TDC to cut jobs on back of revenue slow down

TDC has announced it will make 400 employees redundant in the wake of a fall in revenues for the first half of 2008. ‘As mentioned in TDC’s earnings release for 1H 2008 the revenue hasn’t developed as expected. As a consequence, TDC has decided to carry out a reduction in number of employees to ensure that TDC can continue a positive development,’ the private equity-backed telco said in a statement. The telco’s turnover has been adversely hit by declines in fixed line revenue, changes in roaming rates and lower sales from its retail outlets. For the six months ending 30 June 2008 revenue fell 1.3% to DKK19.5 billion (USD3.7 billion), while revenue adjusted for acquisitions and divestments dropped by 3.4%. More encouragingly, EBITDA for the period rose 2.2% to DKK6.3 billion due to cost reductions, including lower wages, salaries and pension costs. TDC expects revenue in 2008 to be level with 2007, as the full-year effect of acquisitions in HTCC and cable TV operator YouSee is expected to offset declining sales from its domestic landline business and Sunrise.