TDC A/S: SWOT Analysis & Company
Reference code: BRTC098CP10-Q4
Published: Sep 2010
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TDC A/S - SWOT Profile Page 1
TDC A/S - Company Overview
TDC A/S (TDC) is a Denmark-based telecommunications services provider. The company provides telecommunications
services including data communications and Internet services principally to business customers in Denmark and other
Scandinavian countries. It offers landline services to residential, including small office/home office (SoHo) customers, and
wholesale customers. In addition, its mobile services are offered to residential, SoHo, and wholesale customers. TDC also
provides cable television, broadband, and telephony services. At the end of the fiscal year 2009, the company had 11.7
million customers, of which, 8.6 million were domestic customers. It had 2.9 million customers in Switzerland and 0.2
million customers in TDC Nordic. Geographically, it operates in Denmark, Switzerland, Sweden, and Norway. TDC is
headquartered in Copenhagen, Denmark.
The company reported revenue of DKK 35,939 million during the fiscal year ended December 31, 2009 (fiscal 2009). The
company's revenue declined at a compounded rate of 1.15% during the period 2007-2009 with a year on year growth of
0.93% over fiscal year 2008. During the fiscal year 2009 its operating margin was 15.42% as against the operating margin
of 8.51% in fiscal year 2008. During the fiscal year 2009 the company registered a net margin of 6.74% as against the net
margin of 1.99% in the fiscal year 2008.
TDC A/S - Key Facts
TDC A/S, Key Facts
Norregade 21, Copenhagen, ,
Ticker Symbol, Stock TDC (Copenhagen Stock
Corporate Address: 0900, Denmark Exchange)
Telephone + 45 80 808080 No. of Employees 12,381
Fax + 45 80 303030 Financial Year End December
URL www.tdc.com Revenue (in DKK Million) 35,939.00
Industry Revenue (in USD Million) 6,705.04
Locations Denmark, Hungary, Norway, Sweden, Switzerland
Source: Annual Report, Company Website, Primary and Secondary Research
TDC A/S - SWOT Profile Page 2
TDC A/S - Business Description
TDC A/S (TDC) is a provider of telecommunications solutions and services. The company principally provides wireline
telephony services, mobile telecommunication services, broadband solutions, data communication services, convergence
products, advanced security & hosting services, Internet services & cable television network lines. At the end of the fiscal
year 2009, the company had 8.6 million domestic customers, 2.9 million customers in Switzerland, 0.2 million customers
in TDC Nordic. It had a total of 11.7 million customers at the end of the fiscal year 2009. The company employed 12,827
people at the end of the fiscal year 2009.
TDC has classified its operations under six reportable segments (business lines), namely, Consumer, TDC Business,
TDC Nordic, Operations and Wholesale, and YouSee, Sunrise. During the fiscal year 2009, the company divested Fixnet
Nordic and Mobile Nordic business lines.
The company through its Consumer segment provides landline telephony, internet and network, and mobility services.
This segment also provides other services such as terminal equipment, operator services and TV services. During the
fiscal year 2009, the company generated 26% of the company’s total revenues.
The TDC Business segment of the company provides wide range of telecommunications solutions to business customers
in Denmark such as Internet and network services, landline telephony, mobility services and terminal equipment. This
segment also provides systems integration services through its subsidiary, NetDesign that offers IT, data, video
conferencing and telephony systems tailored to business customers. TDC Business segment had 1.9 million customers at
the end of the fiscal year 2009. During the fiscal year 2009, TDC Business segment generated 21% of the company’s total
Under the TDC Nordic segment, the company principally provides pan-Nordic solutions to businesses and organizations
across Nordic region. The company also provides landline telephony, internet and network services and mobile telephony
to business customers in Sweden, Norway and Finland. In addition, TDC Nordic provides hosting and IT operations
solutions through its TDC Hosting. This segment had 0.2 million customers at the end of the fiscal year 2009. During the
fiscal year 2009, TDC Nordic segment generated 9% of the company’s total revenues.
Operations and Wholesale segment of the company is engaged in providing landline and mobile networks, operations,
infrastructure, IT and wholesale in domestic customers. This segment’s operations are divided into four divisions, namely,
IT, Supply Nordic, Installation, and Network. Its IT division is engaged maintenance and development of IT systems,
desktop support, systems operations, product development and billing. Its Supply Nordic division deals with procurement,
supply chain management and supply of support facilities, whereas its Installation division is into delivery and fault
handling for external customers. Also, its Network division operates domestic telecommunications network. During the
fiscal year 2009, Operations and Wholesale segment generated 7% of the company’s total revenues.
YouSee is one of the major television distributors in Denmark, which provides television signals to 1.4 million Danish
households with a penetration rate of 81%. It offers cable television, broadband services, and telephony. YouSee's
subscriber base, at the end of the fiscal year 2009, comprised 1.1 million cable television customers, which included
393,000 broadband customers, 2,000 mobile broadband customers, 9,000 PSTN/ISDN customers, and 62,000 VoIP
customers. In addition, the company’s cable network covers 55% of Danish households. During the fiscal year 2009,
YouSee generated 10% of the company’s total revenues.
Its Sunrise business provides mobile telephony, landline telephony, and Internet services in Sweden. During the fiscal
year 2009, during the fiscal year 2009, Sunrise generated 27% of the company’s total revenues.
TDC's research and development (R&D) efforts are principally focused on development of the broadband applications and
services, IP-based and UMTS network platforms and wireless LAN capabilities. In addition, it participates in international
programs, including standardization efforts, and cooperates with independent research organizations. During the fiscal
year 2009, the company invested DKK 16 million towards its research and development activities.
Recently, TDC extended its strategic agreement with Vodafone to include Sweden and Norway, in addition to an existing
agreement covering Denmark. Also, the company announced that, it is planning to launch iPhone 4, a thinnest
smartphone in the world with the highest resolution display ever built into a phone in Denmark.
Also, CVC Capital Partners Ltd., a private equity fund, announced it plans to acquire TDC’s Swiss unit in a CHF 3.3 billion
deal. This is likely to pave way for a share sale by the majority owners of TDC.
TDC A/S - SWOT Profile Page 3
TDC A/S - Major Products and Services
TDC A/S is a leading provider of communications services. Key offerings of the company include the following:
TDC A/S, Major Products and Services
Wireline telephony services
Data communications services
Sale of terminals and installation
Advanced security and hosting services
Telecommunications infrastructure products
TDC Mobile International:
Mobile telephony services