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TDC Group confirms its 2014 guidance

Press Releases   •   Aug 07, 2014 07:02 BST

The pressure on TDC Group's revenue and gross profit persisted in the second quarter of the year, yet the Group confirms its 2014 guidance with the pay-out of interim dividends.

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TDC Group transfers support to external partner

Press Releases   •   Aug 06, 2014 11:00 BST

In the autumn, about 800 employees from TDC's customer support will transfer to a new employer. TDC has contracted Sitel, a large international service provider, to handle future customer support and some other functions for Denmark's largest telecommunications company.

The agreement with Sitel is part of a major initiative that will significantly improve customer service at TDC Group in the years ahead. The approximately 1,850 employees in TDC Group's own customer service function will complete a training and upgrading programme that, combined with more digital self-service options, is designed to create 'Denmark's best customer experiences'.

"I am very pleased that Sitel is undertaking to provide our customers with excellent support as this will also release resources that over time will enable us to significantly improve our customer service. Our goal is to set a new standard for the industry," says Jens Aaløse, Senior Executive Vice President at TDC Group.

The agreement means that as of 6 October, approx. 800 employees in Copenhagen, Aarhus and Sønderborg will be employed by Sitel. That is approx. every third employee in TDC's customer service, primarily in our support function, who provide practical help with e.g. setting up appliances and apps, fault correction and questions regarding bills. All employees will continue with unchanged pay and employment terms for now at the same TDC Group site.

"This is TDC Group’s largest outsourcing initiative to date, and we have prioritised ensuring as much security as possible for our employees in the process. We have achieved this through our agreement with Sitel," says Jens Aaløse.

Sitel is one of the world’s largest providers of customer service and support. The company has 56,000 employees in 23 countries, and manages e.g. support functions for a number of international companies in entertainment and online trading. From its London site, the company manages support for various enterprises in the Nordic market. In the contract with TDC Group, Sitel commits e.g. to significantly reduce waiting times for telephone support compared with current times.

”We have taken over customer centres and support functions for both small local and very large international enterprises. Our core task is to provide high-quality service and support that contributes to retaining and increasing our clients' customer bases. That is also our task for TDC Group," says Country Director Steffen Bagge of Sitel Denmark.

The agreement with Sitel will ensure that TDC Group customer support expenses fall, and part of this saving will be invested in the remaining employees in the form of e.g. training, upgrading and career plans.

"Sitel specialises in providing high-level customer support which in itself can raise the quality. When adding our education and training activities and the fact that we recently recruited an additional 100 employees, the overall gain will clearly enhance our customer experience with easier and faster access to contact with the right employee, etc.," says Jens Aaløse.

The changes in TDC Group's customer service result from an internal survey implemented at the beginning of the year. The survey identified where and how TDC Group can hand over existing operating functions to external partners as changing market conditions increasingly prompt the telecommunications, content and entertainment industries to merge.

 

Facts about Sitel and the agreement with TDC Group

·  The agreement covers approx. 800 employees in e.g. support functions in Copenhagen, Aarhus and Sønderborg. In Sønderborg, it involves employees in the TDC-owned CCE (Contact Centre Europe).

·  The agreement will take effect from 6 October, and the employees will continue with unchanged pay and employment terms, and for the time being at the same workplace.

·  In connection with natural attrition, Sitel will gradually transfer jobs from Copenhagen and Aarhus to Sønderborg, and from the spring 2015, also to London. Relocation of jobs to Sønderborg and London is expected to be completed by year-end 2015.

·  Sitel expects to have approx. 150 TDC supporters at its London site by year-end 2015. Sitel's London site is currently managing support for other Danish firms, and typically its employees are Danes living in England.

·  Sitel is American owned and currently has more than 56,000 employees in 23 countries. The enterprise has 110 customer support centres worldwide and offers customer service and support in 40 different languages.

·  Sitel began operating in Denmark in 2002 and now has approx. 100 employees at its Copenhagen site.

For more information, please contact:

TDC Press, tel. +45 70 20 35 10


In the autumn, about 800 employees from TDC's customer support will transfer to a new employer. TDC has contracted Sitel, a large international service provider, to handle future customer support and some other functions for Denmark's largest telecommunications company.

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TDC and YouSee ready to launch unlimited reading for all Danes

Press Releases   •   May 19, 2014 14:01 BST

TDC's and YouSee's customers are the first in Denmark who can read books on their mobile phones and tablets and pay the bill via their subscriptions. This will be accomplished in collaboration with Mofibo, the e-book service, which has more than 10,000 books in its virtual bookcase.

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TDC: Satisfactory development in Q1

Press Releases   •   May 06, 2014 07:07 BST

TDC Group navigated the first quarter with a satisfactory development in both EBITDA and cash flows. This progress was driven by e.g. the best development in organic gross profit in three years and higher organic opex savings than expected. Though revenue remains challenged, TDC affirms its guidance for 2014.

Carsten Dilling, TDC's President and CEO, says:

"Our landline business continues to deliver solid results with growth in TV and broadband subscriber bases. Organic gross profit from mobility services also showed satisfactory results, confirming our focus on profitability. That said, we delivered a disappointing trend in our mobile subscriber base due partly to the loss of low-spending customers, and are therefore planning a number of new and interesting product launches in the residential market in Q2 without compromising on profitability.

In line with our strategic plan for 2013-15, we launched a number of new products and services in Q1, including attractive TDC TV packages,  and we expanded our footprint within the strategically important area of digital content services as we entered the sports betting market through our ownership of Bet25 (a ~DKK 2bn market).

We have now successfully transferred the mobile network operation to Huawei and have upgraded our 4G network in Northern Zealand and Bornholm with satisfactory results. We expect to provide the remainder of Zealand (including Copenhagen) with superior 4G coverage within the coming six months.

In Q1, customer satisfaction scores were affected by unsatisfactory service levels in our call centres, where increased sales of more complex household solutions are naturally producing longer customer inquiries. We will continue to target improved service levels by raising staff levels and competencies in customer services.

Our focus on productivity will, however, continue unchanged, e.g. by ambitiously transforming TDC Group's digital profile and establishing a call centre in Flensburg at very attractive costs.

Recently, we announced the divestment of our Finnish activities as a result of further focusing on our Nordic business. At the same time, we have signed a strategic cooperation agreement with DNA Oy that enables us to continue to service both existing and new pan-Nordic customers. We have earmarked DKK 500m from the proceeds of this for investment in profitable growth initiatives over the period 2014-2015."


TDC Group navigated the first quarter with a satisfactory development in both EBITDA and cash flows. This progress was driven by e.g. the best development in organic gross profit in three years and higher organic opex savings than expected

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TDC divests and opens strategic cooperation in Finland

Press Releases   •   Apr 29, 2014 07:35 BST

On Tuesday, the TDC Group and the Finnish telecom provider DNA concluded a strategic cooperation agreement for the Finnish market. Under the agreement, DNA will acquire the TDC Group's local Finnish activities for a price of EUR 154 million (approx. DKK 1.15 bn). The TDC Group will continue to provide solutions for pan-Nordic business customers and international wholesale customers in Finland in co-operation with DNA.

“Our cooperation with DNA has historically been excellent and is further strengthened with this agreement. At the same time we ensure access for our pan-Nordic customers to a strong local partner with its own mobile network in Finland. DNA has the size and the experience to handle this task,” says Asger Hattel, Senior Executive Vice President of TDC Nordic & Wholesale.

Specifically, DNA will take over the two TDC companies TDC Finland Oy and TDC Hosting Oy as well as their Finnish customers. The TDC Group will continue to have a fibre based transmission network in Finland as part of TDC’s European Ring and thus continues to be the only provider offering one overall Nordic fibre infrastructure.

“Our main focus has been to ensure the best possible service for our pan-Nordic business customers and international wholesale customers, which is exactly what this agreement does. At the same time, our local Finnish customers will remain in safe hands. The agreement leaves TDC as the strongest telephony and data solutions partner in the Nordic region,” says Asger Hattel.

The acquisition of TDC's Finnish subsidiaries significantly strengthens DNA's position in the Finnish corporate market:

“With our cooperation, TDC's customers in Finland will be able to make use of TDC's high-quality international connections also in the future. At the same time, the arrangement will broaden our service offering for both DNA and TDC customers,” says DNA CEO Jukka Leinonen.

DNA will pay the TDC Group €154 million (app. DKK 1.15 bn) on a cash and debt free basis for the Finnish activities. The transaction is subject to approval from the Finnish competition authorities. This is expected to be received in Q2 this year. The parties have agreed on a 24-month transition period to ensure the best possible customer experience for relevant customers.

Facts about TDC Finland

·  TDC Finland is a leading provider of telecommunication services to large enterprise, public accounts and wholesale customers

·  The product range includes data, mobile, fixed voice and hosting

·  TDC Finland also offers hosting and IT solutions with a primary focus on managed hosting

·  In 2013, TDC Finland generated revenues of DKK 698m

Facts about DNA

·  DNA is Finland's third-largest telecom provider providing high-quality voice, data and TV services for communication, entertainment and working

·  The company includes a residential and a business division

·  DNA is the largest cable TV provider in the Finnish market and the leading pay TV provider in both the cable and terrestrial networks

·  In 2013, DNA recorded a turnover of EUR 766 million and an operating profit of EUR 44 million. DNA Ltd has more than 3 million mobile communications and fixed network customers


On Tuesday, the TDC Group and the Finnish telecom provider DNA concluded a strategic cooperation agreement for the Finnish market. Under the agreement, DNA will acquire the TDC Group's local Finnish activities for a price of EUR 154 million (approx. DKK 1.15 bn).

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TDC customers welcome seamlessly integrated solutions

Press Releases   •   Feb 04, 2014 07:06 GMT

TDC’s Financial Statements, published today, prove that the Group's Strategy 2013-2015 is already generating solid results as the Group's seamlessly integrated new solutions targeting families and couples have proved a success. The share of high-spending households grew by 46% in 2013 due mainly to the sale of products combining TV, broadband and mobile services, as described in the Financial Statements for 2013 where high-spending customers are defined as those spending more than DKK 600 a month excl. VAT.

"Our strategy is to offer solutions covering the needs of entire households, and we are pleased to see this is paying off. We are also aiming to further increase customer satisfaction while compensating for the restricted pricing evident in this highly competitive market where attractive new services are constantly in demand," says Carsten Dilling, CEO of the TDC Group.

The TDC Group met its expected EBITDA of DKK 10.1bn and the Group's profit margin was 41.2% compared with 39.5% in 2012. With these satisfactory results, the TDC Group will pay the target dividend of DKK 3.70 per share.

"Our employees have performed outstandingly well in a very difficult and competitive market. We managed to improve customer satisfaction, and more customers are now recommending our solutions to friends and acquaintances. We also succeeded in raising our earnings capacity and launching a full range of popular new products," says Carsten Dilling.

The declining revenue experienced in recent years continued in 2013. The TDC Group achieved revenue of DKK 24.6bn against DKK 26.2bn in 2012. EU price regulations single-handedly reduced the revenue by DKK 656m. Sales of mobile phones and sales in the Nordic business market were disappointing for the TDC Group.

In 2013, the TDC Group’s investments in infrastructure expansion totalled DKK 3.7bn, up by DKK 250m, and related mainly to increased investments in the roll-out of superfast broadband and the 4G mobile network.

In 2014, the TDC Group is expecting organic revenue to decline less than in 2013, and predicts EBITDA of at least DKK 9.8bn. A dividend of DKK 3.70 per share is maintained. The investment level is also expected to remain level at approximately DKK 3.7bn.


TDC’s Financial Statements, published today, prove that the Group's Strategy 2013-2015 is already generating solid results as the Group's seamlessly integrated new solutions targeting families and couples have proved a success. The share of high-spending households grew by 46% in 2013 due mainly to the sale of products combining TV, broadband and mobile services.

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TDC acquires Blockbuster name

Press Releases   •   Jan 20, 2014 10:35 GMT

The TDC Group is preparing a new offensive move in the digital film rental market where TDC is already a market leader. The group has acquired the Danish rights to the Blockbuster name, which for almost two decades has been synonymous with film rental.

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TDC proud presenting partner of the Eurovision Song Contest 2014

Press Releases   •   Nov 27, 2013 08:46 GMT

TDC, the largest Danish provider of TV & entertainment, broadband and mobile solutions, is today announced as presenting partner of the Eurovision Song Contest 2014 with the European Broadcasting Union.

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Stable earnings despite revenue pressure

Press Releases   •   Nov 01, 2013 07:17 GMT

TDC's earnings remain stable due partly to its positive performance in the mobile market and reduced operating expenses. On this basis, TDC is affirming its net income outlook for 2013 though the Group's revenue was lower than expected, as described in the Q3 Interim Report.

“Our domestic mobile business is generating such excellent trends that in the third quarter we saw the best development in earnings for the past two years in that sector. That and the further reductions in operating expenses are important reasons for both cash flows and profit margins developing reasonably well,” says Carsten Dilling, President and CEO of TDC A/S.

In Q3, TDC Group revenue totalled DKK 6.1bn, a decline of 4.4% on Q3 2012. Compared with Q1 and Q2 2013, this is an improvement; however TDC had expected higher revenue than the level actually achieved as sales of mobile phones were not as high as anticipated and the Nordic market is not performing on par with expectations.

“We expect this trend to continue in Q4, due primarily to developments in Nordic and some uncertainty concerning deliveries of the most popular mobile phones. However, our earnings capacity is so stable that this will not affect our 2013 net income outlook. We expect 2013 to end at the income we stated in the outlook initially published," says Carsten Dilling.

TDC's revenue reached approximately DKK 18.5bn in the first nine months, a decline of approximately DKK 1.1bn compared with Q1 - Q3 2012. Half of the decrease reflected legislation requiring the telecommunications companies to reduce their prices for e.g. mobile telephony.

TDC is currently expecting full-year revenue of approximately DKK 24.5bn - DKK 25.0bn. The Group’s 2013 capital expenses outlook remains at approximately DKK 3.7bn. TDC is also affirming its EBITDA outlook of DKK 10.0bn - DKK 10.2bn and dividend per share of DKK 3.70.

TDC's earnings remain stable due partly to its positive performance in the mobile market and reduced operating expenses. On this basis, TDC is affirming its net income outlook for 2013 though the Group's revenue was lower than expected, as described in the Q3 Interim Report.

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Positive trends in TDC's core business

Press Releases   •   Aug 07, 2013 07:07 BST

TDC's core business is reflecting positive trends in performance. As presented in the Interim Report TDC’s earnings within mobility services showed improved development in the second quarter of 2013 compared with many past consecutive quarters, and its overall landline business also improved.

"TDC’s Q2 performance meets expectations, and we therefore confirm our 2013 guidance. We are also pleased to reveal results that confirm our continuing positive trends in our traditional core business, mobile and landline telephony. We have successfully curbed the decrease in revenue per mobile user, and in terms of landline business, have attracted 22,000 more retail customers than one year ago. In other words, we have increased the number of broadband customers for the eighth consecutive quarter," says Carsten Dilling, TDC's President and CEO.

In Q2, TDC Group revenue totalled almost DKK 6.2bn, a decline of approximately 6.5% compared with Q2 2012. Almost half of the decrease was due to price regulations by the authorities in the telecommunications market. Revenue was also impacted to some extent by declining sales of mobile phones.

In the TV market, TDC has continued to grow its revenue, and the cable-TV business, YouSee, achieved rising profit (EBITDA) for the 50th consecutive quarter compared with the same quarter of the previous year. Growth in on-demand streaming of film and TV series continued at a very high level, and in Q2, the TDC Group increased its streaming events by 123% compared with Q2 2012.

In Q2, the Nordic market saw a slight decrease in revenue, but an improved earnings capacity and overall TDC Nordic's EBITDA rose by almost 7% compared with Q2 2012.

Compared with Q2 2012, Group EBITDA, i.e. operating profit before interest, taxes, depreciation, amortisation, etc. decreased by 1.4% - an improvement on Q1 2013. For the first time in seven quarters, TDC recorded an increase in organic EBITDA, i.e. EBITDA excluding the effect of regulation by the authorities, fluctuating currency rates, and acquisitions and divestments.

In Q2, gross profit and EBITDA margins improved in all business areas in relation to Q1 2013 and Q2 2012.

“We are continuing to roll out our 2015 strategy with a focus on integrated solutions for businesses and residential customers. The recently announced integration of TDC and YouSee is an important step in that direction. With Jens Aaløse and Peter Schleidt as Senior Executive Vice Presidents, for TDC Channels and TDC Operations, respectively, joining the Executive Committee, we have gathered a perfect team to help implement the strategy smoothly and efficiently. The high customer satisfaction score first measured in 2012 remains clearly evident in 2013, showing that our customers genuinely appreciate TDC’s ongoing transformation,” says Carsten Dilling.


TDC's core business is reflecting positive trends in performance. As presented in the Interim Report TDC’s earnings within mobility services showed improved development in the second quarter of 2013 compared with many past consecutive quarters, and its overall landline business also improved.

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