Wednesday , April 21 2021

DIGI, declining profits | Energy Focus



Digi Communications NV Group posted net income of € 18.9 million in the first nine months of the year, 2.3 times less than in January-September 2017, when it stood at € 44.2 million.

The group also reported a 9.9% revenue increase in the first nine months of the year, from EUR 684.1 million to EUR 752 million, according to the financial data presented to the Bucharest Stock Exchange (BVB).

Romania remains the group's main market, accounting for 65% of its revenues, followed by Hungary (20%), followed by Spain (12%) and Italy (2%).

In Romania, the group reported increases in the wireline and internet services segment, with 8.7% cable TV service subscriptions (3.2 million RGU on September 30, 2018, compared to 3 million RGUs , September 30, 2017) and 10.5% for fixed Internet service subscriptions (RGU 2.5 million as of September 30, 2018 compared to RGN 2.2 million for the same period of the previous year). As for mobile telephony services, Digi is the leader in portability, with about 31% of the total market, representing almost 185,000 numbers ported to the Digi Mobil network in the first nine months of the year.

In Hungary, revenues from Digi's branch in Hungary (including Invitel) increased to 54.6 million euros, and Digi strengthened its leading position in the cable television market. In the fixed Internet segment, Digi is the second operator (with a market share of more than 25%), while in the fixed telephony segment it has a market share of around 23%. The solid positions held in this market are the prerequisites for launching mobile services.

Spain and Italy recorded a significant increase of 46% in the number of subscribers, from 971,000 RGU on September 30, 2017 to 1.4 million RGUs on September 30, 2018. Digi Spain positioned itself as the market leader of MVNO (virtual mobile phone operator) and is the fifth mobile operator in the Iberian market, with a growing presence on the ground through 3,000 points of sale.

In the first three quarters of the year, approximately 142,000 mobile numbers were ported to the Digi Spain network. The last month of the third quarter also marked the launch of fixed services in the Spanish market. In both mature European markets, Digi Communications serves both the Romanian diaspora and local customers.

"We were able to achieve an EBITDA of € 237 million at group level, an increase of 10.6% compared to the first nine months of the previous year, at € 81.7 million in the third quarter of this year. stable and high, we have been able to register a free cash flow (FCF) of approximately € 35 million, accumulated in nine months.Rising revenues in all markets are supported by the evolution of total RGU by 12.2% The development of the electronic communications infrastructure is important for the evolution of society as a whole and, following this goal, we will continue to invest in the fiber optic network in both Romania and Hungary , where we reached more than 7 million homes, "said Sergei Bulgac. general manager of Digi Communications Group.

Digi Communications NV is the parent company of the electronic communications operator, RCS & RDS, the Internet market leader, pay-TV and convergence services in Romania, with operations in Hungary, Spain and Italy. Founded almost 25 years ago, at December 31, 2017, the company had assets valued at more than 1.342 billion euros.

In Romania, the Digi Group is currently the largest private entrepreneur in the local business environment with around 13,000 employees (15,000 in all markets in which it operates) and contributes to the state budget and social and health insurance in the main to market more of EUR 120 million per year.

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