DIGI - Q3: Growth, Growth, Growth + 5G Auction
Q3: Growth, Growth, Growth + 5G auction
DIGI reported its Q3 results with EBITDA and profit arrived to EUR 120m (-6% y-o-y) and EUR 25 m (+377% y-o-y) respectively because of the deconsolidation of Hungarian operation EBITDA was flat in Romania which was the main source of lower margin because of higher indirect cost. All in all, EBITDA is in line with our FY forecast of EUR 505m.
- Key positives:
- RGU growth was spectacular, total RGU exceeded 20m again, but this time without Hungary
- Sales grew by 19% y-o-y
- Competition was low in the 5G auction, DIGI got the spectrum license relatively cheap
- Key negatives:
- Margin deteriorated significantly on a yearly basis – 400bps
- Energy cost will hurt further more in Q4 in RO margins, but only marginally.
- No plans for inflation indexation
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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