Digi Communications (DIGI) CMD 2026 summary

Group strategy and operational model

• Pursues a vertically integrated, cost-efficient, customer-centric model with 90% of operations in-house, enabling rapid execution, scalability, and tight cost control across five European markets.

• Focuses on delivering high-quality, affordable telecom services using advanced technology, with a value-for-money strategy, transparent pricing, and no planned price increases despite inflationary pressures.

• Romania serves as the cash engine with mature networks and high market shares, Spain is the primary growth engine, and Portugal, Italy, and Belgium are emerging markets.

• Expansion is primarily organic, with selective M&A such as the Nowo acquisition in Portugal and strategic partnerships (SOTA, DIGI Andalucía) to accelerate FTTH rollout while retaining owner-like economics.

• Targets continued market share gains in fixed broadband and mobile, supported by a robust omnichannel go-to-market strategy and leading brand awareness.

Technology and network deployment

• Extensive fiber and mobile networks in Romania, Spain, and Portugal, with high population coverage and advanced technologies like XGS-PON and 5G.

• Spain's FTTH deployment reached 13.7 million homes/BUPs in 2025, targeting 21 million by 2030, with deployment costs significantly below competitors and >25% penetration in mature cohorts.

• Transitioned to MNO in Spain in 2025, securing 60MHz spectrum and a 16-year RAN and spectrum sharing agreement with Telefónica, aiming for 10,000 macro sites by 2033.

• Internal software development supports operational agility and cost savings, enabling rapid rollout of new services.

• Networks are future-proofed for increased data usage, including AI-driven demand, with ongoing upgrades and capacity enhancements.

Financial performance and guidance

• Group sales reached EUR 2.2 billion with nearly EUR 600 million EBITDA and 32 million RGUs as of 2025.

• Spain achieved EUR 929 million revenue in 2025, expected to surpass EUR 1 billion in 2026, with a 19% adj. EBITDA margin in 2025 and low-20s% targeted mid-term.

• FTTH gross margin reached 53% and mobile gross margin 32% in Q4 2025, reflecting strong owner economics and operating leverage.

• CapEx in Spain is front-loaded for network expansion, expected to decline to EUR 250 million annually by 2028, with recurring capex ~€400m in 2026 and capex intensity trending below 10% of revenue beyond the mid-term.

• Net principal debt is projected to decrease to 1.5x adj. EBITDA (excl. operating leases) in the mid-term, aided by SOTA proceeds and prudent capital management.