Q3: Strong growth was maintained
DIGI reported its Q3 results. Revenue arrived +12% yoy (Q1: +12% yoy), EBITDA jumped by 18% yoy (but the dynamic slowed from Q2: 21% yoy), while net profit fell by 45% yoy, because of high DD&A and financial expenses. DIGI financials show the signs of high growth business model, DD&A (+30% yoy) increases ahead of EBITDA, and financial expenses grew in tandem with CAPEX. The financial growth again came from robust RGU growth (+16% yoy) and the meaningful improvement in EBITDA margin in Spain.
- Key positives:
- Operation margin improved on a yearly comparison, growth was maintained (RGU fuelled EBITDA growth) mainly in mobile market which has typically higher margin
- Sustained market share growth in Romania and Spain
- Key negatives:
- Still limited visibility on the payback time of the huge CAPEX
- Net debt jumped to high levels because of 40% CAPEX/SALES ratio in 9M
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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