Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the twelve months ended 31 December 2015, reporting a 4.4% year-on-year increase in revenue to DKK24.366 billion (USD3.65 billion), up from DKK23.344 billion in 2014. The company attributed the positive development to growth in Norway as a result of the acquisition of cableco Get, which was partly offset by the continued negative impact from regulation and foreign exchange rates. Meanwhile, EBITDA remained unchanged, at DKK9.809 billion (DKK9.804 billion in 2014), while gross profit increased by 2.3% to DKK17.484 billion. The operator reported a loss for the year of DKK2.384 billion, down from a profit of DKK3.228 billion in 2014. TDC said that the financial results reported in 2014 were positively impacted by the gain from divesting TDC Finland (DKK754 million), while 2015 was negatively impacted by impairment losses following the yearly impairment test of goodwill, which amounted to DKK4.618 billion.
TDC has also published the guidance for 2016, and according to the group’s assessment, EBITDA is expected to reach DKK8.8 billion, due to ‘substantial’ declines in the Business unit. The company is expecting its financials to be negatively impacted by the loss of a large MVNO contract in the Wholesale division, in addition to increases in cash CAPEX due to different timing of payment and expected mobile licence in the 1800MHz band.
Vagn Sorensen, chairman of TDC Board, commented: ‘TDC Group’s 2015 results were in line with guidance; however cancellation of the remaining dividend payment for 2015 was necessary to meet the continued headwind in 2016. A new 2018 strategy [is] announced to address the challenging Danish market. The activities outside Denmark recorded a strong development. In Norway, Get delivered 10% EBITDA growth fuelled by upselling broadband to its TV customers, making broadband the leading product measured in terms of gross profit. Sweden also achieved EBITDA growth that points to a promising future.’