Digi Communications (DIGI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached €582.6–583 million, up 10% year-over-year, with adjusted EBITDA rising 14–15% to €194.5 million, and RGUs surpassing 33 million, a 15% increase year-over-year.

• Strong growth in mature (Romania) and expansion markets (Spain, Portugal, UK), with Spain leading in RGU and revenue growth.

• Continued network expansion and operational consolidation in Romania, Spain, Portugal, Italy, and new market entries in Belgium and the UK.

• Net loss for the quarter was €14.5 million, compared to a net profit of €8.7 million in Q1 2025, due to higher finance costs and operating expenses.

Financial highlights

• Revenues increased to €582.6–584 million from €532 million a year ago, a 10% rise year-over-year; Spain revenue up 16%, Romania up 5–5.8%.

• Adjusted EBITDA (ex-operating leases) reached €161.2 million, up 15%; EBITDA including IFRS 16 was €194.5 million, up 14%.

• CapEx for Q1 was €156 million, down from €179 million in Q1 last year, with full-year CapEx expected in the low €700 million range.

• Net debt stands at €1.9 billion, with a net leverage ratio of 2.54–3.15x; repayments are minimal in 2026 and moderate in 2027.

• Cash flow from operations was €205.1 million, up from €183.1 million in Q1 2025.

Outlook and guidance

• Revenue growth for 2026 is expected to exceed 10%, driven by volume increases, especially in Spain and other growth markets.

• EBITDA margin is expected to remain sustainable and improve, particularly in Spain, with group adjusted EBITDA growth in the mid-teens for 2026.

• Spain's EBITDA margin is guided to the low 20% range for 2026, targeting above 30% in the mid-term.

• Ongoing execution of long-term development strategy, focusing on expanding customer base and European footprint.

• Liquidity is expected to remain strong, with operating cash flows and credit facilities supporting capital expenditures.