Wireless Federation

TDC revenues flat despite rising competition (Denmark)

On 02.04.11, In Mobile, By Editor

TDC has formed concrete results as its total revenue grew by 0.3% to US$4.85 billion for the full year 2010, while EBITDA rose by 2.2% to US$2 billion. The Group’s operating free cash flow grew significantly by 15%.

According to Henrik Poulsen, TDC’s President and CEO, this represents good performance in a difficult market. Thanks to the Group’s strong brands, good products, skilled employees and highly developed technology platforms, they have succeeded in maintaining their position in a telecoms market where competition further intensified during the year.

TDC invested a total of US$640.18 million, of which the vast majority was spent on continued upgrading of the Danish fibre, cable and mobile infrastructure. Towards 2020, TDC plans to invest a total of US$4.57 billion in the Danish infrastructure.

For 2011, TDC expects to maintain its revenue in line with 2010, whereas EBITDA is expected to grow by approximately 2% compared with 2010.

Astro Selects TDC’s Fiber-Optic Network to Deliver HD IPTV Services

On 12.23.10, In Mobile, By Editor

Astro TV has collaborated with Time dotCom (TDC) to lease fiber-optic network and deliver interactive and entertainment content for customers.

Under the terms of the agreement, Astro will utilize TDC’s optical network to deliver HD video-on-demand (VOD) and Beyond and Internet protocol television (IPTV) services to users in Penang and Klang Valley.

Astro will also use the 30 Mbps broadband services from TDC for internet access. TDC will offer the optical infrastructure for the next 10 years. Both companies will enter into a definitive agreement in January 2011.

The IPTV/VOD services from Astro are currently available to 11,400 homes and will be expanded to above 167,000 homes across 1,500 buildings by the end of 2011.

Filed under:Mobile Tagged with: Astro • fiber-optic network • HD IPTV Services • Klang Valley • Mobile • Penang • TDC • VoD

TDC owners plans stake sale

On 11.26.10, In Mobile, By Editor

The private equity owners of TDC have announced plans to raise US$$4.12 billion through an almost simultaneous sale and buy-back of shares at Denmark’s leading telecoms operator.

The share sale is to be launched on December 9 and would generate the first returns for the group of five US and UK private equity groups that bought an 88% stake in TDC five years ago.

When TDC was bought by Blackstone, Permira, Kohlberg Kravis Roberts, Apax Partners and Providence Equity Partners, it was Europe’s biggest leveraged buy-out and provoked an angry reaction from unions and politicians about job cuts at one of Denmark’s biggest employers.

Now the telecoms operator’s private equity owners plan to sell 210 million shares, plus overallotment option for a further 31.5 million shares, at a price between US$8.36 and US$9.96 each.

According to the company, it was also planning to buy back US$1.60 billion of shares at the same price as the share issue, in an offer to expire by December 8.

The private equity groups are set to achieve returns of 2-2.5 times their initial equity investment, including their retained stake of about 55-60%, thanks to rapid debt reduction at the company. They will be subject to a 180-day lock-up on their remaining stakes.

According to Henrik Poulsen, chief executive, TDC would have reduced its leverage from almost six times earnings before interest, tax, depreciation and amortization at the time of its buy-out to only 2.1 times after the share sale and buy-back. TDC is currently overcapitalized and they believe shareholder value will be created by returning capital to our shareholders by way of a share buy-back.

TDC’s profit margin at the level of earnings before interest, tax, depreciation and amortization has increased from 28% in 2004 and 2005 to 41% in the nine months to September 30.

Mr Poulsen added that this company has a leading position in all sections of the Danish market; their revenue has been quite resilient in spite of a challenging macro-environment. TDC’s board planned to recommend a generous dividend policy to distribute 80 to 85% of equity-free cash flow to shareholders.

Filed under:Mobile Tagged with: Denmark • Apax Partners • Blackstone • Chief Executive • Henrik Poulsen • Kohlberg Kravis Roberts • Mobile • Permira • private equity owners • Providence Equity Partners • TDC • U.S • UK

TDC plans for $2.9 billion share issue

On 11.12.10, In Mobile, By Editor

The private equity owners of TDC are set to announce their plans to sell about US$2.9 billion of shares in Denmark’s leading telecoms operator in what will be Europe’s biggest share issue of the year.

The transaction is expected to be announced on Friday which will be completed by next month and would value TDC at about US$12 billion including debt. It would generate the first returns for the group of US and UK private equity groups that bought an 88% stake in the company in a deal five years ago.

When TDC was acquired by Blackstone, Permira, Kohlberg Kravis Roberts, Apax Partners and Providence Equity Partners, it was Europe’s biggest leveraged takeover.

But as per Kurt Bj¶rklund, co-managing partner of Permira and spokesman for the private equity consortium, the fears have been allayed and, as private equity has done elsewhere in Denmark, they have shown their positive impact on the company.

Since the takeover, Mr Bj¶rklund claimed that TDC had increased its operating profit margins, investment in its network, cash generation and customer satisfaction. The private equity groups are set to achieve returns of 2 to 2.5 times their initial equity investment, including their retained stake of about 60%, owing to rapid debt reduction at the company.

Filed under:Mobile Tagged with: Denmark • Apax Partners • Blackstone • Europe • Kohlberg Kravis Roberts • Mobile • Permira • Providence Equity Partners • Share • TDC • U.S • UK

Ericsson wins LTE contract from TDC (Denmark)

On 11.09.10, In Mobile, By Editor

Ericsson, Swedish telecom equipment maker had won a contract to supply Danish operator TDC with a fourth-generation (4G) communications network.

According to the company’s statement, Ericsson will roll out a complete 4G/LTE solution, including radio access and core network equipment, as well as managed services. The company added that the network roll-out will start immediately

According to Industry analysts, the real breakthrough is not possible until 2012-2013.

LTE technology, which is to gradually replacing 3G, enables faster access to mobile Internet services and supports the development of television, videos and photos on mobile phones.

According to TDC, the company wants to introduce 4G in six cities, including Copenhagen, in January 2011.

Filed under:Mobile Tagged with: Denmark • 3G • 4G • Copenhagen • Ericsson • LTE Contract • Mobile • Photos • TDC • television • videos

Nawras Q3 net profit climbs 62%

On 10.21.10, In Mobile, By Editor

Oman’s second national telecoms operator, Omani-Qatari Telecommunications Company (Nawras), has reported net profit for the third quarter ended 30 September 2010 of US$32 million, an increase of 62.3% year-on-year.

As per reports, revenue for the three-month period totaled US$123.89 million, an increase of 13.3% compared to the previous year, while the company’s third-quarter EBITDA jumped almost 30% year-on-year to US$65.97 million.

According to Nawras, growth was driven by increasing subscriber numbers; the company’s mobile customer base increased 13% year-on-year to 2.01 million, while around 5,000 customers subscribed to Nawras’ fixed line services, which were launched in May and July 2010 for business and residential users, respectively.

The results comprise a non-recurring provision of US$4.67 million for one-off payments to staff related to the launch of fixed line services, as well as its initial public offering (IPO).

Nawras, which was founded in 2004 by a consortium comprising Qatar incumbent Qtel (which owns a 55% stake in the company), Danish counterpart TDC (15%) and a number of Omani investors (30%), is offering 260 million shares in Oman’s first IPO in two years. The firm plans to set the final share price on 31 October, with a listing expected to take place on 3 November.

Filed under:Mobile Tagged with: EBITDA • IPO • Mobile • national telecoms operator • Nawras • Oman • Omani-Qatari Telecommunications Company • Qatar • Qtel • TDC

3 Denmark awarded additional spectrum

On 10.15.10, In Mobile, By Editor

3, the Danish unit of mobile group was awarded additional spectrum this week, a move that the company claims will aid to improve competition in the market.

According to the company, 3 Denmark will pay US$2.25 million for vacant spectrum in the 900-MHz and 1800-MHz bands. It grabbed the 2×5 MHz of 900 MHz spectrum and 2×10 MHz in the 1800-MHz band for US$1.21 million and US$60, 9720 respectively.

Since 3 was the only one in the management for the spectrum, it will pay the minimum rate set by regulator Telestyrelsen. Competitor operators TDC, Telenor and TeliaSonera were excluded from the process on the grounds that they already have 900-MHz and 1800-MHz licences. The award levels the playing field from a spectrum opinion.

According to 3 Denmark CEO Morten Christiansen praised Telestyrelsen for the way it handled the process, granting spectrum to 3 at the minimum price would have a positive impact on consumers and on the competitive landscape in the country. The company will continue to invest heavily.

Filed under:Mobile Tagged with: Denmark • 1800-MHz bands • 2x10 MHz • 2x5 MHz • 3 • 900 MHz • Mobile • TDC • Telenor • Telestyrelsen • TeliaSonera

CVC in talks to buy TDC’s Swiss Unit for US$3 Billion

On 09.22.10, In Mobile, By Editor

If sources are to be believed, CVC Capital Partners Ltd is planning to buy TDC’s Sunrise unit for US$3.3 billion.

The company in November agreed to sell the unit to France Telecom, with the plans to merge it with its Orange unit in Switzerland but the deal failed in June as the regulator rejected the merger. Regulatory said that the Sunrise sale may have hindered plans by TDC’s private-equity owners closer to sell their five-year investment in the Danish phone company.

Sunrise is Switzerland’s No. 2 operator after Swisscom AG. It gets roughly three-quarters of its revenue from wireless, with the remainder coming from fixed-line services.

According to the John Strand, it looks like a good, realistic price. There’s no doubt Sunrise is doing well, stealing market share from Orange, and the Swiss franc is up.â€

CVC is paying for the deal, valued at US$3.3 billion, with roughly one-third of its own cash and two-thirds borrowed funds, which is suggestive of the funding mix private-equity firms used before the financial crisis. More recently, with bank lending more scarce, private-equity firms have put up closer to half the purchase price in a number of cases.

According to sources, the TDC-France T©l©com deal, aimed at competing more effectively with Swisscom, was scuttled amid regulatory opposition earlier this year. CVC approached TDC’s owners soon after that deal fell apart.

CVC is paying a pretty diffident amount about six times of its recent EBITDA for Sunrise, which has little or say no debt.

Private-equity firms Apax, Blackstone Group, Kohlberg Kravis Roberts, Permira and Providence Equity Partners took TDC private in a US$12 billion deal in 2006, at the time Europe’s largest-ever leveraged buyout. The private-equity firms had been looking for an offering of TDC shares earlier this year, but those plans were complicated by the collapse of the France T©l©com deal. The prospect of an offering will likely be revived now.

According to the close sources, Proceeds from the Sunrise deal will likely be used to repay debt the private-equity firms saddled TDC with. That could pave the way for a TDC share offering as early as the fourth quarter of this year.

Filed under:Mobile Tagged with: CVC Capital Partners Ltd • Danish • EBITDA • France • France Telecom • Mobile • Orange • Sunrise • Swisscom AG • Switzerland • TDC

SC cancels fine against Telefonica

On 08.19.10, In Mobile, By Editor

Telefonica took a breath of refief when Spain’s Supreme Court Cancelled a US$ 73.045 million fine against them.

The Court for the Defence of Competition (TDC) fined Telefonica US$ 73.045 million the biggest fine in telecom history – over a complaint made by the Spanish alternative operators’ association Astel.

The association asserted that Telefonica hampered the customers for pre-selection of operators. The service allowed Telefonica subscribers to make calls to fixed-line numbers by other operators’ networks without dialing a prefix. Spain’s National Court has now canceled the fine.

Filed under:Mobile Tagged with: Astel • Mobile • Spain • Supreme Court • TDC • Telefonica

TDC revenue increases in Q1 (Denmark)

On 05.10.10, In Mobile, By Editor

www.WirelessFederation.com/news: 1.8% rise in revenue in the three months ended March 31, 2010 has been posted by Danish telecoms operator TDC which went up from DKK8.899 billion in the same period a year earlier to DKK9.062 billion (USD1.55 billion). The EBITDA rose 8.1% compared to 1Q09 totaling DKK3.345 billion while EBITDA margin rose from 34.8% to 36.9% at end-March 2010.

1.6% year-on-year growth in the gross profit took it to DKK6.448 billion. The customer base grew 4.9% year-on-year to 11.681 million in the first three months of 2010. With 10% year on year rise, TDC posted 3.374 million mobile users in its home markets. VoIP users jumped 151% year-on-year to 379,000, while retail broadband customers increased 13% to reach 1.299 million.

According to Henrik Poulsen, CEO and president of TDC, the first-quarter performance has been satisfactory and the firm will continue to increase its earnings, and maintain its positive revenue trend line despite challenging market conditions, intense price competition and the impact of regulation.

Filed under:Mobile Tagged with: Denmark • VoIP • Europe • Mobile • operator • TDC