Half Year 2026 Digi Communications NV Earnings Call Transcript
Key Points
- Group revenues grew 10% year-on-year to EUR1.2 billion in H1 2026, with EBITDA up 19%.
- Total RGUs increased 14% year-on-year to nearly 34 million, with over 4 million net additions in the last 12 months.
- DIGI became the number one mobile operator in Romania by active SIMs, with mobile RGUs reaching 8.4 million.
- DIGI Spain delivered outstanding growth: RGUs up 23% year-on-year, with mobile reaching 7.8 million and broadband 2.9 million.
- The successful IPO of DIGI Spain raised up to EUR287 million, reducing pro forma net debt to below EUR1.8 billion and leverage to under 2.8x.
- Spain's adjusted EBITDA ex-operating leases grew 49% year-on-year in Q2 2026, with margin expanding to 20.4%.
- CapEx decreased 10% year-on-year in H1 2026, confirming the peak spending phase has passed for Romania.
- The company maintains strong market positions, being the number one portability destination in both Romania and Spain.
- Management reconfirmed 2026 guidance for Spain, expecting continued margin improvement towards 30%+ EBITDA margin.
- The move to euro-linked pricing in Romania reduces FX exposure and improves EBITDA margin.
- Belgium operations continue to face challenges, with growth stagnating at around 9% and a recent departure of the General Manager.
- Portugal remains loss-making, with EBITDA losses only marginally improved and no clear timeline for breakeven.
- ARPU in Portugal is declining due to migration of NOWO customers to lower-priced DIGI tariffs.
- Equity-accounted losses from Belgium reached EUR18 million in H1 2026, with no expected decline in the near term.
- The SRI framework agreement is not expected to contribute significant profit or EBITDA, as revenues will be consumed by expenses.
- The company faces competitive pressure in Portugal's Pay TV segment, with DIGI's TV app considered less attractive than rivals'.
- UK operations are still early-stage, with CapEx limited to 5% of total and no clear targets for coverage or profitability.
- The company's functional currency remains the Romanian Leu, so balance sheet FX exposure persists despite euro-linked pricing.
- Spain's ARPU is gradually decreasing as new customers subscribe to lower-priced products, though offset by volume growth.
- Management provided limited detail on the expected revenue phasing and EBITDA conversion from the SRI contract.
Good afternoon, ladies and gentlemen, and welcome to the Digi Communications NV and investors H1 2026 financial results presentation. A copy of the corresponding report is posted in the Investor Relations section of DIGI's website and (inaudible) DIGI's communications platform. The conference is being recorded today, and a replay will be available shortly after.
(Operator Instructions)
Before we get started, you are advised that certain statements in this conference call are forward-looking and therefore subject to material risks and uncertainties. Actual results could differ materially from those stated or implied by such forward-looking statements due to the risks and uncertainties associated with Digi Communications NV, which include amongst others, various risks related to our business, risks related to regulatory matters, and litigation. Risks related to investments in emerging markets, risks related to our financial position, as well as risks related to the notes and the related guarantee. I would like to introduce the speakers for today's call: Mr. Serghei Bulgac, the CEO, Digi
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