TDC posts rising profits, confirms FY guidance

3 Nov 2011

Danish telecom operator TDC has posted a 1.5% year-on-year increase in earnings before interest, tax, depreciation and amortisation (EBITDA) in the first nine months of 2011 to DKK8.166 billion (USD1.5 billion), on the back of a 0.3% rise in revenues to DKK19.619 billion. The increase in turnover was mainly attributed to growth in the company’s domestic TV business, TDC Nordic and sales of terminal equipment, primarily smartphones. Meanwhile profit from continuing operations, excluding special items, was up 38.6% year-on-year to DKK2.628 billion, compared to DKK1.896 billion in 9M 2010. Capital expenditure totalled DKK2.396 billion in the nine months ended 30 September 2011. TDC said that in combination with its Q4 expectations, the company maintains its guidance for the year: revenue is expected to grow 0%-1% and EBITDA is forecast to rise around 2%.

TDC noted strong growth within its pay-TV segment, and also saw its domestic mobile base climb 9% year-on-year to 3.094 million at 30 September 2011, while mobile broadband customers leapt 25% from 245,000 at the end of 3Q10 to 305,000 twelve months later. On 19 September the company successfully completed the migration of low-cost mobile operator Onfone subscribers to its billing and network platforms. At 30 September 2011 Onfone had 213,000 mobile subscribers; the company, which was acquired by TDC in Q2, is expected to have a positive impact on earnings in Q4 and onwards. Domestic landline internet customers dropped 2% year-on-year however, to 1.696 million at the end of Q3 2011.

Denmark, TDC (YouSee), TDC Group (old), TDC Mobile