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Investor Presentaiton

nuuday Management review Financial statements Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Parent company Statements 2.2 Cost of sales (DKKm) Mobile services Landline voice Internet & network TV Other services Total 2.3 | External expenses 2022 2021 (DKKM) 2022 2021 (3,510) (3,331) Marketing and advertising (203) (207) (368) (422) (1,780) (1,681) Subscriber acquisition and retention, cf. note 3.5 Properties (172) (163) (121) (110) (2,427) (1,742) (9,827) (2,457) (1,773) (9,664) IT (402) (339) Temps and personnel-related expenses (77) (59) Other (397) (548) Total (1,372) (1,426) 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. § 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 pri- mary 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 re- lated to marketing and advertising, sub- scriber acquisition costs (over the ex- pected term of the related customer re- lationship), IT, property, expenses related to staff, capacity maintenance, service contracts, etc. Nuuday Annual Report 2022 47
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