Digi Communications N.V. announces the release of Q3 2024 financial results

Digi Communications N.V. reports significant growth across multiple markets in its Q3 2024 financial results

(IN BRIEF) Digi Communications N.V. reported its Q3 2024 financial results, showing significant growth across multiple markets. Consolidated revenues reached EUR 492.5 million for Q3, a 13.6% increase year-on-year, contributing to EUR 1.414 billion for the first nine months (+13% YoY). Adjusted EBITDA, excluding IFRS 16, was EUR 150.8 million for Q3, up 16.6%, totaling EUR 435.4 million for the nine months (+18.4% YoY). The company’s RGU base grew to 26.3 million across Romania, Spain, and Italy, driven by mobile and broadband growth, especially in Spain. Digi also launched services in Portugal and plans to expand to Belgium.

(PRESS RELEASE) BUCHAREST, Romania, 14-Nov-2024 — /EuropaWire/ — Digi Communications N.V. (“DIGI”), one of the leading European telecommunications companies, listed on the Bucharest Stock Exchange, would like to inform the shareholders and investors that the Q3 2024 financial results are available on the Company’s website at https://www.digi-communications.ro/en/investor-relations/shares/financial-results-shares/quarterly-reports-shares

Digi Communications N.V. reports consolidated revenues and other income of EUR 1.414 billion (excluding the extraordinary sale of assets), adjusted EBITDA (excluding IFRS 16) of  EUR 435.4 million in the first nine months of 2024

• Digi Communications consolidated revenues and other income in Q3 2024 increased 13.6% year-on-year, reaching EUR 492.5 million, resulting in EUR 1.414 billion in revenues generated in 9M 2024 (+13% vs 9M 2023).
• Adjusted EBITDA (excluding the impact of IFRS 16) reached EUR 150.8 million in Q3 2024, a 16.6% year-on-year increase based on the expansion of the customer base, contributing to the result for 9M 2024 of EUR 435.4 million (+18.4% vs 9M 2023).
• Revenue-generating units (RGUs) continued sustained growth across all three markets of activity, with the Group surpassing 26 million RGUs as of the end of September 2024 — a 13.5% increase year-over-year (YoY), spanning mobile, fixed internet, Pay TV, and fixed telephony services.

The Company reported consolidated revenues of EUR 492.5 million for the third quarter of 2024, marking a 13.6% increase compared to the same period last year. Adjusted EBITDA grew by 18% year-on-year to EUR 177.3 million, while adjusted EBITDA, excluding the impact of IFRS 16, rose by 16.6%, reaching EUR 150.8 million. This strong quarterly performance reflects robust growth in key strategic markets and is aligned with management’s projections for 2024.

Supported by the strong contribution from the third quarter, the Group recorded consolidated revenues of EUR 1.414 billion for the first nine months of 2024, an increase of 13% compared to 9M 2023. Adjusted EBITDA for this period amounted to EUR 510.5 million, up 18.6% from 9M 2023, and adjusted EBITDA excluding the IFRS 16 impact reached EUR 435.4 million, representing a year-on-year increase of 18.4%.

Serghei Bulgac, CEO of Digi Communications, stated: “2024 is shaping up to be a transformative year for Digi Communications. In the first nine months, we reached 26.3 million clients, driven by remarkable growth in Spain, where our mobile segment increased by 24.2% and broadband by 45.7%, alongside sustained growth in Romania, where RGUs rose by 7.4%, reflecting our strong and enduring customer appeal. Beyond the organic success across our well-established markets, the highlight of 2024 has been our strategic expansion into Portugal.  We are delighted with the launch of services in this country, and the completion of the acquisition of Nowo. We also thank our customers for their interest in Digi’s services. Our strategy of prioritizing organic development while seizing strategic acquisition opportunities is proving successful, in our effort to grow and diversify.”

In Q3 2024, Digi Communications sustained its growth trajectory across all service portfolios, achieving a 13.5% year-on-year increase and reaching 26.3 million RGUs across Romania, Spain, and Italy. The company’s diverse offerings include mobile and fixed-line telephony, broadband data services, and Pay TV. In Romania, Digi operates a state-of-the-art fibre optic network for fixed and mobile telecommunication, broadband and entertainment solutions. In Spain, Digi provides mobile, broadband, and fixed-line services, and in Italy, the Group offers mobile services.

The mobile division remained the Group’s largest contributor to revenue-generating user agreements (RGUs), representing 47% of total RGUs across the three markets. Building on momentum from previous quarters, the mobile segment saw RGUs increase to 12.4 million in Q3 2024, reflecting a 18.3% year-on-year growth, driven by mobile telephony clients in Romania, Spain, and Italy.

In Romania, the mobile service segment reached 6.4 million RGUs as of the end of Q3 2024, an increase of 13.7% compared to Q3 2023. Fixed internet services registered a growth of 7.1% YoY in Q3 2024, up to 4.8 million RGUs, while the Pay-TV services (cable and satellite) segment increased by 3.3% compared to Q3 2023, up to 5.8 million RGUs. The total number of RGUs in the Romanian market amounted to 17.9 million customers as of the end of Q3 2024, a 7.4% YoY increase.

Spanish operations continued to grow well into Q3 2024, with the number of users of fixed services, internet, and mobile telephony increasing by 30% compared to Q3 2023 to 7.9 million RGUs. Mobile users increased by 24.2% to 5.6 million RGUs, while broadband users increased by 45.7% YoY, to 1.8 million RGU.

In Italy, mobile users increased by 16.1% YoY, reaching 475K RGUs as of the end of Q3 2024.

In Portugal, Digi Communications launched commercial operations on November 4, 2024, offering a full range of telecommunication services, including fiber optic broadband internet, mobile voice and data on 2G/4G/5G networks, television, and fixed telephony. Digi Portugal developed a modern fiber optic infrastructure and a national mobile network from scratch, leveraging state-of-the-art technologies to provide high-quality, affordable solutions. Today, Digi’s mobile network in Portugal covers over 93% of the population, with active expansion efforts underway in various regions, including islands and indoor spaces. The broadband service rollout will continue, driven by ongoing investments in fiber optic infrastructure.

Additionally, Digi is preparing to launch services in Belgium in the next period.

For additional information, please contact us at investor.relations@digi-communications.ro

About Digi Communications N.V.

We are a European leader in geographically-focused telecommunication solutions, based on the number of revenue generating units (“RGUs”) and a leading provider of telecommunication services in Romania and Spain, with a presence also in Italy, Portugal and Belgium.

Contacts:

Digi Communications NV
Phone no: +4031 400 6505
investor.relations@digi-communications.ro

The Report:

Website:

Logo:

Digi Communications NV logo

FAQs for Digi Communications Q3 2024 Financial Results 

What are the key financial highlights from Digi Communications’ Q3 2024 report?
Digi Communications reported a 13.6% year-on-year revenue increase, reaching EUR 492.5 million in Q3 2024. Adjusted EBITDA for Q3 was EUR 150.8 million, a 16.6% increase.

How has Digi’s revenue grown over the first nine months of 2024?
For the first nine months of 2024, Digi achieved consolidated revenues of EUR 1.414 billion, a 13% increase from the same period in 2023.

What contributed to Digi’s growth in Q3 2024?
The growth was driven by increased revenue-generating units (RGUs) across markets, notably in Spain, where mobile and broadband services saw high demand.

How many RGUs does Digi Communications currently have?
Digi Communications has 26.3 million RGUs as of the end of Q3 2024, marking a 13.5% year-on-year increase across Romania, Spain, and Italy.

What are Digi’s recent developments in Portugal?
Digi launched full telecommunications services in Portugal on November 4, 2024, with a focus on fiber-optic broadband, mobile, and TV services, covering over 93% of the population.

Does Digi have any expansion plans beyond Portugal?
Yes, Digi Communications is preparing to launch services in Belgium in the near future.

Who are Digi’s primary markets, and what services do they offer?
Digi primarily operates in Romania, Spain, and Italy, offering a range of services, including mobile, broadband internet, Pay TV, and fixed telephony.

How did Digi’s mobile division perform in Q3 2024?
The mobile division remained the largest contributor, reaching 12.4 million RGUs, an 18.3% year-on-year increase, with notable growth in Romania, Spain, and Italy.

How can investors access the full Q3 2024 financial report?
The full report is available on Digi Communications’ investor relations website: https://www.digi-communications.ro/en/investor-relations/shares/financial-results-shares/quarterly-reports-shares

SOURCE: Digi Communications NV