Digi Communications (DIGI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached EUR 492.5 million, up 13.6% year-over-year, with strong RGU growth to over 26 million, driven by expansion in Spain and Romania.

• Launched commercial operations in Portugal in November 2024 and completed the Nowo acquisition, with Belgium launch preparations underway.

• Completed refinancing and full redemption of EUR 450 million bond due February 2025, using a mix of cash and new financing.

• Major network sale in Spain to Macquarie/Sota Investments, with long-term wholesale and maintenance agreements, and delivery of up to 6 million homes passed.

• Adjusted EBITDA (excluding IFRS 16) for Q3 2024 was EUR 150.8 million, up 16.6% year-over-year.

Financial highlights

• Q3 2024 consolidated revenues: EUR 492.5 million (+13.6% YoY); 9M 2024: EUR 1.414 billion (+13% YoY).

• Q3 2024 adjusted EBITDA (excl. IFRS 16): EUR 150.8 million (+16.6% YoY); 9M 2024: EUR 435.4 million (+18.4% YoY).

• Group CapEx for the first nine months of 2024 was EUR 567 million, with full-year CapEx expected to reach approximately EUR 900 million, including Nowo.

• Net profit for the first nine months, excluding one-offs, was around EUR 72–73 million.

• Adjusted EBITDA margin (excluding IFRS 16) at 31% for Q3 2024.

Outlook and guidance

• CapEx guidance for 2025 is EUR 700–750 million across all five markets.

• Focus for 2025 includes launching and growing operations in Portugal and Belgium, and transitioning Spain from MVNO to MNO.

• Management affirms 2024 as a transformative year, with performance aligned to projections and continued focus on organic growth and strategic acquisitions.

• Dividend policy is expected to remain unchanged or potentially increase for 2025 and beyond.

• Ongoing investments in fiber optic infrastructure and network expansion in Portugal, with further market entries planned.