Investor Presentaiton
nuuday
Management review
Financial statements Section 1
Section 2
Section 3
Section 4
Section 5
Section 6
Parent company
Statements
2.1 Revenue (continued)
§ Accounting policies
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 ar-
rangements 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 di-
rectly 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.
Nuuday Annual Report 2022
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