TDC Group performs as expected in Q1, and with the launch of new TV boxes in both Denmark and Norway, higher customer satisfaction as well as the completion of a large customer migration, the new Always simpler and better strategy is off to a good start. The number of residential mobile customers has seen an increase of 37,000 over the past 12 months, and mobile revenue in the residential market is growing again.
TDC Groups revenue for Q1 2016 totals DKK 5.8 billion with earnings (EBITDA) at DKK 2.2 billion, which is 10 per cent down on Q1 2015. Cash flow is 3 per cent higher than in 2015. TDC Group thus performs as expected, despite still facing challenges, in particular in the highly price competitive Danish market.
Outside Denmark, the business is still performing well. In the Norwegian business, earnings (EBITDA) rose more than 18 per cent, and in Sweden earnings (EBITDA) were up by approx. 3 per cent.
New products for our customers
Back in January, TDC Group launched its new Always simpler and better strategy as its overall and shared approach, and since then new TV boxes have been launched for the YouSee customers and the Get customers in Norway. The mobile network has once again been named the best in Denmark, and this has combined with reduced waiting time in customer service made more customers recommend TDC Group. TDC Business has expanded its cloud portfolio with the acquisition of Cirque.
Im satisfied that we deliver the promised financial performance, even though were still facing many challenges, in particular in the Danish market. Despite the challenges, we are, however, off to a good start with our new strategy, and have already launched a number of initiatives to improve customer experience, for example new TV boxes for YouSee and Get customers and new cloud products for our business customers, says Group CEO and President Pernille Erenbjerg.
In addition to the ongoing testing of gigabit superfast broadband, TDC Group has also improved the broadband network in a number of rural areas. Most recently, new broadband networks installed on Alr in Horsens Fjord, Trend near the Limfjord and Gr se near Frederikssund.
We want to give the Danes the very best connection, regardless of where they are. In addition to our giga project, were still working to improve our mobile network, so even more Danes will get better connections. In 2016 alone, we expect to build more than 100 new mobile masts, says Pernille Erenbjerg.
The mobile network is also being used by more residential customers than a year ago. Thus, the number of residential mobile customers has seen an increase of 37,000 over the past 12 months. It also means that after several years with declining revenue, revenue for mobile telephony for residential customers is again growing.
More than a million customers migrated
TDC Groups strategic ambition of simplifying the business is also reflected in the IT systems supporting all TDC Groups customer relations and products. Most recently, in April more than a million YouSee customers were migrated from one IT system to another.
Migrating more than a million customers is perhaps the largest digital migration project ever in Denmark, and several large IT projects are in the pipeline. With such projects, theres always a risk that there will be bumps along way, but its necessary to ensure simpler IT systems that allow us to offer our customers a better service, says Pernille Erenbjerg and continues:
With the recent appointment of Jaap Postma as Head of YouSee, the Corporate Management Team in TDC Group is now complete and ready to work with our talented employees. We have a long journey ahead, but Im pleased that were off to a good start.
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TDC Group performs as expected in Q1, and with the launch of new TV boxes in both Denmark and Norway, higher customer satisfaction as well as the completion of a large customer migration, the new Always simpler and better strategy is off to a good start. The number of residential mobile customers has seen an increase of 37,000 over the past 12 months, and mobile revenue in the residential market is growing again.
