There are positive signs in TDC Group’s Danish business where the development in gross profit is at the best level in six years. This appears from the financial statements for the first three months of 2017.
TDC Group’s first quarter financial statements show significant improvement in the Danish business. Despite continued fierce competition in the Danish market, gross profit in the Danish mobile business increased for the second consecutive quarter, and the development in gross profit for the entire Danish business is at the best level in six years. The group’s total revenue improved and increased 0.7% relative to the previous year.
- The results are satisfactory, which confirms that we are on the right track in our efforts to stabilise the business in 2017. All key financial ratios are showing improvement, says Pernille Erenbjerg, Group CEO and President of TDC Group.
TDC Group thus delivers financial statements fully in line with the strategy ‘Always Simpler and Better’, which in 2017 is focusing on stabilising the business as a basis for growth in the coming years.
Increasing customer satisfaction
Better cash flow and improved customer satisfaction are two cornerstones in TDC Group’s strategy, with both seeing a positive trend in Q1.
- We are experiencing increased customer satisfaction, and we are also seeing tangible results of our work to give customers a better experience when they are in dialogue with us. Not least at Telmore and Get, which recently won awards for the best customer service in Denmark and Norway, respectively, says Pernille Erenbjerg.
In Q1, the number of support calls to customer service decreased significantly, with 9% fewer calls than in Q1 2016.
The financial ratios pointed in the right direction in Q1 despite the fact that the number of Danish mobile and TV customers declined by 4,000 and 22,000, respectively, relative to the end of 2016. Revenue for the entire TDC Group totalled DKK 5.2bn, up 0.7% on the same period the previous year. Earnings (EBITDA) declined 0.9% to DKK 2.1bn.
- There are several positive signs in the financial statements, but I am particularly pleased that we are now seeing signs of improvement in the otherwise very challenging Danish market, customer satisfaction is increasing, and Get continues to deliver high growth rates in Norway, says Pernille Erenbjerg.
Both revenue and earnings improved relative to the development in 2016, where they declined by 4.1% and 10.5% compared with the previous year.
- However, we are only one quarter into the year, and some of the greater challenges and uncertain factors are waiting in the coming quarters. It is not yet clear what impact the future European roaming regulation will have, and we are also facing a large public tender in the market, which may have a significant impact on our earnings in the coming years, says Pernille Erenbjerg.
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