Separate financial backing for two standalone companies
- The end of 2021 marked a key milestone as the separation of TDC Group into TDC NET A/S (TDC NET) and Nuuday A/S (Nuuday) was finalized.
- As financial backing for TDC NET and Nuuday, separate funding has been established for each entity.
- On 31 January 2022, TDC NET entered into committed term loan, revolving credit and liquidity facilities in the aggregate amount of EUR 3.3bn under the terms of a new secured infrastructure financing platform. On 3 February 2022, TDC NET borrowed an aggregate amount of EUR 2.6bn under the term facilities and the net proceeds were upstreamed to TDC Holding A/S (TDC Holding) to prepay all outstanding senior secured debt in TDC Holding, including its EUR 1.9bn term loan B and amounts drawn under its EUR 845m revolving credit facilities.
- Nuuday entered into a revolving credit facility on 31 January 2022 to support its liquidity management as a standalone company. More information on Nuuday’s future financing will follow later in Q1 and will be accompanied by a conference call on the Q4 results. In the future, investor information can be found on Nuuday’s new Investor Relations-website.
- Following the independent financing for TDC NET and Nuuday and the prepayment of the senior secured indebtedness at TDC Holding, reporting requirements have changed and TDC Holding is no longer obliged to host a quarterly conference call in connection with earnings releases. This will affect the format of future investor communication. Future reporting will focus on TDC NET and Nuuday as independently financed companies.
Improvements in commercial and financial performance continued in Q4
- TDC Holding consolidated continued to improve its commercial and financial performance throughout Q4 and ended 2021 with a slight increase in EBITDA of 0.1% compared to the guided financial performance of stable to slight decline.
- Revenue was stable in Q4 as reflected by -0.1% growth in Q4 2021 compared to Q4 2020 (Q4 YoY). Revenue development was positively impacted by a historically high growth in revenue from mobility services.
- Gross profit decreased by 2.3% Q4 YoY, driven by the gross profit margin pressure related to cost increases on content and mobility services.
- Operating expenses decreased by 5.7% Q4 YoY, which reflects continuous cost savings across the TDC NET and Nuuday.
- EBITDA increased by 0.6% Q4 YoY and totalled DKK 1.513m in the fourth quarter.
- Capital expenditure decreased by 17.2% Q4 YoY. The high investment level related to completion of the mobile network 5G swap in 2020 is the main driver behind the decrease in CAPEX.
- For more information on TDC Holding consolidated financial highlights for Q4 2021, please see the uploaded Financial Presentation.
- TDC Holding, DKT Holdings, TDC NET and Nuuday’s annual report for 2021 will be uploaded to each company’s respective Investor Relations website on April 28, 2022.
TDC NET: Interim Financial Report Q4 2021
Highlights
- In Q4, TDC NET delivered EBITDA growth of 2.4% YoY driven by a flat gross profit development and savings in operating expenses. For the full year 2021 EBITDA increased by 1.4% YoY, which was in line with our full year guidance.
- To continue to provide the best mobile network, TDC NET in Q4 tested the 5G technology mmWave as the first network operator in Denmark and delivered a speed up to 4 Gbit/s.
- TDC NET increased fibre footprint with 38k in Q4, reaching a total of 106k new fibre homes passed in 2021; total fibre footprint of almost 500k end of year 2021.
- On the back of finalising the separation of TDC Group in Q4, a new secured infrastructure financing platform of DKK ~25bn in bank facilities was established for TDC NET and has been effective since late January; this allows for stand-alone financing activities in TDC NET.
Financials
- Revenue increased by 0.5% in Q4 YoY to DKK 1,687m. The full year 2021 revenue decreased by 2.3% compared with 2020.
- Gross profit was stable in Q4 YoY and ended at DKK 1,603m. This was a result of the expected slow-down in demand for TV and copper broadband as well as fewer customer installations, which was offset by higher gross profit from mobile services. Full year 2021 gross profit declined by 1.4% YoY.
- Operating expenses improved by 5.0% in Q4 YoY driven by lower cost to consultancy and optimisation of support functions at TDC Group, however offset by higher electricity prices. This was in line with the full year 2021 reduction of 7.7%.
- TDC NET’s EBITDA grew by 2.4% Q4 YoY to DKK 1,109m and for the full year 2021 EBITDA was up 1.4% compared with 2020.
- Capital expenses down by 10.6% Q4 YoY and 21.1% for full year 2021 driven mainly by the investment peak in mobile 5G upgrade in previous year.
Nuuday: Interim Financial Report Q4 2021
Highlights
- Nuuday closes the year 2021 with positive RGU growth for the first quarter in many quarters.
- The total Nuuday RGU base increased by 28.000 in Q4 vs. Q3. This commercial stabilisation was achieved primarily through significant growth in future proof services such as mobility services and high-speed broadband.
- In Q4, we continued to steadily migrate RGUs from mature services to services based on future proof technologies, with approx. 74.2% of RGUs on future proof technologies in Q4 compared to 73.7% in Q3 2021.
- On 31 December 2021, the separation of TDC Group was finalised and Nuuday has become an independent stand-alone service provider.
Financials
- In Q4, Nuuday service revenue grew by 1% Q4 YoY as mobility services and high-speed broadband revenue increased offsetting declining revenue from mature services. This follows the positive YoY service revenue growth reported in Q3.
- Gross profit decreased by 4% Q4 YoY due to lower margins on the back of higher cost related to content as well as migration from DSL to fibre.
- Nuuday maintained its operating expenses at a stable level in Q4 YoY.
- EBITDA decreased by 10% Q4 YoY driven by the gross profit margin pressure, and 2021 was concluded as previously guided.
- Capex decreased by 29% Q4 YoY, achieved through fewer TV set-top box replacements, high rate of modem refurbishment and lower IT investments in advance of the Nuuday IT transformation.
For investor enquiries: +45 66 63 76 80
For media enquiries: +45 2921 1749
This notification is made by Klaus Rose, Senior Treasury Analyst at TDC A/S.
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