First-quarter revenues stable at TDC

10 May 2012

The Danish telco TDC has reported almost flat revenue growth for the first three months of 2012, with sales rising just 0.5% year-on-year to DKK6.64 billion (USD1.16 billion). Performance was hit by increasing competition and pricing pressures in the domestic mobile market, as well as further reductions in mobile termination rates and the continuing decline of the domestic fixed line business. Its Danish internet business was also hit by fierce competition which had a negative effect on average revenue per user (ARPU). Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 1.2% to DKK2.57 billion, but a one-off gain relating to the settlement of a dispute between TDC’s 25%-held Polish unit DPTG and Telekomunikacja Polska (TPSA) helped push net income to DKK1.27 billion, up 80.1% on the year-earlier period. Excluding the one-time gain, profit would have fallen 15.2% to DKK740 million.

The TDC Group claimed 3.94 million mobile subscribers at the end of March 2012, up from 3.64 million twelve months before, while the number of fixed line users dropped from 1.80 million to 1.65 million over the same period. The broadband internet base declined by 29,000 users year-on-year to 1.77 million.

Denmark