Digi posts 6.9% revenue increase in Q2 2018

15 Aug 2018

Romanian-controlled Digi Communications Group has recorded revenue of EUR243.0 million (USD276.6 million) for the three months ended 30 June 2018, a 6.9% increase on the year-ago figure of EUR227.3 million. Digi also recorded slight group EBITDA growth of 0.6% in the period under review, from EUR75.0 million in Q2 2017 to EUR75.5 million a year later. Operating profit for the second quarter of 2018 totalled EUR26.0 million, down from EUR27.9 million in 2Q17, while net profit dropped considerably in the period under review, falling to EUR479,000 from EUR16.0 million, partly due to a foreign exchange net loss of EUR7.8 million, which contributed to an increase in net finance expense. The group’s quarterly financial results excluded Digi’s new Hungarian subsidiary Invitel, wholly owned since the end of May 2018.

Operationally, Digi performed strongly in its Romania division, with 2.237 million residential fixed internet subscribers at end-June 2018, up 8.7% from 2.058 million one year earlier, although the Romanian consumer fixed telephony and mobile customer bases shrank by 6.7% and 0.4% to 1.092 million and 3.367 million respectively. The group’s DIGI Hungary division also performed well in the fixed internet market with a 7.8% increase in subscribers year-on-year to 482,000 at end-June 2018 whilst its fixed line telephony customers increased by 7.7% to 394,000. Digi’s report gave separate statistics for newly acquired Hungarian unit Invitel, accounting for 247,000 fixed broadband subscribers and 325,000 active fixed voice lines at the end of 2Q18 (compared to respective figures of 250,000 and around 385,000 twelve months earlier, according to TeleGeography). Digi’s Spanish MVNO mobile operation saw strong growth, with a 51.5% increase from 742,000 subscribers in Q2 2017 to 1.124 million at the end of the second quarter of 2018.