RO telecom group Digi posts higher revenues but lower net profit in 2020

Digi Communications (DIGI), a telecom group with operations in Romania, Hungary, Spain, and Italy and the parent company of RCS&RDS, reached EUR 1.3 billion in revenues, in 2020, according to the company’s preliminary annual financial results.

The company increased revenues by 8.1% compared to 2019. Its adjusted EBITDA went up 7.5% compared to the previous year, to EUR 480 mln.

However, the group’s net profit went down 60% year-on-year, to EUR 16.4 mln, mainly due to higher financing costs.

The net financing costs in 2020 reached EUR 143 mln, 70% higher compared to 2019. At the operational level, the number of total services provided to customers (revenue generating units – RGU’s) went up by 12%, to 18.1 million RGUs from 16.1 million RGUs in December 2019.

Significant increases in RGUs were achieved, primarily organically, for the main business lines: pay-tv services (cable-tv and direct-to-home) went up 12% to 5.7 million RGUs, fixed internet clients increased by 18% to 4.3 million RGUs, and mobile communications services went up 13 to 6.4 million RGUs.

The group invested a total of EUR 371 million in 2020 for network development in Romania, Spain, and Hungary, aiming to consolidate and expand its 4G and 5G networks and further roll-out the fiber optic infrastructure. Digi Communications is listed on the Bucharest Stock Exchange and has a market capitalization of EUR 714 mln.

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