Danish telco TDC, the country’s leading operator in terms of subscribers, has published its financial results for the three months ended 30 June 2020, reporting a 7.7% decline in revenues year-on-year to DKK3.915 billion (USD621.35 million), down from DKK4.241 billion in Q2 2019. The fall was driven mainly by TV, other services and the continued decline in landline voice services, which was partially offset by growth in mobility services. Meanwhile, EBITDA dropped 3.7% to DKK1.609 billion in Q2 2020, while Q2 gross profit totalled DKK2.833 billion (down 8.3% y-o-y). Profit for the period improved, however, to DKK48 million (up from a loss of DKK187 million in Q2 2019), while capital expenditures in Q2 were up 16.1% y-o-y to DKK1.313 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.
The company highlighted that the negative impacts from COVID-19 have related mainly to reduced roaming profits experienced by Nuuday and the productivity slowdown caused by TDC NET employees remaining at home. TDC is now expecting a flat EBITDA for full year 2020, strategic CAPEX investments in 5G and fibre of around DKK2.6 billion and total CAPEX spending of between DKK5.5 billion and DKK5.9 billion.