In 2018, Digi observed an increase in revenues of 13.3% YoY, decrease in EBIT of 11.6% and a decrease in net profit of 65.5%
As Digi Communications published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, in 2018, Digi observed an increase in revenues of 13.3% YoY, amounting to EUR 1bn. The Group’s Revenue Generating Unit (RGUs) increased by 12%, amounting to EUR 14.9m. This increase could be attributed to the acquisition of Invitel, cable tv, and internet Romanian RGU’s growth and the growth of Spain’s mobile business line’s RGU.
Further, the Group recorded an Adjusted EBITDA of EUR 324.6m which is an increase of 13% compared to 2017 adjusted EBITDA. Meanwhile, even though the Group recorded an increase in revenue, their EBIT recorded a decrease of 11.6%, amounting to EUR 101.9m.
When looking at Digi’s operating expenses (excluding intersegment expenses and other expenses, but including depreciation, amortization and impairment), they amounted to EUR 925m, which represents an increase of 15.5%. The main driver of the higher expenses was the acquisition of Invitel. The Group also observed increases in salaries and depreciation compared 2017.
In 2018, Digi also recorded EUR 59.1m of net finance costs, which is an increase of 64.4%. This increase could be attributed to the recognition of a lower fair value gain of embedded derivatives compared 2017 (a decrease of €18.0 million). Also, there was an increase in interest expenses as a result of additional financing and increase in ROBOR.
Higher operating expenses and finance expenses lead to a decrease in the Groups net profit which decreased by 65.5%, amounting to EUR 21.3m