DIGI Spain Telecom (DIGIS) Q2 2026 earnings summary

Executive summary

• Achieved 16% year-on-year revenue growth in H1 2026, reaching €515 million, with robust increases in both mobile and broadband segments.

• Adjusted EBITDA (ex-operating leases) rose 48% year-on-year to €104.1 million for H1, with margin expansion to 20.2%.

• RGUs grew 23% to 11.9 million, with over 2.2 million net additions in the last 12 months, driven by SMART footprint expansion and convergent offers.

• Successfully completed IPO in July 2026, raising €134 million in net proceeds and enhancing brand visibility.

• Pay TV RGUs surged 176.7% year-over-year, reflecting successful expansion since late 2024.

Financial highlights

• H1 2026 revenue: €515 million (up from €445 million in H1 2025); Q2 2026 revenue rose 15.1% year-over-year to €262.8 million.

• Adjusted EBITDA ex-operating leases: €104.1 million in H1 2026; Q2 2026 adjusted EBITDA was €61.5 million, margin improved to 20.4%.

• Capex additions: €205 million in H1 2026, focused on FTTH/SMART footprint and mobile network rollout.

• Gross margin for fixed broadband rebounded to 55% in Q2 2026; mobile gross margin stabilized at 33.4%.

• Net principal debt (ex-operating leases and spectrum): €646.6 million as of Q2 2026; leverage at 3.1x EBITDA.

Outlook and guidance

• 2026 revenue guidance reiterated at €1,040–1,085 million, with adjusted EBITDA margin expected in the low 20s%.

• CapEx guidance for 2026 full-year at approximately €400 million; recurrent CapEx to remain below 10% of revenues.

• Mid-term EBITDA margin target set at over 30%, with improvement front-loaded in 2027-2028.

• Mid-term leverage target of ~1.5x, with further deleveraging expected as SOTA proceeds are received.

• EBITDA margin expected to remain stable and gradually improve in H2 2026.