TDC reports 22% increase in profits to DKK624m

5 May 2016

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the three months ended 31 March 2016, reporting a 5.9% year-on-year decrease in revenue to DKK5.827 billion (USD898 million), down from DKK6.193 billion in Q1 2015. The company attributed the development to the continued impact from regulation and negative exchange rate developments (DKK88 million) coupled with a decline in revenues in its domestic market (-8.8% y-o-y), although these factors were partly offset by growth in Norway (6.3%) and Sweden (5.5%). Meanwhile, EBITDA decreased by 10.0% from DKK2.474 billion in 1Q15 to DKK2.227 billion in the twelve months to end-March 2016, while gross profit declined by 6.0% to DKK4.175 billion. Profit for the period however increased by DKK113 million, to DKK624 million; excluding ‘special items’, profit increased by DKK89 million.

In operational terms, TDC reported 2.749 million post-paid mobile revenue generating units (RGUs) in its domestic market at end-March 2016, up from 2.725 million reported in Q1 2015, while broadband RGUs reached 1.293 million, down from 1.318 million at end-March 2015.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘In Denmark, all landline products in the B2C division faced declining gross profit y-o-y. This development was as expected, but we are continuously seeking opportunities to improve customer satisfaction and profitability … Our activities outside Denmark continue to perform well. In Norway, Get delivered a strong, underlying EBITDA growth of 11.8%, and the launch of Get Mobile in 2016 remains firmly on track to support future growth and enable fully integrated service offerings … The Swedish B2B division also continued its trend from 2015 with 3.1% EBITDA growth and the strategic review of TDC Sweden is in progress.’

Denmark, Norway, Sweden, Get, TDC (incl. Nuuday, TDC Net), TDC Group (old)