Danish telecommunications market has been hotly contested and the competition seems to work well with customers being able to switch to lower fixed price plans. Companies are of course not equally pleased and whispers of industry consolidation have been running wild.
The 2nd and third largest teleoperators in Denmark are TeliaSonera (OMX: TLSN) and Telenor (OSE: TEL). They have recently entered network sharing agreements and many experts see inevitable further actions one way or another on that front. TeliaSonera reported an EBITDA margin of under 10% from Danish operations in its Q4 report.
The largest telecommunications company in Denmark is the local incumbent TDC A/S (OMX: TDC). TDC is also active in broadband and pay-tv. The company reported quarterly earnings on Friday. They described fourth quarter and full year 2011 results as solid despite a challenging market sentiment.
Full-year revenue grew by half a percent and fourth quarter was 1.1% above last years’ level (26.3 and 6.66 billion DKK respectively). The company managed to maintain an EBITDA margin of over 40%. TDC said it has not responded to heavy promotion activities from its competitors but still maintained subscriber base on par with Q3 2011. Dividend for 2011 shall be 4.35 DKK, with 2.18 paid on August 10th.
TDC is guiding 2012 revenues in between 26 and 26.5 billion DKK with EBITDA before pension income of 10.3 to 10.5 billion. It currently estimates dividend per share from 2012 (pre buy-back) as per TDC’s dividend policy to grow to 4.5 DKK a share. Majority DPTG and TPSA dispute settlement proceeds will be distributed to shareholders via one-off share buy-back programme. Markets had been expecting slightly higher 2012 guidance and the stock was down by over 1.5% on Friday.
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