Digi Communications (DIGI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was €632.8m, up 12.8% YoY; adjusted EBITDA excluding operating leases reached €197.2m, up 26%, while net loss was €8.5m.

• 9M revenue reached €1,823.5m, up 11.3%; adjusted EBITDA excluding operating leases was €528m, up 21%. Total RGUs rose 13.6% YoY to 35.1m.

• Spain’s 9M revenue was €785.1m, up 15% YoY; 2026 and mid-term guidance were reiterated, with guidance components on track.

Financial highlights

• Q3 operating profit was €58.1m versus €55.7m a year earlier; net finance costs rose to €37.8m from €26.7m, and income tax expense was €20.6m.

• Q3 operating cash flow was €161.3m; investing outflow was €194.0m and financing inflow €99.7m. 9M operating cash flow was €473.6m.

• Spain’s 9M adjusted EBITDA excluding operating leases was €160.5m, up €35.6m YoY; Q3 margin was 20.9% and 9M margin 20.4%.

• 9M mobile and fixed broadband gross profit in Spain rose to €319m from €265m; consolidated reported operating profit was a €0.7m loss in 9M.

Outlook and guidance

• Spain’s FY 2026 revenue guidance remains €1,040m–€1,085m, with adjusted EBITDA excluding operating leases margin guidance in the low 20s%.

• Spain’s FY 2026 total capex additions guidance is ~€400m; mid-term targets include low-teens revenue CAGR and leverage of ~1.5x.

• Spain’s 2030 SMART footprint target is 21m BUPS; 2027–29 total capex additions are projected below €900m, with ~50% related to FTTH deployment.

• Group FY 2026 CapEx is expected at €720–730m; 2027 EBITDA is expected to rise 10%–20% YoY, mainly driven by Spain.

• Portugal targets adjusted EBITDA breakeven by end-2027 or early 2028; net leverage is targeted below 2.5x next year.