On Wednesday morning, TDC Group delivers an interim report in line with the outlook for the year. The figures for Q2 show that TDC Group is growing its customer base by a total of 26,000 mobile customers, while at the same time succeeding in stabilising annual revenue per user (ARPU) in the residential market. For the first time in five years, the gross profit from mobility services is growing.
TDC Group is posting revenue of DKK 5.2 billion for Q2 and earnings (EBITDA) of DKK 2.1 billion, representing a 7.2% organic drop in earnings relative to the prior-year period.
- The Danish market is still under pressure, and against this background, the results are satisfactory on most financial parameters. We have succeeded in growing our Danish mobility services for the first time in five years, and we are delivering very strong earnings in Norway, where broadband sales to our TV customers have been good. Our greatest challenge is still the Danish business market, which is characterised by intense price competition, says Pernille Erenbjerg, Group CEO in TDC Group.
In the previous five quarters, year-on-year comparisons revealed a fall in revenue per mobile customer with voice subscriptions in the residential market, whereas this time revenue has been stabilised, and more mobile customers have come on board in the most recent quarter.
- We have invested heavily in our mobile network so as to be able to offer the very best connectivity in Denmark, in terms of both coverage and speed. A subscription with one of our brands is a ticket to one of the best networks in the world, and this is, of course, very important to our customers, explains Pernille Erenbjerg.
Exclusive of acquisitions, the mobile customer base, which includes both call subscriptions and pure data subscriptions, grew by 19,000 residential customers and 7,000 business customers in the period. An additional 16,000 business customers have been acquired through the acquisition of Cirque.
TDC Consumer is now YouSee
On 27 January this year, TDC Group announced the merger of the TDC Consumer and YouSee brands. This triggered one of the biggest digital migration projects in Danish history, migrating more than one million customers to a joint IT system.
- The transformation from TDC Consumer to YouSee is an immense and demanding project, but also the right decision for all parties. Being a customer with us will be both simpler and better when we combine the best of the two brands into a single platform, and at the same time we will be offering the best possible level of connectivity to customers at their home address. And making everything simpler and better for our customers also means making it simpler and better for ourselves. We still have a fair bit of work ahead of us, but the first difficult and important steps have now been taken, says Pernille Erenbjerg.
The change from TDC Consumer to YouSee is also evident in the Danish townscape. The 45 TDC shops in Denmark are now YouSee shops in the green YouSee colour.
Additional information:
TDC Press, tel. +45 70 20 35 10
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