Digi Communications records 12.1 pct growth of revenue in H1 on higher customer base

Ovidiu Posirca 16/08/2017 | 15:23

Digi Communications, the group that controls telecom operator RCS&RDS, posted revenues of EUR 329 million in the first semester in Romania, up 12.1 percent compared to the same period of last year. The group profit stood at EUR 31.8 million.

Digi defines the subscribers as revenue generating unit (RGU) to designate a subscriber account of a customer in relation to one of its services. An individual customer may represent one or several RGUs depending on the number of our services to which it subscribes.

The report submitted to the Bucharest Stock Exchange (BVB) shows that the company had 2.92 million cable RGUs, up 5.1 percent, over 3.38 million RGUs on mobile telecom services for the residential segment, going up by 14.6 percent versus the same period of last year. On fixed internet and data for residential customers, the company had 2 million RGUs, up 6.6 percent.

Digi’s average revenue per user (ARPU) per month on cable was EUR 5.2 at the end of June 2017, down 1.9 percent versus the same period of last year. For fixed internet and data, the ARPU remained flat at EUR 5, while for mobile telecom it gained 25 percent to EUR 4. These are all figures for Romania, covering residential customers. Meanwhile, DTH and fixed-line telephony RGUs shrank.

The biggest generator of revenues in H1 was cable with EUR 90.1 million, while the biggest growth in revenue came from mobile telecom that expanded by 38.6 percent to EUR 77.2 million.

“Growth in our mobile telecommunication services, cable TV, fixed internet and data and other revenue was partially offset by a decrease in revenue generated by our DTH and fixed-line telephony businesses as a result of decreases in RGUs in both business lines. DTH RGUs decreased from 657 thousand as at June 30, 2016 to 618 thousand as at June 30, 2017, a decrease of approximately 5.9%. This decrease was primarily driven by a number of DTH subscribers terminated their contracts, moved to our competitors or migrated from our DTH services to our cable TV services. Residential fixed-line telephony RGUs decreased from approximately 1,252 thousand as at June 30, 2016 to approximately 1,170 thousand as at June 30, 2017, a decrease of approximately 6.5%”, said the company in a statement.

Digi shares were down 0.25 percent to RON 40.1000 on Wednesday afternoon trading on the BVB.

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