Digi Communications Nv · BVB:DIGI
Digi Communications Nv — Investor Presentation (November 2024)
43 slides from Digi Communications Nv's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
Investor Presentation November 2024
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Digi Communications N.V., (the "Company“ or “DIGI”) and solely for use during the pres
Slide 3: Table of Contents
Table of Contents 1. Who we are 2. Development vectors 3. Historical financial data 4. Q3 2024 financials 5. Investor Relations contact
Slide 4: Who we are
DiGi Who we are
Slide 5: Our goal: superior communication services at affordable prices
At Digi Communications, our goal is to harness cutting- edge technology to provide superior communication services to a large customer base at the most affordable prices 5
Slide 6: Our services
Our services Pay TV (DTH & Fixed telephony Cable TV) Mobile telephony Broadband (fixed Data Media content and mobile) communications 6
Slide 7: Media holdings
Media holdings DIGI was the first Romanian electronic communications company to offer convergent services and transmedia content, by bundling phone, internet and TV together. The TV channels launched in July 2009, while in May 2015, the Radio stations were added to the line-up. TV channels: Radio: O
Slide 8: Key markets
Key markets Consolidated, yet still Growth Future Growth Moderate Growth growing Portugal • Fixed internet Romania Spain Italy • Mobile telephony • Fixed telephony Single play: • TV Multiple play: Multiple play: • Mobile • CATV, satellite/DTH • Fixed internet communications • Fixed internet • Fixed
Slide 9: DIGI in numbers
DIGI in numbers 5 growth markets: 22m+ homes covered 2 core markets: Romania, Spain, Italy, Romania & Spain by DIGI’s fiber network Portugal & Belgium as of September 2024 26.3m RGU’s as of €3.8bn CAPEX 22K+ employees as September 2024 between 2007-2023 of December 2023 9
Slide 10: Our evolution
Our evolution Note: On January 3, 2022 the Group successfully closed the sale of Digi Hungary and its 10 subsidiaries to 4iG Plc (“the Hungarian operations”) for a total consideration of €625 million.
Slide 11: Board of Directors
Board of Directors Digi Communications applies a one-tier board structure comprising of two Executive Directors and five Non-executive Directors, of which two are considered to be independent. The Board of Directors was appointed on June 25th, 2024, and it consists of the following members: Valentin
Slide 12: Awards and recognition
Awards and recognition #1 #1 #4 #5 #17 #39 European Major Telecom Top Company in Most Valuable Romanian Top Employer in Romania Top Company according Top 100 Most Valuable Player Award at Capital Bucharest, awarded by Brand, according to Brand in 2023 according to to Capital Magazine Top Companies i
Slide 13: DIGI on BVB
Listing venue: DIGI on BVB Digi Communications share capital consists of Class A and Class B shares. Class B shares Research coverage: are listed on the Bucharest Stock Exchange (BVB) as of May 16th, 2017. The Company’s shares (BVB: DIGI) are included in the main reference indices of BVB, including
Slide 14: Bonds
Bonds Romanian subsidiary of Digi Communications, Digi Romania S.A. (at the time - RCS & RDS), issued in 2020 notes totalling €850 million. In September 2024, aligned with international Face value: €450 million R E PA I D practices, Digi Romania S.A. redeemed the €450 Coupon rate: 2.5% million, 2.5%
Slide 15: Key investment highlights
Key investment highlights State of the art Robust RGU growth Strong mobile Focused Proven growth telecom networks across all business infrastructure and geographical driven by robust lines coverage expansion CAPEX • Currently cover 99.5% of • Primary focus on the • Solid performance in • More than 9
Slide 16: ESG materiality matrix
impact pozitiv materiality ESG matrix i material topics: 1. Climate change 11. Personal data privacy 2. Energy consumption 12. Fair working environment 3. Materials and waste 13. Occupational health and 4. Biodiversity safety 2 1 1 2 2 5. Businessethicsand 14. Digital inclusion and responsibility ac
Slide 17: Development vectors
DiGi Development vectors
Slide 18: Growth strategy: pivotal European operator
From its origins as a Romanian entrepreneurial venture, DIGI has evolved into a pivotal European operator in infrastructure and electronic communications, now present in five major markets. Our growth strategy focuses on asserting leadership in core regions – Romania & Spain – and expanding our foot
Slide 19: 4-pillar strategy
4-pillar strategy Accelerated growth Superior infrastructure • Leverage advanced fiber network • Explore acquisition and expansion based • Top coverage with 4G mobile network on market opportunities with 5G in active deployment • Cross-sell fixed/mobile services to • Maximise advantage in speed and
Slide 20: Key markets
Key markets All data as of 30.09.2024 Consolidated, yet still Growth Moderate Growth growing Romania Spain Italy Top European telecom operator #1 internet operator #1 Mobile Virtual 475K RGUs (mobile) Network Operator on #1 CATV operator portability sector Target customer is the large Romanian 26.3m
Slide 21: Key financial data 9M 2024
Key financial data 9M 2024 Revenue by market EBITDA by market RGUs (‘000) per business line 26,302 Total revenues 9M 2024: Total Adjusted* EBITDA 9M 2024: Fixed-line €1.414 billion (+13% vs. 9M €510.5mn (+19% vs. 9M 2023) 1,441 telephony 2023) 1,303 +11% Mobile services 1.6% +18% 12,423 10,503 25% +
Slide 22: Romania: DIGI as a market leader
Romania: DIGI as a market leader Key financial data1 Key highlights Revenue: €821.4m • #1 CATV operator with 72.7% market share Adj. EBITDA2 margin: 46.9% (+2.3pp YoY) • #1 internet operator with 70% market share • Performance of DIGI’s fixed internet network places Romania in the global ranking spe
Slide 23: Romania: DIGI as a market leader
Romania: DIGI as a market leader 17.9m RGUs1 Key highlights Fiber infrastructure: Fixed telephony • 100% owned nationwide network 5% • Nationwide last-mile 1Gbps connection with multiple Pay TV 100Gbps capacities and multiple redundancies • ~9.1 million homes passed, covering all major cities and ce
Slide 24: Spain: DIGI as an important player
Spain: DIGI as an important player Key financial data1 Key highlights Revenue: €572m • September 2018: Launch of FTTH fixed broadband Adj. EBITDA2 margin: 23.2% (+3.4pp YoY) and fixed telephony; currently provides these services in 50 regions • August 2021: Launch of 10 Gbps fixed broadband service
Slide 25: Italy: DIGI as a niched player
Italy: DIGI as a niched player Key financial data1 Key highlights Revenue: €23m • Utilize Vodafone’s mobile telecommunications network under the Italian MVNO Agreement 475k RGUs • Primarily target the extensive local Romanian community in Italy Mobile 100% 1 All data as of 30.09.2024 unless stated o
Slide 26: Portugal, Belgium: potential growth for DIGI
Portugal, Belgium: potential growth for DIGI Portugal Belgium • Acquisition of mobile spectrum at • Secured mobile spectrum in 2022 5G 2021 5G auction auction in collaboration with Citymesh • Long-term strategic partnership with Mobile (Cegeka Group) Cellnex, reaching 3,000 mobile • Agreement conclu
Slide 27: Historical financial data
DiGi Historical financial data
Slide 28: Financial KPIs evolution
Financial KPIs evolution Revenues by market* (€m) 1,690 1,493 29 Adjusted EBITDA 1,278 28 evolution* 642 1,107 24 Adjusted EBITDA is defined as EBITDA (consolidated operating profit or 500 loss plus charges for depreciation, amortisation and impairment of assets) 969 23 adjusted for the effect of no
Slide 29: RGUs evolution
RGUs* evolution 26,302 RGUs CAGR of 15% for 23,864 1,441 Fixed-line telephony 2019-2023 20,782 1,335 18,013 Mobile services 1,212 15,631 12,423 13,653 1,149 10,903 1,116 9,091 1,122 7,473 6,265 Broadband 5,578 5,944 6,613 5,047 4,262 3,517 2,856 Pay TV (Cable & DTH) 4,733 5,129 5,432 5,682 5,825 4,0
Slide 30: Q3 2024 financials
DiGi Q3 2024 financials
Slide 31: 9M 2024 Results overview
9M 2024 Results overview REVENUES 13.6% up to €492.5 million and other income (excl. extraordinary sale of assets) RGU 13.5% YoY increase up to 26.3 m (+3 m RGUs Q3’24/Q3’23) EBITDA excl. IFRS 16 16.6% up to €150.8 million Romania RGU +7.4% Spain RGU +30% Mobile: 6.4 m RGU (+13.7% YoY) Mobile: 5.6 m
Slide 32: Continued strategy execution in 2024
Continued strategy execution in 2024 Sustained RGU growth Continued network Launch in Portugal, across all markets expansion preparations in Belgium • Sustained market share growth • Romania: expanding the mobile • Commercial services in Portugal in Romania and Spain. network; rolling out equipment
Slide 33: Key developments in 2024 YTD
Key developments in 2024 YTD Sale of FTTH network in 12 provinces • On 4 April 2024, Digi Spain, entered into an asset sale and purchase agreement for the sale of its FTTH network in 12 provinces across Spain. The agreement was finalized with Sota Investments Spain OpCo, S.L.U., which is controlled
Slide 34: Key developments in 2024 YTD
Key developments in 2024 YTD National roaming agreement signed with Telefonica • On July 9, 2024, Digi Spain signed a national roaming agreement (NRA) and a RAN sharing agreement with Telefónica for a minimum of 16 years. These agreements, effective from January 1, 2025, will replace the existing MV
Slide 35: Key developments in 2024 YTD
Key developments in 2024 YTD Full redemption of €450 million bond issuance • On September 16, 2024, Digi Romania S.A. issued a notice of conditional full redemption for €450 million 2.5% Senior Secured Notes due in 2025. • The redemption occurred on September 27, 2024, at 100% of the principal amoun
Slide 36: Key developments in 2024 YTD
Key developments in 2024 YTD Finalization of Nowo acquisition • On October 25, 2024, DIGI Portugal LDA., the Company’s Portuguese subsidiary, finalized the acquisition of 100% of the shares in Cabonitel, S.A. from LORCA JVCO Limited for EUR 150 million subject to customary adjustments and certain co
Slide 37: Recent developments
Recent developments Launch of services • On November 4th, DIGI launched operations in Portugal, bringing a long-term stable pricing model with no annual increases, consistent with its operations in Romania, Spain, and Italy. • The “Freedom of Choice” approach offers flexible contract terms and custo
Slide 38: Q3 2024 Market highlights
Q3 2024 Market highlights ‘m€ 3 months ending Italy and Group September 30, 2024 Romania Spain Total4 operations2 Revenues and other income3(excluding €283.3 €202.8 €7.9 €492.5 extraordinary sale of assets) Adjusted EBITDA1 €114.1 €44.6 €(7.9) €150.8 excluding IFRS 16 RGUs (‘000) #17,886 #7,941 #475
Slide 39: Q3 2024 Financial highlights
Q3 2024 Financial highlights Group revenues and other income2 • Revenues and other income % CAPEX/revenues (€m) 433.7 492.5 up 13.6% based on strong +13.6% 8 37% 43% 36% 32% customer growth in Spain and 8 Italy 203 Romania. While the revenues in Revenues & other income Adj. EBITDA CAPEX 166 +22% Spa
Slide 40: Q3 2024 RGU growth
Q3 2024 RGU growth RGUs (‘000) per business line RGUs (‘000) per market 26,302 26,302 +13.5% Fixed-line telephony +13.5% 23,175 1,441 23,175 475 +11% 1,303 Italy 409 +16% Mobile services 7,941 +18% 12,423 6,113 Spain +30% 10,503 Broadband +15% 6,613 Romania 5,729 +7.4% 17,886 16,653 Pay TV +3% 5,640
Slide 41: Q3 2024 Financial profile
Q3 2024 Financial profile Financial liabilities as of September 30, 20241 Maturity profile long-term loans & notes Amount (mil €) Facility (Mil €) Senior Secured Notes 400.0 Senior Facilities 485.1 428 Export Credit Arrangements 153.8 245 189 Financial leases 50.3 173 23 Other long-term debt 71.7 17
Slide 42: 2025 Prospects
2025 Prospects Consolidation in core markets New markets launch In Romania, the target is to continue With the signing of the NRA, RAN sharing, • Digi's strategic entry into organic growth by expanding its and broadband bitstream wholesale Portugal, paired with acquisition network infrastructure and
Slide 43: Contact
Contact Investor Relations Department investor.relations@digi-communications.ro www.digi-communications.ro
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