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2012 delivered on guidance

Press Release   •   Feb 05, 2013 07:02 GMT

TDC’s Financial Statements, published today, prove that the Group's new strategy is already generating solid results. With revenue of DKK 26.1bn and EBITDA bpi of DKK 10.3bn, TDC fulfilled its guidance for 2012. The Group reduced its operating expenses by approximately DKK 500m, or 6%, in 2012 and its solid EFCF supports the expected payout of a DKK 4.60 dividend per share.

As Carsten Dilling, TDC’s President and CEO, points out, these results were achieved despite fierce competition in the Danish telecommunications market:

"The price war in the residential mobile market has affected the industry for too long. We have clearly stated that we wish to create a healthier market in the long term. Our 2012 results show that the process of translating this statement into action is well under way."

The CEO is referring to the focused efforts that led to the solid results in TDC's residential mobile activities, where ARPU remained stable throughout all quarters of the year.

TDC Nordic and the TV business also delivered strong results in 2012, including a 57,000 rise in the Group's total number of TV customers compared with 2011.

On the subject of the converse development in business mobile activities, the CEO is optimistic.

"We are focusing clearly on creating better results in TDC Business' mobile activities, which are negatively impacted by the general economic recession, for example. It's a challenge that will take some time to overcome. However, with our new long-term strategy for TDC Business, new products such as TDC Business One, and a strong new management team, I'm convinced this is another task we will accomplish with confidence," says Carsten Dilling.

The CEO is keen to continue exploring the opportunities intrinsic to the new Group strategy presented in November 2012:
"Our new three-year strategy was warmly welcomed both by investors and our employees, just as our new initiatives, such as YouBio and consolidating our residential brands, were popular with our customers. We can all look forward to translating more aspects of the strategy into concrete initiatives and products in 2013 and the future," concludes Carsten Dilling.

In 2013, TDC expects revenue of DKK 25.0-25.5bn, EBITDA bpi in the interval of DKK 10.0-10.2bn, increasing investments and cash flows supporting a targeted dividend of DKK 3.7 per share.