Digi Communications Group N.V. released on Thursday, November 14th, the financial results for the third quarter of 2019, announcing a 10.9 percent increase in revenue over the same period of last year, from EUR 270 million to EUR 299 million.
Adjusted EBITDA (excluding impact of IFRS 16) was EUR 105.2 million, up about 28 percent compared to the previous period of 2018, and adjusted EBITDA (including impact of IFRS 16) was about EUR 128 million in the third quarter of 2019.
For the 9-month period ending on September 30th 2019, revenue growth was 15.6 percent compared to the same period of last year, from EUR 756.4 million to EUR 874.6 million.
At the same time, the group showed evolving indicators for the main growth-generating services – cable television services (+ 8 percent, from 3.9 million RGU, at group level, to 4.2 million RGU), respectively for fixed Internet services (+10 percent, from 3.2 million RGU to 3.5 million RGU).
As of September 30, 2019, the Group recorded a total number of 5-million RGU pay-TV subscribers, compared to 4.8 million RGU at September 30, 2018. In total, in the four markets, the company registered an increase of 1.1 million RGU, reaching 15.8 million RGU from 14.7 million RGU, in the third quarter of 2018.
“We are pleased with the results registered by the group, first and foremost, thanks to our customers who have continued to choose Digi services, in all markets in which we operate. In the third quarter we increased the base of services offered by 7 percent compared to the same period of the previous year. At the same time, revenues and adjusted EBITDA (excluding the impact of IFRS 16) increased by 16 percent, thus maintaining the upward trend.
We have accelerated the investments in important projects for the evolution of the group in all the markets where we carry out operations. The launch of 5G services in June 2019, followed by the expansion of the 4G offering in 900 MHz band and a sustained increase in mobile data traffic for all Digi users, demonstrates our commitment to the continuous improvement of mobile communications services. We continue to expand the fixed services in Romania, Hungary and Spain, as well as the development of the mobile network in Hungary. We thank all our customers, employees, investors and partners for their support and confidence in our business vision, ”said Serghei Bulgac, CEO of Digi Communications Group.
EVOLUTIONS BY MARKET
Romania remains the main market of the group, generating 63 percent of its revenues, in second place being Hungary (with 18 percent), followed by Spain (17 percent) and Italy (2 percent).
On its main market, Romania, the Group has reported increases in the cable and fixed internet services segment, with an increase of 8.9 percent of subscriptions to cable TV services (3.5 million RGU, as of September 30, 2019, compared to 3.2 million RGU, as of September 30, 2018) and 9.7 percent respectively for subscriptions for fixed internet services (2.7 million RGU at September 30, 2019 compared to 2.5 million RGU, for the same period of the previous year ). In respect of mobile services, the company remains for 11 years now the leader of the portability market. During this period (October 21, 2008 – September 30, 2019), Digi Mobil attracted 1.901.902 mobile phone numbers, out of which 242.266 numbers were ported in the first three quarters of the current year.
In Hungary, the revenues of the Digi Hungary subsidiary (including Invitel) increased to EUR 163.6 million, and Digi strengthened its position as leader of the cable television market (30 percent market share)*. In the segment of fixed internet services, Digi is the second operator (with a market share of 24 percent)*, while in the segment of fixed telephony services it has a market share of about 23 percent*. In May, the Hungarian branch of the group also launched its own mobile telephony services, at 2G and 4G standards, and also marked the introduction of the Digi own brand phones on the Hungarian market.
Spain registered a significant increase, of 42.5 percent, as concerns the number of subscribers of mobile telephony services, raising from 1.2 million RGU, on September 30, 2018, to 1.8 million RGU, on September 30, 2019. Digi Spain has positioned itself as the leader of the MVNO (virtual operator of mobile telephony services) market and is the fifth mobile operator on the Iberian market. At the same time, in the segment of fixed services (internet and fixed telephony), Digi Spain reached 68 thousands RGU, in the third quarter of 2019.