TDC Group’s profit surges to DKK3bn in 2016

3 Feb 2017

Danish group TDC has published its financial report for the twelve months ended 31 December 2016, recording a 4.1% year-on-year decrease in revenue to DKK21.031 billion (USD3.1 billion), down from DKK21.935 billion in 2015. The company attributed the development to the continued impact from regulation and negative exchange rate developments (DKK275 million) coupled with a decline in revenues in its domestic market (-5.0% y-o-y), although these factors were partly offset by growth in Norway (2.9%). Meanwhile, EBITDA decreased by 10.5% from DKK9.488 billion in 2015 to DKK8.488 billion in the twelve months to end-December 2016, while gross profit declined by 5.0% to DKK15.627 billion. Profit for the period reached DKK3.037 billion, up from a loss of DKK2.384 billion in 2015; TDC said the positive development was related to goodwill (DKK4.681 billion) and gains from the divestment of TDC Sweden (DKK981 million).

In operational terms, TDC reported 2.592 million mobile subscriptions in its domestic market at end-December 2016, up from 2.576 million reported in 2015, while broadband revenue generating units (RGUs) reached 1.312 million, down from 1.329 million at end-2015. The operator also revealed that by the end of December 2016, 67% of the Danish population had access to fixed line broadband services with downlink of 100Mbps (66% in 2015), with plans to reach 70% by 2018.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘We delivered better financial results in 2016 in terms of both EBITDA and cash flow than we originally guided, despite continued intense competition in Denmark. We also succeeded in achieving a turnaround in Consumer mobile, where many years of significant decline were transformed into growth … In spite of strong competition in Norway, Get once again delivered double-digit growth, driven by both strong growth in the broadband customer base and a focus on costs … In 2016, we also streamlined our organisation, via e.g. the divestment of TDC Sweden. The sale of TDC Sweden generated more value for us than we could have created ourselves through continued operation, as significant investments were otherwise required in TDC Sweden.’