Digi Communications (DIGI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose to €532 million, up nearly 20% year-over-year, driven by strong subscriber and RGU growth in Spain, Romania, and Portugal.

• Adjusted EBITDA (excluding IFRS 16) reached €140 million, with group adjusted EBITDA up 5% year-over-year; including IFRS 16, EBITDA was €170 million.

• Total RGUs reached 29 million, up 4 million year-over-year, with Spain contributing two-thirds of group RGU growth.

• Net profit for Q1 2025 was €8.7 million, down from €25.6 million in Q1 2024, due to higher operating expenses.

• Record operational and financial performance achieved, with launches in Portugal and Belgium supporting growth.

Financial highlights

• Q1 2025 revenue: €532 million (up 19% year-over-year); Spain: €216 million, Romania: €280-290 million, Portugal: €17.7-80 million.

• Adjusted EBITDA (excl. IFRS 16): €140-140.4 million; with IFRS 16: €170-170.6 million (up 4.6% year-over-year).

• CapEx for Q1: €169 million; full-year CapEx guidance maintained at €750 million.

• Net debt: €1.42 billion; gross debt: €1.47 billion; leverage stabilized at 2.5x.

• Cash flow from operating activities was €183.1 million, up from €126.5 million year-over-year.

Outlook and guidance

• Expecting low single-digit EBITDA growth and low double-digit revenue growth for 2025.

• CapEx guidance for 2025 confirmed at €750 million, including Belgium and Romanian M&A.

• Spain expected to remain the main growth driver, with network expansion and transition from MVNO to MNO.

• Portugal expected to reach EBITDA break-even within 1-2 years; Belgium profitability not expected this year.

• Dividend proposal of €1.35 per share (RON 1.35), up from €1.25 last year, with ex-date June 26, 2025.