TDC saw group earnings slip slightly on a like-for-like basis in the third quarter of this year, largely as a result of fierce competition in the Danish mobile market.
The Danish incumbent posted group EBITDA of 2.54 billion kroner (€340 million) in the three months to the end of September, up by 1% on the same period in 2014 in reported terms, but a decline of 7% on an organic basis.
That decline was caused primarily by a challenging environment in the telco’s home market, which has hit the headlines in recent weeks after the European Commission blocked a plan by Telenor and TeliaSonera to merge their Danish operations on competition grounds.
TDC’s comments on Tuesday back up claims from many pro-Telenor/TeliaSonera tie-up industry watchers that Denmark is already highly competitive with low average revenues per user (ARPUs).
TDC posted mobile ARPU of DKK117 per month (€15.7) in Q3, down from DKK122 in the year-ago quarter, but up from DKK114 in Q2.
"The competitive Danish mobile market, among the cheapest in Europe, is constricting earnings and challenging our strategic ambition to continue to invest in telecom infrastructure and launch innovative solutions," TDC chief executive Pernille Erenbjerg said.
"As fulfilment of this ambition requires improved profitability in our Danish activities, in mid-October we took an important step by increasing the lowest mobile price point for new customers," she noted.
In Denmark TDC reported a 12% EBITDA decline to DKK2.11 billion.
Howe ver, it said it reduced churn at both its consumer and business divisions and grew its mobile voice customer base to 1.81 million.
Its Denmark business generated revenues of DKK4.66 billion, down from DKK4.99 billion a year ago.
At group level, TDC’s turnover stood at DKK5.9 billion, up by 4.5%, but down by 2.1% organically, which is in line with its full-year guidance.
TDC expects organic revenues for 2015 as a whole to slide by 2.5%, while it sees EBITDA coming in flat or slightly ahead compared with 2014.
