Digi Communications NV announces the release of H1 2024 Financial Results

(IN BRIEF) Digi Communications N.V. has released its H1 2024 financial report, revealing significant growth in revenues and customer base. The company reported consolidated revenues of €921.3 million for the first half of 2024, a 13% increase compared to the same period in 2023. Adjusted EBITDA (excluding IFRS 16) also saw a substantial rise, reaching €284.6 million, a 19.3% year-on-year increase. Key highlights include the company surpassing 25 million revenue-generating units (RGUs), marking a 14% year-over-year growth across Romania, Spain, and Italy. The mobile services segment led this growth, particularly in Spain, where mobile users increased by 23.2% and broadband users by 50.6% compared to Q2 2023. The company is also preparing to expand into new markets, including Portugal and Belgium, with strategic acquisitions and partnerships in place to support this growth. The full financial report is available on Digi Communications’ website.

(PRESS RELEASE) BUCHAREST, Romania, 14-Aug-2024 — /EuropaWire/ — Digi Communications N.V. (“DIGI”) informs the shareholders and investors that the H1 2024 financial report is available starting 14 August 2024, on the company’s website: https://www.digi-communications.ro/en/investor-relations/shares/financial-results-shares/half-year-reports-shares

 Digi Communications N.V. reports consolidated revenues and other income of 921.3 million euros, adjusted EBITDA (excluding IFRS 16) of 284.6 million euros in the first six months of 2024 

• Digi Communications consolidated revenues increased 13.4% year-on-year in Q2 2024, reaching EUR 474.7 million, resulting in EUR 921.3 million in revenues generated in 6M 2024 (+13% vs 6M 2023).
• Adjusted EBITDA (excluding the impact of IFRS 16) reached EUR 144.7 million in Q2 2024, a 15.6% year-on-year increase based on the expansion of the customer base, contributing to the result for 6M 2024 of EUR 284.6 million (+19.3% vs 6M 2023).
• A significant rise in revenue-generating units (RGUs) across all three markets, overpassing the historic milestone of 25 million RGUs — a 14% increase year-over-year (YoY)—spanning mobile, fixed internet, Pay TV, and fixed telephony services.

Digi Communications N.V., one of the leading European telecommunications companies, listed on the Bucharest Stock Exchange, reports consolidated revenues (including revenues and other income) of EUR 474.7 million in the second quarter of 2024, a 13.4% increase compared to the same period of the previous year. Adjusted EBITDA increased by 16.5% compared to the result from Q2 2023, reaching EUR 170.2 million. Adjusted EBITDA, excluding the impact of IFRS 16, increased 15.6% year-on-year to EUR 144.7 million.

This performance is underpinned by solid growth in strategic markets and aligns with the management’s projections for the first half of 2024. Consequently, in the first semester of 2024, the Group recorded consolidated revenues of EUR 921.3 million, an 13% increase versus 6M 2023, adjusted EBITDA of EUR 333.3 million (+19.1% vs 6M 2023) and adjusted EBITDA excluding the IFRS 16 impact of EUR 284.6 million (+19.3% vs 6M 2023).

Serghei Bulgac, CEO of Digi Communications, stated: “We are thrilled with the sustained strong performance of our Group across all our markets. The first half of the year marked a significant milestone as we surpassed 25 million customers, driven by an impressive year-on-year increase in the Spanish market of 23.2% in the mobile segment and 50.6% in broadband. Our most recent initiatives will further fuel this momentum in the future as we are now well-positioned to transition from a mobile virtual network operator to a full-fledged mobile network operator in Spain, allowing us to roll out our own mobile network. Additionally, our newly announced strategic acquisitions will enable us to solidify our position in both well-established and emerging markets, supporting our organic growth trajectory. This expanding geographic diversification, strong growth prospects, and balanced leverage are key assets for our Group. We are happy that these major advantages of our business model were also recognized by Fitch Ratings, which recently assigned Digi Communications a ‘BB’/Stable rating.”

In Q2 2024, Digi Communications continued its growth trajectory across all service portfolios, registering a 14% YoY increase, reaching 25.534 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 delivered the most revenue-generating user agreements (RGUs) within the Group, accounting for 47% of the overall RGUs in the three markets. Maintaining its momentum from past quarters, in Q2 2024, the mobile segment saw the RGUs climb to 11.961 million, a 19% YoY increase, covering mobile telephony clients across Romania, Spain, and Italy.

In Romania, the mobile service segment reached 6.207 million RGUs as of the end of Q2 2024, an increase of 15.1% compared to Q2 2023. Fixed internet services registered a growth of 7.3% YoY in Q2 2024, up to 4.712 million RGUs, while the Pay-TV services (cable and satellite) segment increased by 3.5% compared to Q2 2023, up to 5.773 million RGUs. The total number of RGUs in the Romanian market amounted to 17.561 million customers as of the end of Q2 2024, a 8% YoY increase.

Spanish operations continued to grow well into Q2 2024, with the number of users of fixed services, internet, and mobile telephony increasing by 30.1% compared to Q2 2023 to 7.517 million RGUs. Mobile users increased by 23.2% to 5.298 million RGUs, while broadband users increased by 50.6% YoY, to 1.675 million RGU. An important development in the Spanish market was the signing, in July 2024, by Digi Spain, of the national roaming agreement (NRA) and a RAN sharing agreement with Telefónica for a period of 16 years. These agreements, effective from January 1^st, 2025, will replace the existing MVNO agreement and include the sharing of mobile spectrum in the 3,500 MHz frequency band. Digi Spain has also entered a 10-year fixed broadband bitstream wholesale agreement with Telefónica, with an option to extend. These agreements, along with the recent spectrum license purchase in Spain, will allow Digi to transition from a mobile virtual network operator (MVNO) to a mobile network operator (MNO) and roll out its own mobile network in the country.

In Italy, mobile users increased by 16.6% YoY, reaching 456K RGUs as of the end of Q2 2024.

In terms of new territories, Digi’s strategic initiatives in Portugal and Belgium are paving the way for future expansions. Digi’s local subsidiaries are preparing to launch commercial services in these two markets in 2024. Moreover, in early August, it was announced that Digi Portugal entered into a share purchase agreement to acquire 100% of the shares of Cabonitel S.A. The acquisition includes Nowo Communications, S.A., Portugal’s fourth-largest mobile and fixed telecom operator, wholly owned by Cabonitel. Nowo Communications serves approximately 270,000 mobile telephony clients and 130,000 fixed telecommunications clients nationwide. The completion of the transaction is subject to clearance from the Portuguese competition authority.

 The financial report of Digi Communications as of June 30^th, 2024, is available here. 

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:

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

Website:

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Digi Communications NV logo

FAQs for Digi Communications N.V. H1 2024 Financial Report

Q1: What were the key financial highlights for Digi Communications in H1 2024?
A1: Digi Communications reported consolidated revenues of €921.3 million in the first half of 2024, representing a 13% increase compared to H1 2023. The company also recorded an adjusted EBITDA of €284.6 million, up by 19.3% year-on-year.

Q2: How did Digi Communications perform in Q2 2024 compared to the previous year?
A2: In Q2 2024, Digi Communications saw a 13.4% year-on-year increase in revenues, reaching €474.7 million. Adjusted EBITDA for the quarter was €144.7 million, a 15.6% increase compared to Q2 2023.

Q3: What is the significance of the 25 million RGUs milestone for Digi Communications?
A3: Surpassing 25 million revenue-generating units (RGUs) is a significant achievement for Digi Communications, marking a 14% year-over-year growth. This milestone highlights the company’s expanding customer base across its key markets, including Romania, Spain, and Italy.

Q4: How has Digi Communications’ mobile services segment performed in Q2 2024?
A4: The mobile services segment showed strong growth, particularly in Spain, where the number of mobile users increased by 23.2% year-on-year. Overall, the mobile segment accounted for 47% of the total RGUs across Digi’s markets.

Q5: What are the future expansion plans for Digi Communications?
A5: Digi Communications is preparing to launch services in new markets, including Portugal and Belgium. Additionally, the company has made strategic acquisitions, such as the purchase of Cabonitel S.A. in Portugal, to strengthen its position in these markets.

Q6: What is the strategic importance of the agreements signed by Digi Spain with Telefónica?
A6: The agreements with Telefónica, including a national roaming agreement (NRA) and a RAN sharing agreement, are significant for Digi Spain as they will enable the company to transition from a mobile virtual network operator (MVNO) to a full-fledged mobile network operator (MNO). This transition will allow Digi to roll out its own mobile network in Spain, further enhancing its service offerings.

Q7: Where can I access the full financial report for Digi Communications for H1 2024?
A7: The full financial report for H1 2024 is available on Digi Communications’ official website. You can access it here.

Q8: How has Digi Communications performed in terms of customer growth in different markets?
A8: Digi Communications experienced robust customer growth across its markets. In Romania, mobile services RGUs increased by 15.1%, while broadband services grew by 7.3%. In Spain, mobile and broadband services grew by 23.2% and 50.6%, respectively. In Italy, mobile users saw a 16.6% increase.

Q9: How does Digi Communications plan to maintain its growth momentum?
A9: Digi Communications plans to maintain its growth through geographic expansion, strategic acquisitions, and by enhancing its service offerings in existing markets. The company’s transition to an MNO in Spain and its expansion into Portugal and Belgium are key components of this strategy.

Q10: What does Digi Communications’ recent acquisition in Portugal entail?
A10: Digi Communications recently entered into an agreement to acquire Cabonitel S.A., which includes Nowo Communications, Portugal’s fourth-largest mobile and fixed telecom operator. This acquisition is expected to strengthen Digi’s presence in Portugal and support its growth strategy in the region.

These FAQs should help address common questions related to Digi Communications N.V.’s H1 2024 financial report and their strategic plans.

SOURCE: Digi Communications NV