DIGI Q2 2025 presentation: Revenue jumps 18% as Spanish operations shine

Introduction & Market Context

Digi Communications NV (BVB:DIGI) reported strong revenue growth in its Q2 2025 presentation, with the telecommunications provider continuing its expansion across European markets. The company’s stock traded at €67.4 following the results, up 0.82% and continuing to perform well within its 52-week range of €55.2 to €90.8.

The Romanian-based telecom operator highlighted significant subscriber growth across its markets, particularly in Spain, while navigating challenges in newer territories like Portugal and Belgium. The presentation revealed a company balancing aggressive growth strategies with the financial pressures of market expansion.

Quarterly Performance Highlights

DIGI reported Q2 2025 revenues of €559.7 million, representing an 18% year-over-year increase, primarily driven by strong performance in Spain and Romania. For the first half of 2025, revenues grew even more impressively at 21% to reach €1.113 million.

As shown in the following financial highlights chart:

Despite the robust revenue growth, adjusted EBITDA decreased slightly by 1% year-over-year to €168.1 million for Q2 2025, which the company attributed primarily to the ongoing ramp-up costs in Portugal. Capital expenditures for the quarter reached €226 million, reflecting DIGI’s continued investment in network infrastructure across its markets.

The company’s revenue-generating units (RGUs) showed substantial growth, increasing 17% year-over-year to reach 29.8 million. This growth was distributed across business lines and markets as illustrated in the following breakdown:

Geographic Breakdown

Romania remains DIGI’s largest market, generating €295.2 million in Q2 2025 revenue with an adjusted EBITDA of €141.7 million. The Romanian operation grew its RGUs by 7% year-over-year, with particularly strong performance in mobile services (+13%) and broadband (+7%).

Spain has emerged as the company’s growth engine, with a comprehensive overview of its performance shown here:

The Spanish market demonstrated exceptional momentum with a 29% increase in RGUs, reaching 9.7 million. Mobile services grew by 24% to 6.6 million RGUs, while broadband services surged by 35% to 2.3 million. Spain contributed €238.5 million in revenue for Q2 2025, with an adjusted EBITDA of €42.1 million.

The company’s newer markets showed mixed results. Portugal, where operations launched in 2024, generated €17.3 million in revenue but posted a negative EBITDA of €15.2 million as the company continues to invest in market establishment. Similarly, Italy and other group operations contributed €8.7 million in revenue with a slight EBITDA loss of €0.5 million.

The following table provides a comprehensive view of performance across all markets:

Strategic Initiatives

DIGI highlighted several key strategic developments in its presentation. The Competition Council has approved a transaction involving Telekom Romania, where DIGI Romania will acquire certain assets while Vodafone will acquire shares held by OTE, subject to conditions and final agreement.

The company also implemented a corporate restructuring to streamline its Belgian operations, resulting in Digi Communications Belgium N.V. being 51% owned by Digi Romania and 49% by Citymesh.

Network expansion remains a core focus, with significant investments across all markets. In Spain, DIGI is transitioning from a mobile virtual network operator (MVNO) to a mobile network operator (MNO), which should improve margins over time. The company’s overall strategy execution is summarized in this overview:

Financial Position & Outlook

As of June 30, 2025, DIGI reported total gross debt of €1,638.5 million and cash of €55.5 million, resulting in a net debt position of €1,583.0 million. This represents an increase in the leverage ratio to 2.8x from 2.3x at the end of 2024, reflecting the company’s continued investment in growth initiatives.

For the remainder of 2025, DIGI expects to maintain its growth trajectory in core markets while continuing to develop its newer operations in Portugal and Belgium. The company anticipates its full-year EBITDA to remain similar to 2024 levels, with increased capital expenditure guidance of approximately €800 million for the year.

In Romania, DIGI plans to focus on improving mobile network performance while maintaining its position in fixed services. The Spanish operation will leverage its transition to an MNO status to drive continued subscriber growth. In Portugal, the priority is integrating the Nowo acquisition and expanding network coverage to reach 50% of the country by year-end, with breakeven expected within the next two to three years.

While the presentation paints an optimistic picture of DIGI’s growth prospects, investors should note the increasing leverage and negative EBITDA in newer markets as factors that could impact financial flexibility in the near term. However, the strong performance in established markets provides a solid foundation for the company’s expansion strategy.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.