Digi Communications reports accelerated revenue growth in Q1

18 May 2022

Romania-based Digi Communications has reported group consolidated revenues from continued operations of EUR360.6 million (USD378.7 million) for the three-month period ended 31 March 2022, an increase of 21% from EUR297.9 million in Q1 2021, driven by revenue growth of 13.4% and 42.3% for its Romanian and Spanish operations, respectively. The group, which completed the sale of its Hungarian operations to 4iG in January for a total amount of EUR625 million, posted adjusted EBITDA (including IFRS 16) of EUR124.3 million in the reporting period, up 9.5% from EUR113.7 million twelve months earlier, while total operating expenses rose 23.3% y-o-y to EUR317.2 million. Net profit from continued operations stood at EUR27 million compared with a net loss of EUR23.3 million in the same period of 2021.

In operational terms, Digi Communications claimed a total of 18.699 million RGUs across the group at 31 March 2022, a 15.2% increase from 16.232 million twelve months earlier. In its home market, Digi’s total subscription base rose by 9.5% y-o-y to 14.4 million, on the back of strong growth for mobile subscriptions (14.5% higher at 4.348 million), fixed broadband connections (up 12.6% to 3.875 million) and pay TV subscriptions (up 6.5% to 5.185 million), while fixed voice subscriptions declined by 5.6% to 969,000. The group’s Spanish operation recorded a 40.6% y-o-y increase in subscriptions to 3.981 million RGUs, having more than doubled its fixed broadband and fixed voice subscription bases, to 575,000 and 196,000 respectively, and increased mobile subscriptions by 29% y-o-y to 3.21 million. Digi’s mobile subscription base in Italy rose 27.2% y-o-y to 341,000.

Serghei Bulgac, CEO of Digi Communications, commented: ‘Digi delivered another strong earnings performance in the first quarter of 2022. Following the successful sale of our Hungarian operations we concentrated our efforts on the legacy markets: Romania, Spain and Italy. We are also looking at opportunities beyond.’