TDC 9M net profit falls 7%

6 Nov 2009

Danish telecoms operator TDC has reported its results for the first nine months of 2009, posting a 0.5% increase in revenue year-on-year (y-o-y) to DKK26.8 billion (USD5.35 billion). The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the period totalled DKK9.73 billion, up 7.3% compared with the first nine months of 2008, reflecting positive growth in the Nordic Business segment and Swiss telco Sunrise. Net income from continuing operations, excluding special items, decreased 7.3% y-o-y to DKK3.25 billion, due to lower income from joint ventures and associates related to the divestment of Polish wireless operator Polkomtel at the end of 2008. CAPEX in the first nine months of 2009 totalled DKK3.5 billion, an increase of DKK363 million y-o-y.

Nordic Business’ 9M revenue decreased 4.1% y-o-y to DKK19.5 billion, due to a negative impact from the macro-economic environment and lower domestic landline voice revenue, international mobile roaming and mobile termination turnover caused by price reductions. EBITDA for the division grew 5% to DKK7.91 billion. The decline in Nordic Business revenue was compensated for by growth in Sunrise turnover of 15.1% to DKK7.34 billion, while the Swiss telco’s EBITDA rose 19.3% to DKK1.82 billion.

TDC’s total customer base stood at 11.4 million at 30 September 2009, up 7.4% y-o-y. Domestic subscribers increased 3.4% compared to the same period a year earlier to reach 8.5 million. Of the total domestic subscribers, 2.047 million were landline customers (down 6.3% y-o-y), while mobile subscribers increased 6.9% to 3.202 million and retail broadband customers rose 9.6% to reach 1.295 million at the end of Q3 2009. TDC’s international subscriber base totalled 2.944 million, of which 660,000 were landline customers (up 48.6% y-o-y), 1.879 million were mobile users (up 14%) and 405,000 were internet subscribers (an increase of 16%).