TDC sees TV subscribers and revenues drop as it preps revamp

TV and internet services contributed to a sharp decline in revenues for Denmark’s TDC in the first half of this year, with sales dropping by 5.9% to DKK8.041 billion. EBITDA also dropped ­– by 2.8% ­– to DKK3.273 billion.

The operator’s TV base continued to decline, with a decline in demand for antenna upgrades and services to third-party antennal organisations also contributing to the slide in revenues.

TDC had 1.069 million TV subscribers at the end of June, down 41,000 quarter-on-quarter and down 145,000 year-on-year.

Service provider arm Nuuday saw its TV revenues fall from DKK988 million to DKK864 million in the second quarter, and declines in TV also hit network arm TDC Net.

TV gross profit declined by19.4% year-on-year. TDC said that this was driven by an RGU erosion that decreased TV revenue substantially compared to Q2 last year. Content costs in Q2 were lower than same period last year, but the revenue loss was greater than the cost saving, resulting in a lower TV gross profit margin. On the bright side, the telco said that throughout Q2, the net add trend improved compared to Q4 and Q1.

TV ARPU declines by DKK4 in the quarter to DKK261 a month.

TDC plans to revamp its YouTV offering later this summer, with the launch of a TV and streaming service, bringing content together in a single app and allowing customers to choose a mix of TV channels and streaming services.

TV-related highlights of the second quarter for TDC included a trial with public broadcaster YV2 of 5G in Helsingør.

Overall, TDC posted revenues of DKK8.401 billion for the first half, down 5.9%, and EBITDA of DKK3.27 billion, down 2.7%.