Digi Communications (DIGI) Q4 2024 earnings summary

Executive summary

• Group revenues rose 13% year-over-year to over EUR 1.9 billion, driven by strong RGU growth in Spain and Romania, with total RGUs up 16% to nearly 28 million units.

• EBITDA (excluding IFRS 16) reached EUR 580 million, up 14%–40% year-over-year, reflecting expansion costs and inflationary pressures.

• Launched commercial operations in Portugal (Nov 2024) and Belgium (Dec 2024), expanding the European footprint.

• Achieved second largest mobile operator status in Romania and nearly 10% market share in both mobile and fixed in Spain.

• Significant other income of EUR 406.9 million, mainly from the sale of a FTTH network in Spain and a Romanian energy subsidy.

Financial highlights

• 2024 revenues: EUR 1.9 billion (EUR 1.1 billion Romania, nearly EUR 800 million Spain, EUR 43 million other markets).

• Adjusted EBITDA increased to EUR 684.5 million from EUR 591.2 million, with margin improving to 35.4% from 34.6%.

• CAPEX reached nearly EUR 900 million, including EUR 110 million for Novo in Portugal; excluding Novo, CAPEX was EUR 775–780 million.

• Net leverage at 2.3x as of December 2024, improved from 2.5x in 2023.

• Outstanding profit for 2024 of almost EUR 600 million, driven by the Spanish FTTH sale.

Outlook and guidance

• Continued network expansion in Romania (focus on 5G), Spain (transitioning to MNO, own network buildout), Portugal, and Belgium.

• 2025 CAPEX guidance remains at EUR 750 million, including potential telecom acquisition in Romania.

• Free cash flow expected to remain negative in 2025 (EUR 120–130 million), mainly due to investments in new markets.

• No significant price increases planned in Romania; dividend at least maintained at prior year level.

• Spain expected to remain the main growth driver in 2025, with continued network expansion and transition from MVNO to MNO.