In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2023 2
In brief 3
Nuuday at a glance 4
Letter from CEO 5
Key highlights of 2023 9
Financial overview 10
Business and strategy 11
Our business model 12
Delivering on our strategy 14
Performance 18
Nuuday’s performance 19
Corporate governance 21
Corporate governance statement 22
Risk management 23
Sustainability highlights 30
Gender diversity in top management 32
Board of Directors 33
Executive Management 35
Financial statements 37
Parent company financial
statement 84
Management statement and
independent auditor’s report 102
Contents
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Business and
s
trategy
page
11
Letter
from
the
CEO
page
5
Nuuday Annual Report 2023 4
In brief
Business and strategy
Performance
Corporate governance
Financial statements
* Underlying
EBITDA/ CAPEX, excl. transformation costs
** Includes IoT
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2023 4
Nuuday at a glance
Nuuday
is Denmark’s leading telecoms service provider consisting of six consumer
and business brands spanning connectivity, communication and entertainment
– all
with the shared goal of helping customers make sense with technology.
6
.0m
Customer relations (RGUs) at Nuuday**
Our customer
relations
2
.0m
Business
4.0m
Consumer
3,079
Employees excl. transformation FTEs
Revenue
(DKKbn)
14.5
EBITDA*
(DKKbn)
1.7
CAPEX*
(DKKbn)
0.9
Our
brands
Nuuday Annual Report 2023 5
In brief
Business and strategy
Performance
Corporate governance
Financial statements
When I joined Nuuday in summer 2021,
we faced a series of important chal-
lenges. While we remained the market
leader, customers were too often un-
happy with the reliability of our service;
the quality and value of our products
had slipped, and – consequently – we
were seeing erosion of both revenue and
earnings. The company was well behind
in its technical capabilities, notably IT,
and lacked the tools necessary to lead
our customers on a successful digital
journey while reducing complexity
(and hence costs) as well as improving
customer offering.
To address this, the Nuuday manage-
ment team – with the support of our
Board of Directors – set out on a com-
prehensive transformation journey
to reverse these trends and change
Nuuday from a legacy business into one
of Europe’s leading digital service provid-
ers – all in record time.
Since then, comprehensive changes have
been achieved across Nuuday, in both
consumer and business segments, includ-
ing a radically improved customer expe-
rience, and a much more efficient busi-
ness with large call reductions, new
marketing and sales approaches plus
important investment in product innova-
tion. This includes the most significant
technology investment in Nuuday’s/
TDC’s history – a ‘greenfield’ replace-
ment of Nuuday’s legacy IT system,
which was first developed for KTAS in
the late 1980s.
Looking back on my second full year as
CEO of Nuuday, we are well on track
with executing on our comprehensive
and rapid transformation. We have
launched the first phases of our new
IT platform, in partnership with our
technology supplier Netcracker. We
have seen dramatic progress in our cus-
tomer experience, thanks to wholesale
improvements in our products and in
our approach to customer service. And
we have improved our sales and brand
performance. Combined with substantial
efficiencies in how we deliver, this has
translated into a more sustainably prof-
itable Nuuday, with a return to growth
in underlying cashflow (i.e. excluding
our transformation investment) and a
turnaround in our underlying EBITDA
during 2023.
Having laid the foundations in 2022,
we gained real execution momentum
in 2023.
Letter from the CEO
Executing on Nuuday’s
transformation
Nuuday Annual Report 2023 6
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Our new IT platform went live
Firstly, in terms of our IT transformation
programme, it was with great excite-
ment – and relief – that we launched
the first phase of Dawn, our new cloud-
native Netcracker IT platform, which will
be the backbone of the new Nuuday.
By the end of 2023, all our physical
YouSee stores were operating on the
Dawn platform and by early 2024, we
had also launched Dawn for YouSee’s
online and call-centre channels. Our
rollout initially includes all our mobile
products and will expand to include our
full B2C portfolio (i.e. including fixed and
TV) during 2024. Our ambition is to com-
plete the B2C rollout in 2024.
This will be one of the fastest and most
ambitious technological transformations
in modern telecoms, taking Nuuday from
a home-grown 1980s mainframe to
cutting-edge digital capabilities. Our
approach is designed to ensure a rapid
and low-risk rollout, with intensive port-
folio simplification in advance of launch
combined with a ‘greenfield’ ‘best of
suite’ approach. By migrating Nuuday
customers to the new cloud based
Netcracker service also used by multiple
international telcos, we are avoiding the
more traditional – and risky - approach
of upgrading selected components of
the existing technology stack.
This is part of a much broader transfor-
mation of our technology capability,
anchored in significant investments to
ensure the highest standards of
security, system reliability and compli-
ance in an increasingly sophisticated and
demanding regulatory environment. It
includes the outsourcing of critical ser-
vice management and application devel-
opment functions to specialist partners,
while investing in new technology capa-
bilities to support advanced data insights
(notably with Adobe) and partnerships to
accelerate our ambitions in AI (notably
with Cognigy and Microsoft, including
the deployment of Nuuday’s proprietary
version of Chat GPT).
Becoming Denmark’s no. 1 for
customer satisfaction
From the outset of our transformation,
we have prioritized our work to ensure
that we directly address the causes of
customer dissatisfaction and invest in
delighting our customers. This extensive
work has touched almost all elements of
our business and has driven early and
substantial gains – both in customer
satisfaction and in driving efficiency.
The improvement in customer satisfac-
tion – measured primarily through our
brand Net Promoter Score – has been
extremely satisfying for our teams;
we have increased NPS in YouSee, our
leading consumer brand, by 7 points
continuing the positive trend since 2020
with a total progress of approximately
30 points! Across the entire brand port-
folio, we saw 3 points increase in 2023 on
top of the 6 points uplift in 2022 and a
total of almost +20 points since 2020.
In 2023, Hiper was named by Loyalty
Group as the most customer-friendly
Danish internet provider that most peo-
ple would recommend and that delivers
the best value for money. At the same
time, Telmore was named in Wilke’s CX
Benchmark analysis as the Danish brand
that delivers the best customer experi-
ence across companies and industries –
a remarkable accolade and a credit to
the Telmore team.
This steadily translates into Nuuday
becoming stronger and more sustaina-
ble. Thanks to intensive work to eliminate
pain points in our customer journeys,
including early benefits from our invest-
ment in AI capabilities, we have reduced
the amount of incoming calls across our
brands by 9% from 2022 to 2023.
Overall, Nuuday is now delivering the
highest levels of customer satisfaction in
its five-year history and is well on track
to be the clear leader in customer expe-
rience in the Danish telecoms market.
Investing to be the leader for
quality products
Leadership in high-quality, innovative
products is at the heart of our ambition
for Nuuday, as Denmark’s telecoms
leader for both consumers and busi-
nesses. We have significantly stepped
up our investment in product develop-
ment, ensuring Danish consumers and
businesses can benefit from the best
of telco innovation from our partners
across the world.
In the consumer space, YouSee signifi-
cantly strengthened its product portfolio
during 2023. First, we launched a new
router with next generation YouSee
Mesh technology in August, while the
majority of YouSee’s existing broadband
customers also had automatic security
installed on their routers via a software
update.
Secondly, in September we introduced
the critically acclaimed YouSee
Streamer, which gives YouSee Play
customers a better user experience
by bringing together TV channels,
streaming services and apps in one intui-
tive interface. With its attractive price it
offers the options of using a set-top box,
a streaming device or going ‘boxless’
entirely.
Meanwhile in the business space, TDC
Erhverv is rapidly shifting from a tradi-
tional B2B telco model to becoming
Denmark’s leading ICT player, by lever-
aging its exceptional client base together
with its competence in next generation
Letter from the CEO
Denmark’s
no. 1 in
customer
satisfaction
Nuuday Annual Report 2023 7
In brief
Business and strategy
Performance
Corporate governance
Financial statements
solutions and critical communications
technology.
Investment in product innovation is a
central plank of this strategy. In 2023,
TDC Erhverv launched the groundbreak-
ing CloudKey® solution, which enables
Danish institutions and businesses to
take full advantage of the cloud while
remaining fully compliant with GDPR and
US Cloud Act requirements. Specifically,
we have developed patented technology
that encrypts data before it is shared
with international cloud service provid-
ers, with control over the encryption
resting with the client.
This strategic shift integrates the provi-
sion of complex solutions firmly into the
mainstream of TDC Erhverv’s business;
2023 also saw the formal integration
of the former Netdesign business into
TDC Erhverv, bringing solutions expertise
to all our customers while retaining
our talented colleagues in the new
TDC Erhverv Solutions business.
We were delighted to begin 2024 with
the announcement that TDC Erhverv
has won the status of Cisco Gold Partner
in Managed Services – the only Danish
provider to secure this challenging
accreditation. This critical qualification
attracts clients looking for a professional
ICT and communications partner and
reflects our investment in these capabili-
ties over the last two years.
In the NuuBrands family, Telmore suc-
cessfully entered the market for 5G
internet for the home with the
“Internemt” campaign, while the newest
edition of Telmore Play has made it even
easier for customers to take advantage
of streaming services bundled with
Telmore mobile, and reinforced
Telmore’s leadership of the ‘Play’
category.
As another significant step in our digiti-
zation journey, eesy – our mobile chal-
lenger brand – upgraded its app so that
customers choosing e-SIM can now sign
up for eesy within two minutes from a
standing start. This demonstrates our
focus, particularly in our value brands,
on combining digitization and excellent
customer service.
Great CX and strong products
deliver better financials
Our financial performance is a direct
function of our success in delivering
great customer experience and market-
leading products, while also impoving the
efficiency of our commercial and opera-
tional machine. The steps we have taken
since 2021 are now clearly transforming
Nuuday’s financials.
2023 was a significant year in many
ways. We saw a slight increase of 0.5% in
our service revenue and we delivered a
significant increase in our underlying
cashflow; we generated underlying
Simple Cash Flow (SCF) of DKK 842m for
the year – up 33.7% compared with 2022
(since our transformation, we now
report our underlying profitability i.e.
Letter from the CEO
Nuuday Annual Report 2023 8
In brief
Business and strategy
Performance
Corporate governance
Financial statements
excluding temporary investments in
transformation).
This reflects stable gross profit, with flat
underlying operating expenditure – a
reduction of more than 400 FTEs over
the year, balancing out the impact of
inflation and some costs moving from
capex to opex as we move to managed
services. This was combined with a 23%
reduction in underlying capital expendi-
ture, thanks to a wind down of invest-
ments in our expensive legacy infra-
structure.
EBITDA excluding transformation costs
fell by 2.5% for the year, and we are con-
tinuing to work towards returning to
growth in underlying EBITDA as we grow
our core businesses and build our lean,
digital business.
Employee motivation critical for our
transformation
Transforming Nuuday from a legacy
operator to a next generation digital
service provider is, at heart, a demand-
ing and intensive transformation built on
the daily efforts of our +3,000 col-
leagues. Their commitment and hard
work have been remarkable.
I am delighted to say that in 2023
we saw a step change in employee satis-
faction as we continue to build real
momentum in transforming our business,
reflecting that our employees are
increasingly enjoying the tangible results
of their efforts.
In fact, our employee satisfaction (eSAT)
score soared by five points again this
year on top of last year’s two-point
increase. In parallel, we achieved a ten-
point increase in our eNPS, with half of
our employees now in the ‘ambassador’
category. This is a genuine transfor-
mation in our employees’ commitment to
the company and puts Nuuday at a level
that beats the “best in class” benchmark
for Danish companies, according to our
provider Ennova. Scores like this show
we are matching our ambition to be-
come one of the top destination compa-
nies for individuals looking to work at the
forefront of customer excellence and
digital technology.
These numbers make me proud. And I
applaud the tremendous efforts our
dedicated employees are putting into
our transformation programme, and the
remarkable results we have created
together throughout an eventful and
high-paced 2023.
2024 outlook
The Nuuday business by the end of 2023
felt very different from that of 2021; we
are a business where innovation, digitiza-
tion and customer focus are central in
our daily lives. We are successfully deliv-
ering on some very ambitious goals –
operational, technology-related and
financial – that position us well to face
an increasingly competitive landscape.
We are well set up; 2024 is a critical year
when we will complete the Dawn rollout
for our consumer business and will accel-
erate still further the pace of our jour-
ney – notably in product innovation and
customer experience. AI will be a signifi-
cant theme; Nuuday was one of the
early Danish adopters of generative AI in
2023, and this journey will continue in
2024 as we deploy tools to simplify,
digitalize and improve work processes in
collaboration with Cognigy – a leading
global supplier in conversational AI.
The team and I are entering 2024 full of
energy and motivation based on our
experience of delivering rapid transfor-
mation in 2023 – a breakthrough year
for Nuuday. My thanks go to all our
dedicated teams across Denmark who
are delivering 24/7 for our customers.
Jon James
CEO of Nuuday
Nuuday Annual Report 2023 9
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Key highlights of 2023
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2023 9
Live on +90% fibre networks
across Denmark
Nuuday launched on more third-
party fibre networks, enabling +90%
of Danish households with fibre
access to receive fibre services from
YouSee, TDC Erhverv and Hiper
Highest NPS across
industries in DK
Telmore’s NPS was scored highest
across 300 companies in various
industries in the Wilke 2023 CX
Benchmark – a testament to great
customer service efforts by
our employees
Launched unique digital
solutions for business
TDC Erhverv launched the
groundbreaking patented
CloudKey
TM
solution, solving some
of the biggest pain points for
business clients in the data storage
& privacy field
Next-gen digital sign-up flow in
just 2 minutes
eesy launched its new best-in-class
digital app and a new onboarding
process, enabling mobile voice sign-
ups in just two minutes with e-SIM. A
true gamechanger for our MV
challenger brand
Live on Dawn -
our new IT stack
We are progressing well on our
IT transformation journey and
successfully launched our new IT
stack in the first stores
2023
2024
Utilising AI for unparalleled
customer service
By integrating AI into all its business
operations, Nuuday is harvesting the
benefits of generative AI to deliver
the best customer service, while
boosting productivity
Best network for the 8th
consecutive year
For the eighth consecutive year,
Nuuday’s mobile customers have
access to Denmark’s best network,
measured by the Danish
Technological Institute (DTI)
NetDesign joins forces
with TDC Erhverv
In response to growing demand from
businesses for end-to-end digital
solutions, NetDesign joined forces
with TDC Erhverv
Launched
YouSee streamer
We launched the innovative YouSee
streamer to seamlessly integrate all
linear and non-linear entertainment
in one user interface
Steady bNPS progress on top
of 2022 progress
Nuuday reached an all-time high
bNPS, up three points from last year
– a tangible sign of progression
towards becoming the preferred
choice by Danish households
and businesses
Nuuday Annual Report 2023 10
In brief
Business and strategy
Performance
Corporate governance
Financial statements
2023 2022 2021 2020 2019
Income statement (DKKm)
Revenue
14,478 14,674 14,657 14,756 15,625
Hereof service revenue 13,342 13,275 13,213 13,341 14,227
Gross profit
4,805 4,847 4,993 5,318 5,895
Underlying EBITDA
1
1,722
1,766
1,823
1,936
2,035
Transformation costs
(151) (57) 0 0 0
EBITDA
1,571
1,709
1,823
1,936
2,035
Operating profit/(loss) (EBIT)
(2)
93
(13)
(77)
164
Profit/(loss) before income
taxes (451) (227) (413) (470) (204)
Profit/(loss) for the year
(421)
(190)
(390)
(410)
(128)
Income statement, excluding special items
Operating profit (EBIT)
50 159 111 46 219
Profit/(loss) before income taxes
(399) (161) (338) (347) (151)
Profit/(loss) for the year
(381) (138) (342) (313) (87)
Balance sheet (DKKm)
Total assets
17,757 17,448 17,776 17,669 19,101
Net interest
-bearing debt (NIBD) (2,808) (2,827) (8,530) (9,647) (9,861)
Total equity
6,122 6,543 386 776 1,192
Underlying capital expenditure
1
(880)
(1,136)
(1,149)
(1,431)
(1,517)
Transformation capital expenditure
(358) (178) 0 0 0
Capital expenditure
(1,238)
(1,314)
(1,149)
(1,431)
(1,517)
Statement of cash flow (DKKm)
Operating activities
1,261 959 2,146 1,643 1,322
Investing activities
(1,449) (1,316) (970) (1,348) (1,601)
Financing activities
485 755 (1,174) (323) 298
Total cash flow
297 398 2 (28) 19
2023 2022 2021 2020 2019
Key financial ratios
Underlying Simple Cash Flow
2
, DKKm 842 630 674 505 518
Service revenue growth, %
0.5 0.5 (1.0) (6.2) (1.1)
Productivity ratio
3
, DKKm 4.1 3.7 3.4 3.1 3.2
Gross margin, %
33.2 33.0 34.1 36.0 37.7
Underlying EBITDA
margin % 11.9 12.0 12.4 13.1 13.0
EBITDA margin, %
10.9 11.6 12.4 13.1 13.0
EBIT margin, %
0.0 0.6 (0.1) (0.5) 1.0
Equity ratio, %
34.5 37.5 2.2 4.4 6.2
Retail RGUs ('000)
Mobility services
4
3,865 3,856 3,799 3,674 3,660
Hereof IoT 603 596 578 560 503
TV
894 949 985 1,037 1,177
Broadband
5
1,007 1,041 1,055 1,098 1,178
Landline voice
6
272 324 395 466 470
Employees
FTEs (end
-of-year) 3,193 3,615 3,686 3,985 4,515
FTEs
excl. transformation (end-of-year) 3,079 3,515 3,686 3,985 4,515
FTEs Consumer
1,723 1,939 2,033 2,197 2,552
FTEs Business
957 964 971 1,056 1,193
FTEs
Other 513 712 682 732 770
1 Excluding transformation costs: Transformation costs exclusively comprise costs that will cease on completion of the transformation,
and that are directly related to Nuuday’s comprehensive business transformation, e.g. direct IT costs, external expenses and personnel
costs for resources working on the transformation as well as extra costs as a consequence of running parallel systems during the
transformation. The costs of transformation are fully funded, i.e. the costs of Nuuday’s transformation are covered by Nuuday’s
current cash balance.
2 Underlying Simple Cash Flow = Underlying EBITDA – Underlying capital expenditure.
3 Productivity ratio = Service revenue / average number of employees excl. transformation FTEs.
4 Consist of mobile voice, mobile broadband and IoT. The numbers reflect recategorization in 2H 2023 of certain business mobile voice
and mobile broadband subscriptions to IoT.
5 Comparative figures have been adjusted to include leased lines.
6 Following internal migration of customers and alignment of accounting methods in Q2 2020, the level of landline voice RGUs has
increased. The migration had no impact on revenue or the result.
Financial overview
Nuuday Annual Report 2023 12
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Our business
model
Nuuday is the leading telecoms provider in Denmark,
boasting a robust and varied portfolio of brands,
products and services. With nearly six million cus-
tomer relationships across consumer and business
segments, our brands deliver high
-
speed broadband,
best
-in-class mobile connectivity, flexible TV and
streaming options, and a comprehensive range
of advanced business solutions, including cyber
security, unified communications, and digital collabo-
ration. Danish consumers and businesses depend on
Nuuday to p
rovide them with the most innovative,
reliable, and cutting
-edge telecommunications
services available.
Consumer brands
TV, mobile, broadband
Denmark’s leading triple
-play
telecommunications
and entertainment provider, and the preferred
brand for households across geographies and
sizes
Mobile and mobile broadband
Denmark’s third
-largest consumer mobile brand,
offering a superior customer experience, mobile
broadband, and streaming with Telmore Play
Mobile
Digital and fast
-growing mobile challenger brand
providing easy and value
-for-money mobile con-
nectivity on Denmark’s best network
Broadband
Pure
-play internet challenger delivering high-
speed
broadband with great value for money
Business brands
Mobile, broadband & security, collaboration
and network services
Denmark’s market leader in B2B telecommunica-
tions with a broad portfolio of end
-to-end ser-
vices from basic
connectivity to advanced digital
solutions
Mobile, mobile broadband and innovative
switch software
A mobile B2B brand focused on providing
SMBs with great products and services at
attractive prices
#1
Market position in DK across internet
products
(fixed & mobile broadband), TV & streaming,
mobile voice and B2B services
6.
0m
Customer relations (RGUs), including IoT
Nuuday Annual Report 2023 13
In brief
Business and strategy
Performance
Corporate governance
Financial statements
We have Denmark’s strongest range of partnerships to ensure our customers can access
Denmark’s best mobile and fixed networks, best-in-class entertainment and leading-edge business offers
Denmark’s
best mobile
network
Leading high-
speed broadband
coverage
Superior
entertainment
portfolio
Best-in-class
business
solutions
Our unique partnership with
TDC NET gives us access to the
best-in-class 5G mobile network,
assessed as the best coverage
and quality network for the eighth
consecutive year
Through our partnerships with
the leading Danish fibre and cable
networks, we provide access to
high-speed broadband for the vast
majority of Danish households
and businesses
With the best and most relevant
entertainment catalogue, and
through strong partnerships with
both domestic and international
content providers, we offer our
customers a superior catalogue of
entertainment from both streaming
services as well as broadcasters
Through well-established business
partnerships with industry leaders
such as Cisco and Microsoft, we
offer our business customers
flexible best-in-class solutions in
areas such as cyber security,
digital collaboration and unified
communications
Our network partner:
Selection of our partners:
Selection of partners:
Selection of partners:
Nuuday Annual Report 2023 14
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday’s ambition is to become a
European best-in-class telco and the
preferred service provider for Danish
households and businesses. With the
comprehensive transformation em-
barked on in 2021 as a baseline, Nuuday
made significant progress again in 2023,
with a technology revamp, product inno-
vation and operational excellence.
Building on its leading position in the
Danish market, Nuuday launched signifi-
cant initiatives across all three strategic
pillars in 2023, innovating best-in-class
products, providing exceptional cus-
tomer experiences and accelerating its
digital transformation.
We are delivering on creating the
new Nuuday as we execute one of
the most comprehensive and rapid
transformations in the European
telecommunications industry.
Delivering on our strategy
Best choice
The best choice for Danish consumers and businesses
Strategic focus areas
Across a strong brand portfolio with diverse value propositions, we aim to
offer our customers the best choice, through all
-encompassing, flexible
and innovative products based on leading
-edge technologies
Best experience
Deliver the best customer experience
Strategic focus areas
We are determined to provide Danish consumers and businesses with
seamless journeys and meet them on their preferred channels
– an aim
shared by all our brands
Most digital
Digital transformation through radical simplification
Strategic focus areas
By radically simplifying our business model and transforming our IT, we seek to
innovate and continuously deliver the best products and services as well as
the best digital experiences to our customers
Deliver best-in-market
connectivity everywhere
Innovate entertainment
and business solutions
Provide excellent value
for converged house-
holds and businesses
Systematically
eliminate pain points
Create smooth and seam-
less customer journeys
Provide a great experi-
ence in all touchpoints
Simplify business
model
Transform IT
foundation
Digitalise our
customer interactions
Nuuday Annual Report 2023 15
In brief
Business and strategy
Performance
Corporate governance
Financial statements
2023: Innovating best
-in-class offerings
Several initiatives were launched in 2023, supporting our aspiration
to be the Best Choice for Danish consumers and businesses. We
launched our YouSee Streamer, an adaptable entertainment service
that merges traditional TV channels and streaming services a
s well
as a new router with integrated Mesh technology. In the business
segment, we bolstered our portfolio with the innovative CloudKey®,
providing a unique digital solution for data storage and privacy. Our
fibre broadband reach was expanded through part
nerships with
utilities across the country, and in collaboration with TDC Net, our
customers enjoyed a superior 5G experience on DK’s best mobile
network
- now for the eighth consecutive year.
Best choice
Highlight initiatives
YouSee launched its cutting-edge Mesh technology,
which provides fast and stable Wi
-Fi coverage regard-
less of home size. With Mesh, users can enjoy uninter-
rupted streaming and browsing, making it a valuable
addition to any home network
For the
eighth year in row, we are pleased to
offer Denmark’s best mobile network, providing
unmatched experiences for our customers
across 5G
-coverage and speed dimensions
In response to growing demand for secure data storage
solutions in the business segment, TDC Erhverv launched
the ground
-breaking CloudKeyTM - a patented proprietary
software solution, showcasing our market
-
leading innovation
capabilities
In 2023, we went live on Global Connect,
SEF and RAH fibre networks, enabling
us to offer high
-speed products to an
additional 100K households
For the fourth year in a row, Hiper, our high
-speed
broadband challenger, was awarded “best value for
money”. More than 100K customers use Hiper’s
products every day
– and that figure is growing
At YouSee, constant product innovation is imperative for further
strengthening our position as Danish consumers’ preferred provider
of entertainment. Now, with our YouSee Streamer, the world's best
entertainment across TV and streaming is just one click away with
our unified user interface. The impressive, positive feedback from
users signals to us that we now indeed offer the best choice for
entertainment – no matter if you prefer traditional flow TV,
streaming only, or a combination, which is where the magic really
happens with our Streamer.
- Christian Morga
n, Head of YouSee
Nuuday Annual Report 2023 16
In brief
Business and strategy
Performance
Corporate governance
Financial statements
2023: All
-time high bNPS
Throughout the year, we made significant progress on our key
customer experience indicators. Our YoY bNPS hit a record high,
up by t
hree points, adding to the six-point increase the previous
year. This was made possible by our strong efforts across all areas
of customer interaction
- and especially our rapid digitla transfor-
mation
. For instance, TDC Erhverv introduced chat for businesses.
The launch, a great success, achieved an 88% “thumbs up” rating
which, combined with significant website improvements, led to a
34K reduction in calls.
Best experience
Highlight
initiatives
Nuuday achieved its all
-time high bNPS score in 2023, driven
by strong performances across all brands, with an excellent
adoption of AI tools to enhance customer experiences and
services
In 2023, Telmore was measured to have the
highest NPS
across 300 Danish companies in various industries in Wilke’s
CX benchmark. A remarkable performance by our mobile
and entertainment brand
Our high
-speed broadband brand, Hiper, was
awarded the title “most recommended brand” for
the second consecutive year, with a higher Net
Promoter Score than its peers
eesy rolled out its new best
-in-class app and sign-up
process,
enabling e-SIM registration and activation in
under two minutes, addressing the needs of digital
-
first consumers who expect a fully digital journey
Achieving our highest-ever bNPS score is a testament to both our
incredible staff as well as our successful adoption of AI across all
our customer interactions. Providing customers with even more
contextual service, 24/7 availability and faster response times are
only a few of the crucial improvements AI brings to our customers.
Customers are at the heart of our business, and by integrating AI,
we can meet modern the demands of modern consumers while
simultaneously enhancing internal efficiency.
-
Michael Stinner, Head of CX & Business Transformation
Nuuday Annual Report 2023 17
In brief
Business and strategy
Performance
Corporate governance
Financial statements
2023: Live on our new IT stack while leveraging AI
Our extensive digital transformation across brands, departments,
and products continues to progress. With the “Trappist” project in
collaboration with
Netcracker as a cornerstone, our future IT stack
will enable us to become the leading digital telecommunications com-
pany in Denmark
– on par with global frontrunners. The first SIM
cards are now live on the new stack, and the purchase flow and
onboarding p
rocess have been praised by both our customers, and
our agents in stores. We have also implemented several AI tools into
daily operations, improving productivity and significantly reducing
the number of incoming calls. This was also driven by a strong onli
ne
chat implementation across all brands. After witnessing rapid tangi-
ble results, we are excited to execute further on our digital transfor-
mation, with AI playing a pivotal role in increasing productivity even
more, while enabling great customer experienc
es
Most digital
Highlight
initiatives
In 2023, we reduced the total number of incoming calls
received by 9%. An impressive achievement driven by
successful implementation of AI chat and optimisation of
CX elements in each brand. And for the calls we did receive,
our valued agents continued to deliver outstanding service,
driving our
support related KPIs to new heights
We are live on our new IT stack in all YouSee
stores
- a key milestone in our digital transfor-
mation. With an overwhelming positive customer
response, we are now continuing the rollout to
other channels and migrating the base
In collaboration with Microsoft Azure, we are now leverag-
ing the powers of the world’s
leading large language model
–
ChatGPT. And while doubling down on the use of new,
cutting
-edge technologies, we are not compromising data
privacy or security thanks to Azure’s tailored privacy
-first
cloud-based LLM solution
This year’s Universum ranking recognised Nuuday as an
attractive employer in the highly competitive race for
the best IT talent. With 28 places climbed, Nuuday took
the highest jump across all companies and sectors.
Our digital transformation is a key enabler tor making Nuuday a
market-leading, lean, digital service provider. In 2023, we success-
fully went live with our new IT stack in YouSee stores. Coupled
with our rapid and successful integration of AI across our business
operations, and strong execution skills - internally and with our
world-class partners - I am confident that we are on track to
become the most digital telco in Denmark.
-
Monika Gullin, Chief Technology Officer
Nuuday Annual Report 2023 19
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Revenue
(DKKm)
14,478
Service revenue
(DKKm)
13,342
Gross profit
(DKKm)
4,805
Underlying Opex
2)
(DKKm)
3,083
Underlying
EBITDA
2)
(DKKm)
1,722
1 Mobile voice and mobile broadband. Numbers exclude recategoriza-
tion of certain business mobile voice subscriptions to IoT that
occurred in Q3 and Q4.
2 From 2022, Nuuday began reporting transformation costs separately
from its underlying business performance. Transformation costs
exclusively comprise costs that will cease on completion of the trans-
formation, and that are directly related to Nuuday’s comprehensive
business transformation, e.g. direct IT costs, external expenses and
personnel costs for resources working on the transformation as well
as extra costs from running parallel systems during the transfor-
mation. The transformation costs are fully funded, i.e. the costs
related to Nuuday’s transformation are covered by Nuuday’s
current cash balance.
Nuuday’s 2023 financial performance reflects a year of
transformation, as we invest in our customer experi-
ence and wider business transformation. However, our
goal remains the same: to produce a sustainable, effi-
cient and profitable business that delivers innovative
products and excellent customer experiences in a truly
digital manner.
Revenue
The company’s success in stabilising its core customer
base, as we migrate customers from legacy to future-
proof services, while improving the quality of our ser-
vices, and hence ARPU, was reflected in slightly growing
service revenue. Service revenue was up by 0.5% to DKK
13,342m, driven by our continued strong performance in
the future-proof mobile and high-speed broadband
segments. This outweighed the declines in legacy ser-
vices. Service revenue in our consumer mobile segment
grew by 2.6% YoY, driven by ARPU increases and strong
volume in Eesy. ARPU growth in both consumer and
business broadband along with increasing high-speed
RGU bases more than offset the structural decline in
DSL broadband. Revenue decreased slightly by 1.3%.
Gross profit
Gross profit decreased modestly by 0.9%, or DKK 42m,
to DKK 4,805m. This decline was driven by costs related
to customers migrating from legacy products (such as
DSL) to future-proof high-speed, and the continued
increase in infrastructure and content costs.
Operating expenses
Nuuday’s underlying operating expenses (excluding
transformation costs) increased by 0.1%, or DKK 2m, to
DKK 3,083m. We have substantially improved the effi-
ciency of our business, notably in reducing call ratios
and external spending, resulting in 436 fewer FTEs YoY,
excluding transformation FTEs.
These improvements largely offset the pressures of
wage inflation, higher IT costs and slightly higher mar-
keting spend.
Nuuday’s performance
•
In 2023, the strong momentum in our future-proof product areas continued, with 20,000
1
net-adds in
mobility services and growth of 81,000 RGUs within fibre broadband.
•
Service revenue was 0.5% higher than the previous year, driven by strong performances in mobility
services and fibre broadband.
•
Underlying EBITDA (excluding transformation costs
2
) declined by 2.5%, driven mainly by gross profit-
margin pressure and increasing infrastructure costs, outweighing the stabilisation in our core business.
•
Underlying capital expenditure saw significant reductions of 22.5%, while total capital expenditure,
including transformation costs related to Nuuday’s technology transformation, was slightly lower YoY
(5.8%) in 2023 vs 2022. This reflects our declining legacy IT investments ready for the Netcracker
solution, and our transformation cost profile, which is weighted towards 2024.
•
Underlying Simple Cash Flow improved by DKK 212m YoY to DDK 842m driven by significant reduction in
underlying capital expenditure
Nuuday Annual Report 2023 19 Nuuday Annual Report 2023 19
Nuuday Annual Report 2023 20
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Underlying Capex
(DKKm)
880
Underlying
simple
cash flow
(DKKm)
842
Loss excluding
special
items
(DKKm)
381
Cash flow from
operating activities
(DKKm)
1,261
Employees excluding
transformation FTEs
(EoY)
3,079
EBITDA
Underlying EBITDA (excluding transformation costs)
declined by 2.5%, or DKK 44m, to DKK 1,722m. Including
transformation costs, EBITDA declined by 8.1%, or
DKK 138m, to DKK 1,571m. Despite positive developments
in service revenue, and stable underlying operating ex-
penses, EBITDA was negatively influenced by the decline
in gross profit margins, primarily from infrastructure
costs and lower margins on future-proof services.
Capital expenditure
Capital expenditure excluding transformation costs
decreased by 22.5%, or DKK 256m, to DKK 880m. This
decline, caused mainly by lower capitalised wages as we
reduced investment in our legacy IT systems in the build
up to the Netcracker launch, was partly offset by an
increase in volume-driven capex related to customer
installations.
Capital expenditure including transformation costs
decreased by 5.8%, or 76m, to DKK 1,238m. This was
driven by the profile of the IT investments related to
our multi-year transformation programme.
Simple cash flow
As we get ready for the Netcracker launch, invest-
ments in legacy IT systems ramped down heavily in
2023. This led to a significant improvement in underlying
simple cashflow, increasing 33.7% in 2023 to DKK 842m.
Loss for the year
After amortisation, interest expenses, etc., the loss (ex-
cluding special items) amounted to DKK 381m compared
with DKK 138m in 2022. The additional loss resulted from
lower EBITDA due to higher transformation costs, and
higher financial expenses related to refinancing of debt
and fair value adjustments. Including special items, the
loss amounted to DKK 421m vs DKK 190m in 2022.
Cash flow
Total cash flow
for 2023 includes net investment of
DKK 247m in short-term bonds. Adjusted for this invest-
ment, total cash flow increased by DKK 146m from
DKK 398m in 2022 to DKK 544m.
Cash flow from operating activities
increased by
DKK 302m to DKK 1,261m, driven primarily by net working
capital (DKK 469m) due to implementation of VAT on
intra-group trade
1
as well as temporary improvements
in payment terms for VAT, and employee taxes in 2023
expiring in 2024. Other contributions to the net working
capital increase came from a favourable development
in inventories and the impact of the final repayment of
the COVID-19 temporary liquidity support package from
the Danish State in January 2022. This increase was
partly offset by lower EBITDA (DKK 138m).
Cash outflow from investing
activities increased by
DKK 133m to DKK 1,449m driven by investment of tempo-
rary excess liquidity in short-term bonds (DKK 247m),
partly offset by lower capex, including transformation
costs (DKK 76m).
Cash inflow from financing activities
declined by
DKK 270m to DKK 485m. The development was due to
the negative impact of Nuuday’s share of TDC Holding
group’s cash pool being transferred to Nuuday in the
first half of 2022 (DKK 865m). This was partly offset by
the change in loans related to refinancing (DKK 594m).
2023 guidance follow-up
EBITDA performance in 2023 was in line with our guid-
ance; namely that EBITDA would be somewhat lower in
2023 compared with 2022, driven by significant invest-
ments in customer experiences as well as the continued
migration of customers to fibre infrastructure. Service
revenue was in line with guidance for 2023, as we man-
aged to slightly increase service revenue.
2024 guidance
We expect a flat development in service revenue in
2024, which will be a year with significantly higher
investments in our business transformation as well as
continued migration of customers to fibre infrastruc-
tures. Hence, we expect a flat development in EBITDA
excluding transformation costs. EBITDA including trans-
formation costs is expected to be somewhat below the
2023 level.
1) See also note 5.1 to the consolidated financial statements
Nuuday Annual Report 2023 21
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Corporate governance statement 22
Risk management
23
Sustainability highlights
30
Gender diversity in top management
32
Board of Directors
34
Executive Management
35
Corporate
governance
Nuuday Annual Report 2023 22
In brief
Business and strategy Performance Corporate governance
Financial statements
Nuuday Annual Report 2023 23
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk management governance
Nuuday involves all layers of the organisation in its risk
management approach. From enterprise risks affecting
Nuuday’s overarching strategic 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 procedures and
guidance, thus creating a strong foundation for our risk
management governance.
While Nuuday’s Board of Directors is ultimately
accountable for risk management and compliance,
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 (identifica-
tion, assessment, mitigation, etc.). The second line con-
sists of our nine domains, each with risk and
compliance specialists:
• Security & Fraud
• Human Resources
• Legal & Compliance
• Image, PR & Public Affairs
• Operations
• Finance
• Health & Safety
• Commercial
• Transformation Execution
Establishing these domains ensures that Nuuday
follows the standardised risk management lifecycle and
receives centrally aligned risk and compliance support
across all business units from subject matter experts.
The second line assists the first line with assessments
and offers guidance regarding mitigation plans.
Risk management
Nuuday Annual Report 2023 24
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Our third line is an audit function respon-
sible for independently reviewing the risk
and compliance design and its effective-
ness.
Risk appetite
Pursuing our business objectives involves
taking risks, with a potential for risks af-
fecting the outcome of these objectives.
We have defined a risk appetite for each
of the nine domain areas, approved by
the executive management team and
the Board of Directors.
Nuuday’s risk appetite reflects a desire
to balance risk exposure and risk reluc-
tance, thus avoiding both excessive risk
taking and excessive caution.
Risk management lifecycle
Identification
Risks are identified in various ways,
including via targeted surveys, audit
findings, management meetings, or
ad-hoc. Identified risks are reported
through defined channels, dependent
on the type of risk.
Assessment
Risk assessments take various forms but
have the same goal: to measure the like-
lihood and impact of an identified risk
being realised.
Response
Based on the risk assessment, one or
multiple responses are appropriate. A
response might be to “Treat,” “Tolerate,”
“Transfer,” “Terminate,” or “Take no
action.” Taking no action when facing a
risk is an acceptable solution only if the
risk assessment score indicates the risk
is within the approved risk appetite.
Action
Here we fulfil the action determined as
the appropriate response. This step also
involves reviewing the strategy to ascer-
tain the efficacy of the response and
determine whether another response
activity is required.
Monitor
The risk picture, including relevant vul-
nerabilities or threats that could affect
the treatment or realisation of a given
risk, is monitored after actions have
been completed. Continuously, a mini-
mum of once annually, or if the risk
Nuuday Annual Report 24
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
“Disclosure of information in
Salesforce due to leaked
administrator credentials”
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
Heatmap
Risk response task
Result
Reports and
dashboards
Nuuday Annual Report 2023 25
In brief
Business and strategy
Performance
Corporate governance
Financial statements
picture changes significantly, the risk
returns to the Assessment stage of the
Risk Management Process.
Documentation
To ensure accountability, the identifica-
tion, assessment, response to and treat-
ment of risks is documented in adequate
detail.
The documentation can be made availa-
ble to internal and external stakeholders
on a need-to-know basis unless there
are concerns of confidentiality. In such
cases, management approval is required.
Integrated risk management
& reporting
Transparency is a key aspect of
Nuuday’s risk 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 poten-
tial impact to the organisation is docu-
mented and a plan is in place in case the
risk materialises.
Risks associated with programmes and
projects are handled by the steering
groups, with project/programme manag-
ers receiving assistance from the
domain risk managers when necessary.
Third-party risks are handled in collabo-
ration 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, and where this is not possible,
remaining risks are documented and
handled systematically.
Strategic risks identified in other
contexts, including management meet-
ings, are discussed and documented,
so appropriate response tasks can be
established in the relevant organisational
areas.
For each risk identified, responsibilities
are assigned, and progress is monitored
and evaluated.
Risks identified are consolidated and
presented to Nuuday’s executive man-
agement on a quarterly basis. Any risks
falling outside the defined appetite are
presented for approval.
The Nuuday Audit Committee receives a
consolidated risk overview and status as
well as information about the most criti-
cal risks on a quarterly basis.
On the following pages, we describe
some of the main risks that Nuuday
faces, with information about the risk’s
trend, impact, and mitigation initiatives.
Nuuday Annual Report 2023 26
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
New or current competitors
taking market share
Increasing
Commercial
Denmark has a competitive telecommunications landscape.
Increased
competition and continuing price pressure
affect Nuuday’s ability to establish sustainable pricing in
B2C and B2B markets.
•
Improve customer experience through fully digital
customer journeys
•
Retain best network status
•
Continue to provide high-quality services and
improve NPS
•
New attractive product releases
•
Increased adoption of differentiating offerings, reducing
B2B churn
Consumer savings
– “downspin”
Decreasing
Commercial
We are seeing
less inflation, but people are still choosing to
save on, for example, mobile phone subscriptions by
choosing cheaper packages, thus lowering the Average
Revenue Per Unit. 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
Increasing
Commercial
Content producers continue to raise their prices for
entertainment, which particularly affects the YouSee
& Telmore brands.
On TV, increasing price pressure from streaming providers
coupled with increasing content costs (especially related
to premium sports) could further accelerate existing
downward trends, with customers ‘shaving’ or ‘cutting’ the
cord on their TV 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 that 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
Increasing
Commercial
VIOS, ASOM and others are "pitching" to antenna
associations to "retake ownership of their network" and
start producing own broadband rather than relying on
Norlys, TDC Net and YouSee. This marginalizes 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/bargaining power across associations.
•
Sharper offers to keep associations in TDC Net/YouSee
fold - requires larger incentives to the association and
zero charged DVB-C/TV distribution costs
•
With Dawn, a larger array of services - like association
admin and white label offering
•
Own Nuuday broadband/TV production
•
Potentially partnering w OpenNet to have an alternative
to TDC Net as network enabler
Nuuday Annual Report 2023 27
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
Nuuday Annual Report 2023 28
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
IT & business transformation
Stable
Transformation
Execution /
Human Resources
Nuuday is progressing with its
transformation, which is key
in engaging customers, increasing productivity, and
guaranteeing high
-quality services in the future.
A number of risks are associated with this transformation,
such as employee engagement, human resource
management, technical integrations and de
-coupling of
legacy IT.
The materialisation of risks affecting the transformation
of Nuuday’s IT stack and business is in focus, and the
identified risks are being broken down at programme and
project level to prioritise appropriate mitigation efforts
before the risks are realise
d.
•
Management reiteration of transformation plan and
Nuuday’s 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
Political & legal changes
Stable
Image, PR & Public Affairs
EU and national governmental changes often lead to new
political objectives. With these new objectives, we often
see political decisions or new legislation. Depending on the
magnitude, these changes can profoundly affect Nuuday’s
ability to carry out its b
usiness and/or fulfil operational
targets.
•
Nuuday participation in industry groups and discussions
on proposed legislation
•
Continued dialogue with authorities, politicians and
municipalities
Financial risks
Finance
See Financial
Statements – Section 4.3 “Financial Risks” for
details
•
N/A
Human rights
Stable
Image, PR & Public Affairs /
Legal & Compliance
Nuuday has responsibility for our direct employees, the
employees of partners and companies in our
supply chain,
including the risk of forced labour, discrimination or
harassment and misuse or loss of personal data, or data
breaches.
If Nuuday or Nuuday partners violate fundamental human
rights, this may lead to legal action as well as bad publicity
and customer reactions negatively impacting Nuuday.
•
Procedures and policies & partner code of conduct
•
Based on a thorough risk assessment, we conduct audits
at our suppliers each year, particularly screening for
adherence to the UN Global Compact Assessment
•
Industry collaboration through JAC – the Joint Alliance
for CSR
Nuuday Annual Report 2023 29
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Risk & trend
Risk domain
Details & impact
Mitigation initiatives
Anti
-corruption and bribery
Stable
Image, PR & Public Affairs /
Legal & Compliance
Nuuday is a large employer in Denmark with suppliers
across the globe. With multiple contract relationships
there is always a risk that bribery or corrupt practices
could occur, influencing business decisions.
If corruption or bribery occurs, it may lead to legal action
as well as bad publicity and customer reactions negatively
impacting Nuuday.
•
Anti-corruption policy commits Nuuday to complying with
the UN Convention against corruption
•
Raising awareness and putting in place resources and
training for employees
•
Whistleblower policy that allows for the anonymous
reporting of suspected wrongdoings at the company
•
Partner Code of Conduct for suppliers, partner
organisations and employees
Environment and climate
Stable
Image, PR & Public Affairs /
Legal & Compliance
Several potential environmental and climate risks may be
linked to our operations and supply chain. Nuuday has a
responsibility to try to reduce our own resource
consumption, emissions and waste in production 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 negatively 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 revised sustainability
strategy with sustainable procurement and products as
a key pillar
•
Nuuday aims to retain an Ecovadis platinum rating as a
token of recognition that Nuuday is a leader in
sustainability
Social and employees
Stable
Human Resources / Health
& Safety
Nuuday focuses on retaining the services of its key
personnel and invests in attracting suitable and qualified
talents to ensure a good
working environment e.g., with no
accidents or stress incidents. Nuuday's success depends
largely on our ability to attract and retain key personnel.
The competition for qualified personnel is intense and with
limited availability of candidates with the required
knowledge of the telecoms industry and relevant
experience in Denmark.
•
88% of 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
Nuuday Annual Report 2023 30
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2023 30
Nuuday Annual Report 2023 31
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Nuuday Annual Report 2023 32
In brief
Business and strategy Performance Corporate governance
Financial statements
Nuuday Annual Report 2023 33
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Board of Directors
Michael Parton
Chair of the Board
Appointed (until): 2023 (2024)
Nationality: British
Year of birth: 1954
Non-independent
Board function
Shareholder elected
Chairman of the Health & Safety
Committee; member of the
Compensation & Nomination
Committee; member of the Audit
Committee
Education:
Chartered Management
Accountant
Board meeting participation in 2023
:
12 of 12
Sofia Arhall Bergendorff
Vice chair
Appointed (until): 2023 (2024)
Nationality: Swedish
Year of birth: 1969
Independent
Board function
Shareholder elected
Chairman of the Compensation &
Nomination Committee; m
ember of the
Health & Safety Committee
Education:
MBA, INSEAD, France & Singapore
Other Board positions:
Stena Line
Board meeting participation in 2023
:
12 of 12
Peter Nyegaard
Board member
Appointed (until): 2023 (2024)
Nationality: Danish
Year of birth: 1963
Independent
Board function
Shareholder elected
Chairman of the Audit Committee;
member of the Compensation &
Nomination Committee
Education:
MSc in Economics, University of
Copenhagen, Denmark.
Other Board positions:
Danmarks Skibskredit A/S (vice chair),
Edda Group ApS, Good Life
Gruppen ApS , Øens A/S
Board meeting participation in 2023
:
12 of 12
Søren Abildgaard
Board member
Appointed (until): 2023 (2024)
Nationality: Danish
Year of birth: 1968
Independent
Board function
Shareholder elected
Education:
AMP, Harvard Business School
Executive Education
MSc in International Marketing,
Southbank University, UK
Board meeting participation in 2023
:
10 of 12
Joe Boorman
Board member
Appointed: 2023 (2024)
Nationality: British
Year of birth: 1972
Independent
Board function
Shareholder elected
Member of the Audit Committee
Education:
Chartered Accountant,
(BA Hons.) Geography, University
of Sheffield, UK
Board meeting participation in 2023
:
11 of 12
Nuuday Annual Report 2023 34
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Board of Directors
Susana Leith-Smith
Board member
Appointed: 2023 (2024)
Nationality: Portuguese
Year of birth: 1977
Non-independent
Board function
Shareholder elected
Member of the Audit Committee;
member of the Compensation &
Nomination Committee; member of t
he
Health & Safety Committee
Education:
MSc in Modern History & International
Relations, University of St Andrews, UK
Other Board positions:
Arqiva Group Limited,
TDC Holding A/S,
DKT Holdings ApS, DKT Finance ApS,
Telekommunikation ApS, Open Fiber
S.p.A, Womankind Worldwide
Board meeting participation in 2023
:
11 of 12
Thomas Lech Pedersen
Board member
Appointed (until): 2024 (2028)
Nationality: Danish
Year of birth: 1976
Board function
Employee elected
Education:
AU, Human Resources, Academy
Aarhus, Denmark
Other Board positions:
Association of
Managers and Employees in
Special Positions of Trust
Board meeting participation in 2023
:
12 of 12
Tobias Tolstrup
Board member
Appointed (until): 2024 (2028)
Nationality: Danish
Year of birth: 1985
Board function
Employee elected
Education:
AP, Marketing Management, Viborg
Erhvervsakademi/Manchester
Metropolitan University, Denmark/UK
Other Board positions:
Dansk Metal, Teleafdeling 8
Board meeting participation in 2023
:
12 of 12
Zanne Stensballe
Board member
Appointed (until): 2024 (2028)
Nationality: Danish
Year of birth: 1969
Board function
Employee elected
Member of the Health & Safety
Committee
Education:
Graduate diploma in Business
Administration (Marketing
Management), Storstrøms
Handelshøjskolecenter, Denmark &
eMBA, AVT Business School, Denmark
Board meeting participation in 2023
:
12 of 12
Nuuday Annual Report 2023 35
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Executive Management
Jon James
Chief Executive Officer
Year of birth:
1969
Education:
BA in Economics and History,
Cambridge University, UK
Henrik Christiansen
Chief Financial Officer
Year of birth:
1967
Education:
BSc in Management Accounting,
Copenhagen Business School, Denmark
Monika Gullin
Chief Technology Officer
Year of birth:
1968
Education:
MSc in Electrical Engineering, KTH
Stockholm, Sweden
Maj Britt Andersen
Chief Human Resources Officer
Year of birth:
1967
Education:
MSc in International Business and
Modern Languages, Copenhagen
Business School, Denmark
Nuuday Annual Report 2023 36
In brief
Business and strategy
Performance
Corporate governance
Financial statements
Executive Management
Michael Stinner
Head of CX & Business Transformation
Year of birth:
1974
Education:
Business Administration and IT, IHK Co-
logne, Germany
Christian Morgan
Head of YouSee
Year of birth:
1984
Education:
MSc in Economics and Business
Administration, Copenhagen Business
School, Denmark
John Henriksen
Head of TDC Erhverv
Year of birth:
1969
Education:
IT Technology, Tietgen Business
College, Denmark
Jens Grønlund
Head of NuuBrands
Year of birth:
1984
Education:
MSc in Strategy and Organisation,
University of Southern Denmark,
Denmark
Nuuday Annual Report 2023 38
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Consolidated income statement 39
Consolidated statement of comprehensive income 39
Consolidated balance sheet 40
Consolidated statement of cash flows 41
Consolidated statement of changes in equity 42
Notes to consolidated financial statements 43
Parent company financial statement 84
Management statement 102
Independent auditor’s report 103
Section 1 - Basis of
preparation
1.1. Accounting policies 44
1.2. Critical accounting estimates
and judgements 45
1.3. New accounting standards 45
Section 2 - Profit for the year
2.1. Revenue 47
2.2. Cost of sales 49
2.3. External expenses 49
2.4. Personnel expenses 50
2.5. Depreciation, amortisation and
impairment losses 51
2.6. Special items 51
2.7. Income taxes 52
Section 3 - Operating assets
and liabilities
3.1. Impairment 56
3.2. Intangible assets 59
3.3. Property, plant and equipment 61
3.4. Lease assets and liabilities 63
3.5. Trade receivables 65
3.6. Contract assets and liabilities 67
3.7. Prepaid expenses 67
3.8. Provisions 68
Section 4 - Capital structure
and financing costs
4.1. Equity 70
4.2. Loans 71
4.3. Financial risks 73
4.4. Financial income and expenses 74
4.5. Maturity profiles of financial
instruments 75
Section 5 - Cash flow
5.1. Change in working capital 78
5.2. Investment in enterprises 78
Section 6 - Other disclosures
6.1. Incentive programmes 80
6.2. Related parties 81
6.3. Fees to auditors 82
6.4. Other financial commitments 82
6.5. Pledges and contingencies 83
6.6. Events after the balancesheet
date 83
6.7. Overview of group companies
at 31 December 2023 83
Nuuday Annual Report 2023 38
Financial statements
Content
Notes to consolidated financial statements
Nuuday Annual Report 2023 39
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Consolidated income statement
Consolidated statement of comprehensive income
(DKKm)
Note 2023 2022
Revenue
2.1 14,478 14,674
Cost of sales
2.2 (9,673 ) (9,827 )
Gross profit
External expenses
2.3 (1,485 ) (1,372 )
Personnel expenses
2.4 (1,820 ) (1,829 )
Other income
2.1 71 63
Operating profit before depreciation, amortisation and special items
(EBITDA)
Depreciation, amortisation and impairment losses
2.5 (1,521 ) (1,550 )
Special items
2.6 (52 ) (66 )
Operating loss (EBIT)
(2 ) 93
Financial
income and expenses 4.4 (449 ) (320 )
Loss before income taxes
(451 ) (227 )
Income taxes
2.7 30 37
Loss for the year
(421 ) (190 )
Attributable to:
Shareholders of Nuuday A/S
(421 ) (190 )
Loss for the year
(421 ) (190 )
(DKKm)
Note 2023 2022
Loss for the year
(421 )
(190 )
Total comprehensive loss
(421 )
(190 )
Nuuday Annual Report 2023 40
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Consolidated balance sheet
Assets (DKKm)
Note 2023 2022
Non
-current assets
Intangible assets
3.1,3.2 12,610 12,764
Property, plant and equipment
3.3 1,066 1,144
Lease assets
3.4 264 327
Joint ventures,
associates and other investments
Other receivables
Prepaid expenses
3.7 4 7
Total non-current assets
Current assets
Inventories
Trade receivables
3.5 1,059 1,132
Other receivables
Contract assets
3.6 778 676
Amounts owed by group companies
Income tax receivable
2.7 - 2
Derivative financial instruments
Prepaid expenses
3.7 697 629
Short
-term bonds
Cash
Total current assets
Total assets
Equity and liabilities (DKKm)
Note 2023 2022
Equity
Share capital
Retained earnings
Total equity
4.1
Non
-current liabilities
Deferred tax liabilities
2.7 1,533
Provisions
3.8 44
Lease liabilities
3.4 222
Loans
4.2,4.5 3,458
Other payables
Total non-current liabilities
Current liabilities
Loans from group companies
4.2,4.5 -
Lease liabilities
3.4 82
Trade payables
Other payables
Contract
liabilities 3.6 2,136
Amounts owed to group companies
Income tax payable
2.7 12
Derivative financial instruments
Provisions
3.8 23
Total current liabilities
Total liabilities
Total equity and liabilities
Nuuday Annual Report 2023 41
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Consolidated statement of cash flows
(DKKm)
Note 2023 2022
Operating activities
Operating profit before depreciation, amortisation and
special items
(EBITDA)
Adjustment for non
-cash items
Payments related to provisions
3.8 (10 ) (7 )
Special items
2.6 (75 ) (76 )
Change in working capital
5.1 57 (412 )
Interest received
Interest paid
(361 ) (312 )
Income tax received
2.7 23 26
Total cash flow from operating activities
Investing activities
Investment in enterprises
5.2 - (51 )
Investment in property, plant and equipment
3.3 (305 ) (375 )
Investment in intangible assets
3.2 (897 ) (891 )
Investment in other non
-current assets
(1 ) (1 )
Investment in short
-term bonds
(736 ) -
Sale of other non
-current assets
Sale of short
-term bonds 489 -
Total cash flow from investing activities
(1,449 )
(1,316 )
(DKKm)
Note 2023 2022
Financing activities
Proceeds from long
-term loans
Repayments of long
-term debt
(2,873 )
Lease payments
(74 )
(75 )
Change in interest
-bearing receivables and payables
Costs relating to long
-term loans -
(35 )
Total cash flow from financing activities
Total cash flow
Cash and cash
equivalents at 1 January
Effect of exchange
-rate changes on cash and cash equivalents (1 )
Cash and cash equivalents at 31 December
Nuuday Annual Report 2023 42
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Consolidated statement of changes in equity
(DKKm)
Share capital Retained earnings Total
Equity at 1 January 2022
Loss for the year
(190 )
Total comprehensive income
(190 )
Contributions of equity
Total
transactions with shareholders - 6,347 6,347
Equity at 31 December 2022
Loss for the year
(421 )
Total comprehensive income
(421 )
Equity at 31 December 2023
Nuuday Annual Report 2023 43
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 1
Basis of preparation
This section sets out the basis of preparation, which
relates to the financial statements as a whole. Where
an accounting policy is specific 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.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 43
In this section
1.1.
Accounting policies 44
1.2.
Critical accounting estimates and
judgements 45
1.3.
New accounting standards 45
Nuuday Annual Report 2023 44
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Nuuday’s consolidated financial state-
ments for 2023 have been prepared
in accordance with IFRS Accounting
Standards as issued by the International
Accounting Standards Board (IASB) as
adopted by the European Union (EU) and
further disclosure requirements in the
Danish Financial Statements Act.
The consolidated financial statements
are based on the historical cost conven-
tion, except for financial assets and
liabilities that are initially measured at
fair value adjusted for transaction costs
if they are not subsequently measured
at fair value through the income state-
ment. Trade receivables are measured
at their transaction price.
When preparing the consolidated finan-
cial statements, Management makes
assumptions that affect the reported
amount of assets and liabilities at the
balance sheet date, and the reported
income and expenses for the accounting
period. The accounting estimates and
judgements considered critical to the
preparation of the consolidated financial
statements are shown in note 1.2.
The accounting policies are unchanged
compared with the policies applied in
the Annual Report 2022.
Consolidation policies
The consolidated financial statements
include the financial statements of the
parent company and subsidiaries of
which Nuuday A/S has direct or indirect
control. Joint ventures of which the
Group has joint control and associates of
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 Nuuday A/S and
its consolidated companies, which have
been restated to Group accounting
policies, combining items of a uniform
nature.
On consolidation, intra-group income
and expenses; shareholdings, dividends,
internal balances; and realised and unre-
alised profits and losses on transactions
between the consolidated companies
have been eliminated.
1.1
| Accounting policies
Nuuday Annual Report 2023 45
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
The preparation of Nuuday Group’s
Annual Report requires Management
to exercise judgement in applying the
Group’s accounting policies. It also
requires the use of estimates and
assumptions that affect the reported
amount of assets, liabilities, income and
expenses. Actual results may differ from
those estimates.
Estimates and underlying assumptions
are reviewed on an ongoing basis. Revi-
sions are recognised during the period
in which the estimates are revised and
during any future periods affected.
The following areas involve a higher
degree of estimates or complexity and
are outlined in more detail in the related
notes:
Nuuday Group has adopted the new
standards, amendments to standards
and interpretations that are effective
for the financial year 2023. None of the
changes have affected recognition or
measurement in the financial statements
nor are they expected to have any
future impact.
IASB has approved a number of new
accounting standards and changes to
standards that are not yet effective.
Nuuday Group has evaluated the stand-
ards and as none of them are expected
to be relevant to the Group, they are
not expected to impact on the financial
statements.
1.2
| Critical accounting estimates and judgements
Notes
Critical accounting estimates and judgements Estimates/judgements
2.
1
Revenue
Assessment of principal or agent Judgement
Assessment of contracts involving complex sale of
goods and services
Estimate/Judgement
2.
6
Special items
Assessment of special events or transactions Judgement
3.1
Impaiment
Assumptions used for impairment testing Estimate/judgement
3.2
Intangible assets
Assumptions for useful lives Estimate
3.
5
Trade receivables
Assessment of expected losses Estimate
1.3
| New accounting standards
Nuuday Annual Report 2023 46
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 2
Profit for the year
This section focuses on disclosures of details of the
Nuuday Group’s results for the year, including segment
reporting, special items and taxation. A detailed review
of revenue,
EBITDA and profit for the year is provided in the
section “Nuuday performance” in the Management’s review.
In this section
2.1.
Revenue
47
2.2.
Cost of sales
49
2.3.
External expenses
49
2.4.
Personnel expenses
50
2.5.
Depreciation, amortisation and
impairment losses
51
2.6.
Special items
51
2.7.
Income taxes
52
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 46
Nuuday Annual Report 2023 47
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Revenue recognition for a telecom oper-
ator is a complex area of accounting
that requires management 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 cus-
tomer agreement. When the Group acts
as the principal, revenue is recognised at
the agreed value, whereas when the
Group acts as an agent, revenue is rec-
ognised as the commission the Group
receives for arranging the agreement.
Judgements of whether the Group acts
as a principal or as an agent impact on
the amounts of recognised revenue and
operating expenses, but do not impact
on net profit for the year or cash flows.
Judgements of whether the Group acts
as a principal are used primarily in trans-
actions 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 allocating the transaction price to
the individual elements based on their
respective fair values, if judged to be
recognised separately. For example,
business customer contracts can com-
prise several elements related to mobile
phones, subscriptions, leases, etc.
2.1
| Revenue
(DKKm)
2023 2022
Sales of goods recognised at a point in time
1,165
1,394
Sales of services recognised over time
13,313
13,280
Total
14,478
14,674
Revenue specified by services (DKKm)
2023
2022
Landline voice
697
746
Mobile services
5,190
5,085
Internet & network
3,543
3,460
TV
3,322
3,452
Other services
1,726
1,931
Total
14,478
14,674
Critical accounting
estimates and judgements
Nuuday Annual Report 2023 48
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Revenue is measured at the fair value
of the consideration receivable after
deducting sales tax and discounts relat-
ing directly to sales. Revenue comprises
goods and services provided during the
year. Goods and services may be sold
separately or in bundled packages. Ser-
vices include traffic and subscription
fees,
interconnection
and
roaming
fees,
fees for leased lines, network services,
TV distribution as well as connection and
installation fees. Goods include customer
premises equipment, telephony hand-
sets, PCs, set-top boxes, etc.
Nuuday sells to households and the
contracts are primarily perpetual, with
the same service provided until the cus-
tomer terminates the contract. Some of
the contracts include a non-cancellation
period of 6 months. The company also
has contracts with antenna associations
for longer periods.
Nuuday sells digital solutions to enter-
prises and public segments. Business
offers modular solutions for small and
medium-sized enterprises, as well as
customised solutions for public and large
enterprises. Modular self-service con-
tracts are perpetual, and contracts with
customised solutions are for longer peri-
ods, i.e., 3-5 years.
The significant sources of revenue are
recognised in the income statements as
follows:
• revenues from subscription fees and
flat-rate services are recognised over
the subscription period
• revenues from telephony are recog-
nised 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 recog-
nised over the rental period
• revenues from the sale of equipment
are recognised on delivery. Revenues
from equipment maintenance are rec-
ognised over the contract period
Revenue arrangements with multiple
deliverables are recognised as separate
units of accounting, independent of any
contingent element related to the deliv-
ery of additional items or other perfor-
mance conditions. Such revenues include
the sale of equipment located at cus-
tomer 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 obliga-
tion 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. Dis-
counts 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 recog-
nised, see note 3.5.
Revenues are recognised gross when
Nuuday acts as the principal in a trans-
action. 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 con-
tract work in progress based on an
assessment of the stage of completion.
Contract work in progress includes in-
stallation of telephone and IT systems,
systems integration and other business
solutions.
Non-refundable up-front connection
fees are included in the total transaction
price for the contract with the customer
and are thereby allocated to the identi-
fied performance obligations (services).
The period between the transfer of the
service to the customer and the pay-
ment 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 account-
ing items of a secondary nature com-
pared with the company’s principal
activities.
2.1
| Revenue (continued)
Accounting policies
Nuuday Annual Report 2023 49
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
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 net-
works and leased transmission capacity
as well as interconnection and roaming
costs related directly to the Group’s
primary income.
Cost of goods sold includes terminal
equipment and transmission material as
well as TV-programme rights and other
content costs.
Accounting policies
External expenses include expenses
related to marketing and advertising,
subscriber acquisition costs (over the
expected term of the related customer
relationship), IT, property, expenses
related to staff, capacity maintenance,
service contracts, etc.
2.2
| Cost of sales
(DKKm)
2023 2022
Mobile services
(3,551)
(3,510)
Landline voice
(315)
(368)
Internet & network
(1,935)
(1,780)
TV
(2,364)
(2,427)
Other services
(1,508)
(1,742)
Total
(9,673)
(9,827)
2.3
| External expenses
(DKKm)
2023 2022
Marketing and advertising
(195)
(203)
Subscriber acquisition and retention, cf. note 3.6
(204)
(172)
Consultants
(162)
(126)
Properties
(118)
(121)
IT
(478)
(402)
Temps and personnel
-related expenses (77)
(77)
Other
(251)
(271)
Total
(1,485)
(1,372)
Comments
Nuuday derives the vast majority
of its cost of sales from contracts
with TDC NET A/S. In 2020 Nuuday
entered into a contract with
TDC NET A/S under which end-to-
end mobile services are provided.
The contract has an initial term of
eight years, including an additional
seven years phaseout period if the
contract is not extended. See also
note 6.2.
Nuuday Annual Report 2023 50
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
2.4
| Personnel expenses
(DKKm)
2023 2022
Wages and salaries (including short
-term and long-term bonuses) (1,963)
(2,075)
Pensions (defined contribution plans)
(180)
(180)
Social security
(36)
(42)
Total
(2,179)
(2,297)
Of which capitalised as non-current assets
359
468
Total personnel expenses recognised in the income statement
(1,820)
(1,829)
Remuneration for the Executive Committee¹ and the Board of
Directors
(DKKm)
2023 2022
Base salary (incl. benefits)
9.3
7.2
Cash bonus
6.3
3.9
Pensions
1.3
1.2
Long
-term incentive programme 9.8
1.3
Management incentive programme
-
0.9
26.7
14.5
Redundancy
compensation 2.1
4.0
Key management in total
28.8
18.5
Fee to the Board of Directors
8.3
7.5
Total
37.1
26.0
¹
During 2023, the remuneration to the Executive Committee (excluding redundancy compensation) comprised 2.0 members on average
(2022: 1.5 members).
Comments
Wages, salaries, social security
contributions, paid leave and
sick leave, bonuses and other
employee benefits are recognised
in the year in which the employee
renders the related services.
Incentive programmes
See note 6.1.
Nuuday Annual Report 2023 51
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Critical accounting judgements
In the income statement, special items
are presented as a separate item.
Special items include income or costs
that in Management’s judgement shall be
disclosed separately by virtue of their
size, nature or incidence. In determining
whether an event or transaction is spe-
cial, Management considers quantitative
as well as qualitative factors such as
the frequency or predictability of occur-
rence of the transaction or event,
including whether the event or transac-
tion is recurring. This is consistent with
the way that financial performance is
measured by Management and reported
to the Board of Directors, and assists in
providing a meaningful analysis of the
operating results of Nuuday.
Accounting policies
Special items are significant amounts
that Management considers are not
attributable to normal operations such
as restructuring costs and special write-
downs for impairment of intangible
assets and property, plant and equip-
ment.
Special items are disclosed on the face
of the income statement.
2.5
| Depreciation, amortisation
and impairment losses
(DKKm)
2023 2022
Amortisation of intangible assets, cf. note 3.2
(1,037)
(1,079)
Depreciation of property, plant and equipment, cf. note 3.3
(393)
(381)
Depreciation of lease assets, cf. note 3.4
(87)
(85)
Impairment losses, cf. notes 3.2
and 3.3 (14)
(15)
Of which capitalised as tangible and intangible assets
10
10
Total
(1,521)
(1,550)
2.6
| Special items
(DKKm)
2023 2022
Costs related to
redundancy programmes (47)
(49)
Other restructuring costs, etc.
(4)
(17)
Loss from rulings
(1)
-
Special items before income taxes
(52)
(66)
Income taxes related to special items
12
14
Total special items
(40)
(52)
Cash flow
from special items(DKKm) 2023 2022
Redundancy programmes
(60)
(66)
Rulings
(2)
-
Other
(13)
(10)
Total
(75)
(76)
Nuuday Annual Report 2023 52
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
2.7
| Income taxes
2023
2022
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
(2)
1.554
(24)
1.587
Income taxes for the year
31 5
(36)
22
1 (23)
Adjustment of tax for previous years
(1)
(14)
15
15
(5)
(10)
Income tax paid
23
26
Total
30
12
1.533
37
(2)
1.554
Shown in the balance sheet as:
Tax
payable/deferred tax liabilities 12
1.533
- 1.554
Tax receivable/deferred tax assets
(2)
-
Total
12
1.533
(2)
1.554
Income taxes are specified as follows:
Income
excluding special items 18
23
Special items
12
14
Total
30
37
Nuuday Annual Report 2023 53
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
2.7
| Income taxes (continued)
2023
2022
Deferred tax (DKKm)
Deferred
tax assets
Deferred
tax liabilities
Total¹
Intangible assets
-
35
35
42
Other
-
45
45
41
Current
-
80
80
83
Intangible assets
-
1,413
1,413
1,456
Property, plant and equipment
(24)
-
(24)
(27)
Lease
assets and liabilities (9)
-
(9)
(6)
Tax value of tax-loss carryforwards
-
-
-
(12)
Other
-
73
73
60
Non
-current (33)
1,486
1,453
1,471
Deferred tax at 31 December
(33)
1,566
1,533
1,554
¹ The total net
deferred tax is recognised as a liability in the balance sheets.
2023
2022
Effective tax rate (DKKm)
DKKm %
DKKm %
Danish corporate income tax rate
88 22.0
35
22.0
Limitation on the tax deductibility of
interest expenses (60)
(15.0)
(33)
(20.8)
Value adjustment of tax assets
(12)
(3.0)
-
-
Other non
-taxable income and non-deductible expenses 3 0.7
6
3.9
Adjustment of tax for previous years
(1)
(0.2)
15
9.1
Effective tax excluding special items
18 4.5
23
14.2
Special items
12
2.2
14
2.1
Effective tax including special items
30 6.7
37
16.3
Comments
Nuuday A/S and all its Danish
subsidiaries participate in joint
taxation with DKT Holdings ApS,
which is the ultimate owner of the
Nuuday Group and management
company in the joint taxation. The
jointly taxed companies are jointly
and severally liable for the total
income taxes, taxes paid on ac-
count and outstanding residual
tax (with additional payments and
interest) relating to the joint
taxation.
Comments
The decreasing effective tax rate
(excluding special items) was due
primarily to an increased effect
of limitation of interest expenses
as well as decrease of adjustment
of tax for previous years.
Nuuday Annual Report 2023 54
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Tax for the year comprises current
income tax, changes in deferred tax and
adjustments from prior years and is rec-
ognised in the income statement, 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 receivable.
Deferred tax is measured under the bal-
ance-sheet liability method on the basis
of all temporary 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 recogni-
tion of an asset or liability in a transac-
tion other than a business combination
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, except
where the timing of the reversal of the
temporary difference is controlled by
Nuuday Group and it is probable that the
temporary difference will not reverse in
the foreseeable future.
Deferred tax assets including the tax
value of tax-losses carried forward 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 legislation in the respective
countries at the balance sheet date
when the deferred tax is expected to be
realised as current income 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
recognised directly in other comprehen-
sive income.
Deferred tax assets and liabilities are
offset in the consolidated balance sheet.
2.7
| Income taxes (continued)
Accounting policies
Nuuday Annual Report 2023 55
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 3
Operating assets
and liabilities
This section shows the assets used to generate Nuuday’s
performance and the resulting liabilities incurred. Assets
and liabilities relating to Nuuday’s financing activities are
addressed in
section 4. Deferred tax assets and liabilities
are shown in
note 2.7.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
3.1.
Impairment
56
3.2.
Intangible assets
59
3.3.
Property, plant and equipment
61
3.4.
Lease assets and liabilities
63
3.5.
Trade receivables
65
3.6.
Contract assets and liabilities
67
3.7.
Prepaid expenses
67
3.8.
Provisions
68
Nuuday Annual Report 2023 55
Nuuday Annual Report 2023 56
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Impairment test of assets
The annual impairment test is an assess-
ment of whether the cash generating
units will be able to generate sufficient
positive net cash flow in the future to
support the carrying amount of the as-
sets related to the unit. The carrying
amount of assets with indefinite useful
lives are tested for impairment annually
and if events or changes in circum-
stances indicate impairment. The annual
tests were carried out at 1 October 2023
and at 1 October 2022, 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.
Cash-generating units
There are identified four cash-generat-
ing units in Nuuday – YouSee, Nuubrands,
Business and Mobile Partners. Nuuday’s
management structure reflects this as
they are responsible for operating per-
formance, investment and future activi-
ties in the respective units.
Assets other than brand are allocated to
the cash-generating units at which the
assets primarily generate cash inflows.
Brand is related to the TDC brand and
tested as a corporate asset, since all
cash-generating units uses the brand or
offspring of the TDC brand.
Key assumptions
Impairment testing is an integral part of
Nuuday’s budget and planning process,
which is based on long-term business
plans with projection until 2030. The dis-
count rates applied reflect specific risks
relating to the individual cash-generat-
ing unit.
The recoverable amount is based on the
value in use determined on expected
cash flows based on long-term business
plans approved by Management.
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.
The long-term business plans are based
on current trends. The budget period
includes cash flow effects from com-
pleted restructurings combined with
effects of strategic initiatives aimed at
improving or maintaining trend lines.
Weighted average cost of capital
(WACC) applied as the discounting
factor in the calculations increases/
decreases by 1.0% and all other things
being equal, the value in use would
decrease/ increase by DKK 1.8bn and
2.4bn, respectively and would not cause
the carrying amount of assets to exceed
the recoverable value.
Under the same assumptions, a 1.0%
decrease/increase in the market-based
growth rate during the forecast period
as well as the terminal period would
the value in use decrease/increase by
DKK 1.3bn and 1.8bn, respectively. All the
above-mentioned changes in key as-
sumptions would not cause the carrying
amount to exceed the recoverable value.
If the key assumptions change more
than indicated in the above analyses the
recoverable value may decrease at a
level, where an impairment loss occurs.
With the present relation between
WACC and growth rate the WACC can
increase to approximately 12.5% pre-tax
with a growth rate at 2.7% before the
carrying amount will exceed the recov-
erable value.
Nuubrands is most sensitive and a
change more than 1.0% in WACC or 10%
lower EBITDA will cause an impairment.
The assumptions for calculating the
value in use for the most significant as-
sets goodwill and brand are given below.
3.1
| Impaiment
YouSee Nuubrands Business Total¹
Key assumptions for calculating the value in use for the significant
goodwill¹ and brand amounts (DKKm)
2023 2022 2023 2022 2023 2022 2023 2022
Carrying amount of goodwill at 31 December (DKKm)
3,603
3,603
1,030
1,030
895
895
5,528
5,528
Carrying amount of brand at 31 December (DKKm) (unallocated)
4,052
4,052
Market
-based growth rate applied at 1 October to extrapolated pro-
jected future cash flows for the period following 2030
2.3%
2.3%
2.3%
2.3%
2.3%
2.3%
Applied pre-tax discount rate at 1 October
10.6%
11.7%
10.6%
11.7%
10.6%
11.7%
¹
Representing 99% of the total carrying amount in 2023
Nuuday Annual Report 2023 57
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Assumptions regarding recoverable
amounts and projected earnings
YouSee
Projections are based on the assumption
of a steadily declining
EBITDA
in the
projected period. However, the trend
towards the terminal period in the long-
term business plan will stabilise based on
the following assumptions:
• Landline voice RGU will decline in line
with market trends however partly
offset by slightly increasing ARPU
development due to the price develop-
ment in the market
• A decline in mobility services gross
profit from a slightly declining cus-
tomer base, however partly offset by
inflationary ARPU increases through-
out the period
• A decline in broadband gross profit due
to decreasing RGUs on particularly
DSL, as customers migrate to high-
speed technologies (e.g. fibre and
coax). Gross profit is expected to
stabilise from 2026 and onwards as
increases in fibre will be offsetting
diminishing declines in other technolo-
gies. Inflationary ARPU increases will
also partly offset the gross profit
decline
• TV gross profit expected to decline
slightly towards 2030, however the
large RGU decline is partly offset by
increasing ARPUs
• Savings throughout the planning
period driven by savings in both exter-
nal and personnel expenses, driven by
the extensive IT transformations and
general cost focus, respectively
Nuubrands
Projections are based on the assumption
of steadily increasing EBITDA throughout
the projected period in the long-term
business plan based on the following
assumptions:
• Steady growth in mobility services
gross profit driven by increased foot-
print in the no-frills market from Eesy.
Furthermore, significant ARPU in-
creases in Telmore are expected to
ensure steady mobility services gross
profit development
• Increasing broadband gross profit
driven by Hiper’s increased footprint in
the high-speed technology market
• Steady development in cost expected
throughout the period, continuous cost
focus remains, money will expectedly
still be invested in marketing and
acquisition cost to increase customer
bases
Business
Projections are based on the assump-
tions of a steadily increasing EBITDA
throughout the planning period in the
long-term business plan based on the
following assumptions:
• Landline voice RGU decline in line with
market trend, almost offset by the
ability to increase ARPU
• Steadily increasing gross profit devel-
opment in mobility services throughout
the planning period, driven by an
expected increase in RGU base, and
paired with ARPU increases across
both mobile broadband and especially
mobile voice
• Declining broadband GP in the early
years of the planning period, however
it will stabilise and increase to current
levels towards the terminal period. The
increase is driven by migrations of cus-
tomers from DSL to high-speed tech-
nology (e.g. fibre) in the upcoming
years, which drive high loss of RGUs
and low ARPUs, but will eventually
stabilise after the conclusion of the
migrations
• OPEX is expected to increase slightly
throughout the period due primarily to
inflationary wage pressure, while con-
tinuous cost saving focus remains
3.1
| Impairment (continued)
Nuuday Annual Report 2023 58
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Critical accounting
estimates
and judgements
Intangible assets comprise a significant
portion of Nuuday 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 vari-
ous assumptions to be used to calculate
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 estimates
or assumptions when determining the
recoverable amount of the assets may
result in other values and could result in
required impairment of assets.
Accounting policies
Impairment tests on intangible assets
with indefinite useful lives and other
non-current assets are performed at
least annually and, if necessary, when
events or changes in circumstances indi-
cate that their carrying amounts may
not be recoverable. All assets are tested
if an event or circumstance indicates
that the carrying amount may not be
recoverable. If an asset’s carrying
amount exceeds its recoverable amount,
an impairment loss is recognised. The
recoverable amount is the higher of the
asset’s fair value less costs of disposal
and its value in use.
For the purpose of impairment testing in
the consolidated financial statement,
goodwill and other non-current assets
are allocated to the Group’s cash-gen-
erating units. The determination of cash-
generating units is based on the internal
management reporting.
3.1
| Impairment (continued)
Nuuday Annual Report 2023 59
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.2
| Intangible assets
2023
2022
(DKKm)
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Cost at 1 January
9,255
14,281 4,175
9,200 36,911
9,255 14,328
4,175 8,670
36,428
Additions
-
- -
897 897
- -
- 891
891
Additions related to acquisition of activities
-
- -
- -
- -
- 51
51
Assets disposed of or fully amortised
-
(19)
-
(384)
(403)
- (47)
- (412)
(459)
Cost at 31 December
9,255
14,262
4,175
9,713
37,405
9,255
14,281
4,175
9,200
36,911
Amortisation and impairment losses
at 1 January
(3,693)
(12,981)
(123)
(7,350)
(24,147)
(3,693)
(12,783)
(123)
(6,913)
(23,512)
Amortisation
-
(199)
-
(838)
(1,037)
- (245)
- (834)
(1,079)
Impairment losses for the year
-
- -
(14)
(14)
- -
- (14)
(14)
Assets disposed of or fully amortised
-
19 -
384 403
- 47
- 411
458
Amortisation and impairment losses
at 31 December
(3,693)
(13,161)
(123)
(7,818)
(24,795)
(3,693)
(12,981)
(123)
(7,350)
(24,147)
Carrying amount at 31 December
5,562
1,101 4,052
1,895 12,610
5,562 1,300
4,052 1,850
12,764
Comments
In 2023,
impairment losses of intangi-
ble assets, etc.
totalled DKK 14m,
(2022: DKK 14m
) of all related to
termination of various software
projects.
Assets with indefinite useful lives
other than goodwill related to the
TDC brand were
unchanged at
DKK 4,052m compared with 2022.
The carrying amount of software
amounted to
DKK 1,800m (2022:
DKK 1,728m)
. Software in process
amounted to
DKK 253m, of which
DKK 15m
related to prepayments.
The addition of internally developed
software totalled DKK
342m (2022:
DKK
454m).
Nuuday Annual Report 2023 60
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Critical accounting
estimates
and judgements
Management estimates useful lives for
intangible assets based on periodic stud-
ies 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 circumstances
occur that indicate that the carrying
amount of the asset may not be recov-
erable 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 in a
critical accounting estimate.
Accounting policies
Goodwill and brands with indefinite use-
ful lives are recognised at cost less accu-
mulated impairment losses. Goodwill and
brands are only acquired in business
combinations and is measured in the
purchase price allocation.
Goodwill and brands with indefinite use-
ful lives are not amortised but is subject
to annual impairment test, cf. note 3.1
Brands with finite useful lives, proprie-
tary rights, etc. are measured at cost
less accumulated 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 (10%
to 23%) corresponding to the expected
pattern of consumption of the expected
future economic benefits.
Development projects, including costs of
computer software purchased or devel-
oped for internal use, are recognised as
intangible assets if the cost can be cal-
culated reliably and if they are expected
to generate future financial benefits.
Costs of development projects include
wages, external charges, depreciation
and amortisation that are directly at-
tributable to the development activities
as well as interest expenses in the pro-
duction period.
Development projects that do not meet
the criteria for recognition in the bal-
ance sheet are expensed as incurred in
the income statement.
The main amortisation periods are
as follows:
Software
3-5 years
Development projects in process and
intangible assets of indefinite useful lives
are tested for impairment at least annu-
ally 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 carry-
ing amount.
3.2
| Intangible assets (continued)
Nuuday Annual Report 2023 61
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.3
| Property, plant and equipment
2023
2022
(DKKm)
Network
infrastructure
Equipment
Assets under
construction
Total
Network
infrastructure
Equipment
Assets under
construction
Total
Cost at 1 January
2,162 771 125 3,058
2,400
725
86 3,211
Transfers (to)/from other items
30 - (30)
-
12
-
(12)
-
Additions
265 39 11 315
288
46
51 385
Assets disposed of
(159)
(1)
- (160)
(538)
-
- (538)
Cost at 31 December
2,298
809
106
3,213
2,162
771
125
3,058
Depreciation and impairment losses at 1
January (1,255)
(655)
(4)
(1,914)
(1,474)
(593)
(4)
(2,071)
Depreciation
(338)
(55)
- (393)
(319)
(62)
- (381)
Assets disposed of
159 1 - 160
538
-
- 538
Depreciation and impairment losses at 31 December
(1,434)
(709)
(4)
(2,147)
(1,255)
(655)
(4)
(1,914)
Carrying amount at 31 December
864 100 102 1,066
907
116
121 1,144
Cash flow (DKKm)
2023 2022
Additions, cf. table above
(315)
(385)
Capitalised depreciations cf. note 2.5
10 10
Cash flow from investment in property, plant and equipment
(305)
(375)
Nuuday Annual Report 2023 62
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Property, plant and equipment are
measured at cost less accumulated
depreciation and impairment 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-con-
structed assets includes directly
attributable payroll costs, materials,
depreciation, parts purchased and
services rendered by sub-suppliers or
contractors as well as interest expenses
in the construction period. Cost also
includes estimated decommissioning
costs if the related obligation meets the
conditions for recognition as a provision.
Directly attributable costs comprise
personnel expenses together with other
external expenses calculated in terms of
time spent on self-constructed assets.
The depreciation base is measured at
cost less residual value and any impair-
ment losses. Depreciation is provided on
a straight-line basis over the estimated
useful lives of the assets. The main
depreciation 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, depreciation is dis-
continued.
Property, plant and equipment that have
been disposed of or scrapped are elimi-
nated from accumulated cost and accu-
mulated depreciation. Gains and losses
arising from sale of property, plant and
equipment are measured as the differ-
ence 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 state-
ment under other income or other
expenses.
Software that is an integral part of tele-
phone exchange installations, for exam-
ple, is presented together with the
related assets. Useful lives are estimated
individually.
Customer-placed equipment (e.g. set-
top boxes) is capitalised and depreciated
over the estimated useful life of the indi-
vidual asset, not exceeding five years.
3.3
| Property, plant and equipment (continued)
Accounting policies
Network
infrastructure:
exchange equipment 3-15 years
other network equipment 3-20 years
Equipment (computers, tools and
office equipment)
3-15 years
Nuuday Annual Report 2023 63
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.4
| Lease assets and liabilities
2023
2022
Lease
assets (DKKm)
Land and
buildings
Vehicles and
equipment
Total
Land and
buildings
Vehicles and
equipment
Total
Carrying amount at 1 January
295
32
327
344 34 378
Additions
5
21
26
12 26 38
Disposals
-
(2)
(2)
- (4)
(4)
Depreciation
(63)
(24)
(87)
(61)
(24)
(85)
Carrying amount at 31 December
237
27
264
295
32
327
Amounts recognised in the income statement (DKKm)
2023 2022
Expense
relating to short-term leases (30)
(29)
Depreciation charge of lease assets, cf. above
(87)
(85)
Interest expense (included in financing costs)
(10)
(10)
Lease
liabilities (DKKm) 2023 2022
Recognised in the balance sheet at present value:
External lease liabilities
19 15
Lease liabilities due to group companies
285 342
Total
304 357
Of which presented as current
(82)
(83)
Total non
-current 222 274
Maturing between 1 and 3 years
116 141
Maturing between 3 and 5 years
62 63
Maturing between 5 and 10 years
44 70
Total non
-current 222 274
Reconciliation of lease liabilities (DKKm)
2023 2022
Carrying amount at 1 January
357 399
Lease payments
(74)
(75)
New lease contracts
25 39
Other non
-cash movements (4)
(6)
Carrying amount at 31 December
304
357
Comments
Nuuday leases various offices, retail
stores, vehicles and equipment.
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 condi-
tions. 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.
Nuuday Annual Report 2023 64
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Assets and liabilities arising from leases
are initially measured on a present-value
basis. Lease liabilities include the net pre-
sent value of the following lease pay-
ments:
• fixed payments (including in-substance
fixed payments), less any lease incen-
tives 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 guar-
antees
• 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 exercising that option.
Lease payments to be made under rea-
sonably certain extension options are
also included in the measurement of the
liability.
The lease payments are discounted using
the interest rate implicit in the lease. If
that rate cannot be readily determined,
which is generally the case for leases in
the Group, the lessee’s incremental bor-
rowing rate is used, being the rate that
the lessee would have to pay to borrow
the funds necessary 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 market 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 adjusted against the lease asset.
Lease payments are allocated between
principal and financing costs. The financ-
ing costs are charged to the income
statement over the lease period so as
to produce a constant periodic rate of
interest on the remaining balance of the
liability for each period.
Lease assets are measured at cost less
accumulated depreciation and write-
downs for impairment. 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 shorter of the asset’s useful life
and the lease term on a straight-line
basis. If the Group is reasonably certain
to exercise a purchase option, the lease
asset is depreciated over the underlying
asset’s useful life cf. note 3.3.
Impairment tests on lease assets are
performed when circumstances indicate
their carrying amounts may not be
recoverable. Write-downs of lease
assets related to vacant tenancies are
based on expectations concerning timing
and scope, future cost levels etc. The
calculation of the write-downs comprises
rent and operating costs for the con-
tract period reduced by 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)
Accounting policies
Comments
The total cash outflow for leases
in 2023 totalled DKK 84m (2022:
DKK 85m). The amount is excl.
short-term leases and leases of
low-value assets.
Nuuday Annual Report 2023 65
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Critical accounting
estimates
Expected credit losses are assessed for
portfolios of trade receivables based on
customer segments, historical credit loss
experience combined with forward-look-
ing information on macroeconomic
factors affecting the credit risk. The
expected loss rates are updated at each
reporting date.
3.5
| Trade receivables
(DKKm)
2023
2022
Trade receivables
1,155
1,226
Expected credit losses
(96)
(94)
Trade receivables, net
1,059
1,132
Expected credit losses at 1 January
(94)
(167)
Expected credit loss recognised
(39)
(51)
Realised credit losses
19
99
Reversed expected credit losses
18
25
Expected credit losses at 31 December
(96)
(94)
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
2023
Expected loss rate
2% 2% 9% 27% 61% 8%
Gross carrying amount
808 168 54
22 103 1,155
Expected credit losses
(19) (3)
(5)
(6)
(63) (96)
2022
Expected loss rate
2% 1% 3% 17% 77% 8%
Gross carrying amount
897 151
62
23 93 1,226
Expected credit losses
(15) (1)
(2)
(4)
(72) (94)
Comments
The carrying amount of the bal-
ance’s approximated fair value is
due to the short maturity of
amounts receivable.
Nuuday Annual Report 2023 66
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Trade receivables are amounts due from
customers for goods sold or services
performed in the ordinary course of
business. Nuuday operates with stand-
ard customer payment terms where
customer subscriptions are billed and
paid in advance of the subscription
period, while usage and one-off services
are billed and paid after the subscription
period. The receivables are generally
due for settlement within 20-30 days
and are therefore all classified as cur-
rent. Trade receivables are recognised
initially at the amount of consideration
that is unconditional. The Group holds
the trade receivables with the objective
of collecting the contractual cash flows
and therefore measures them subse-
quently at amortised cost using the
effective interest method.
Nuuday 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 measure the
expected credit losses, receivables have
been grouped based on shared credit
risk characteristics 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
adjusted to reflect current and forward-
looking information on macroeconomic
factors affecting the ability of the
customers to settle the receivables.
3.5
| Trade receivables (continued)
Accounting policies
Nuuday Annual Report 2023 67
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Accounting policies
Subscriber acquisition costs
and fulfilment costs
The most common subscriber acquisition
costs are dealer commissions. Subscriber
acquisition costs and fulfilment costs are
capitalised and recognised as expenses
in external expenses and personnel
expenses over the expected term of the
related customer relationship. The term
is estimated 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 liability comprises payments re-
ceived from customers covering income
in subsequent years.
3.6
| Contract assets and liabilities
(DKKm)
2023 2022
1 January
2022
Assets recognised from costs to obtain a contract (SAC)
336 248
204
Assets recognised from costs to fulfil a contract
82 55
23
Assets recognised from costs to fulfil contracts with
Group companies
360 373
335
Total contract assets
778 676
562
Deferred subscription income
2,132 2,191
2,150
Work in progress for the account of third parties,
liabilities
4 5
17
Total contract liabilities
2,136 2,196
2,167
3.7
| Prepaid expenses
Comments
Total prepaid expenses amounted
to DKK 701m (2022: DKK 636m) of
which DKK 325m (2022: DKK 269m)
related to group companies.
Comments
Of the deferred subscription income,
DKK 26
m (2022: DKK 30m) will be rec-
ognised as income after more than
one year.
Revenue recognised in 2023 that was
included in deferred subscription
income at the beginning of the
period amounted to DKK 2,154
m
(2022: DKK 2,108m).
Costs recognised in 2023 that were
included in assets recognised from
costs to obtain a contract (SAC) at
the beginning of the period
amounted to DKK 140m (2022:
DKK 123m). Assets to fulfil a contract
at the beginning of the period
DKK 112
m (2022 DKK 86m) were rec-
ognised as costs in 2023.
Of the assets recognised from costs
to obtain a contract (SAC), DKK 160
m
(2022 DKK 108m) and DKK 308
m
(2022: DKK 314m) of costs to fulfil a
contract will be recognised as costs
after more than one year.
Nuuday Annual Report 2023 68
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Accounting policies
Provisions are recognised when the
Group has a legal or constructive obliga-
tion arising from past events, it is proba-
ble that economic benefits must be
sacrificed to settle it, and the amount
can be estimated reliably.
Provisions for restructuring, etc. are
recognised when a final decision thereon
has been made before or on the balance
sheet date and has been announced to
the parties involved, provided that the
amount can be measured reliably. Provi-
sions for restructuring are based on a
defined plan, which means that the
restructuring commences immediately
after the decision has been made.
Provisions are measured at Manage-
ment’s best estimate of the amount at
which the liability is expected to be set-
tled. Provisions are discounted if the
effect is material to the measurement
of the liability.
3.8
| Provisions
2023
2022
(DKKm)
Restructuring
obligations
Other
provisions Total
Provisions at 1 January
32 43
75
105
Provisions made
61 1
62
54
Provisions used (payments)
(68)
(1)
(69)
(73)
Reversal of
unused provision - (1)
(1)
(11)
Provisions at 31 December
25
42
67
75
Of which recognised through special
items in the income statement
20 20
32
Recognised as follows in the balance
sheet:
Non
-current liabilities 2 42
44
49
Current liabilities
23 -
23
26
Total
25 42 67
75
Specification of how payments regarding provisions are recognised
in the statements of cash flow (DKKm)
2023 2022
Payments
related to provisions (10)
(7)
Cash flow related to special items
(59)
(66)
Total
(69)
(73)
Comments
Provisions for restructuring obli-
gations related primarily to redun-
dancy programmes. The majority
of the provisions for redundancy
programmes are expected to
result in cash outflows in the next
five years. The uncertainties
related primarily to the estimated
amounts and the timing of the
related cash outflows.
Other provisions related mainly to
onerous contracts and jubilee
benefits for employees as well as
decommissioning obligations. The
majority of these provisions are
not expected to result in cash
outflows in the next five years.
The uncertainties regarding oner-
ous contracts related to both tim-
ing and estimated amounts. The
uncertainties regarding jubilee
benefits related to both salary
and the number of employees
included.
Nuuday’s total redundancy costs
included wages during the notice
period, severance pay, stand-off
pay, payments pursuant to the
Danish Salaried Employees Act,
social security contributions and
outplacement costs.
Nuuday Annual Report 2023 69
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 4
Capital structure
and financing costs
This section
includes disclosures related to Nuuday’s capital
structure and related financing costs as well as finance
-
related risks and how these are managed.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
4.1.
Equity
70
4.2.
Loans
71
4.3.
Financial risks
73
4.4.
Financial income and expenses
74
4.5.
Maturity profiles of financial instruments
75
Nuuday Annual Report 2023 69
Nuuday Annual Report 2023 70
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Accounting
policies
Dividends
Dividends expected to be distributed for
the year are recognised in a separate
item in equity. Dividends and interim divi-
dends 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
The total authorised number of
shares is 400,200 with a par value of
DKK 1 per share (unchanged com-
pared to 2022) All
issued shares are
fully paid up.
During 2023, total equity decreased
by DKK 421m to DKK 6
,122m due to
loss for the year
.
During 202
2, total equity increased
by DKK
6,157m to DKK 6,543m due to
equity contribution (DKK 6,347m) off-
set by
the loss for the year
(DKK 190m).
The parent company statement of
changes in equity specifies which
reserves are available for distribution.
The distributable reserves amounted
to DKK 4,733m at 31 December 2023
(2022: DKK (5,208)m).
At the Annual
General Meeting, the Board of Direc-
tors will not propose any dividend for
the financial year 2023.
Nuuday Annual Report 2023 71
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
4.2
| Loans
Loan
2028
Maturity
Feb 2028
Fixed/floating rate
Floating
Coupon
Margin+floored
Euribor¹
Currency
EUR
Type
STF Loan
Nominal value (DKKm)
3,727
Nominal value (Currency)
500
–
Of which nominal value swapped to or with floating interest rate (currency) 150
–
Of which nominal value swapped to or with fixed interest rate (currency) 350
1
Bank facilities have a 0% Euribor floor.
General notes:
a) EUR exposures are not considered a significant risk due to the fixed EUR/DKK exchange rate policy.
b) As of 31 December 2023 there were no drawings on RCFs. That is, undrawn RCFs amount to EUR 135m,
maturing July 2026
Reconciliation of loans
(DKKm) 2023 2022
Carrying amount at 1 January
2,873 9,000
Conversion of loan from TDC Holding A/S to share capital
- (6,127)
Additions
3,408 -
Repayment of loan
(2,873)
-
Amortisation of borrowing costs
45 -
Currency adjustment
5 -
Carrying amount at 31. December
3,458
2,873
Recognised as follows in the balance sheet:
Non
-current liabilities 3,458 -
Current liabilities
- 2,873
Total
3,458
2,873
Comments
On 3 February 2023, Nuuday
closed a EUR 500m term loan,
with a number of banks and other
investors. The loan is governed by
a common term agreement defin-
ing financial and legal covenants.
In connection with the DKT
Finance refinancing in February
2023, Nuuday redeemed it’s loan
from TDC Holding A/S. Together
with the revolving credit facility
the new term loan completes the
long term funding of Nuuday.
The establishment of the new
capital structure supports the
strategy and the long-term
value creation in the interest of
the company as well as the share-
holders.
Nuuday Annual Report 2023 72
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Loans
Loans are recognised initially at the
proceeds received net of transaction
expenses incurred. In subsequent peri-
ods, loans are measured at amortised
cost so that the difference between the
proceeds and the nominal value is recog-
nised in the income statement over the
term of the loan.
Other financial liabilities are measured
at amortised cost.
Financial instruments
On initial recognition, financial deriva-
tives are recognised in the balance sheet
at fair value and subsequently remeas-
ured at fair value in the balance sheet
and in the income statement. Depending
on the type of instrument, different
recognised measurement methods
are applied for derivative financial
instruments.
Nuuday does not apply hedge account-
ing.
4.2
| Loans (continued)
Net interest
-bearing debt (DKKm) 2023 2022
Loans from group companies incl. short term part
-
2,873
Senior Term Facility
3,458
-
Lease liabilities incl. short
-term part 304
357
Short
-term bonds and interest-bearing receivables (256)
(1)
Cash
(698)
(402)
Total
2,808
2,827
Accounting policies
Nuuday Annual Report 2023 73
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Interest-rate risks
Nuuday is exposed to interest-rate risks
in the euro area. This risk emerges as
the Revolving Credit Facility (RCF) is
tied to the development in the daily
European reference rate, Euribor.
The term loan facility, which ensures
Nuuday’s long term funding, has to a
large extent been hedged. Therefore,
Nuuday has mitigated the main interest
rate risk in the funding structure.
Exchange-rate risks
Nuuday has limited exchange-rate risks,
primarily from USD related to payables
from equipment and handset suppliers as
well as content providers. This exposure
is hedged by Nuuday Treasury.
Nuuday has no material exchange-rate
risk from its loan facilities as they are
issued in EUR.
Counterparty risks
Nuuday is exposed to credit risks as a
provider of digital customer experiences
and entertainment in Denmark and as
counterparty to financial contracts. The
individual brands handles the credit risk
emanating from providing services for
customers, while the credit risks in rela-
tion to financial contracts are handled
centrally by Nuuday Treasury.
Liquidity risks
Nuuday has no short-term refinancing
risk as the term loan facility is running
for four years.
Undrawn credit lines
At year-end 2023, Nuuday had
undrawn committed credit lines
totalling EUR 135m.
Credit rating
Nuuday is rated by the three global rat-
ing agencies Moody’s, Fitch and S&P. All
ratings are listed in the below table.
4.3
| Financial risks
Nuuday ratings at 31 December 2023
Moody’s
Fitch
S&P
Company
Instrument
Company
Instrument
Company
Instrument
Nuuday
B2 (Stable)
B2
B (
Stable)
BB
-
B
- (Stable)
B
-
Nuuday ratings at 31 December 2022
Moody’s
Fitch
S&P
Company
Instrument
Company
Instrument
Company
Instrument
Nuuday
B2
B2
B (neg outlook)
BB
-
B
-
B
Comments
Nuuday is exposed to financial
market and credit risks when buy-
ing and selling goods and services
denominated in foreign currencies
as well as due to the cash flow
from investing in the business and
financing activities. These risks
are identified, monitored and
managed by Nuuday Treasury.
Nuuday Annual Report 2023 74
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
In Nuuday´s internal reporting, currency
translation adjustments and interest
from derivatives are reported as such,
as specified in the adjacent table.
Interest, currency translation adjust-
ments and fair value adjustments repre-
sented an expense of DKK 449m in 2023,
an increase of DKK 129m.
Interest: Following the refinancing in Q1
2023 of the internal loan from TDC Hold-
ing, the group entered a STF of EUR
0.5bn. This resulted in a lower level of
loans offset by higher interest rate.
Fair value adjustments: Nuuday has
hedged its STF from floating interest
rates to fixed interest rates (nominal
EUR 0,35bns). This has resulted in a gain
in 2022 due to increasing market inter-
est rates which impacted the period pos-
itively. In 2023 the positive unrealized
fair value declined due to time value, this
was offset by an interest saving from
the derivatives relating to the STF.
4.4
| Financial income and expenses
(DKKm)
2023 2022
Interest income
25
13
Interest expenses
(462)
(417)
Net interest
(437)
(404)
Specified as follows:
Loans from TDC Holding A/S
(11)
(360)
Lease liability
(10)
(10)
Other
(416)
(34)
(437)
(404)
Currency translation
adjustments (6)
(1)
Fair Value adjustments
(6)
85
Total
(449)
(320)
2023
2022
(DKKm)
Interest
Currency
translation
adjustment
Fair value
adjustment
Total
Interest
Currency
translation
adjustment
Fair value
adjustment
Total
Senior term facility loan (STF)
(385) (5)
- (390)
-
- -
-
Hedge of
senior term facility loan 51 -
(55) (4)
(10)
- 106
96
Loans from TDC Holding A/S
(10) -
- (10)
(360)
- -
(360)
Lease liabilities
(9) -
- (9)
(10)
- -
(10)
Other
(32) (13)
9 (36)
(34)
(12)
-
(46)
Total
(385)
(18)
(46)
(449)
(414)
(12)
106
(320)
Nuuday Annual Report 2023 75
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Maturity profiles
The maturity analyses of financial assets
and liabilities 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. Inter-
est payments on floating-rate instru-
ments are determined using forward
rates.
Financial assets and liabilities measured
at fair value relate to derivatives. The
fair value of these derivatives is calcu-
lated based on observable inputs such as
interest rates, etc. (Level 2 in the IFRS
fair value hierarchy).
4.5
| Maturity profiles of financial instruments
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
48
15
-
-
63
Outflow
- (1) -
-
(1)
Total derivatives assets
48 14 - -
62 78 78
Liabilities:
Derivatives
Inflow
277
18
8
-
303
Outflow
(278)
(15)
(21)
-
(314)
Total derivatives liabilities
(1)
3 (13)
-
(11)
(11) (11)
Total derivatives
47
17
(13)
-
51
67
67
Financial liabilities measured at amortised
cost
-
Senior Term Facilities (STF)
- - (3,727)
-
(3,727)
(3,727) (3,458)
Senior Term Facilities (STF), interest³
(392)
(664) (488)
-
(1,544)
(164) (164)
Lease liability
(84)
(123) (70)
(52)
(329)
(304) (304)
Amounts owed to group companies
(1,134)
- -
-
(1,134)
(1,134) (1,134)
Trade and other payables
⁴ (944)
- -
-
(944)
(944) (944)
Total
(2,554)
(787)
(4,285)
(52)
(7,678)
(6,273)
(6,004)
Total
(2,507)
(770) (4,298)
(52)
(7,627)
(6,206) (5,937)
Nuuday Annual Report 2023 76
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
4.5
| Maturity profiles of financial instruments (continued)
2022
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
34 155 - -
189
Outflow
(19)
(69) - -
(88)
Total derivatives assets
15 86 - -
101 97 97
Liabilities:
Derivatives
Inflow
278 - - -
278
Outflow
(289)
- - -
(289)
Total derivatives liabilities
(11)
-
-
-
(11)
(11)
(11)
Total derivatives
4 86 - -
90 86 86
Financial liabilities measured at amortised cost
Loan from TDC Holding A/S
(2,873)
-
-
-
(2,873)
(2,873)
(2,873)
Loan from TDC Holding A/S, interest³
(125)
- - -
(125)
(107) (107)
Lease liability
(84)
(149)
(71)
(84)
(388)
(357)
(357)
Amounts owed to group companies
(983)
-
-
-
(983)
(983)
(983)
Trade
and other payables⁴ (1,022)
- - -
(1,022)
(1,022) (1,022)
Total
(5,087)
(149) (71)
(84)
(5,391)
(5,342) (5,342)
Total
(5,083)
(63)
(71)
(84)
(5,301)
(5,256)
(5,256)
1
.
All cash flows are undiscounted. The table reflects only the cash flow from financial liabilities.
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
Fair value and carrying amount value consist of accrued interest on STF or loan from TDC Holding A/S at 31 December.
4
.
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.
Nuuday Annual Report 2023 77
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 5
Cash flow
This section provides information on Nuuday’s cash flow.
More information on
development in the cash flow items is
included in note 2.6 Special items, note 3.
2 Intangible assets,
note 3.
3 Property, plant and equipment, note 3.4 Lease
assets and liabilities, note 3.
8 Provisions as well as
note 4.4
Financial income and expenses. A review of cash
flow is provided in the section Nuuday performance in
the Management’s review.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
In this section
5.1.
Change in working capital 78
5.2.
Investment in enterprises 78
Nuuday Annual Report 2023 77
Nuuday Annual Report 2023 78
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
In 2023 no transactions concerning in-
vestment in enterprises has occurred.
In 2022, Nuuday insourced IT- and other
activities from the parent company
TDC Holding A/S. The net cash flow on
the acquisition amounted to DKK 51m.
Cash flow from investing activities
comprises acquisitions and divestments
of enterprises, purchases and sales of
intangible assets, property, plant and
equipment as well as other non-current
assets. Cash flow from acquired enter-
prises are recognised from the time of
acquisition, while cash flows from enter-
prises divested are recognised up to the
time of divestment.
Cash flow from financing activities com-
prises changes in interest-bearing debt,
lease instalments and dividends to share-
holders.
The acquisition had no significant impact
on the income statement for 2022.
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 operating
items, cash flow related to special items,
changes in working capital, interest
received and paid as well as income
taxes paid.
Cash and cash equivalents cover cash
and marketable securities with a remain-
ing life not exceeding three months at
the time of acquisition, and with an insig-
nificant risk of changes in value.
The cash flow statement cannot be
derived solely from information pre-
sented in the financial statements.
5.1
| Change in working capital
(DKKm)
2023 2022
Change in inventories
51
(35)
Change in receivables
41
(85)
Change in contract assets
(102)
(114)
Change in trade payables
68
(187)
Change in contract liabilities
(60)
29
Change in prepaid expenses
(92)
5
Change in other items, net
151
(25)
Total
57
(412)
5.2
| Investment in enterprises
Accounting policies
Comments
The positive development in net
working capital (DKK 469m) is due to
implementation of VAT on intra-
group trade as well as temporary
improvements in payment terms for
VAT, and employee taxes in 2023
expiring in 2024. Other contributions
to the net working capital increase
came from a favorable development
in inventories and the impact of the
COVID-19 temporary liquidity sup-
port package from the Danish State
in January 2022. The implementation
of VAT on intra
-group trade is a con-
sequence of
Nuuday’s separate VAT
registration in connection with the
refinancing of the DKT Holdings
group. Until 31 December 2022,
Nuuday was jointly registered with
other group companies. From 1 Janu-
ary 2023, VAT is therefore imposed
on intra-group trade.
Nuuday Annual Report 2023 79
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Section 6
Other disclosures
This section contains statutory notes or notes that are
presumed to be less important for understanding the
Group’s financial performance.
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 79
In this section
6.1.
Incentive programmes 80
6.2.
Related parties 81
6.3.
Fees to auditors 82
6.4.
Other financial commitments 82
6.5.
Pledges and contingencies 83
6.6.
Events after the balance sheet date 83
6.7.
Overview of group companies at 31
December 2023 83
Nuuday Annual Report 2023 80
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
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 senior managers.
Short-term incentive programmes (STI)
The short-term incentive programmes
are closely linked to our strategy. The
performance measures in 2023 were
SCF, EBITDA and Net Promoter Score.
Bonus payments are calculated as the
individual employee’s basic salary multi-
plied by the bonus percentage, the de-
gree of target fulfilment and a Personal
Performance Modifier.
The STI bonus percentage for members
of the Executive Leadership Team in-
cluding the Executive Committee is be-
tween 35-50%. For other senior manag-
ers, the bonus percentage is between
20%-25%. The target fulfilment can be
maximum 200%.
Long-Term Incentive programme (LTI)
The LTI programme is cash based and its
objectives are linked to the long-term
strategy. The programme is revolving
with grants given each year but with a
2 or 3-year vesting period, as the goals
are principally set for a 2 or 3-year vest-
ing period. The objectives are cashflow,
SCF, service revenue as well as a health
and safety multiplier. The expenses are
recognised over the vesting period.
Bonus payments are calculated as the
individual employee’s basic salary multi-
plied by a LTI percentage multiplied by
the degree of target fulfilment.
The LTI percentage usually varies within
a range of 12%-40%. The target fulfil-
ment can be maximum 200%.
Management incentive programme (MIP)
In July 2020, the parent company
TDC Holding A/S established a new
cash-based incentive programme which
includes the Executive Committee and
certain key managers of Nuuday. In total
15 managers are participating the MIP
programme. Under the MIP, the partici-
pants are required to place a deposit to
TDC Holding A/S to qualify for a return.
The payback amounts are based on the
development in certain financial perfor-
mance measures of the TDC Holding
group as well as certain business and
Health & Safety KPIs over the period un-
til 2023. The investment programme co-
vers the time period 2019-2023. The par-
ticipants have 40% of the deposits at risk
of being lost in downside scenarios and
we have recognized an accrual of 1.21x in
payout to the participants’ deposit.
Nuuday participants’ total deposits
amount to DKK 13m and the expenses
for 2023 relating to the programme
amounted to DKK 3m (2022: DKK 11m).
At 31 December 2023 the total liabilities
related to the management incentive
programme amounted to DKK 31m (2022:
DKK 30m)
6.1
| Incentive programmes
Nuuday Annual Report 2023 81
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Related parties also include Nuuday’s
joint ventures and associates shown in
note 6.7.
Remuneration for the Board of Directors
and the Executive Committee is specified
in note 2.4.
Loans from the parent company
TDC Holding A/S are specified in
note 4.2.
Purchase commitments towards group
companies are shown in note 6.4.
All transactions with related parties are
made on market terms. The most signifi-
cant related party is TDC NET A/S, see
also note 2.2.
Nuuday has the following additional
transactions and outstanding balances
with related parties:
6.2
| Related parties
Name of related party
Nature of relationship
Domicile
DKT Holdings ApS
Indirect ownership
– ultimate parent
Copenhagen, Denmark
DKT Finance ApS
Indirect ownership
Copenhagen, Denmark
DK
Telekommunikation ApS
Indirect ownership
Copenhagen, Denmark
TDC
Holding A/S
Ownership
- parent
Copenhagen,
Denmark
TDC NET A/S
Subsidiary of TDC
Holding A/S
Copenhagen, Denmark
TDC Pensionskasse
Pension fund
Copenhagen, Denmark
Related parties (DKKm)
2023 2022
TDC Holding A/S
Income
1
2
Expenses, lease payments and capital expenditures
(188)
(560)
Payables
(317)
(423)
Loans
-
(2,873)
Joint ventures and associates
Income
6
5
Other related parties
Income
115
98
Expenses and capital expenditures
(5,266)
(5,393)
Receivables
359
269
Payables
(1,103)
(1,008)
Nuuday Annual Report 2023 82
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
6.3
| Fees to auditors
Fees to auditors elected by the Annual General Meeting (DKKm)
2023 2022
Statutory audit
3
3
Other assurance
engagements -
1
Other services
16
5
Total non
-statutory audit services 16
6
Total
19
9
6.4
| Other financial commitments
(DKKm)
2023 2022
Lease commitments for short-term and low-value leases
Short
-term leases 14
13
Leases of low
-value assets -
-
Total
14
13
Capital and purchase commitments
Commitments related to infrastructure, IT and administrative services
from group companies
10,170
13,036
Commitments related to outsourcing agreements
319
200
Investments in intangible assets
289
398
Other purchase commitments
446
954
Comments
The commitments related to
infrastructure are preliminary
contracts with TDC NET A/S.
Except for short-term leases and
leases of low-value assets, leases
are recognised as a lease asset
and a corresponding liability at the
date at which the leased asset is
available for use by the Group,
cf. note 3.4.
Nuuday Annual Report 2023 83
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Pledges
Cash with a carrying amount of
DKK 538m (2022: DKK 402m) are
pledged as security for long-term loans.
Contingent liabilities
Nuuday 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 Nuuday’s financial position.
Nuuday A/S is liable for obligations
attributable to the activities, assets and
liabilities of TDC Holding A/S that existed
at the demerger on 11 June 2019. The
joint and several liabilities of Nuuday A/S
and TDC Holding A/S respectively may
not exceed an amount corresponding to
the net value of the assets and liabilities.
There have been no events that materi-
ally affect the assessment of this Annual
Report 2023 after the balance sheet
date and up to today.
6.5
| Pledges and
contingencies
6.6
| Events after the balance
sheet date
6.7
| Overview of group companies
at 31 December 2023
Company name
Domicile
Currency
Ownership share
(%)
Hiper A/S
Copenhagen, Denmark
DKK
100
TDC Telco ApS
Taastrup, Denmark
DKK 100
4T af 1. oktober 2012 ApS
1
Copenhagen, Denmark
DKK
25
1
.
The enterprise is included under the equity method.
Nuuday Annual Report 2023 84
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Parent company
financial statements
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 84
Nuuday Annual Report 2023 85
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Parent company income statement
Parent company statement
of comprehensive income
(DKKm)
Note 2023 2022
Revenue
2.1 14,163
14,447
Cost of goods
sold (9,413)
(9,647)
External expenses
(1,346)
(1,446)
Personnel expenses
2.2 (1,890)
(1,694)
Other income
76
65
Operating profit before depreciation, amortisation
and special items (EBITDA)
1,590
1,725
Depreciation, amortisation and impairment losses
(1,496)
(1,527)
Special items
2.3 (52)
(66)
Operating profit/(loss) (EBIT)
42
132
Loss from subsidiaries
3.4
(47)
(33)
Financial income and expenses
4.3 (448)
(317)
Loss before
income taxes (453)
(218)
Income taxes
2.4 32
28
Loss for the year
(421)
(190)
(DKKm)
Note
2023 2022
Loss for the year
(421)
(190)
Total comprehensive Loss
(421)
(190)
Nuuday Annual Report 2023 86
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Parent company balance sheet
Assets (DKKm)
Note 2023 2022
Non
-current assets
Intangible assets
3.1 12,124
12,274
Property, plant and equipment
3.2
1,036
1,121
Lease assets
3.3 262
324
Investments in subsidiaries
3.4 508
645
Investments in associates and joint ventures
3
3
Other receivables
11
11
Prepaid expenses
5
8
Total non-current assets
13,949
14,386
Current assets
Inventories
193
244
Trade receivables
3.5 1,055
1,129
Contract assets
3.6 698
616
Receivables from group companies
208
74
Other receivables
7
8
Derivatives financial instruments
78
97
Prepaid expenses
697
629
Short-term bonds
256
-
Cash
538
402
Total current assets
3,730
3,199
Total assets
17,679
17,585
Equity and liabilities (DKKm)
Note 2023 2022
Equity
Share capital
4.1 -
-
Other reserves
1,389
1,335
Retained earnings
4,733
5,208
Total equity
6,122
6,543
Non-current liabilities
Deferred tax liabilities
2.4 1,518
1,553
Provisions
44
48
Loans
4.2
3,458
-
Lease
liabilities 3.3 221
272
Other payables
219
214
Total non-current liabilities
5,460
2,087
Current liabilities
Loans group companies
-
2,873
Lease liabilities
3.3 81
81
Trade payables
1,578
1,664
Contract liabilities
3.6 2,106
2,173
Payables to group companies
1,153
1,305
Income tax payable
20
5
Other payables
1,125
817
Derivatives financial instruments
11
11
Provisions
23
26
Total current
liabilities 6,097
8,955
Total liabilities
11,557
11,042
Total equity and liabilities
17,679
17,585
Nuuday Annual Report 2023 87
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Parent company statement of cash flows
(DKKm)
Note 2023 2022
Operating activities
Operating profit before depreciation, amortisation and special
items (EBITDA)
1,590
1,725
Adjustment for non-cash items
3
16
Payments related to provisions
(10)
(7)
Special items
(72)
(76)
Change in working capital
5.1
(18)
(440)
Interest received
49
13
Interest paid
(358)
(308)
Income tax paid
2.4 12
21
Total cash flow from operating activities
1,196
944
Investing activities
Investment in subsidiaries
3.4 (100)
-
Investment in activities
-
(51)
Investment in property, plant and equipment
(288)
(361)
Investment in intangible assets
(888)
(883)
Investment in other non
-current assets (1)
-
Investment in short
-term bonds (736)
-
Sale of other non-current assets
1
2
Sale of short
-term bonds 489
-
Dividend received from subsidiaries
190
-
Total cash flow from investing activities
(1,333)
(1,293)
(DKKm)
Note 2023 2022
Financing activities
Proceeds from long
-term loans 3,432
-
Repayments of long-term debt
(2,873)
-
Lease payments
(73)
(74)
Cost related to long
-term loans -
(35)
Change in interest-bearing receivables and payables
(213)
856
Total cash flow from
financing activities 273
747
Total cash flow
136
398
Cash and cash equivalents at 1 January
402
2
Effect of exchange
-rate changes on cash and cash equivalents -
2
Cash and cash equivalents at 31 December
538
402
Nuuday Annual Report 2023 88
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Parent company statement
of changes in equity
(DKKm)
Share
capital
Reserve for
capitalised
development
projects
Retained
earnings
Total
Equity at 1 January 2022
-
1,093 (707) 386
Loss for the year
-
242
(432)
(190)
Total comprehensive income/(loss)
-
242 (432) (190)
Contributions of equity
-
- 6,347 6,347
Total transactions with owners
-
- 6,347 6,347
Equity at 31 December 2022
-
1,335 5,208 6,543
Loss for the year
-
54
(475)
(421)
Total comprehensive income/(loss)
-
54 (475) (421)
Equity at 31 December 2023
-
1,389 4,733 6,122
Nuuday Annual Report 2023 89
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Notes to parent company
financial statements
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 89
Nuuday Annual Report 2023 90
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
The Financial statements 2023 of the
parent company have been prepared
in accordance with IFRS Accounting
Standards as issued by the International
Accounting Standards Board (IASB) as
adopted by the European Union (EU) and
further disclosure requirements in the
Danish Financial Statements Act (report-
ing class “C stor”).
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 Group’s
accounting policies.
The accounting policies are unchanged
compared with the policies applied in the
Annual Report 2022.
Supplementary accounting policies
for the parent company
Investments in subsidiaries, joint ventures
and associates
The equity method is used for measuring
investments in subsidiaries, joint ventures
and associates. Under the equity
method, investments in a subsidiary, a
joint venture or an associate are recog-
nised on initial recognition at cost, and
the carrying amount is increased or
decreased to recognise the parent com-
pany’s share of the profit or loss of the
investment after the date of acquisition.
The parent company’s share of profit or
loss is recognised in the parent com-
pany’s profit or loss. Dividends received
from investments in subsidiaries, joint
ventures and associates reduce the
carrying amount of the investment. The
parent company’s share of other com-
prehensive income arising from the
investment is recognised in other
comprehensive income of the parent
company.
Reserve for capitalised development
projects
In accordance with the Danish Financial
Statements Act, the parent company
has established a non-distributable
reserve in equity regarding capitalised
development projects. This reserve will
be reversed as the development projects
are amortised or impaired.
For information on critical accounting
estimates and judgements, see note 1.2
to the consolidated financial statements.
For information on new accounting
standards for the Group, see note 1.3 to
the consolidated financial statements.
1.1
| Accounting policies
1.2
| Critical accounting estimates and judgements
1.3
| New accounting standards
Nuuday Annual Report 2023 91
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Remuneration for the Board of Directors
and the Executive Committee is
described in note 2.4 to the consolidated
financial statements.
2.1
| Revenue
(DKKm)
2023 2022
Sales of goods recognised at a point in time
1,165
1,394
Sales of services recognised over time
12,998
13,053
Total
14,163
14,447
Revenue specified by services (DKKm)
2023 2022
Landline voice
697
746
Mobility services
5,190
5,085
Internet & network
3,228
3,232
TV
3,322
3,452
Other services
1,726
1,932
Total
14,163
14,447
2.2
| Personnel expenses
(DKKm)
2023 2022
Wages and salaries (including short
-term and long-term bonus) (2,026)
(1,934)
Pensions
(179)
(180)
Social security
(36)
(42)
Total
(2,241)
(2,156)
Of which capitalised as non
-current assets 351
462
Total
(1,890)
(1,694)
Average number of full
-time employee equivalents¹ 2,921
3,321
¹
Denotes the average number of full-time employee equivalents including permanent employees and trainees.
2.3
| Special items
(DKKm)
2023 2022
Costs related to redundancy programmes
(47)
(49)
Other restructuring costs, etc.
(4)
(15)
Loss from rulings
(1)
(2)
Special items before income taxes
(52)
(66)
Income taxes related to special items
12
14
Total special items
(40)
(52)
Nuuday Annual Report 2023 92
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
2.4
| Income taxes
2023
2022
(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
5
1,553
(21)
1,586
Income taxes
33
13
(46)
13
8 (21)
Adjustment of tax for previous years
(1)
(10)
11
15
(3)
(12)
Tax paid
12
21
Total
32
20
1,518
28
5
1,553
Income taxes are specified as follows:
Income excluding special items
20
14
Special items
12
14
Total
32
28
Effective tax rate (%)
2023 2022
Danish corporate income tax rate
22.0
22.0
Profit from subsidiaries, joint ventures and associates
(2.5)
(4.6)
Adjustment of tax for previous years
(0.2)
9.7
Limitation on the tax deductibility of interest expenses
(14.9)
(22.0)
Other
0.6
4.1
Effective tax rate excluding special items
5.0
9.2
Special items
2.1
3.6
Effective tax rate
including special items 7.1
12.8
Deferred tax (DKKm)
2023 2022
Intangible assets
42
42
Other
41
41
Current
83
83
Intangible assets
1,397
1,441
Property, plant and equipment
(28)
(25)
Lease assets and
liabilities (9)
(6)
Other
75
60
Non
-current 1,435
1,470
Deferred tax at 31 December
1,518
1,553
Nuuday Annual Report 2023 93
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.1
| Intangible assets
2023
2022
(DKKm)
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Goodwill
Customer
relationships
Brands
Other rights,
software, etc.
Total
Cost at 1 January
8,815
14,199 4,162
9,165 36,341
8,815 14,345
4,162 8,642
35,964
Additions
-
- -
888 888
- -
- 883
883
Additions related to acquisition of activities
-
- -
- -
- -
- 51
51
Assets disposed of or fully amortised
-
(19)
-
(384)
(403)
- (146)
- (411)
(557)
Cost at 31 December
8,815
14,180
4,162
9,669
36,826
8,815
14,199
4,162
9,165
36,341
Amortisation and impairment losses at 1 Janu-
ary
(3,693)
(12,931)
(110)
(7,333)
(24,067)
(3,693)
(12,840)
(110)
(6,901)
(23,544)
Amortisation
-
(192)
-
(832)
(1,024)
- (237)
- (829)
(1,066)
Impairment losses for the year
-
- -
(14)
(14)
- -
- (14)
(14)
Assets disposed of or fully amortised
-
19 -
384 403
- 146
- 411
557
Amortisation and impairment losses at 31 De-
cember
(3,693)
(13,104)
(110)
(7,795)
(24,702)
(3,693)
(12,931)
(110)
(7,333)
(24,067)
Carrying amount at 31 December
5,122
1,076 4,052
1,874 12,124
5,122 1,268
4,052 1,832
12,274
Nuuday Annual Report 2023 94
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.2
| Property, plant and equipment
2023
2022
Network
infrastructure
Equipment
Assets under
construction
Total
Network
infrastructure
Equipment
Assets under
construction
Total
Cost at 1 January
2,122 769
118 3,009
2,373
724 81
3,178
Transfers (to)/from other items
20 -
(20) -
-
- -
-
Additions
260 37
- 297
287
45 37
369
Assets disposed of
(159) (1)
- (160)
(538)
- -
(538)
Cost at 31 December
2,243
805
98
3,146
2,122
769
118
3,009
Depreciation and impairment losses at 1 January
(1,230) (654)
(4) (1,888)
(1,456)
(593)
(4)
(2,053)
Depreciation
(328) (54)
- (382)
(312)
(61)
-
(373)
Assets disposed of
159 1
- 160
538
- -
538
Depreciation and impairment losses at 31 December
(1,399) (707)
(4) (2,110)
(1,230)
(654)
(4)
(1,888)
Carrying amount at 31 December
844 98 94 1,036
892
115 114
1,121
Nuuday Annual Report 2023 95
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
The total cash outflow for leases in 2023
was DKK 83m (2022: DKK 84m), of which,
DKK 10m (2022: DKK 10m) related to
interest payments on lease liabilities.
3.3
| Lease assets and liabilities
2023
2022
Lease assets (DKKm)
Land and
buildings
Vehicles and
equipment
Total
Land and
buildings
Vehicles and
equipment
Total
Carrying amount at 1 January
292
32
324
339 34 373
Additions
5
21
26
12 26 38
Disposals
-
(2)
(2)
- (4)
(4)
Depreciation
(62)
(24)
(86)
(59)
(24)
(83)
Carrying amount at 31 December
235
27
262
292
32
324
Lease liabilities (DKKm)
2023 2022
Recognised in the balance sheet at present value:
Current
81 81
Non
-current 221 272
Total
302 353
Maturing within 1 year
81 81
Maturing between 1 and 3 years
115 139
Maturing between 3 and 5 years
62 63
Maturing after 5 years
44 70
Total
302
353
Amounts recognised in the statement of profit and loss (DKKm)
2023 2022
Expense relating to short term leases
(30)
(29)
Depreciation charge of lease assets, cf. above
(86)
(83)
Interest expense (included in financing cost)
(10)
(10)
Nuuday Annual Report 2023 96
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.4
| Investments in subsidiaries
(DKKm)
2023 2022
Cost at 1 January
752
752
Capital injection
100
-
Cost at 31 December
852
752
Value adjustments at 1 January
(107)
(74)
Share of profit/(loss)
(47)
(33)
Dividend
(190)
-
Value adjustments at 31 December
(344)
(107)
Carrying amount at 31 December
508
645
Overview of subsidiaries at 31 December 202
3
Company name
Domicile
Currency
Ownership
share (%)
Subsidiaries:
Hiper A/S
Copenhagen, Denmark
DKK 100
TDC Telco ApS
Taastrup, Denmark
DKK 100
Nuuday Annual Report 2023 97
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
3.5
| Trade receivables
(DKKm)
2023 2022
Trade receivables
1,145
1,218
Expected credit losses
(90)
(89)
Trade receivables, net
1,055
1,129
Expected credit losses at 1 January
(89)
(163)
Expected credit losses recognised
(38)
(50)
Realised credit losses
19
99
Reversed expected credit losses
18
25
Expected credit losses at 31 December
(90)
(89)
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
2023
Expected loss rate
2% 1% 2% 18% 76% 7%
Gross carrying amount
806
167
53
21
98
1,145
Expected credit losses
(19) (3)
(4)
(5)
(59) (90)
2022
Expected loss rate
2%
1%
2%
18%
76%
7%
Gross carrying amount
895 151
61
22 89 1,218
Expected credit losses
(15) (1)
(1)
(4)
(68) (89)
3.6
| Contract assets and liabilities
(DKKm)
2023 2022
Assets recognised from costs to obtain a contract (SAC)
304
226
Assets recognised from costs to fulfil a contract
61
41
Assets recognised from costs to fulfil an internal
contract 333
349
Total contract assets
698
616
Deferred subscription income
2,096
2,168
Work in progress for the account of third parties, liabilities
10
5
Total contract liabilities
2,106
2,173
Nuuday Annual Report 2023 98
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
For information on share capital, see note 4.1 to the consolidated
financial statements.
For a specification of loans and a reconciliation between loans and cash flows
from financing activities, see note 4.2 to the consolidated financial statements.
4.1
| Equity
4.2
| Loans
4.3
| Financial income and expenses
(DKKm)
2023
2022
Other interest
income 23
13
Interest expenses to group companies
(11)
(360)
Other Interest expenses
(448)
(54)
Net interest
(436)
(401)
Currency translation adjustments
(6)
(1)
Fair value adjustments
(6)
85
Total
(448)
(317)
5.1
| Change in working capital
(DKKm)
2023
2022
Change in inventories
51
(35)
Change in receivables
(67)
(142)
Change in contract assets
(82)
(87)
Change in trade payables
98
(181)
Change in contract liabilities
(66)
22
Change in prepaid expenses
(93)
6
Change in other items, net
141
(23)
Total
(18)
(440)
Nuuday Annual Report 2023 99
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
For information about the related parties
of the Group, see note 6.2 to the consoli-
dated financial statements. The parent
company has the following transactions
and balances with its subsidiaries (cf. the
overview of subsidiaries in note 3.4):
Remuneration for the Board of Directors
and the Executive Committee is
described in note 2.4 and incentive
programmes are described in note 6.1 to
the consolidated financial statements.
All transactions with related parties are
made on market terms.
Nuuday A/S is included in the consoli-
dated financial statements of DKT
Holdings ApS. The consolidated financial
statements can be downloaded from
tdcgroup.com
.
For information on other financial
commitments, see note 6.4 to the
consolidated financial statements.
6.1
| Related parties
Subsidiaries (DKKm)
2023 2022
Income
5 14
Expenses
(97) (113)
Receivables
209 75
Debt
(19) (219)
6.2
| Fees to auditors
Fees to auditors elected by the Annual General Meeting (DKKm)
2023 2022
Statutory audit
3
3
Other assurance engagements
-
1
Other services
16
5
Total non
-statutory audit services 16
6
Total
19
9
6.3 | Other financial commitments
Nuuday Annual Report 2023 100
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Cash with a carrying amount of
DKK 538m (2022: DKK 402m) are pledged
as security for long-term loans.
For information on pending lawsuits, see
note 6.5 to the consolidated financial
statements.
For information on events after the
balance sheet date, see note 6.6 to the
consolidated financial statements.
6.4
| Pledges and contingencies
6.5
| Events after the balance sheet date
Nuuday Annual Report 2023 101
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Statements
Nuuday Annual Report 2023 101
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
Nuuday Annual Report 2023 102
Management review
Financial statements Section 1 S
ection 2 Section 3 Section 4
Section 5 Section 6
Parent Company Statements
Executive Committee
Nuuday Annual Report 2023 103
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Independent auditor’s report
Nuuday Annual Report 2023 104
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
4
CVR No 33963556
Identification No (MNE) m ne3 220 8
Identification No (MNE) mne23347
Nuuday Annual Report 2023 105
Management review
Financial statements
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent Company
Statements
Forward-looking statements
This report may include statements about
Nuuday’s expectations, beliefs, plans, objectives,
assumptions or future events or performance
that are not historical facts and may be for-
ward-looking. These statements are often, but
not always, formulated using words or phrases
such as “are likely to result”, “are expected to”,
“will continue”, “believe”, “is anticipated”, “esti-
mated”, “intends”, “expects”, “plans”, “seeks”,
“projection” and “outlook” or similar expressions
or negatives thereof. These statements involve
known and unknown risks, estimates, assump-
tions and uncertainties that could cause actual
results, performance or achievements or indus-
try 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
Nuuday’s results include: the competitive envi-
ronment and the industry in which Nuuday
operates; contractual obligations in Nuuday’s
financing arrangements; developments in com-
petition within the domestic and international
communications industry; information technol-
ogy and operational risks, including Nuuday’s
responses to change and new technologies;
introduction of and demand for new services
and products; developments in demand, prod-
uct 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 be-
ing 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 dif-
fer materially from those expressed in any for-
ward-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 Nuuday cannot
predict. In addition, Nuuday 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 ma-
terially from those described in any forward-
looking statements.
Forward-looking statements