TDC : Solid results in challenging markets
Financial
- 2013 guidance was achieved for EBITDA, CAPEX and DPS, while revenue met revised guidance as of Nov 2013
- FY 2013 Equity free cash flow growth of 4.8% resulted in a pay-out ratio of 89% in line with TDC’s dividend policy
- Revenue down by 6.1% in Q4 in line with FY 2013 development; adjusted for regulation effects and adverse exchange rate development, organic revenue decreased 3.7% in Q4
- Organic opex savings of 8.8% in Q4 resulted in best quarterly EBITDA development in 2013 in both reported (-1.0%) and organic terms (1.6%)
- Network CAPEX ramp up by DKK 250m versus 2012 driven by 4G build out and super broadband investments
- 2014 guidance: Organic revenue will decrease less than in 2013, EBITDA > DKK 9.8bn, Capex of DKK 3.7bn and DPS of DKK 3.70
Operational
- High ARPU households (ARPU above DKK 600) in TDC/YouSee brand increased by 46% to 284k during 2013 as a result of price increases, upsale as well as Onfone integration into YouSee
- Business mobile ARPU still trending downwards, but lowest quarterly YoY ARPU decrease in Business in two years (-9% in Q4)
- Continued TV net adds in TDC brand (5k) and successful Fullrate TV relaunch (4k) compensated for the loss of YouSee customers in the organized market (-10k in Q4)
- Increased loss of residential landline voice subscribers (-125k) versus 2012 as the HomeTrio mobile offering migrated low ARPU landline customers to mobile voice
- Customer satisfaction and recommend score improved by 1 point and 2 points respectively versus 2012; employee satisfaction still at a high level (78)
TDC A/S Teglholmsgade 3 0900 Copenhagen C DK-Denmark tdc.com
