Digi Communications reports consolidated revenues of 817.2 million Euro in the first six months of 2023
Digi Communications, one of the European leaders in the provision of telecommunications services and solutions, listed on the Bucharest Stock Exchange, reports consolidated revenues (including other gains) of 418.6 million euros in the second quarter of 2023, a 13 percent increase over the same period last year. Adjusted EBITDA increased by 21 percent compared to the result in the second quarter of 2022, reaching EUR 146.2 million. Adjusted EBITDA, excluding the impact of IFRS 16, increased by 24 percent to 125.2 million euros.
Serghei Bulgac, CEO of Digi Communications, said: “The second quarter of 2023 marked another period of significant growth for Digi Communications, with a remarkable evolution both in the markets in which we operate and across all service categories, in line with our estimates. Our dedication to providing state-of-the-art telecommunications services at competitive prices, especially in an inflationary environment, has strengthened our position in both regions and helped increase our market share. Our loyalty programs in Romania have played a key role in customer retention, while our strategic expansion in Spain looks promising. Encouraged by this momentum, we continue to direct significant capital investment towards improving the mobile network in Romania and further developing our presence in Spain and Portugal, ensuring that Digi Communications’ growth prospects remain strong.”
In Q2 2023, Digi continued to grow across its entire service portfolio, surpassing 22.4 million contractual revenue-generating relationships (RGUs) in its three markets – Romania, Spain and Italy, representing an increase of 16 percent compared to the same period in 2022. The Group’s offerings include pay TV, fixed and data internet, mobile and data, and fixed telephony services. In Romania, Digi offers fixed telecommunications and entertainment services through a technologically advanced fiber optic network. The group also operates a mobile network in Romania, which uses the core infrastructure of the fixed fiber optic network. In Spain, Digi offers mobile services, fixed internet and data and fixed telephony services, while in Italy the Group offers exclusively mobile services.
The mobile segment is prominent as it produces the highest number of RGUs among all the Group’s service categories. Continuing the pace of growth from previous quarters, the number of RGUs in this category reached 10 million, an increase of 21 percent compared to Q2 2022, representing mobile phone customers in Romania, Spain and Italy.
In Romania, the mobile services segment reached 5.4 million RGU, an increase of 19 percent, compared to Q2 2022, fixed internet services registered an increase of 11 percent, compared to the same period last year, up to 4.4 million RGU, while the pay TV segment (cable and satellite) saw a 6 percent year-over-year appreciation to 5.6 million RGU.
The Spanish operations continued to post a solid performance in the second quarter of 2023 as the number of fixed, internet and telephony users increased by 68 percent compared to the same period last year to 1.5 million RGU. The number of mobile users increased significantly by 25 percent to a total of 4.3 million RGUs.
In Italy, mobile phone users grew by 11 percent, reaching a total of 391 thousand RGUs.
The Group’s subsidiaries in Portugal and Belgium (in association with Citymesh NV) are in the process of developing the infrastructure in order to launch communications services in the future.
The performance recorded in the second quarter of the year contributed to the results related to the first half of 2023, in line with the expectations of the management. Consequently, the Group recorded in H1 2023 revenues and other consolidated earnings of 817.2 million euros (+ 13 percent compared to H1 2022), adjusted EBITDA of 279.9 million euros (+ 14 percent compared to H1 2022) and adjusted EBITDA excluding the impact of IFRS 16 of 238.6 million euros (+ 15 percent compared to H1 2022).