TDC Holding group’s revenue increased by 1.0% in Q1 2022 as compared to Q1 2021 (Q1 YoY). Revenue development was positively impacted by a high growth in revenue from mobility services.
Gross profit decreased by 1.3% Q1 YoY, related to landline voice and 3rd party costs.
Operating expenses decreased by 0.6% Q1 YoY, which reflects cost savings across TDC Holding, TDC NET and Nuuday in e.g. support functions.
EBITDA decreased by 1.8% Q1 YoY and totalled DKK 1.604m in the first quarter. The development was triggered by declines in gross profit in other services, internet & network and landline voice that were somewhat offset by cost savings.
Capital expenditure totalled DKK 935m in Q1, which is a decrease of 7.6% compared to Q1 2021. The decrease partially reflects lower expenditure on coax following the end of the DOCSIS 3.1-upgrade. TDC Holding group’s high investment level reflects the ambition to roll-out fiber to connect Denmark and support Nuuday’s digitalisation.
The net proceeds from TDC NET’s term facilities have been upstreamed to TDC Holding to prepay its EUR 1.9bn term loan B and amounts drawn under its EUR 845m RCFs. The EUR 500m ETMN ’22 was redeemed at maturity in March 2022.
TDC NET highlights for 2022 Q1
Revenue stabilisation (-0.2% Q1 YoY) as lower revenue from legacy products was offset by increase in revenue from high-speed broadband and mobility services.
TDC NET’s EBITDA totalled DKK 1,162m, up by 0.7% Q1 YoY, mainly due to improvement in operating expenses by 3.2% Q1 YoY despite higher electricity prices.
Capital expenses of DKK 781m in Q1 (11.3% Q1 YoY) as a result of continued investment in IT and fibre
TDC NET rolled out 20k fibre homes passed in Q1, which is more than last year (17k) due to a mild winter
Danish Technological Institute has awarded TDC NET again as the best mobile network in Denmark 7th time in a row and remains the only company in the country with a nationwide and fully operational 5G network.
TDC NET has entered a new secured infrastructure financing of DKK ~25bn to stand-alone finance TDC NET as part of the separation of TDC Group.
In Q1, TDC NET connected to the first solar park as part of the power purchasing agreement. During 2022 more solar parks will be activated so more than 60% of TDC NETs annual electricity consumption will be covered by solar energy.
Nuuday highlights for 2022 Q1
Nuuday service revenue grew by 2% Q1 YoY driven by a 6% increase in mobility service revenue across business and consumer segments, offsetting declining revenue from mature services.
Gross profit decreased by 4% Q1 YoY partly driven by increasing 3rd party costs and the ongoing migration from DSL to fibre.
Nuuday decreased operating expenses in Q1 YoY by 2%.
EBITDA decreased by 6% Q1 YoY driven by the gross profit margin pressure as well as investments in customer experience and early stages of our business transformation.
Capex increase by 1% Q1 YoY as Nuuday started to invest in its business transformation programme, which will intensify throughout 2022.
Nuuday continued to deliver on its strategy with stable customer performances in key strategic products of mobile and high-speed broadband.
The consumer mobile subscriber base grew by 2.000 RGUs, while seeing a modest customer loss in fixed broadband of 1.000 RGUs. This marks a significant improvement over recent quarters in core consumer market segments.
The overall B2B RGUs base continued to grow, led by mobile voice.
Nuuday enjoyed strong sales on third party fibre networks across all brands, thanks to our market-leading range of deals with utility providers. This was fuelled by further market opening with YouSee and TDC Erhverv gaining access to Thy-Mors Energi network.
Nuuday strengthened the market-leading entertainment position by making Disney+ available to YouSee Bland Selv and Telmore Play customers, while we launched widely appraised new content within the YouSee Originals framework.
Nuuday also strengthened the market-leading 5G offering by including 5G in all One+ business mobile subscriptions while doubling the amount of data included in all business subscriptions.
Conference call details
A conference call will be held on 06 May 2022 at 13:30 CET.
Presentation material will be available prior to the conference call on www.tdcgroup.com
Dial-in details: +45 32 72 51 67 - Meeting ID: 866 999 305#
For investor enquiries: +45 66 63 76 80
Bloomberg TDC DC.