Digi Communications (DIGI) Q3 2025 earnings summary

Executive summary

• Revenues for the nine months to September 30, 2025, rose 16.2% year-over-year to €1,643 million, driven by strong growth in Spain and Romania, with Portugal and Belgium contributing new RGUs.

• Group RGUs increased 16.9% year-over-year to 30.7 million, with 4.4 million net additions, mainly organic from Spain and Romania.

• Adjusted EBITDA for the nine months was €527 million (IFRS 16), with Q3 Adjusted EBITDA at €188.2 million and a margin of 33%.

• Spain highlighted as the fastest-growing market, with mobile RGUs up 24.9% year-over-year and significant operational improvements.

• Recent acquisitions include Telekom Romania Mobile assets for €40 million and a debt-to-equity conversion in Belgium.

Financial highlights

• Q3 2025 revenues: €560.9 million (up 14.3% YoY); Q3 CapEx: €166 million, supporting investments in Spain, Romania, and Portugal.

• Group CapEx for 2024: €885 million; expected to decline by €80-100 million in 2025.

• Spain Q3 sales: €235.9 million; Romania: €298.8 million; Portugal: €17.6 million; Italy: €8.6 million.

• Group net debt as of September 30, 2025: €1,713.97 million; leverage at 2.95x net basis.

• Net profit for Q3 2025: €16.7 million, down from €341.2 million in Q3 2024 due to lower other income and higher expenses.

Outlook and guidance

• CapEx expected to decrease to €750-800 million in 2026, with Spain's CapEx stable at €350-400 million per year.

• Group EBITDA for 2025 expected near €600 million, with 10-20% improvement in 2026, mainly from Spain.

• Spain's EBITDA margin targeted at 23-24% in 2026, aiming for 30% long-term.

• Exploring an IPO for a minority stake in Spain to support capital expenditure and long-term financing.

• Continued focus on growth in core (Romania, Spain) and new markets (Portugal, Belgium), with Spain transitioning to an MNO model.