TDC reports flat revenues of DKK13bn in 9M18

16 Nov 2018

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the nine months ended 30 September 2018, reporting a 0.2% growth in revenues to DKK13.001 billion (USD1.97 billion), up from DKK12.978 billion in 9M17. The company attributed the development to a sustained decline in revenues generated by the Business and Wholesale divisions in its domestic market (-5.5% and -1.3% y-o-y respectively), which was partly offset by growth in Consumer (up 2.1%) and other operations (up 7.2%). Meanwhile, EBITDA decreased by 2.7%, from DKK5.268 billion in 9M17 to DKK5.127 billion twelve months later, while gross profit totalled DKK9.373 billion (down 2.0% y-o-y). Profit for the period also decreased, to DKK828 million (down by 43.1% y-o-y), while excluding discontinued operations and ‘special items’ profit fell by 9.8%, due to higher interest expenses related to the refinancing in Q2 2018, which was triggered by DK Telekommunikation’s takeover of TDC. Capital expenditure decreased by 5.7% y-o-y to DKK2.460 billion in 9M18, due to higher investment in 2017 related to a cable upgrade project.

TDC noted that Get Norway is treated as discontinued operation in the reports from Q3 2018, following the divestment of the unit to Sweden-based Telia Company for a cash sale price of USD2.6 billion (completed on 15 October 2018). A substantial part of the proceeds was applied towards prepayment at par of the Term Loan B (TLB) under TDC’s Senior Facility Agreement. Meanwhile, the acquisition of Danish broadband provider Hiper (which will become part of Consumer) is expected to have an impact on financials from Q4 2018.

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