News
Danish incumbent feeling the effects of aggressive price competition.
TDC on Wednesday reported a 4% drop in second-quarter revenue as its Danish B2B arm struggled to cope with aggressive competition.
The incumbent’s revenue for the three months to 30 June came in at 5.2 billion kroner (€699.07 million), down from DKK5.42 billion a year earlier. EBITDA edged down to DKK2.12 billion from DKK2.34 billion, while operating profit fell 10.1% year-on-year to DKK941 million.
Growth in Norway and a slight improvement in Danish wholesale revenue was offset by a 3% on-year fall in domestic consumer revenue, driven by declines in fixed-voice revenue, and a slump in domestic B2B revenues, which fell 10.8% to DKK1.28 billion. B2B EBITDA fell 17% to DKK736 million.
"Extensive price competition on the traditional Danish B2B operator services continued in Q2, resulting in a substantial EBITDA decline," said TDC chief executive Pernille Erenbjerg, in a statement.
"Recently, we have walked away from tenders with very low price points, choosing to focus on higher margin business instead," she said.
TDC ended the quarter with 1.98 million consumer mobile customers, which includes 130,000 data-only mobile connections, up from 1.93 million a year ago.
Its consumer fixed broadband base across Denmark and Norway came in at 1.42 million, broadly flat on Q2 2015.
