Digi Communications (DIGI) H1 2024 earnings summary

Executive summary

• H1 2024 revenues exceeded €920 million, up 30% year-on-year, with strong RGU growth in Spain and Romania and strategic expansion plans for Portugal and Belgium in 2024.

• Adjusted EBITDA (excl. IFRS 16) for H1 2024 reached €285 million, up 19% year-on-year.

• Sustained market share and RGU growth in core markets, with Spain RGUs up 30% and Romania mobile users up 15% year-on-year.

• Major strategic agreements and acquisitions in Spain and Portugal position the group for further network expansion and transition to MNO status.

Financial highlights

• Q2 2024 revenues reached €475 million, up 13–14.1% year-on-year; adjusted EBITDA (excl. IFRS 16) at €145–170.2 million, with net profit up 80% to €28.8 million.

• EBITDA including IFRS 16 was €170 million, up 17% year-on-year.

• CapEx for Q2 was €240 million; H1 CapEx totaled €409 million, mainly for 5G in Romania and fixed networks in Spain.

• Spain Q2 revenues grew 22–24% year-on-year to €191.6–192 million; Romania Q2 revenues up 5–9.1% to €273.7–276 million.

• Operating profit for Q2 2024 was €54.3 million, up 29.7% year-on-year.

Outlook and guidance

• CapEx for 2024 expected to reach €800 million, higher than previous guidance due to accelerated network investments.

• Launches in Portugal and Belgium expected in the coming months, with all services planned from the start in Portugal.

• Spain to transition from MVNO to MNO, leveraging new agreements and spectrum acquisitions.

• Net leverage expected to decrease to approximately 2x after Macquarie transaction, but to remain around 2.5x after NOWO and Telekom Romania acquisitions.