TDC Group returns to growth in domestic mobile market in 2Q16

10 Aug 2016

Danish group TDC has published its financial report for the three months ended 30 June 2016, recording a 4.0% year-on-year decrease in revenue to DKK5.204 billion (USD779 million), down from DKK5.422 billion in Q2 2015. The company attributed the development to the continued impact from regulation and negative exchange rate developments (DKK185 million) coupled with a decline in revenues in its domestic market (-6.6% y-o-y), although these factors were partly offset by growth in Norway (4.7%). Meanwhile, EBITDA decreased by 9.7% from DKK2.117 billion in 2Q16 to DKK2.334 billion in the twelve months to end-June 2016, while gross profit declined by 5.7% to DKK3.890 billion. Profit for the period decreased by DKK5 million, to DKK565 million.

In operational terms, TDC reported 2.780 million post-paid mobile revenue generating units (RGUs) in its domestic market at end-June 2016, up from 2.738 million reported in Q2 2015, while broadband RGUs reached 1.258 million, down from 1.272 million at end-June 2015. TDC Group disclosed that it has now completed the TDC/YouSee brand merger in its domestic market. The process comprised the migration of just over one million customers, the alignment of mobile portfolios, rebranding of shops and merging of mobile apps.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘TDC Group’s Q2 results support our full-year guidance on all parameters, and as outlined at the Capital Markets Day we are showing tangible results towards a simpler and better TDC Group, e.g. completion of our brand merger and divestment of our Swedish subsidiary … In Norway, we had another strong quarter with EBITDA growth (9.7% y-o-y) driven by ARPU increases, and upselling of broadband to TV customers … Within mobility services in Denmark, Q2 marked an important milestone with organic gross profit growth (0.4% y-o-y) for the first time in more than five years.’