TDC reports 2.7% decline in revenues in 2014

5 Feb 2015

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the twelve months ended 31 December 2014, reporting a 2.7% year-on-year decline in revenue to DKK23.344 billion (USD3.57 billion), down from DKK23.986 billion in 2013. The company attributed the negative development to a decline in revenues from TDC Sweden (mainly due to negative exchange rate development) and from domestic consumer and business services, which was partly offset by growth in Norway as a result of the acquisition of cableco Get. Meanwhile, EBITDA dropped 1.8% from DKK9.979 billion in 2013 to DKK9.804 billion in the twelve months to end-December 2014, while gross profit declined by 1.9% to DKK17.092 billion. Profit for the year decreased by DKK237 million, to DKK3.529 billion, due to the negative development in fair value adjustments stemming from pre-hedges related to TDC’s upcoming refinancing in 2015.

TDC has also published the guidance for 2015, and according to the group’s assessment, revenue will further drop by 2.5% for the financial year, due to increased gross profit drain across business products and the continuing negative impact of regulations. EBITDA is expected to reach DKK9.8 billion, with estimated CAPEX of roughly DKK4.3 billion.

In operational terms, TDC reported 2.942 million residential mobile revenue generating units (RGUs) at end-December 2014, down from 3.055 million reported in 2013, while broadband RGUs reached 1.358 million, up from 1.361 million at end-2013.

Carsten Dilling, president and CEO at TDC, commented: ‘We are satisfied with meeting our financial targets for 2014. This included high cash flow generation, continued OPEX savings, and a substantial increase in TV and broadband customers in the Danish consumer market … Our strategic focus will consequently remain on seamlessly integrated solutions under the TDC+ programme, through which three strategic pillars have been formed to ensure customer satisfaction, growth and increased sales, as well as continuing process optimisation.’

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