Q2: Spain’s EBITDA doubled

DIGI reported its Q2 results. Revenue arrived +12% yoy (Q1: +12% yoy), EBITDA jumped by 21% yoy, while net
profit more than tripled, albeit from a low base to EUR 16m. The financial growth again came from robust RGU
growth (+16% yoy) and the meaningful improvement in EBITDA margin in Spain (ca +500bps yoy). DIGI
proposes DPS RON 1 (DY of 2.8%) to the AGM, with an ex-div date of 2023.08.30.

1. Key positives:
1. Operation improves, growth was maintained (RGU fuelled EBITDA growth)
2. EBITDA margin is strong again @ 35% thanks to Spain operation
3. Lower electricity prices supported margins (electricity costs: Q2:-56% yoy;
H1:-44% yoy)
2. Key negatives:
1. Limited visibility on the payback time of the huge CAPEX
2. Net debt jumped to high levels because of 60% CAPEX/SALES ratio in Q2
3. Still no plans for inflation indexation – as long as they could maintain a
reasonable EBITDA growth in Romania (+8% yoy) prices stays the same.
4. RGU growth in RO was maintained at expense of ARPU as the expansion in
the rural areas is more price sensitive