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.