Highlights
Full-year 2019 organic EBITDA decline of 3.7% and Q4 decline of 5.8% driven by decline in TV, other services and landline voice which was partly offset by growth in mobility services and cost savings
Consistent organic opex savings throughout 2019 with 2.8% savings for the full year and 5.8% savings in Q4, driven primarily by Consumer
Service revenue excl. landline voice increased by 0.1% for the full year in 2019, signifying a stable top line across non-legacy core products
Financial performance in 2019 was in line with previously communicated guidance; a low single-digit decline in organic EBITDA ( -3.7%), DKK 300-400m in costs related to the separation of TDC (DKK 358m), capex of DKK 4.4-4.8bn (DKK 4.8bn) and leverage of ~3.5x for the year (3.6x for the year)
Organic TV gross profit decline of 25.1% in Q4 YoY driven mainly by investments in TV content, including own productions, and a loss of TV customers. Improved gross profit is expected going forward
Mobility services showed a solid performance in Q4 with a YoY organic gross profit growth of 3.0% driven by a higher Consumer ARPU partly offset by a loss of Consumer RGUs
Internet & network organic gross profit growth of 0.9% in Q4 YoY as a value lift in Consumer ARPU was partly offset by fewer RGUs. Active fibre connections increased by 1.8% in Q4 with 5.9k additional RGUs
Fullrate Pro and Firmafon have merged to form Relatel, a new strong B2B brand primarily servicing the SME segment. Relatel seeks to enhance relations between corporations and their customers through cloud-based and user-friendly mobility services
TDC’s network company changed name to TDC NET to create a new brand identity building on the proud TDC legacy while focusing on the digital future of Denmark
In December TDC NET launched Denmark’s largest 5G pilot project in Helsingør, where 40 mobile sites have been upgraded to 5G
TDC NET’s fibre roll out continued to accelerate and reached more than 25k homes passed in Q4 up from 12k in Q3, resulting in a Q4 YoY capex increase for TDC Group of 55%
2020 financial guidance: Flat EBITDA, strategic capex investments in 5G and fibre of DKK ~2.6bn, total capex spend of DKK 5.5-5.9bn and net debt EoY EBITDA of ~4.1x excl. IFRS 16
Henrik Clausen has been appointed as CEO of TDC Group with effect from 17 February 2020
Conference call details
A conference call will be held on 10 February 2020 at 14:30 CET.
Presentation material will be available prior to the conference call on www.tdcgroup.com
Dial-in details can be found at:
https://aerp.arkadin.com/e-9a6b9ab65603318033952e5ef8387c7144aff3946267e601b5138f1ef349466463b20bc4fb32394f544872a2ec0778a68002abf1c5e9e120171c0670/tdc-interim-report-q4-2019
Webcast: https://edge.media-server.com/mmc/p/xfamqk73
For investor enquiries: +45 66 63 76 80
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