personnel comprise TDC Holding
Directors and Executive Committee as well as the
CEO and CFO of Nuuday A/S and the CEO and
CFO of TDC NET A/S. See note 2.5 for further
information.
6.2 | Related parties
Name of related party
Nature of
relationship
Domicile
DKTUK Limited, managed by Macquarie Infrastructure and
Real Assets Europe Limited
Ownership
London,
United Kingdom
Arbejdsmarkedets Tillægspension (ATP)
Ownership
Hillerød, Denmark
PFA Ophelia InvestCo I 2018 K/S, managed by PFA Asset
Management A/S
Ownership
Copenhagen, Denmark
PKA Ophelia Holding K/S, managed by AIP Management P/S
Ownership
Hellerup, Denmark
TDC Pensionskasse
Pension fund
Copenhagen, Denmark
Related parties (DKKm)
2024
2023
TDC Pensionskasse
Other income
3
3
Receivables
1
1
Payables
(1)
-
Joint ventures and associates
Income
5
6
Expenses
(3)
(3)
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DKT Holdings ApS Annual Report 2024 88
Non statutory audit services
In 2024, Deloitte Statsautoriseret Revi-
sionspartnerselskab provided other services than
statutory audit, in the amount of DKK 19m (2023:
DKK 19m), which related to mobility tax services,
CSRD and other assurance opinions, and other
services.
Commitments represent amounts that DKTH
Group has contractually committed to pay to
third parties in the future. This gives an indication
of future cash flows.
Purchase commitments
As part of DKTH s commitment to reduce
our emissions, the subsidiary TDC NET has en-
tered into 10-year Power Purchase Agreements
(PPA) with Better Energy delivering electricity
from its solar parks. The PPA is fixed at 140 GWh
electricity consumption in 2023. These agree-
ments are fixed-price agreements. As these
agreements are entered into and will continue to
be held for the purpose of receiving energy for
recognized as power costs (note 2.4) and other
purchase commitments.
6.3 | Fees to auditors
Fees to auditors elected by the Annual General Meeting (DKKm)
2024
2023
Statutory audit
7
6
Other assurance engagements
3
1
Tax advisory services
1
-
Other services
15
18
Total non-statutory audit services
19
19
Total
26
25
6.4 | Other financial commitments
(DKKm)
2024
2023
Lease commitments for short-term and low value leases
Short-term leases
38
34
Low value leases
-
1
Total
38
35
Capital and purchase commitments
Investments in intangible assets
174
299
Investments in property, plant and equipment
130
236
Commitments related to outsourcing agreements
291
323
Other purchase commitments
889
850
Total
1,484
1,708
Which is:
Maturing within 1 year
940
921
Maturing between 1 and 5 years
434
638
Maturing after 5 years
110
149
Total
1,484
1,708
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DKT Holdings ApS Annual Report 2024 89
Pledges
Cash with a carrying amount of DKK 1,687m
(2023: DKK 2,463), rights under spectrum
licences DKK 2,490m (2023: DKK 2,672m) and
trade receivables DKK 202m (2023: DKK 329m)
are pledged as security for finance agreements in
the group.
See also note 10 to the Parent company financial
statements.
Contingent assets
In the spring of 2023, TDC NET received a deci-
sion from the Center for Cyber Security (CFCS)
necessitating the discontinuation of our current
Central Transport (DWDM) network supplier by
1 January 2027. TDC NET will comply with the se-
curity policy decision of the authorities and ad-
heres to CFCS's decision to replace the supplier
for its DWDM network. However, as TDC NET has
assessed this action as an expropriation, this led
TDC NET to initiate legal proceedings. It is Man-
agement's opinion that the matter is fundamental
to protect the company's rights, but the outcome
of the legal proceedings is not virtually certain,
and therefore no asset has been recognised in
the financial position of TDC NET.
Contingent liabilities
DKTH Group is party to certain pending lawsuits
and cases pending with public authorities and
complaints boards. Based on a legal assessment
of the possible outcome of each of these lawsuits
and cases, Management is of the opinion that
these will have no significant adverse effect on
6.6 | Events after the
balance sheet date
In January 2025, EUR 610m of the EUR 650m
STF loan scheduled to mature in February 2025
was extended by a year (12 months) to February
2026, the remaining EUR 40m was repaid.
There have been no other events that materially
affect the assessment of this Annual Report
2024 after the balance sheet date and up to
today.
6.5 | Pledges and contingences
6.7 | Overview of group companies
at 31 December 2024
Company name
1
Domicile
Currency
Ownership share (%)
Nuuday
Nuuday A/S
Copenhagen, Denmark
DKK
100
Hiper A/S
Copenhagen, Denmark
DKK
100
TDC Telco ApS
Taastrup, Denmark
DKK
100
4T af 1. oktober 2012 ApS
3
Copenhagen, Denmark
DKK
25
TDC NET
TDC NET Holding A/S
Copenhagen, Denmark
DKK
100
TDC NET A/S
Copenhagen, Denmark
DKK
100
TDC NET Finance B.V.
2
Amsterdam, the Netherlands
EUR
100
DKTV A/S
Copenhagen, Denmark
DKK
100
DKTV Anlæg ApS
Vemmelev, Denmark
DKK
100
Fiberkysten A/S
Gilleleje, Denmark
DKK
60
OCH A/S
3
Copenhagen, Denmark
DKK
25
Other
TDC Holding A/S
Copenhagen, Denmark
DKK
100
DK Telekommunikation ApS
Copenhagen, Denmark
DKK
100
DKT Finance ApS
Copenhagen, Denmark
DKK
100
1
In order to give readers a clear presentation, minor companies without activities are not listed separately in the overview. In pursuance
of Section 6 of the Danish Financial Statements Act, the following subsidiaries have chosen not to prepare an annual
report: Kaisai A/S, 4WEB A/S and TDCH III ApS.
2
TDC Net Finance B.V. was established in connection with the refinancing of the TDC Net Group with the purpose of potentially issuing EUR denomi-
nated debt instruments that are eligible for financing at ECB. The company is however currently without activities and there are no immediate plans
for the use of the company. The company will be taxable in Denmark under the rules of Place of Effective Management and as such part of the Danish
joint taxation.
3
The enterprise is included under the equity method.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 90
Annual report 2019
Parent company
financial statements
Income statement ........................................... 91
Statement of comprehensive income ......... 91
Balance sheet ................................................... 92
Statement of cash flows ................................ 93
Statement of changes in equity ................... 93
Notes to parent company financial
statements ...................................................... 94
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DKT Holdings ApS Annual Report 2024 91
Income statement
Statement of comprehensive income
(DKKm)
Note
2024
2023
External expenses
(4)
(3)
Operating profit/(loss) (EBIT)
(4)
(3)
Financial income
4
2,333
2,140
Financial expenses
5
(2,319)
(2,130)
Profit before income taxes
10
7
Income taxes
2
46
38
Profit for the year
56
45
Distribution of profit for the year:
Proposed distribution of profit for the year
Retained earnings
56
45
Profit for the year
56
45
(DKKm)
Note
2024
2023
Profit for the year
56
45
Total comprehensive income
56
45
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DKT Holdings ApS Annual Report 2024 92
Balance sheet
Assets (DKKm)
Note
2024
2023
Non-current assets
Investments in subsidiaries
3
7,646
7,646
Receivables from group companies
28,505
26,176
Total non-current assets
36,151
33,822
Current assets
Income tax receivable
79
87
Cash
195
140
Total current assets
274
227
Total assets
36,425
34,049
Equity and liabilities (DKKm)
Note
2024
2023
Equity
Share capital
6
0
0
Retained earnings
8,041
7,985
Total equity
8,041
7,985
Non-current liabilities
Shareholder funding
7, 8
28,383
26,063
Total non-current liabilities
28,383
26,063
Current liabilities
Payables to group companies
-
1
Other payables
1
-
Total current liabilities
1
1
Total liabilities
28,384
26,064
Total equity and liabilities
36,425
34,049
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DKT Holdings ApS Annual Report 2024 93
Statement of cash flows
Statement of changes in equity
(DKKm)
Note
2024
2023
Operating profit/(loss) (EBIT)
(4)
(3)
Adjustment for non-cash items
-
(1)
Change in working capital
1
-
Interest received
4
5
Interest paid
-
(4)
Tax received
54
(3)
Cash flow from operating activities
55
(6)
Investment in subsidiaries
-
(3,533)
Cash flow from investing activities
-
(3,533)
Repayments on long-term loans
-
(47)
Capital contribution
-
3,533
Cash flow from financing activities
-
3,486
Total cash flow
55
(53)
Cash and cash equivalents at 1 January
140
193
Cash and cash equivalents at 31 December
195
140
(DKKm)
Share capital
Retained
earnings
Total
Equity at 1 January 2023
0
4,407
4,407
Profit for the year
-
45
45
Total comprehensive income
-
45
45
Capital contribution
3,533
3,533
Total transactions with owners
-
3,533
3,533
Equity at 31 December 2023
0
7,985
7,985
Profit for the year
-
56
56
Total comprehensive income
-
56
56
Equity at 31 December 2024
0
8,041
8,041
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DKT Holdings ApS Annual Report 2024 95
The financial statements 2024 of the parent com-
pany has been prepared in accordance with IFRS
Accounting Standards as adopted by the Euro-
pean Union (EU) and further disclosure require-
ments in the Danish Financial Statements Act.
The accounting policies are unchanged from
last year.
The parent company accounting policies are the
same as those applied for the group, with the
additions mentioned below. See note 1.1 to the
consolidated financial statements for the g
accounting policies.
For information on new accounting standards for
the group, see note 1.4 to the consolidated finan-
cial statements.
Supplementary accounting policies for
the parent company
Investments in subsidiaries
Investments in subsidiaries are measured at cost.
Where cost exceeds the recoverable amount, the
carrying amount is written down to the recoverable
amount.
Dividends received from investments in subsidiar-
ies are recognised as income in the financial year
when the dividends are distributed.
Equity
Capital contribution from parent company
Contribution received from the parent company is
recognised as a capital contribution on retained
earnings.
1 | Accounting policies
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DKT Holdings ApS Annual Report 2024 96
The effective tax rate of 460% deviates signifi-
cantly from the Danish corporate income tax rate
of 22% due to the Danish tax rules regarding thin
capitalisation and interest limitation. Due to thin
capitalisation, DKK 1,273m of the financial in-
come of net DKK 14m are not taxable for tax pur-
poses, which leads to a net tax deduction of fi-
nancial expenses after interest limitation.
DKT Holdings ApS participates in joint taxation
with all its Danish subsidiaries. DKT Holdings ApS
is the management company in the joint taxation.
The jointly taxed companies in the DKT Holdings
Group are jointly and severally liable for the total
income taxes, taxes paid on account and out-
standing residual tax (with additional payments
and interest) relating to the joint taxation.
2 | Income taxes
3 | Investments in subsidiaries
(DKKm)
2024
2023
Accumulated cost at 1 January
7,646
4,113
Additions
-
3,533
Accumulated cost at 31 December
7,646
7,646
Carrying amount at 31 December
7,646
7,646
Overview of subsidiaries at 31 December 2024
Company name
Domicile
Currency
Ownership share (%)
Subsidiaries:
DKT Finance ApS
Copenhagen, Denmark
DKK
100
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DKT Holdings ApS Annual Report 2024 97
For information on share capital see note 4.1 to
the consolidated financial statements.
The Company does not have exposure to changes
in interest rates as terms on loans and receiva-
bles from group companies largely matches each
other. As the Shareholder funding is denomi-
nated in DKK the Company does not have any
currency exchange rate exposure.
4 | Financial income
(DKKm)
2024
2023
Interest from group companies
2,330
2,136
Other interest income
3
4
Total
2,333
2,140
5 | Financial expenses
(DKKm)
2024
2023
Interest expenses on shareholder funding
(2,319)
(2,128)
Interest to group companies
-
(2)
Total
(2,319)
(2,130)
6 | Equity
7 | Shareholder funding
2024
2029
2029
Total
Maturity
Dec 2029
Dec 2029
Fixed/floating rate
Fixed
Fixed
Coupon
8.81%
8.15%
Currency
DKK
DKK
Type
Shareholder
loans
Shareholder
loans
Nominal value (DKKm)
25,928
2,455
28,383
2023
2029
2029
Total
Maturity
Dec 2029
Dec 2029
Fixed/floating rate
Fixed
Fixed
Coupon
8.81%
8.15%
Currency
DKK
DKK
Type
Shareholder
funding
Shareholder
funding
Nominal value (DKKm)
23,795
2,268
26,063
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DKT Holdings ApS Annual Report 2024 98
Maturity profiles
The maturity analyses of financial assets and lia-
bilities are disclosed by category and class and
are allocated according to maturity period. All
interest payments and repayments of financial
liabilities are based on contractual agreements.
The future cashflows will be financed by received
interests and settlement on Shareholder funding
provided to DKT Finance ApS.
8 | Maturity profiles of financial instruments
Maturity profiles of expected cash
flows¹ (DKKm)
< 1 year
1-3 years
3-5 years
> 5 years
Total
Fair value
Carrying
amount
Financial liabilities measured at amortised
cost
Shareholder funding
-
-
-
(43,431)
(43,431)
(28,383)
(28,383)
Total 2024
-
-
-
(43,431)
(43,431)
(28,383)
(28,383)
Maturity profiles of expected cash
flows¹ (DKKm)
< 1 year
1-3 years
3-5 years
> 5 years
Total
Fair value
Carrying
amount
Financial liabilities measured at amortised
cost
Shareholder funding²
-
-
-
(43,431)
(43,431)
(26,063)
(26,063)
Total 2023
-
-
-
(43,431)
(43,431)
(26,063)
(26,063)
¹ All cash flows are undiscounted.
² The expected cashflow includes future interests as they are capitalized on the loan principal.
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 99
For information about the related parties of the
group, see note 6.2 to the consolidated financial
statements.
Receivables from group companies and payables
to group companies are shown in the balance
sheet. Interest from/to group companies are
shown in notes 4 and 5.
basis.
In 2023, the company received a capital contribu-
tion of DKK 3,533m from the owners of the com-
pany. Also in 2023, the company made a capital
contribution of DKK 3,533m to its subsidiary
DKT Finance ApS.
The members of for the Board of Directors
and the Executive Committee do not receive
remuneration.
There are no pledges in 2024 and 2023.
For information on events after the balance sheet
date, see note 6.6 to the consolidated financial
statements.
9 | Related parties
10 | Pledges
11 | Events after the
balance sheet date
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 100
Executive Committee
Board of Directors
Vice Chair
Susana Leith-Smith
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 101
Independent auditor’s report
Management review Consolidated financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Other
DKT Holdings ApS Annual Report 2024 102
CVR No 339635 56
mne 32208
mne 34490
in brief Financial review ESG Consolidated Financial statements Disclaimer
DKT Holdings ApS Annual Report 2024 103
Forward-looking statements
or performance that are not historical facts and may be forward-looking. These state-
ments are often, but not always, formulated usi
ts involve known and unknown risks, estimates, assumptions and uncertainties that could cause actual results, performance or
achievements or industry results to differ materially from those expressed or implied by such forward-looking statements.
Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this financial report. Key factors that may have a direct bearing on DKTH
ngements; developments in competition within the domestic and international
communications industry; information technology and operational risks, velop-
ments in demand, product mix and prices in the mobile and multimedia services market; research regarding the impact of mobile phones on health; changes in applicable legislation, including but not limited to tax
and telecommunications legislation and anti-terror measures; decisions made by the Danish Business Authority; the possibility of being awarded licences; increased interest rates; the status of important intellectual
property rights; exchange-rate fluctuations; global and local economic conditions; investments in and divestment of domestic and foreign companies; and supplier relationships.
As the risk factors referred to in this report could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made in this Report, undue reliance is not to be placed
on any of these forward-looking statements. New factors will emerge in the future that DKTH group cannot predict. In addition, DKTH group cannot assess the impact of each factor on its business or the extent to
which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward-looking statements.