DIGI Spain Telecom (DIGIS) H2 2024 earnings summary

Executive summary

• Revenue grew 21.8% year-over-year to €782.0 million in 2024, driven by expansion in mobile and fixed broadband services and the launch of pay TV.

• Operating profit surged to €418.7 million in 2024 from €9.2 million in 2023, mainly due to a €388.4 million gain from the SOTA FTTH network sale.

• Net profit reached €304.9 million in 2024, reversing a €14.7 million loss in 2023.

• The company continued significant investments in network expansion and transitioned from MVNO to MNO operations.

Financial highlights

• Revenue: €782.0 million in 2024 vs €642.0 million in 2023 (+21.8%).

• Operating expenses: €643.1 million in 2024 vs €539.2 million in 2023 (+19.3%).

• Adjusted EBITDA ex-operating leases: €151.7 million in 2024 (margin 19.4%) vs €115.3 million in 2023 (margin 18.0%).

• Net finance costs decreased to €14.4 million in 2024 from €27.3 million in 2023.

• Income tax expense: €99.4 million in 2024, mainly due to the SOTA transaction.

• Capex: €287.5 million in 2024, with €133.4 million for new FTTH deployment.

• Negative working capital: €210.99 million at year-end 2024.

Outlook and guidance

• Management expects continued growth in turnover and profitability, with ongoing investments in network quality and customer service.

• Transition to MNO model and new commercial offers are expected to further improve margins and operational efficiency.

• The company is exploring an IPO of a minority stake to support future capex.