TDC confirms 2015 guidance based on 2Q15 results

7 Aug 2015

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the three months ended 30 June 2015, reporting a 6.8% year-on-year increase in revenue to DKK6.030 billion (USD883.5 million), up from DKK5.668 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 2.5% from DKK2.354 billion in 2Q14 to DKK2.413 billion in the twelve months to end-June 2015, while gross profit surged by 4.4% to DKK4.390 billion. Profit for the period however decreased by 59.3%, to DKK570 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 three million mobile revenue generating units (RGUs) in its domestic market at end-June 2015, down from 3.058 million reported in Q1 2014, while broadband RGUs reached 1.304 million, down from 1.331 million at end-June 2014.

Carsten Dilling, president and CEO at TDC, commented: ‘The Q2 financial results were much in line with our expectations and continued the development from the first quarter with a challenged EBITDA development in Denmark (down by 11.3% y-o-y). Cash flow generation was down by DKK278 million or 25.5% in Q2 2015 due mainly to the timing of the change in net working capital … Activities outside Denmark delivered strong results and constituted 25% of total TDC Group revenue in 2Q15. Get had the best quarterly net additions in several years (8,000 broadband and 4,000 TV subscribers versus 1Q15). We are on track with a detailed plan for synergy realisation in Norway and remain confident in delivering the announced total run-rate synergies by 2017. Our Swedish B2B (business-to-business) division continued its positive trend with double-digit revenue growth in local currency … Based on the 2Q15 results, we are committed to delivering on our full-year guidance on all parameters.’

Denmark, TDC (incl. Nuuday, TDC Net), TDC Group (old)