Romanian telco Digi launches low-cost television service in Spain
Romanian telco operator Digi launched its television service, DIGI TV, in Spain, offering over 100 channels at just EUR 7 per month, in what analysts see as a challenge to the country’s major television providers, Profit.ro reported.
The latest study by consulting firm Oliver Wyman revealed that 40% of Spanish customers surveyed would be willing to switch from a traditional operator like Movistar, MASOrange, or Vodafone to a low-cost provider such as Digi, Avatel, or Finetwork in 2024, an increase of three percentage points compared to 2023, according to Profit.ro.
The Romanian operator’s TV package will include channels for movies, series, sports, documentaries, children's programming, music, and news. The service will initially be available in certain areas of Spain and will later expand nationwide.
For customers in areas where the service is not yet available, the company has reportedly provided an online registry where they can leave their contact information or provide it by phone to be notified as soon as the service becomes accessible.
Digi currently has over 7.5 million customers in Spain. In 2023, amid increased investments, Digi Spain Telecom reported net losses of EUR 14.3 million, more than double (+123%) the EUR 6.4 million loss recorded the previous year. Nevertheless, the company managed to create an offer to provide clients with internet speeds of 300 Mbps for just EUR 10 per month.
Digi’s growth in Spain, in line with that of other low-cost operators in the sector, may see the company double its customer base in this market within two years.
Digi has also continued its expansion in Spain by recruiting a key executive, Carlos Robles, the former general manager of the Spanish branch of the American investment fund Carlyle. Robles will join the Board of Directors of Digi Spain. Previously, Robles worked at Merrill Lynch, also in Spain, advising companies such as Iberdrola, Endesa, BBVA, and Banco Santander.
Analysts of the Concorde Securities brokerage house, based in Budapest, recently reiterated their buy recommendation and maintain the target price of RON 84 for the shares of the telecommunications operator Digi Communications (BVB: DIGI).
(Photo source: Digi)
