TDC reports a 1.4% decline in revenues in 1H19

16 Aug 2019

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the six months ended 30 June 2019, reporting a 1.4% decline in revenues year-on-year to DKK8.545 billion (USD1.27 billion), from DKK8.663 billion in H1 2018. Adjusted for the impact from acquisitions/divestments and costs related to the separation of TDC, organic revenue decreased by 2.0%, due mainly to a decline in landline voice and other service revenues, which was partly offset by growth in mobility services. Meanwhile, EBITDA decreased by 2.9% in the period under review, from DKK3.468 billion to DKK3.369 billion, while gross profit totalled DKK6.182 billion (down 1.7% y-o-y). Profit for the period also decreased, to DKK41 million (down 92.8% y-o-y), while capital expenditures were up 26.7% y-o-y to DKK2.106 billion, due to increased investments in upgrading the mobile network in preparation for 5G and the swap to Ericsson equipment, and TDC NetCo’s fibre rollout. As a part of TDC’s long-term fibre deployment plan, TDC NetCo and Nordkysten have established a joint venture (Fiberkysten), which will start rolling out fibre in Q3 2019.

The operator has also updated its 2019 guidance, highlighting that it now expects a low single-digit decline in organic EBITDA, DKK300 million-DKK400 million in costs related to the separation of TDC, and CAPEX of DKK4.4 billion-DKK4.8 billion (updated from DKK4.1 billion-DKK4.5 billion).

Denmark, TDC (YouSee)