UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934

August 3, 2006

TDC A/S
(Exact name of registrant as specified in its charter)

Noerregade 21, 0900 Copenhagen C, DK-Denmark
(Address of principal executive offices)

001-12998
(Commission File Number)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  [ x ]       Form 40-F  [  ]

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  [  ]       No  [ x ]

Highlights

COPENHAGEN, Denmark, August 3, 2006 – TDC's revenue grew 1.8% to DKK 11,602m in 2Q 2006. Earnings before depreciation, amortization and special items (EBITDA) was down 0.7% to DKK 3,175m, mainly because of the Easter 2006 falling in 2Q, lower revenue in TDC Switzerland, higher customer acquisition costs in TDC Mobil A/S and the start-up of easyMobile and Bité Latvia. Net income, excluding special items and fair value adjustments, was DKK 561m,

down 58.9% due to the change in capital structure.

TDC’s capital expenditures, excluding share acquisitions, totaled DKK 1,290m, a 0.8% increase. The capex-to-revenue ratio was 11.1% compared with 11.2% in 2Q 2005.

TDC’s customer base grew 11.8% to 15.7m driven mainly by progress in TDC Mobile International’s foreign operations.

“We continue the substantial increase in our customer base through our focused positioning in the growth areas mobile and

broadband. As a result of this focused strategy, we have passed the important milestone of one million domestic broadband customers. Further, we are rapidly expanding our fiber coverage of Denmark. We maintain the earnings Outlook for 2006 with an EBITDA growth of 3.1%”, says Henning Dyremose, president and CEO.

Revenue

TDC’s revenue amounted to DKK 11,602m in 2Q 2006, up DKK 206m or 1.8%, reflecting mainly increased revenue in TDC Solutions and TDC Mobile International.

Adjusted for acquired and divested companies², revenue decreased 0.3%. The decrease is mainly related to lower revenue in TDC Switzerland.

Operating expenses

Operating expenses increased 3.1% to DKK 8,498m in 2Q 2006. Transmission costs and cost of goods sold increased 2.1% to DKK 4,184m. Wages, salaries and pension costs rose 4.0%³ to DKK 1,982m, while other external expenses increased 4.3% to DKK 2,332m. The development in operating expenses is attributable mainly to higher transmission and customer acquisition costs in the domestic mobile operations.

Adjusted for acquired and divested companies, operating expenses increased 0.5% compared with 2Q 2005.

The number of full-time employee equivalents totaled 19,617, down 473 or 2.4% on 2Q 2005. The development was impacted by structural changes⁴ increasing full-time employee equivalents by 455, while domestic redundancy programs decreased the full-time employee equivalents by 614.

EBITDA

EBITDA decreased DKK 21m or 0.7% to DKK 3,175m in 2Q 2006. Adjusted for acquired and divested companies, EBITDA fell 1.3%. In 2006, Easter holidays impacted 1Q financial growth positively and 2Q negatively. In addition, EBITDA was negatively impacted by lower revenue in TDC Switzerland, higher customer acquisition cost in the Danish mobile business and the start-up of easyMobile and Bité Latvia.

The EBITDA margin decreased from 28.0% in 2Q 2005 to 27.4% in 2Q 2006. Adjusted for acquired and divested companies the EBITDA margin decreased 0.3 percentage points.

Depreciation, amortization and impairment losses

Depreciation, amortization and impairment losses amounted to DKK 1,590m, down 2.5% on 2Q 2005. The decrease reflects mainly lower depreciation etc. in TDC Solutions A/S.

EBIT

EBIT amounted to DKK 1,585m, representing an increase of 1.3%. This development results primarily from the decrease in depreciation etc.

Special items

In 2Q 2006, special items amounted to DKK 408m before taxes reflecting mainly the Swiss Federal Court’ ruling on landline interconnect rates. This is partly counteracted by borrowing costs related to the unused or cancelled parts of the credit facilities, cost regarding the redundancy program in TDC Switzerland and bonuses for the Executive Committee.

Income from associates

In 2Q 2006, income from associates amounted to DKK 94m, up DKK 9m or 10.6%.

Net financials

In 2Q 2006, net financials was an expense of DKK 731m compared with an expense of DKK 163m in 2Q 2005.

Net financials, excluding fair value adjustments, was an expense of DKK 824m

compared with an expense of DKK 158m in 2Q 2005, reflecting mainly a change in the leverage resulting from the financing of dividends paid in April 2006.

Fair value adjustments amounted to DKK 93m caused by an increased fair value of the hedge of long-term EUR-debt due to an increase in EUR interest rate. Fair value adjustments were DKK (5)m in 2Q 2005.

Income before income taxes

Income before income taxes, including special items and fair value adjustments, was DKK 1,356m compared with DKK 1,487m in 2Q 2005, representing an 8.8% decrease.

Income before income taxes, excluding special items and fair value adjustments, was DKK 855m, down 42.7%. The decrease is attributable to the increase in financial expenses.

Income taxes

Income taxes were DKK (368)m compared with DKK (171)m in 2Q 2005.

Income taxes related to net income, excluding special items and fair value adjustments, were DKK (294)m compared with DKK (166)m in 2Q 2005. In 2Q 2006, the effective tax rate, excluding special items and fair value adjustments, was 34.4% compared with 11.1% in 2Q 2005. The increase in the effective tax rate reflects mainly a significantly lower tax rate in 2Q 2005 as a consequence of the change in Danish tax legislation in 2005 resulting in a non-recurrent reduction of deferred taxes recognized in 2Q 2005.

Net income

Net income, including special items and fair value adjustments, came to DKK 988m, compared with DKK 1,357m in 2Q 2005.

Net income, excluding special items and fair value adjustments, was DKK 561m, down

58.9%, attributable primarily to the increase in financial expenses.

Statements of Cash flow

In 2Q 2006, cash flow from operating activities amounted to DKK 2,643m, up 72.6% compared with 2Q 2005. This development is due primarily to a positive development in working capital, corporate income tax paid and realized currency adjustments. The improved development in working capital is due mainly to the negative impact in 2Q05 from payment of withholding tax regarding dividends paid. In 2Q 2006, working capital was positively impacted by reductions in inventory.

Cash flow from investing activities was DKK (158)m compared with DKK (1,478)m in 2Q 2005, reflecting the sale of marketable securities in April 2006.

Cash flow from financing activities amounted to DKK (10,128)m compared with DKK 278m in 2Q 2005, impacted primarily by payment of dividends, redemption of EMTN bonds and partly compensated for by proceeds from loan facilities.

Net interest-bearing debt

Net interest-bearing debt amounted to DKK 58,383m at the end of 2Q 2006 compared with DKK 22,640m at the end of 2Q 2005, up DKK 35.7bn, reflecting mainly the financing of dividends paid in 2Q 2006.

Compared with the end of 1Q 2006, net interest-bearing debt increased DKK 43.2bn, driven primarily by dividends paid in 2Q 2006.

Capital expenditures

Capital expenditures, excluding share acquisitions, totaled DKK 1,290m, a 0.8% increase compared with 2Q 2005. The capex-to-revenue ratio decreased from 11.2% in 2Q 2005 to 11.1% in 2Q 2006.

Adjusted for acquired and divested companies, capital expenditures increased 0.4% compared with 2Q 2005.

Number of customers

TDC’s customer base totaled 15.7m at the end of 2Q 2006, an 11.8% increase on 2Q 2005 that was attributable mainly to customer intake in Talkline and Bité.

The domestic customer base totaled 7.7m, up 2.5%. This development is primarily the result of growth in the xDSL, mobile and cable-modem customer bases, partly offset by a decline in the number of landline telephony customers and dial-up internet customers.

The domestic mobile customer base increased 7.2% to 2.6m. The retail part hereof grew 5.3% compared with 2Q 2005, reflecting increases of 77,000 retail customers in TDC Mobil A/S and 32,000 customers in Telmore. The number of wholesale customers in TDC Mobile A/S increased 57,000. The growth in the domestic mobile customer base was negatively impacted by a change in the definition of active prepaid retail customers as from 1Q06, cf. page 15.

The number of xDSL customers in TDC’s domestic operations grew 25.2% to

776,000. The total number of broadband customers amounted to 1,050,000, up 36.2% on 2Q 2005.

The number of customers in the international activities grew 22.2% to 8.1m, driven by strong increases in the mobile customer bases, notably in Talkline and Bité.

Significant developments

Interim dividends paid in April

Based on an authorization adopted at the Extraordinary Meeting on February 28, 2006 TDC’s Board of Directors at its meeting on April 5, 2006, decided to pay out interim dividends of DKK 219.50 per share of a nominal value of DKK 5 each, totaling DKK 43,481m, excluding dividends of treasury shares. The dividend was paid on April 11, 2006. See also stock exchange release of April 6, 2006.

Interim dividends paid in June

Based on an authorization adopted at the Annual General Meeting on April 26, 2006, at its meeting on June 21, 2006, TDC’s Board of Directors decided to pay out interim dividends of DKK 4.35 per share of nominal value of DKK 5 each, totaling DKK 862m, excluding dividends of treasury shares. The dividends were paid on June 29, 2006. See also stock exchange release of June 21, 2006.

Reduction in workforce of 145 employees at TDC Switzerland

On May 17, 2006, TDC decided to implement a redundancy program covering 145 employees. In collaboration with employee representatives and labor unions, TDC Switzerland has created a social compensation plan. Total costs related to workforce reductions are estimated at DKK 72m before tax. This amount was expensed as a special item in the second quarter of 2006. See also stock exchange release of May 17, 2006.

Termination of ADR-Program

On April 19, 2006, the Securities and Exchange Commission (SEC) approved TDC’s application to withdraw TDC’s American Depository Shares (ADSs) under its American Depository Receipts (ADR) program and ordinary shares from listing

and registration on the New York Stock Exchange. On June 21, TDC instructed the Bank of New York, as Depositary under the Deposit Agreement, to stop offering ADSs as of June 26, 2006. On June 21, 2006 ADSs represented 0.16% of TDC’s share capital. Under the amended Deposit Agreement, the Bank of New York will sell all remaining ADSs 30 days after a 90-day notice period expires. As a result, TDC expects the ADR program to be terminated by the end of October 2006. See also stock exchange release as of June 21, 2006. TDC is still registered with SEC and accordingly has obligations to disclose certain information.

Future management

On June 22, 2006, it was announced that the President and Chief Executive Officer (CEO) of TDC, Henning Dyremose, had accepted an offer to become Chairman of the Board of TDC. Jens Alder is expected to become the new President and CEO of TDC as of November 1, 2006. Senior Executive Vice President (SEVP) and Chief Financial Officer (CFO), Hans Munk Nielsen, will continue on the Executive Committee of TDC. See also stock exchange release of June 22, 2006.

LRIC TDC Switzerland

On May 22, 2006 TDC Switzerland received a ruling from the Swiss Federal Court in the interconnection proceedings that have been ongoing since April 2000. Since January 1, 2000 Swisscom has been required to calculate its prices for interconnection services based on the Long Run Incremental Cost (LRIC) principle. However, the prices charged by Swisscom have been disputed by TDC Switzerland.

For the period 2000-2003 the Court has finally approved in principle the prices previously set by the Federal Communications commission (ComCom) in June 2005. The now approved prices of ComCom are substantially lower than the prices charged by Swisscom. Only in a minor

point, the Court has ordered ComCom to recalculate the prices of Swisscom. This recalculation is expected to be finalized before the end of 2006. The prices for 2004-2006 will be defined in accordance with the principles for the final prices for 2000-2003.

On July 4, 2006, TDC finalized its assessment of the ruling applying certain assumptions regarding the final outcome of the proceedings regarding the recalculation of the prices, cf. above, and the relevant volumes of interconnection traffic. In accordance with IFRS, TDC has estimated the income that is assessed to be virtually certain, and accordingly TDC estimates that the financial impact for TDC Switzerland for the years 2000-2005 will result in an income before tax of CHF 186m (DKK 890m). This income has been reported as a special item in Q2 2006.

The estimated impact for 2006 amounts to CHF 12m (DKK 57m) before tax, and is reported as a reduction of transmission costs.

Due to the above-mentioned outstanding issues regarding the prices for 2000-2003 and 2004-2006 as well as the relevant volumes, the timing of the impact on the cash flow for TDC cannot be precisely determined. It is expected that the majority of the income will result in cash receipts during 2006-2007. See also stock exchange release of July 4, 2006.

Outlook for 2006

The Outlook for 2006 is an update of the Outlook provided with the 1Q 2006 quarterly report.

The Outlook for 2006 is based on thorough financial plans for each individual business line. Information concerning the Outlook for 2006 is by nature associated with a certain level of risk and uncertainty. These risks are most recently elaborated in the Form 20-F 2005 as of June 23, 2006. Please also see the safe harbor statement below.

Revenue and EBITDA Outlook for the TDC Group is unchanged at DKK 48.0bn and DKK 13.4bn, respectively, compared with the Outlook provided in the 1Q 2006 quarterly report.

Net income Outlook is unchanged at DKK 3.2bn.

In general, all amounts are excluding special items and fair value adjustments.

Business line performance

TDC Solutions

TDC Solutions’ activities comprise mainly Danish traditional landline services (voice, internet and data), as well as integrated solutions in Denmark, Sweden, Norway, Finland and Hungary.

In 2Q 2006, revenue increased 2.5% to DKK 5,348m, impacted by acquisitions and divestments. The consolidation of HTCC, acquisition of Dotcom Solutions and the divestment of Contactel together impacted revenue positively by DKK 148m.

Adjusted for acquisitions and divestments, revenue declined 0.3% compared with 2Q 2005.

Landline Telephony

Revenue from landline telephony totaled DKK 2,411m, down 9.4% compared with 2Q 2005. This development was driven by a decrease of DKK 189m or 9.3% in retail revenue from landline telephony (PSTN, ISDN, etc.) due to lower traffic, and a decrease of DKK 63m or 10.1% in wholesale revenue due to lower transit traffic. Revenue was negatively impacted by Easter falling in 2Q 2006 and not in 1Q as in 2005.

Adjusted for acquired and divested companies, revenue from landline telephony decreased 9.1%.

1) Includes incoming traffic, prefix traffic and service provision.

2) Includes mobile telephony, operator services etc.

Retail subscription revenue increased 0.2% to DKK 941m. At the end of 2Q 2006, the total number of domestic retail landline customers in TDC Solutions was 2.2m, a decline of 5.6% compared with the same quarter last year. The number of international retail customers totaled 259,000, up 33,000 due mainly to growth in HTCC’s customer base.

Retail traffic revenue totaled DKK 910m, down 17.3% or DKK 191m, reflecting a 10.6% decline in domestic retail voice minutes to 1.8bn minutes. This was due to the general market trend for traffic to migrate to IP or the mobile networks. Traffic revenue was also negatively impacted by Easter falling in 2Q and not in 1Q as in 2005.

Wholesale traffic revenue decreased 10.1% to DKK 559m. Domestic wholesale traffic declined 19.5% to 1.9bn minutes, while the number of wholesale customers decreased 5.7% to 466,000.

Leased lines

Revenue from leased lines rose 14.7% to DKK 421m, reflecting mainly the consolidation of HTCC and the acquisition of TDC Dotcom AB. Adjusted for acquisitions and divestments, revenue from leased lines rose 2.7% compared with 2Q 2005.

Data communications and internet services

Revenue from data communications and internet services totaled DKK 1,313m, up 5.8%. This reflects 25.2% growth in the number of domestic xDSL customers, partly offset, however, by reduced dial-up internet revenue.

Adjusted for acquisitions and divestments, revenue from data communications and internet services increased 7.4%.

Other services

Revenue from terminal equipment etc. increased 21.4%, or DKK 151m, to DKK 857m, due mainly to growth in NetDesign and the acquisition of Dotcom Solutions.

Adjusted for acquisitions and divestments, revenue from terminal equipment etc. increased 1.8%.

Other revenue increased 44.2% to DKK 346m, reflecting primarily change in internal settlements since 2Q 2005.

Operating expenses

Operating expenses were DKK 3,760m, up 2.1% or DKK 78m. This development was driven by the consolidation of HTCC and the inclusion of Dotcom Solutions. Adjusted for acquired and divested companies, operating expenses decreased 1.5%, due primarily to stringent cost control that more than compensated for a negative impact from changes in internal settlements as of 2Q 2005.

EBITDA

EBITDA amounted to DKK 1,624m in 2Q 2006, up DKK 58m or 3.7%. Adjusted for acquisitions and divestments, EBITDA increased 2.7%, reflecting primarily a rise in the number of domestic xDSL customers and continued improvement of operations efficiency.

The EBITDA margin was 30.4% compared with 30.0% in the same quarter last year. Adjusted for acquisitions and divestments, the EBITDA margin increased 0.9 percentage point primarily as a result of the continued focus on operations efficiency.

Depreciation, amortization and impairment losses

Depreciation, amortization and impairment losses decreased 8.8% to DKK 846m. Adjusted for acquisitions and divestments, depreciation, amortization and impairment losses decreased 12.1% due to ADSL equipment that has been fully depreciated.

EBIT

In 2Q 2006, EBIT amounted to DKK 778m, representing an increase of 21.9% on 2Q 2005 and resulting primarily from lower depreciation etc. and improved EBITDA.

Capital expenditures

Capital expenditures, excluding share acquisitions, rose DKK 85m or 13.2% to DKK 727m, reflecting mainly the acquired companies and increased investments in the domestic market, with a focus on expanding and upgrading the existing broadband infrastructure, including fiber-optic roll-out, to satisfy the growing demand for broadband services. The capex-to-revenue ratio totaled 13.6% in 2Q 2006 against 12.3% in 2Q 2005.

Customers

TDC Solutions’ total domestic customer base was 4.0m at the end of 2Q 2006, down 2.2% on 2Q 2005. The number of landline customers including wholesale totaled 2.7m, down 5.6%, while the number of xDSL customers increased 25.2% to 776,000. The number of Duét customers increased 10.1% to 305,000 driven by the introduction of new products, while dial-up internet subscriptions decreased 29.5% to 248,000, driven mainly by migration to broadband services. The total international customer base decreased 18.4% to 324,000 at the end of 2Q 2006 due mainly to the divestment of Contactel partly balanced by landline customer intake in HTCC.

TDC Mobile International

TDC Mobile International includes mainly TDC Mobil A/S, Telmore, Talkline and Bité.

1) Talkline etc. includes European service provider activities, including easyMobile.

In 2Q 2006, revenue in TDC Mobile International amounted to DKK 4,023m, an increase of 5.5%.

Total operating expenses rose 8.0% to DKK 3,268m, attributable to an 8.0% increase in transmission costs and cost of goods sold stemming from increased traffic. Other external expenses rose 9.0% impacted by higher customer acquisition costs and the start-up of activities in the Bité Latvia and easyMobile companies.

EBITDA amounted to DKK 773m, down DKK 10m or 1.3%. The negative growth stems from increased customer acquisition costs and impact from start-ups of easyMobile and Bité Latvia.

Depreciation, amortization and impairment losses increased 9.0% to DKK 292m due mainly to the roll-out of the UMTS network in Denmark.

EBIT totaled DKK 481m, corresponding to a 6.6% decrease on 2Q 2005 due primarily to growth in depreciation, amortization and impairment losses.

Capital expenditures, excluding share acquisitions, decreased 14.6% to DKK 246m compared with 2Q 2005. The capex-to-revenue ratio decreased from 7.6% in 2Q 2005 to 6.1%.

Domestic mobile operations

Revenue from the domestic mobile operation increased 8.7% to DKK 1,906m, driven mainly by a 7.8% rise in traffic revenue due to increased retail and wholesale traffic partly offset by a reduction of mobile termination prices. The increased traffic revenue includes revenue from mobile data services (SMS, data and content services), which rose 19.0% to DKK 276m.

The number of mobile minutes sold was 1,174m, up 10.7% compared with 2Q 2005.

2Q 2006 was characterized by slightly reduced average retail prices compared with

2Q 2005. Pricing levels for the individual product models have remained relatively stable, but customers continue to migrate towards low-cost solutions.

In 2Q 2006, operating expenses rose 14.6% to DKK 1,325m, reflecting a 13.7% increase in transmission costs and cost of goods sold, which in turn was driven primarily by the rise in traffic volumes.

EBITDA was down 3.3% to DKK 580m, reflecting the higher customer acquisition costs and the reduction in mobile termination prices. The EBITDA margin was 30.4% against 34.2% in 2Q 2005.

Domestic mobile customers, including mobile customers in TDC Solutions, totaled 2.6m by the end of 2Q 2006. TDC Mobile International’s domestic retail business showed 5.7% growth compared with 2Q 2005, reflecting increases of 77,000 retail customers in TDC Mobil A/S and 32,000 retail customers in Telmore. In addition, the number of wholesale customers in TDC Mobil A/S increased 57,000.

In 2006, the definition of a prepaid customer has been changed and is now in line with the definition used by the Danish National IT and Telecom Agency. In the new definition, a sim-card is defined as active if it has been used during the last 3 months compared with 12 months earlier. Had the previous definition been applied, the mobile retail customer base in TDC Mobil A/S would have increased by 167,000 or 12.2% compared with 2Q 2005.

Capital expenditures, excluding share acquisitions, in the domestic mobile operation increased 16.1% to DKK 159m, driven mainly by higher investments in the GSM network. The capex-to-revenue ratio amounted to 8.3% compared with 7.8% in 2Q 2005.

Talkline etc.

Talkline etc. includes European service provider activities consisting of Talkline and easyMobile. Talkline, TDC’s German subsidiary, is a focused service provider of mobile telephony that is fully owned by TDC Mobile International.

At the end of 2Q 2006, Talkline had obtained an increase in its customer base of 20.2% on 2Q 2005 to 3.5m customers. easyMobile reached 122,000 customers. Compared with 1Q 2006, the customer base in Talkline etc. increased by 48,000 driven by growth in easyMobile.

Revenue increased 1.1% to DKK 1,801m, driven mainly by revenue from easyMobile and the higher customer base in Talkline, partly offset by lower commissions from network operators and lower terminal sale in Talkline.

In 2Q 2006, EBITDA amounted to DKK 144m compared with DKK 126m in 2Q 2005. This result was negatively impacted by the startup of easyMobile activities, but was more than compensated for by positive growth in Talkline’s mobile business.

Bité

Bité is a Lithuanian mobile operator that is 100% owned by TDC Mobile International and operates mobile networks in Lithuania and since September 2005 also in Latvia.

Revenue in Bité amounted to DKK 316m in 2Q 2006, up 13.7%.

EBITDA was DKK 49m, a decrease of 14.0% attributable to the start-up of Bité Latvia.

Compared with 2Q 2005, the customer base almost doubled to a total of 2.0m customers.

TDC Switzerland

TDC Switzerland provides mobile, landline and internet services for the Swiss market using the sunrise brand name.

In 2Q 2006, TDC Switzerland had revenue of DKK 2,277m, down 2.8% compared with 2Q 2005. In local currency, revenue decreased 1.9%.

Adjusted for the inclusion of sunrise business communications, revenue decreased 6.9%.

Compared with 2Q 2005, TDC Switzerland had a 5.0% increase in the number of mobile customers. The Swiss mobile market faces increased competition in the form of new players. The reduced mobile termination prices in 2005 and increased competition resulting in falling retail minute prices has in total led to a decrease in revenue from the mobile activities, which came to DKK 1,408m in 2Q 2006 compared with DKK 1,433m in 2Q 2005.

Within landline telephony, revenue decreased 4.5% to DKK 680m in 2Q 2006, reflecting an 8.0% decrease in the customer base. There was a positive impact from the inclusion of sunrise business communications.

Internet revenue amounted to DKK 189m, down 4.5% on 2Q 2005, due to a decrease in the number of internet dial-up customers

of 42.1%, partly offset by 29.1% growth in the number of xDSL customers.

Operating expenses

Operating expenses decreased 0.9% to DKK 1,709m, reflecting mainly lower transmission costs and cost of goods sold due to reduced prices for terminating mobile calls and lower landline traffic.

Adjusted for sunrise business communications, operating expenses decreased 6.2%.

EBITDA

EBITDA was DKK 570m, a decrease of 7.9% compared with 2Q 2005, driven mainly by lower revenue. In local currency, EBITDA decreased 7.0%. TDC Switzerland’s EBITDA margin decreased from 26.4% to 25.0% in 2Q 2006. Adjusted for the inclusion of sunrise business communications, the EBITDA margin decreased 0.4 percentage point.

Depreciation, amortization and impairment losses

Depreciation, amortization and impairment losses decreased 0.3% to DKK 357m.

EBIT

EBIT totaled DKK 213m, corresponding to an 18.4% decrease on 2Q 2005.

Capital expenditures

Capital expenditures, excluding share acquisitions, amounted to DKK 227m, down 4.6%, reflecting mainly lower investments concerning the GSM network, partly offset by higher investments regarding the roll-out of the EDGE network. The capex-to-revenue ratio was 10.0% compared with 10.2% in 2Q 2005.

Customers

At the end of 2Q 2006, TDC Switzerland had 2.1m customers, a decline of 2.0% or 44,000 customers compared with 2Q 2005. The number of mobile customers grew 61,000 or 5.0% to reach a total of 1.3m, while the number of landline customers decreased 44,000 or 8.0% to 505,000. In addition, the number of customers with dialup internet access declined 107,000 or 42.1% to 147,000, while the number of xDSL customers grew 46,000 to 204,000, up 29.1%.

TDC Cable TV

TDC Cable TV provides cable-TV services as well as internet access and IP telephony via cable modems in Denmark.

TDC Cable TV continues to expand within its traditional TV business, while also increasing its coverage of internet services.

TDC Cable TV’s revenue rose 15.4% to DKK 606m. This increase reflects a larger customer base within both the traditional cable TV and the broadband businesses.

Operating expenses rose 14.8% to DKK 459m compared with 2Q 2005. This increase reflects primarily higher program and transmission costs, driven by a larger customer base. In addition, wages, salaries and pension costs was DKK 102m, up 14.3% stemming from more full time employees.

EBITDA rose 17.5% to DKK 148m in 2Q 2006.

In 2Q 2006, EBIT was DKK 96m compared with DKK 77m in 2Q 2005.

TDC Cable TV’s capital expenditures, excluding share acquisitions, totaled DKK 52m, compared with DKK 60m in 2Q 2005, driven primarily by less network expansion. The capex-to-revenue ratio was 8.6% compared with 11.4% in 2Q 2005.

⁵ EBITDA decreased 11.8% in 4Q 2005, due to a negative adjustment related to deferred connection fees related mainly to previous years.

By the end of 2Q 2006, TDC Cable TV had 1,042,000 cable TV customers, corresponding to a 3.1% increase, while the number of internet access customers increased 25.7% to 274,000.

Safe harbor statement

Certain sections of this quarterly report contain forward-looking statements that are subject to risks and uncertainties.

Examples of such forward-looking statements include, but are not limited to:

Words such as “believes”, “anticipates”, “expects”, “intends”, “aims” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These statements are based on current plans, estimates and projections, and therefore undue reliance should not be placed on them.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements made by TDC or on our behalf. These factors include, but are not limited to:

We caution that the above list of important factors is not exhaustive. When relying on forward-looking statements to make decisions with respect to TDC, investors and others should carefully consider the foregoing factors and other uncertainties and events. Such forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.