TDC’s 1Q15 revenues, EBITDA on the rise following Get acquisition

7 May 2015

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the three months ended 31 March 2015, reporting a 7.2% year-on-year increase in revenue to DKK6.193 billion (USD942.32 million), up from DKK5.775 billion in Q1 2014. The company attributed the development to growth in Norway as a result of its acquisition of cableco Get (DKK553 million), which was partly offset by the continued impact from regulation and negative exchange rate developments. Meanwhile, EBITDA marginally increased by 0.9% from DKK2.451 billion in 1Q14 to DKK2.474 billion in the twelve months to end-March 2015, while gross profit surged by 4.3% to DKK4.440 billion. Profit for the period however decreased by DKK205 million, to DKK511 million, due to higher depreciation and amortisation costs following the acquisition of Get, in addition to higher financial expenses related to the bridge bank loan and pre-hedges prior to TDC’s refinancing in February 2015.

In operational terms, TDC reported 2.989 million mobile revenue generating units (RGUs) in its domestic market at end-March 2015, down from 3.087 million reported in Q1 2014, while broadband RGUs reached 1.284 million, down from 1.300 million at end-March 2014.

Carsten Dilling, president and CEO at TDC, commented: ‘The Q1 results are very satisfactory for Norway and Sweden. Get, our Norwegian cable-TV business, delivered strong EBITDA growth of 10%, including solid growth across main products. In Sweden, revenue growth has returned reflecting an improved pipeline throughout H2 2014. In Denmark, the EBITDA development of -9% y-o-y was a concern, leaving diminishing room for new investments in the Danish digital infrastructure. Although in line with our expectations, needless to say it is not a satisfactory development. Key drivers behind the substantial EBITDA leakage are the unhealthy pricing environment across business markets, regulation, as well as a full-year effect from the high loss of Consumer mobile customers in 2014.’

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