Denmark’s struggling incumbent TDC hailed the first organic gross profit growth in more than five years from its domestic mobile business.
The improvement in Q2 may only have been by 0.4 per cent, but CEO Pernille Erenbjerg described it as “an important milestone”, following a fall in gross profit of DKK1.5 billion ($225 million) between 2011 and 2015.
The improvement came from an increase to consumer mobile prices in Q3 2015, as well as benefits from the company’s upgraded domestic network.
A month ago, the incumbent was the subject of what it described at the time as a highly preliminary approach from Apollo Global Management, a private equity firm, regarding a possible takeover. The company described the bid as “financially inadequate” and did not pursue.
Overall, Q2 group revenue fell by four per cent to DKK5.2 billion compared with the year ago period, although it was buoyed by a 3.5 per cent rise from the consumer mobile unit in Denmark.
Other domestic consumer services – fixed voice, internet and TV – all saw revenue declines of varying amounts. Revenue from the business segment also shrank, as did its Norwegian unit.
The only other revenue rise was from its Wholesale business.
Profit for the period fell to DKK565 million from DKK570 million in the year ago period.