News
Danish operator reports hefty declines in revenue and EBITDA in its home market.
TDC on Friday revealed that EBITDA declined by 4.1% year-on-year in the fourth quarter of 2015, in no small part due to hefty declines in its home market.
The Danish incumbent posted earnings before interest, tax, depreciation and amortisation of 2.39 billion kroner (€2.1 billion) in the three months to the end of December, down 4.1% on the same quarter a year earlier. Revenue for the period slipped by 0.2% to DKK6.25 billion.
For the full year the telco posted EBITDA of DKK9.81 billion, flat on 2014, while revenue rose by 4.4% to DKK24.37 billion.
"We succeeded in meeting our financial targets for 2015, but we must regrettably cancel the distribution of any more dividend for 2015 due to the deteriorating outlook for 2016," said TDC chief executive Pernille Erenbjerg, in a statement.
"This is a disappointing message for our shareholders, but the Danish business is under considerable pressure," she explained.
In Denmark TDC generated revenues DKK19.01 billion for the full year, down 5% on 2014, and earnings fell by 10.5% to DKK8.21 billion for the 12 months.
The EBITDA decline was driven by strong pressure on prices at both the Danish business and consumer arms, TDC said.
The company is embarking on a three-year turnaround plan.
"I’m confident that our new strategy for the period up until 2018 will ensure that, based on better connections, we will be able to supply better solutions, supported by improved customer experiences," Erenbjerg said. "At the same time, we will make TDC simpler and better for customers."
