Digi revenues up 8%, profit tumbles in Q3

Tuesday 14 November 2017 | 18:34 CET | News

Digi, an operator with divisions in Romania, Hungary, Spain and Italy, saw its revenue for the three-month period to 30 September increase 8.4 percent year-on-year to EUR 230.1 million. Revenue of its largest unit, Romanian operator RCS&RDS, grew 4.7 percent to EUR 162.4 million, and revenue in Hungary was up 12.3 percent to EUR 38.3 million. The company said its net profit diminished to EUR 12.3 million from EUR 11.3 million for the three-month ended 30 September, 2016. Of the total revenues in Romania, EUR 146.5 million represented revenue from core services and EUR 15.9 million were other revenues.

Revenue growth in Romania was primarily driven by an increase in the operator's mobile telecommunication services RGUs and ARPU, cable TV and fixed internet and data RGUs. Mobile telecommunication services RGUs increased 11 percent year-on-year to approximately 3.400 million as at 30 September.

Mobile telecommunication services ARPU increased to an average EUR 4.2 per month for the three month period ended September 30, 2017, compared to an average EUR 3.6 per month for the three month period ended September 30, 2016, an increase of approximately 16.7 percent primarily as a result of overall voice and data traffic increases, as well as certain changes in the mix of packages.

The cable TV RGUs increased 5.4 percent year-on-year to approximately 2.974 mln as at 30 September. The residential fixed internet and data RGUs increased 7.1 percent year-on-year to approximately 2.092 mln. The operator said these increases were primarily due to its attractive fixed internet and data packages.

Growth in its mobile telecommunication services, cable TV, fixed internet and data and other revenue was partially offset by a decrease in revenue generated by our DTH and fixed-line telephony businesses as a result of decreases in RGUs in both business lines. DTH RGUs decreased 6.9 percent year-on-year to 605,000 as at 30 September. This decrease was primarily driven by a number of DTH subscribers terminated their contracts, moved to competitors or migrated from its DTH services to its cable TV services. Residential fixed-line telephony RGUs decreased 6.5 percent to approximately 1.151 mln as at 30 September.

The increase in revenue in Hungary was principally due to an increase in cable TV RGUs, fixed internet and data RGUs, increase in other revenues, as well as the increase in the prices of the cable TV packages starting with Q4 2016. The cable TV RGUs increased 6.0 percent year-on-year to approximately 495,000 as at 30 September. Fixed internet and data RGUs increased 10.1 percent to approximately 459,000 as at 30 September.

Fixed-line telephony RGUs increased 6.9 percent to approximately 371,000 as at 30 September. These increases were driven by investments in expanding and upgrading its fixed fibre optic network in Hungary.

Other revenue increased primarily as a result of additional revenue from up-link services and advertising. DTH RGUs decreased 5.6 percent to approximately 302,000 as at 30 September. A number of DTH subscribers terminated their contracts, moved to competitors or migrated from its DTH services to its cable TV services.

Revenue in Spain increased 18.8 percent to EUR 24.6 million due to a 36 percent increase in mobile telecommunication services RGUs to approximately 813,000, primarily due to new customer acquisitions as a result of more attractive and affordable mobile and data offerings.

Revenue in Other represented revenue from operations in Italy and for the three month period was EUR 4.8 million, an increase of 118.2 percent versus the same period of 2016. Total operating expenses rose 5.3 percent year-on-year to EUR 197.5 million.

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Categories: General
Companies: Digi / RCS&RDS
Countries: Hungary / Italy / Romania / Spain
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