TDC’s profit up 22.8% to DKK1.96bn in 9M16

2 Nov 2016

Danish group TDC has published its financial report for the nine months ended 30 September 2016, recording a 4.7% year-on-year decrease in revenues to DKK15.616 billion (USD2.31 billion), down from DKK16.378 billion in 9M15. The company attributed the development to the continued impact from regulation and negative exchange rate developments (DKK251 million) coupled with a decline in revenues in its domestic market (-5.4% y-o-y), although these factors were partly offset by growth in Norway (3.8%). Meanwhile, EBITDA decreased by 10.6% from DKK7.190 billion in 9M15 to DKK6.430 billion in the twelve months to end-September 2016, while gross profit declined by 5.5% to DKK11.734 billion (DKK12.412 billion in 9M15). Profit for the period, however, increased by 22.8%, to DKK1.962 billion as a result of lower expenses on redundancy programmes and vacant tenancies.

In operational terms, TDC reported 2.609 million post-paid mobile revenue generating units (RGUs) in its domestic market at end-September 2016, up from 2.570 million reported in September 2015, while broadband RGUs reached 1.281 million, marginally down from 1.299 million a year ago. TDC Group disclosed that it has now completed the TDC/YouSee brand merger in its domestic market and all related IT migrations, while also acquiring 1800MHz spectrum in the government’s auction at a lower than expected price. In the period under review, the operator also launched Get Mobile in Norway and completed the divestment of its TDC Sweden unit to Tele2 for DKK2.3 billion, on a cash and debt free basis.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘We have now completed the majority of the very large and complex transformation projects planned for 2016, leaving only limited risk for the remainder of the year. On this basis, we improve our EBITDA guidance to more than DKK8.4 billion and EFCF [equity free cash flow] guidance to over DKK1.7 billion.’

Denmark, Norway, Sweden, Get, Get Norway (incl. TDC Nordic [Norway]), TDC (YouSee), TDC Group (old), TDC Sverige