Digi Communications posts 20.8% revenue growth in Q1 2019

16 May 2019

Romania-based DIGI Communications Group recorded strong revenue growth for the three months ended 31 March 2019, with the company posting turnover of EUR281.2 million (USD315 million), up 20.8% on the same period of last year. Despite a 17.1% rise in adjusted EBITDA to EUR90.7 million, the company reported a net loss of EUR17.6 million, compared to a net profit of EUR14.8 million in the first quarter of last year. Total operating expenses were 30.8% higher in Q1 2019, at EUR263.8 million.

Romania continues to be the group’s core market, generating 64.4% of revenues, followed by Hungary (19.6%), Spain (14%) and Italy (2%). The company reported growth in RGUs across the four markets of 1.76 million, to 15.2 million, with higher customer numbers for its cable television (up 14.1%), broadband (19.2%) and mobile telephone (11%) services. The group’s Romanian operation recorded a 10.3% rise in cable television subscriptions (3.4 million RGUs) and 11.3% growth in broadband internet subscriptions (2.6 million RGUs), while its mobile telecoms customer base stood at around 3.4 million at the end of the quarter (up 0.9%).

According to Serghei Bulgac, the telco’s CEO: ‘2019 is an important year both for the group’s two main markets as well as for operations in Spain. In Romania, we will continue to expand the mobile telephony network and strengthen our position on the mobile services market. In Hungary, we will soon launch mobile services on a mature market and in a complex competitive context. Considering the growing needs of our clients and the general evolution of the electronic communications sector, we want to maintain the growth pace of the past few years.’