In 2019, DIGI recorded an increase in revenues of 14.2%, increase in adjusted EBITDA of 37.5% and a increase in net profit of 132%.
As DIGI published their preliminary FY 2019 results, we are bringing you key takes from it. According to the report, in 2019 the company recorded EUR 1.19bn, representing an increase of 14.2% YoY. Group RGU’s increased from 14.9m from end 2018 to 16.1m as of end 2019 (+8% YoY). Such an increase could mainly be attributed to the growth of Spain’s mobile RGUs and the Romanian’s cable tv and internet RGUs.
Operating expenses in 2019, amounted to EUR 1.04bn, representing an increase of 12.3% YoY. The company notes that operating expenses grow in line with business development. In 2019, DIGI recorded increases in salaries expenses and depreciation, as well as increases due to full year’s consolidation of Invitel’s operating expenses.
As a result of the above mentioned, DIGI reported an adjusted EBITDA of EUR 446.3m, representing a strong increase of 37.5% YoY. Note that the adjusted EBITDA includes the impact of adopting IFRS 16, in total amount of EUR 66.2m. Such result puts it at an adjusted EBITDA margin of 37.6% (+6.3 p.p. YoY).
Going further down the P&L, the company’s operating profit stood at EUR 145m, which is an increase of 42.2% YoY.
Net financial result amounted to EUR -83.9m, compared to EUR -63.1m in 2018. The increase in net financial loss came from increase in foreign exchange losses as well as higher interest expenses due to the Additional Notes from February 2019 and additional interest expense from the adoption of IFRS 16, partially offset by increase in fair value of the embedded derivative assets compared to previous period.
In 2019, DIGI recorded a net profit of EUR 41.79m, representing an increase by EUR 23.7m or 132% YoY. Such a result puts the profit margin at 3.5% (+1.8 p.p. YoY).