TDC divests hosting business as revenues and profits decline

TDC

Denmark’s TDC has divested its hosting business as it seeks to reduce its debt in the wake of a decline in 2016 revenues and earnings.

The sell-off of TDC Hosting to Maj Invest Equity is expected to be completed within two to three months, subject to approval from the Danish Competition Authority.

Financial details of the transaction were not disclosed, but follow the sale of its Swedish arm to Tele2 in SEK 2.9 billion deal last year.

TDC saw a 2.6 percent drop in revenues to DKK 5.4 billion in the fourth quarter and a 4.1 percent decline for the year overall to DKK 21 billion as a fall in legacy voice revenues continued to weigh heavily.

TDC Group CEO and President Pernille Erenbjerg also admitted that there were problems associated with the rebranding of the consumer unit in Denmark to youSee, in addition to a loss of TV signal on New Year’s Eve.

"Many customers did not have a good enough customer experience in the transition period between two brands and two IT systems,” she said.

“However, towards the end of the year, we saw a marked improvement, and we have now created a simpler model that benefits both our customers and our own production.”

There was better news in Norway, where TDC registered a 2.9 percent increase in sales, and at its wholesale business, which saw revenues grow 2.4 percent.

Group EBITDA fell 10.4 percent to DKK 2.1 billion in Q4 and 10.5 percent to DKK 8.5 billion, although the operator said this performance was better than it expected.

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