Digi Communications borrows EUR 167 mln to develop networks in Romania, Spain and Portugal

Digi Communications (BVB: DIGI) has signed three loans totaling EUR 167.15 million for the development of telecommunications networks in Romania, Spain, and Portugal, according to a note to investors.

The company also announced its net profit more than doubled to EUR 33 million in Q1, from EUR 14.3 million in the same period last year.

The company's market capitalisation is RON 5.9 billion (EUR 1.2 billion) after its shares rose by 63% y/y.

Of the total credit facilities, two export credit facility agreements in the total amount of EUR 117 million were contracted with Citibank Europe and are intended to finance the purchase of goods and services for the development of telecommunications networks in Romania and Portugal. Digi will launch telecommunications services in Portugal towards the end of the year.

In addition, Digi Spain Telecom, as a borrower, and Banco Santander, as a lender, entered into a EUR 50 million non-committal bridge credit facility agreement on May 13, 2024, to finance working capital.

Digi reports consolidated revenues in the first quarter of 2024 (including revenues and other income) of EUR 447 million, a 12% increase versus Q1 2023. The adjusted EBITDA for Q1 2024 amounted to EUR 163.1 million (+21.9% y/y), and the adjusted EBITDA excluding the IFRS 16 impact was EUR 139.9 million (+23.4% y/y).

The company says this performance aligns with the management's projections for 2024, underpinned by solid growth in strategic markets.

(Photo source: the company)