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UPDATE 1-TDC says 2017 profit may drop as business segment drags
February 3, 2017 / 10:40 AM / 8 months ago

UPDATE 1-TDC says 2017 profit may drop as business segment drags

(Adds CFO comments)

Feb 3 (Reuters) - TDC A/S :

* Danish telecoms firm TDC reported fourth-quarter EBITDA of 2.01 billion crowns (Reuters poll 2.1 billion crowns) , driven by a 13.3 percent decline in Denmark

* Expects 2017 EBITDA of more than 8.3 billion crowns, below the 8.5 billion crowns seen in a Reuters poll of analysts. Ebitda stood at 8.5 billion last year.

* “The guidance we announce is the one we believe in,” said TDC’s chief financial officer, Stig Pastwa, when asked whether he saw an upside to the new guidance

* “For a big portfolio company like ours it is difficult to just turn the whole thing around”

* EBITDA for TDC’s Danish business division declined 14.3 percent in 2016 compared to 2015

* “This (the business segment) is where we see the big negative pressure. We expect a fall in revenues in 2017 as well,” Pastwa says

* Expects TV unit and Norwegian business to drive growth in 2017

* “Right now, I think it important to deliver on our existing business, but should an opportunity arise then we would have to assess that,” Pastwa said when asked about possible M&A activity

* Q4 revenue 5.42 billion Danish crowns ($785 million) (Reuters poll 5.43 billion crowns)

* For 2018, ambitions unchanged on cash flow and customer satisfaction

* Dividend payment for the financial year 2016 of 1.00 crowns per share is expected to be distributed in March 2017 following approval at AGM

* For financial year 2017, expects to recommend dividend of 1.05 crown per outstanding share, which will be distributed in Q1 2018 Source text for Eikon: Link to Reuters poll:

Further company coverage: ($1 = 6.9126 Danish crowns) (Stine Jacobsen and Gdynia Newsroom; Editing by Jacob Gronholt-Pedersen)

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