TDC Group reports marginal 1% growth in revenues in 1Q17

5 May 2017

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial report for the three months ended 31 March 2017, reporting a marginal 0.7% year-on-year increase in revenue to DKK5.21 billion (USD765.2 million), up from DKK5.18 billion in Q1 2016. The company attributed the development to an ‘improved performance in Norway as well as landline voice and mobility services in Denmark’, though those factors were partly offset by continued impact from regulation and negative exchange rate developments. Meanwhile, EBITDA decreased by 0.9% from DKK2.15 billion in 1Q16 to DKK2.13 billion in the twelve months to end-March 2017, while gross profit reached DKK3.87 billion (down 0.9% y-o-y). Profit for the period also decreased, to DKK612 million (down by DKK12 million); excluding ‘special items’, profit slumped by 21.3% due to higher amortisation and depreciation costs.

In operational terms, TDC reported 2.94 million post-paid mobile revenue generating units (RGUs) in its domestic market at end-March 2017, up from 2.91 million reported in Q1 2016, while broadband RGUs reached 1.22 million, down from 1.26 million at end-March 2016.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘There are several positive signs in the financial statements, but I am particularly pleased that we are now seeing signs of improvement in the otherwise very challenging Danish market, customer satisfaction is increasing, and Get continues to deliver high growth rates in Norway. However, we are only one quarter into the year, and some of the greater challenges and uncertain factors are waiting in the coming quarters, including the impact of the European Union’s (EU’s) roaming regulation and a large public tender in the Danish market.’

Denmark, Get, TDC (YouSee), TDC Group (old)