TDC reports declines in revenues, EBITDA in 9M17

1 Nov 2017

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the nine months ended 30 September 2017, reporting a 2.5% year-on-year decline in revenue to DKK15.2 billion (USD2.4 billion), down from DKK15.6 billion in 9M16. The company attributed the development to a sustained decline in landline and TV revenues in its domestic market, which was partly offset by growth in Norway and mobile services in Denmark. However, the company pointed out that the decrease was an improvement when compared to the same period last year (down 4.7% y-o-y in 9M16). Meanwhile, EBITDA decreased by 2.3%, from DKK6.4 billion in 9M16 to DKK6.3 billion in the corresponding period of this year, while gross profit totalled DKK11.3 billion (down 3.4% y-o-y). Profit for the period also decreased, to DKK1.5 billion (down by DKK497 million); excluding discontinued operations and ‘special items’, profit slumped by 27.9% due to higher amortisation and depreciation costs. Capital expenditure increased 4.4% y-o-y to DKK3.1 billion in 9M17, driven by an upgrade project under which the telco is aiming to provide cable broadband access with downlink of 1Gbps to 50% of Danish population.

In operational terms, TDC reported three million post-paid mobile revenue generating units (RGUs) in its domestic market at end-September 2017, up from 2.96 million in 3Q16, while broadband RGUs numbered 1.20 million, down from 1.25 million at end-September 2016.

Pernille Erenbjerg, president and CEO at TDC, commented: ‘Overall, our financial performance in Q3 continued the trends of the past quarters. EBITDA fell by 3.0% y-o-y, but was negatively impacted by regulation effects from roaming and the divestment of TDC Hosting in early 2017. Adjusted for this, our organic EBITDA grew 0.5% y-o-y – after several years of decline. The growth was driven mainly by both higher ARPU for mobile customers in our Consumer division, and our efficiency measures seriously paying off in Q3 with costs reduced by 8.0% y-o-y … We are on track in terms of our guidance for the year, but also in relation to our strategy which continues into 2018. If we disregard roaming regulation and the sale of TDC Hosting, then we are seeing a small growth in operating profit for the first time in three years.’

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