In the first Q1 of 2022, DIGI recorded an increase in revenue of 21.1%, an increase in EBITDA of 9.5% and an increase in total net profit by EUR 400.7m, amounting to EUR 414.8m due to the sale of its subsidiary DIGI Hungary.

In the first three months of 2022 DIGI Communications recorded EUR 360.6m in revenues, showing a solid increase of 21.1% YoY.

In the Romanian market, the company observed an increase in revenue of 13.3%, amounting to EUR 243.4m. Revenue growth in Romania was mainly the result of the increase of mobile telecommunication services, cable TV and fixed internet and data RGUs in the period, due to organic growth.

In the Spain market, DIGI recorded revenues of EUR 110.8m, noting an increase of 42.2%. The increase in our Spain revenue was due to the increase in mobile telecommunication services RGUs from approximately 2,496 thousand in Q1 2021 to approximately 3,210 thousand in Q1 2022, an increase of 28.6%.

In the Other market, Digi witnessed a slight increase in revenues by EUR 1m, amounting to EUR 6.6m.  A slight increase came due to new customer acquisitions as a result of more attractive mobile and data offerings.

Turning our attention to the operating expenses, in Q1 2022, they amounted to EUR 317.2m (+23.3% YoY). The highest increase in operating expenses could be observed in the Romanian market, where OPEX amounted to EUR 137.4m (EUR 24.1m YoY increase). This variation is mainly due to increases in utilities and network maintenance expenses during the period – but OPEX growth is in line with revenue growth. In Spain, OPEX increase happened mainly due to interconnection and salaries expenses as a result of the business development.

As a result of all of the above-mentioned, DIGI reported an EBITDA of EUR 124.2m, which represents an increase 9.5%. As a result of sales increasing faster than the EBITDA, EBITDA margin observed a decrease of 3.6 p.p. and currently stands at 34.4%. Meanwhile, operating profit amounted to EUR 43.4m, representing an increase of 7.7%.

Going further down the P&L, the company recorded a further improvement in the net financial loss by EUR 5m and currently stands at EUR -20.1m. As a result of all-above stated, the company’s net profit from operations increased from EUR 23.3m to EUR 27m, an increase of c. 16%.

In Q1 2022, the total net profit amounted to EUR 414.7m, representing a strong increase of EUR 400.7m. This increase of EUR 400.7m comes on the back of Net profit from discontinued operations, which reported an increase of EUR 387.8m, due to the sale of DIGI Hungary to the leading Hungarian IT and ICT company.