November 1, 2013 / 9:23 AM / 7 years ago

UPDATE 1-TDC cuts sales outlook in Nordic telecoms price war

* Q3 core underlying profit 2.62 mln DKK vs 2.59 mln forecast

* Full-year sales outlook lowered to 24.5 - 25.0 bln DKK

* Q3 revenue in Nordic countries fell by 6 percent (Adds details, analyst comment, share price)

COPENHAGEN, Nov 1 (Reuters) - Danish telecom operator TDC cut its full-year sales outlook as increased competition lowered prices in its Swedish, Norwegian and Finnish businesses in the third quarter.

TDC’s revenue fell by 6 percent in the three countries, reversing a long trend of growth reflecting the company’s success as a challenger in Nordic markets outside its Danish home patch.

Revenue fell to 1.00 billion Danish crowns ($182.3 million), slightly below an average forecast of 1.04 billion in a Reuters poll of analysts.

“Competitors are now more attentive to TDC Nordic’s strengths and this has affected the number of new contract wins and renegotiated prices,” TDC said.

TDC competes with Sweden’s TeliaSonera and Norway’s Telenor in the region.

The group now expects full-year sales of between 24.5 billion and 25.0 billion crowns, down from an earlier forecast of between 25.0 billion and 25.5 billion.

It stuck to its target for full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) at between 10.0 billion and 10.2 billion crowns.

“The competitive environment in the Nordic countries is worsening rapidly, and it is serious for TDC as its Nordic division has been seen as one of its few growth drivers,” Sydbank analyst Morten Imsgard said.

Telenor on Thursday lowered its 2013 revenue guidance on weakness in its Norwegian and Swedish businesses.

TDC’s EBITDA fell to 2.63 billion crowns from 2.67 billion in the third quarter last year, slightly above a forecast of 2.59 billion in the Reuters poll.

The group’s total revenue was also hurt by new regulations for mobile voice termination rates and fell by 4.4 percent to 6.07 billion crowns.

Shares in TDC were 1.2 percent lower at 0843 GMT, while the Danish benchmark index traded 0.5 percent higher.

$1 = 5.4862 Danish crowns Reporting by Teis Jensen, additional reporting by Stine Jacobsen, editing by Erica Billingham

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