”In 2022, we achieved full-year financial results as expected, despite challenging macroeconomic conditions with high electricity prices and inflation. We maintained a high investment level in digital infrastructure with the majority spent on rolling out fibre, and at year-end we had passed over 600,000 addresses in total. As owner and provider of critical digital infrastructure, we also invested in ensuring a strong and resilient network and adapting our security profile to match the geopolitical environment, we operate in,” says Michel Jumeau, CEO at TDC NET.
2022 financial results
TDC NET realised a revenue of DKK 6,639 million, down 0.5% from 2021 mainly due to a decline in legacy products such as landline telephony, and low-speed copper broadband. EBITDA amounted to DKK 4,520 million, a 0.5% increase compared to 2021, driven by continued positive developments in mobile services and high-speed broadband. Operating costs were stable at DKK 1,857 million despite increased electricity prices.
Significant investments in the digital, green transition of Denmark
TDC NET maintained a high investment level of DKK 3,248 million, up by 3.6% compared with 2021, to expand the fibre footprint by 109,000 addresses passed in a competitive market. In addition, the 5G mobile network quality was further improved to sustain Denmark’s position as world leader in digital infrastructure as a key driver of the green transition of society.
Overall carbon reductions on track
Last year, TDC NET was the first company in the world to have validated science-based targets for becoming a net-zero carbon emissions company by 2028 in own operations and by 2030 across the full value chain. In 2022, we reduced Scope 1 and 2 emissions by 13% compared with 2021 and by 4% compared with the 2020 baseline. Scope 3 emissions dropped by 11% from 2021, and by 17% against the 2020 baseline. The carbon reduction targets are integrated in the business plan and form part of TDC NET’s funding, comprising EUR 500 million Sustainability-Linked Bonds at year-end.
“Overall, our 2022 carbon emission reductions from 2021 are on track. Against our 2020 baseline, we are slightly behind the target for our own operations, but ahead reducing emissions in our value chain, which constitutes a large part of our carbon footprint. I am pleased to see that our close collaboration with suppliers is paying off faster than anticipated. During the energy crisis, we also benefitted from our solar parks, providing up to 60% of our energy consumption when fully operational in 2023,” explains Michel Jumeau.
2023 financial guidance
In 2023, TDC NET expects a flat revenue development and a continued declining trend in operating expenses from earlier years driven by stable cost savings and efficiency improvements. In total, revenue and lower operating expenses are expected to generate low single-digit EBIDTA growth. The investment level is expected to be similarly to 2022, reflecting the continued roll-out of fibre and increased digitalisation to create a better customer experience.
Find the sustainability report here