TDC revenue up 0.5% in 2011; initiates share buy-back

3 Feb 2012

Danish telecoms company TDC has announced that it generated revenue of DKK26.304 billion (USD4.65 billion) in the twelve months ended 31 December 2011, an increase of 0.5% compared to the DKK26.167 billion reported in 2010. The company said that turnover for the fourth quarter of 2011 rose 1.1% year-on-year to DKK6.685 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled DKK10.940 billion in full year 2011, up 1.6% from DKK10.772 billion the previous year, and grew 1.8% year-on-year in Q4 2011 to DKK2.774 billion. Profit for the year excluding special items increased from DKK2.888 billion in 2010 to DKK3.498 billion twelve months later, but fell 12.3% year-on-year in the fourth quarter of 2011 to DKK870 million. CAPEX totalled DKK3.421 billion in 2011, with major investments including the rollout of HSPA+ and Long Term Evolution (LTE) networks. TDC forecasts full-year 2012 revenues of DKK26.0 billion-DKK26.5 billion and anticipates EBITDA before pension income of between DKK10.3 billion and DKK10.5 billion, while CAPEX is expected to total DKK3.4 billion-DKK3.5 billion.

Meanwhile, TDC has said in a separate statement that it will use one-off income from a legal settlement between its associated company DPTG and Poland’s TPSA for a DKK750 million share buyback, scheduled to run from 6 February to 31 December 2012. The TPSA settlement is expected to boost special items related to associated companies by DKK1 billion before taxes in the first quarter, Reuters reports. TDC said its majority owner Nordic Telephone Company (NTC) – a consortium of private equity groups Apax Partners, the Blackstone Group, Kohlberg Kravis Roberts, Permira Advisers and Providence Equity Partners with 59.1% of TDC’s stock – would participate on a pro rata basis so the free float would be unchanged.

Denmark