Romanian telecom group Digi Communications (BVB: DIGI) reported 14% higher consolidated revenues due to strong growth in Spain and launch of operations in Portugal. The group’s gross profit went up almost sixfold to EUR 539 mln, following the sale of its fiber network in Spain.

“2024 was a transformative year for Digi, as we strengthened our market position in Romania, expanded our reach in Spain, and launched operations in Portugal and Belgium. Our customers’ trust fuels our drive for innovation, and we are committed to providing high-quality, affordable connectivity services across Europe,” said Serghei Bulgac, CEO of Digi Communications.

Key Financial Highlights

Digi’s total consolidated revenues reached EUR 1.93 billion, marking a 13.9% increase compared to 2023.

Adjusted EBITDA (excluding IFRS 16 impact) was EUR 580 million, reflecting a 14.1% YoY growth.

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Revenues and other income totaled EUR 2.33 billion, supported by the sale of fiber-to-the-home assets in Spain.

Revenue-generating units (RGUs) grew by 16.4% YoY, reaching 27.8 million across all markets.

Mobile services remained the largest contributor, accounting for 48% of total RGUs.

Factors driving Digi’s higher revenues and profit

Digi’s strong financial results were primarily driven by three key factors:

1. Expansion in Spain and Market Leadership in Romania

Digi’s operations in Spain saw remarkable growth:

• Total RGUs increased by 30% YoY, reaching 8.4 million.
• Mobile users rose by 25.7% to 5.9 million.
• Broadband services surged 42.1%, surpassing 2 million users.

In Romania, Digi strengthened its market position:

• Became the second-largest mobile operator, reaching 6.6 million mobile RGUs (+13% YoY).
• Broadband users increased by 6.9% to 4.9 million.
• Pay-TV services grew 3.3% YoY to 5.9 million RGUs.
• Total RGUs in Romania reached 18.2 million (+7.2% YoY).

2. Entry into New Markets: Portugal and Belgium

Digi expanded its international presence by launching commercial operations in Portugal and Belgium:

• In Portugal, Digi acquired Nowo Communications, the 4th largest telecom provider, and built a fiber-optic and mobile network infrastructure.
• Portugal’s operations reached 676,000 RGUs by the end of 2024, including 321,000 mobile users.
• In Belgium, Digi partnered with Citymesh to offer broadband and mobile services, launching DIGI Mobile Light in December 2024.

3. Strategic M&A and Asset Sales

Digi capitalized on strategic acquisitions and asset sales to boost revenue:

• Acquisition of Nowo Communications in Portugal expanded its customer base and market share.
• Sale of Fiber-to-the-Home (FTTH) assets in Spain to a Macquarie Capital-led consortium provided an extraordinary income boost.

DIGI shares evolution

Digi’s shares recorded an increase of 41% over the last 12 months, significantly outperforming the BET index (11% growth year-on-year). The group has reached a market capitalization of RON 6.8 bln (EUR 1.37 bln).

editor@romania-insider.com

(Photo source: the company)