TDC A/S : Group strengthened in third quarter

On Tuesday morning, TDC Group presented its financial statements for the third quarter. Revenue for the group totalled DKK 5.0 billion, while the operating profit (EBITDA) is DKK 2.1 billion.

'We are on track in terms of our guidance for the year, but also in relation to our strategy which continues into 2018. If we disregard roaming regulation and the sale of TDC Hosting, then we are seeing a small growth in operating profit for the first time in three years,' says Pernille Erenbjerg, Group CEO and President of TDC Group.

The reported figures which include the effects of the roaming regulation and the sale of TDC Hosting show that revenue and operating profit have fallen by 5 and 3 per cent, respectively, compared with the prior-year period.

The quarterly financial statements cover a period during which TDC Group has achieved a number of results which have strengthened the company. TDC Group acquired the mobile company Plenti, YouSee launched the advantage programme YouSee More, and YouSee also launched a new streaming and TV portfolio.

Going on the offensive with streaming and TV
On the Danish TV market, TDC Group is holding onto its market share despite a loss of 18,000 TV customers in the quarter.

'We are operating in a changing TV market, where we see growing demand for digital content. Therefore, we have also launched a number of initiatives that bridge the gap between traditional TV and streaming, and as something completely new, we are now starting to give our customers exclusive content which they will only find on YouSee,' says Pernille Erenbjerg.

In September, YouSee, which accounts for the majority of the group's 1.3 million TV customers, launched a new streaming and TV portfolio, which allows customers to mix TV and streaming in their packages. At the same time, they also have access to exclusive Danish content, which will be available via an app and a TV box.

Earlier in the year, Get in Norway also launched packages that combine TV and streaming.

More mobile customers
The TDC Group's mobile customer base grew by 75,000 in Denmark, and exceeded three million customers in the quarter. It was the first quarter where the entire period was subject to the latest EU roaming regulations. Since 15 June, customers have been able to use mobile data abroad without additional charges.

As previously announced, TDC Group estimates that the EU's roaming regulations, which do not allow operators to charge customers for their data usage abroad, will this year cost the company DKK 150 million in the form of lost income and increased expenses to foreign operators.

However, it is partially offset by the fact that TDC Group has negotiated better wholesale agreements and has increased subscription prices in the residential market. Thus, the average revenue per mobile user (ARPU) in the residential market increased by DKK 5 compared with last year, thus increasing to DKK 123.

Following the quarter, in October TDC Business secured the biggest mobile agreement in Denmark comprising telephony for the Danish state and the vast majority of the country's municipalities. The agreement is expected to have a positive effect on the operating profit (EBITDA) from 2018.

Further information:
TDC Press, tel. +45 7020 3510