TDC hit by loss of pay TV customers

Danish telco and cable operator TDC was hit by the loss of pay TV subscribers in the first quarter, contributing to a 4.1% reduction in revenue and a 2% drop in EBITDA.

In the first quarter of 2020, TDC Group’s revenue decreased by 4.1% or DKK 178 million (€23.8 million) to DKK 4,126 million, when compared with the first quarter of 2019. The decline was driven mainly by TV, other services and the continued decline in landline voice

EBITDA decreased by 2.0% or DKK 34 million to DKK 1,664 million

TV revenues for the quarter were DKK893 million, down from DKK992 million for the same period last year.

Service arm Nuuday’s TV gross profit showed a decrease of 12.7% to DKK406 million. ARPU for TV customers declined by DKK3 to DKK265.

TV revenue-generating units at the end of the quarter stood at 1.11 million, down 61,000.

The operator said that TV ARPU declines were driven by high ARPU customers’ churn and migration of customers to lower-cost services.

It said that the RGU loss stemmed from the general market development and the impact of the termination of its Discovery contract. However, TDC said that increased customer losses were experienced early in the quarter and are expected to normalise at lower levels going forward.

Nuuday also lost 31,000 broadband customers in the quarter, taking its total to 990,000.