The group’s share price rose 63% in the last year and it has lined up credit of €167.5 million to invest in networks in the Iberian peninsular
The Romanian headquartered Digi Communications announced its net profit more than doubled to €33 million in Q1, up from €14.3 million for the same period last year. Digi reported consolidated revenues in Q1 2024 of €447 million, a 12% increase versus Q1 2023. The adjusted EBITDA for Q1 2024 amounted to €163.1 million, a rise of 21.9% year on year.
The adjusted EBITDA, excluding the IFRS 16 impact, was €139.9 million, an increase of 23.4% over the time the previous year. The company’s market capitalisation is now RON5.9 billion (€1.2 billion) after its shares rose 63% over the last year.
The company says its performance aligns with the management’s projections for 2024, underpinned by solid growth in strategic markets.
Success in Spain
Serghei Bulgac (pictured), CEO of Digi Communications, stated, “Following a year of remarkable expansion in 2023, we are thrilled to report a robust first quarter of 2024. Our key markets, Romania and Spain, have maintained strong performance and allowed us to reach a historical milestone of 25 million clients served, across all three markets of activity.
“This important growth from the first three months of the year was driven by our mobile segment in Spain, which grew by 23.6%, reaching 5 million customers. In parallel, Spain’s broadband segment experienced accelerated growth of 56.7%, now serving 1.5 million users. Romanian mobile users exceeded 6 million with an increase of 16.3% year on year.
“These figures indicate another year of anticipated growth, aligning with our expectations and capability to meet evolving consumer needs in a competitive landscape. We are committed to continue to deliver superior quality at affordable prices across vibrant European markets, including established regions and new markets in Belgium and Portugal, where we are gearing up for the service launch.”
Digi is Spain’s largest MVNO and benefited from the tie-up between MasMovil and Orange earlier this year. The European Union was keen to preserve competition in Spain and insisted on remedies to bolster Digi as a condition for the merger to go ahead.
Credit facilities for networks
According to Romania-Insider, Digi Communications has signed three loans totalling €167.15 million to develop telecoms networks in Romania, Spain and Portugal. It cited a note to investors as its source.
It has in place two export credit facility agreements for a total of €117 million with Citibank Europe that is intended to finance the purchase of goods and services for the development of telecommunications networks in Romania and Portugal.
Digi plans to launch telecommunications services in Portugal towards the end of the year.
In addition, this week Digi Spain Telecom agreed a non-committal bridge credit facility for €50 million from Banco Santander to finance working capital.