TDC reports a 1.6% drop in revenues to DKK4.3bn in 4Q19

Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the three months ended 31 December 2019, reporting a 1.6% decline in revenues year-on-year to DKK4.284 billion (USD626.95 million), down from DKK4.355 billion in Q4 2018. Reported annual revenues decreased to DKK17.044 billion in 2019 (down 1.8% y-o-y), while organic revenues (excluding items affecting comparability; regulatory price adjustments, impact from acquisitions and divestments, costs related to the separation of TDC, investments in fibre rollout, effects from new lease accounting principles [IFRS 16], and impact from changed classification of certain costs related to customer installations) decreased by 2.3% y-o-y in 2019, due mainly to a decline in landline voice and other services that was partly offset by growth in mobility services. Meanwhile, EBITDA declined by 4.2% to DKK1.498 billion in Q4 2019 and 2.5% y-o-y to DKK6.524 billion in 2019, while Q4 gross profit totalled DKK2.908 billion (down 5.7% y-o-y) and annual gross profit reached DKK12.099 billion (down 2.9% y-o-y). Profit for the period also decreased, to DKK42 million (down from DKK4.894 billion in Q4 2018), while capital expenditures in Q4 were up 55% y-o-y to DKK1.614 billion, due to increased investment in upgrading the mobile network in preparation for 5G and the swap to Ericsson equipment, as well as TDC’s fibre rollout.