Digi Communications (DIGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached up to €492.5 million, growing 14.2% year-over-year, with strong RGU expansion to 26.3 million, especially in Spain and Romania, and significant launches in Portugal and imminent entry into Belgium.

• Major developments included the launch of operations in Portugal, acquisition of Nowo Communications, and the sale of FTTH network assets in Spain, with a 25-year wholesale agreement.

• Completed full redemption of €450 million bond due 2025, using a mix of cash and new financing.

• Signed MoU for partial acquisition of Telekom Romania assets, with transfer expected in early 2025, subject to due diligence and regulatory approvals.

• Sustained RGU growth across all markets, with notable increases in mobile, broadband, and pay TV segments.

Financial highlights

• Q3 2024 revenues reached up to €492.5 million (+14.2% YoY), with adjusted EBITDA (excluding IFRS 16) up to €177.3 million and margin up to 36.0%.

• Net profit for Q3 2024 was €342.8 million, a significant increase from €13.0 million in Q3 2023.

• Group CapEx for the first nine months was up to €570 million, with full-year CapEx expected to reach approximately €900 million, including Nowo.

• Spain revenues grew 22% YoY; Romania revenues up 9.3% YoY; Italy and Portugal also saw growth.

• Cash flow from operating activities for Q3 2024 was €225.2 million.

Outlook and guidance

• CapEx guidance for 2025 is €700–750 million across all five markets.

• Focus for 2025 includes launching and growing operations in Portugal and Belgium, and transitioning Spain from MVNO to MNO.

• Dividend policy is expected to remain unchanged or potentially increase for 2025 and beyond.

• Continued expansion in Portugal with a stable pricing model and further service rollouts planned.

• Ongoing network investments and new market entries expected to drive future growth.