Digi Communications N.V. reports preliminary consolidated revenues of 1.7 billion euros

Digi Communications N.V., one of the leading European telecommunications companies, listed on the Bucharest Stock Exchange, reports consolidated preliminary revenues in the fourth quarter (including revenues and other income) of EUR 455.6 million, a 14% increase versus 2022. The adjusted EBITDA for Q4 amounted to EUR 162.4 million (+21% YoY) and adjusted EBITDA excluding the IFRS 16 impact was EUR 141.4 million (+24% YoY).

The solid performance in the fourth quarter, in line with management’s expectations, contributed to the results generated for 2023. The Group registered EUR 1,690.4 million in consolidated revenues, a 13% increase compared to previous year. Adjusted EBITDA increased by 17% compared to the result from 2022, reaching EUR 592.7 million. Adjusted EBITDA excluding the impact of IFRS 16 increased 19% to EUR 509.3 million.

Serghei Bulgac, CEO of Digi Communications, stated: “Digi Communications saw stellar growth in 2023.  Our core markets, Romania and Spain, continued to be highly competitive last year, yet this did not hinder our growth rates. In Romania, our most dynamic segment, mobile, saw an 18% YoY increase in RGUs. In Spain, we increased our broadband user base by 63% to 1.4 million customers. Also, in both countries we are a leader in net mobile portability. We are thrilled with our progress and we are grateful for the opportunity to serve these vibrant markets. The European telecom landscape is ever evolving, yet Digi remains unwavering in its commitment to deliver superior services at competitive prices. The numbers we present today to our shareholders are thus highlighting our ability to meet consumer demands even in highly competitive environments.”

In 2023, Digi continued to grow across its entire service portfolio, surpassing 23.9 million in revenue-generating user agreements (RGUs) across Romania, Spain, and Italy. This marks a 15% increase compared to 2022. Digi’s range of services spans mobile and fixed-line telephony, broadband data services, and Pay TV. In Romania Digi offers fixed telecommunication and entertainment solutions via a cutting-edge fibre optic network. The Group also operates a mobile network, which shares the backbone of the fixed fibre optic infrastructure. Meanwhile, in Spain, Digi provides mobile, broadband, and fixed-line phone services, and in Italy, the Group provides exclusively mobile services.

Read more about

Loans granted by NBFIS in Romania, record high in 2023

read more

The mobile division stands out for generating the most revenue-generating user agreements (RGUs) within the Group’s array of services, accounting for 46% of the overall RGUs in the three markets. Maintaining its momentum from past quarters, in Q4 2023, the mobile segment saw its RGUs climb to 10.9 million, a 20% increase, covering mobile telephony clients across Romania, Spain, and Italy.

In Romania, the mobile service segment reached 5.8 million RGUs, an evolution of 18% compared to 2022. Fixed internet services registered an increase of 9% in 2023, compared to 2022, up to 4.6 million RGUs, while the segment of Pay-TV services (cable and satellite) increased by 5% compared to 2022, up to 5.7 million RGUs. Together with fixed-line telephony, the total number of RGUs in the Romanian market amounted to 16.9 million customers as of 2023 year-end, a 9% increase versus 2022.

Spanish operations continued to perform outstandingly in the 2023, with the number of users of fixed services, internet, and mobile telephony increasing by 32% compared to 2022, to 6.5 million RGUs. Mobile users increased by 23% to 4.7 million RGUs, while broadband users increased by 63% to 1.4 million.

In Italy, mobile users increased by 16% YoY, reaching 420K RGUs as of the end of 2023.

The Group’s strategic initiatives in Portugal and Belgium set the stage for future expansion of Digi in these two markets. In Portugal, the subsidiary is actively laying the groundwork to commence commercial services in 2024. In Belgium, Digi Communications Belgium N.V. and InSky N.V. (the “Belgian JV”) secured national roaming services for a minimum of five years and committed to acquisition of approximately 400 mobile sites over the next four years. The “Belgian JV” already has the spectrum packages that were acquired during the last auction, which concluded in June 2022.

Regarding the 2024 prospects for Digi Communications, Serghei Bulgac added: “In 2024, Digi is poised for a transformative year, focusing on further strengthening our presence in core markets of Romania and Spain, while embarking on exciting expansion initiatives into Portugal and Belgium. In Romania, we are committed to driving organic growth by enhancing our network infrastructure and broadening our service offerings, from Pay TV to mobile. In Spain, the strategic acquisition of new spectrum licenses, alongside the recent launch of 5G services, will significantly boost our network capabilities and offer our customers high-speed, affordable connectivity. Finally, our entry into new markets, Belgium and Portugal is not just about expansion; it is about establishing a strong foothold and bringing our innovative, customer-centric approach for which we are known and appreciated for to a wider audience. 2024 is set to be a milestone year for Digi, as we continue to evolve, innovate, and connect communities across Europe.”