TDC reports a 1.4% decrease in revenues in 1H18

19 Sep 2018

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the six months ended 30 June 2018, reporting a 1.4% year-on-year decline in revenue to DKK10.184 billion (USD1.6 billion), down from DKK10.331 billion in 1H17. The company attributed the development to a sustained decline in revenues generated by the Business and Consumer divisions in its domestic market (-0.8% y-o-y) and Norway (-1.0%), which was partly offset by growth in other operations (+5.1%). Adjusted for negative effects from acquisitions, divestments and regulations, organic revenue remained stable (-0.5%). Meanwhile, EBITDA decreased by 2.1%, from DKK4.180 billion in 2H17 to DKK4.094 billion twelve months later, while gross profit totalled DKK7.307 billion (down 2.8% y-o-y). Profit for the period also decreased, to DKK567 million (down by 45.9% y-o-y), while excluding discontinued operations and ‘special items’ profit grew by 28.3%, due to a positive development in currency translation adjustments of intercompany loans denominated in Norwegian krone (NOK). Capital expenditure decreased by 4.9% y-o-y to DKK2.009 billion in 2H18, due to higher investment in 2017 related to a cable upgrade project.

In operational terms, TDC disclosed that it reorganised itself into two new operating units as of 1 August 2018; NetCo focuses on network and digital infrastructure, and OpCo focuses on digital services and customer experiences. TDC also highlighted that approval for the divestment of Get to Sweden-based Telia Company for a cash sale price of NOK21 billion (USD2.6 billion) is expected in Q4 2018. Get will be treated as discontinued operation in TDC’s reports from Q3 2018.