TDC logged 48.4% plunge in profit for Q1

3 May 2013

Danish dominant network provider TDC has announced that the group’s financial results for the first quarter of 2013 were in line with expectations. TDC Group revenue decreased by 6.1% from DKK6.64 billion (USD1.16 billion) to DKK6.24 billion in January-March 2013, with the company attributing the decline to regulation of international roaming, and domestic mobile termination rates (MTR) in particular, slashed in 2012 by nearly 73%. Gross profit also declined by 5.4% year-on-year to DKK4.45 billion, with net profit for the period of DKK679 million, a plunge of almost 48.4% from the DKK1.32 billion reported in 1Q 2012. The company, however, managed to reduce its operating costs by DKK196 million, mainly by savings in personnel and IT expenses, which it said helped to limit its year-on-year EBITDA decline to 2.8%, from DKK2.57 billion to DKK2.5 billion in 1Q 2013. In addition to its Danish full-service telecoms operations, TDC operates in the wholesale and business services markets in neighbouring countries including Norway and Finland.

TDC has also published the guidance for 2013, and according to the group’s assessment, revenue will further drop to DKK25.0-DKK25.5 billion for the current financial year, due to marginal spending growth in the domestic economy and the continuing negative impact of regulations. EBITDA is expected to reach DKK10.0- DKK10.2 billion, with estimated CAPEX of nearly DKK3.7 billion.

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