Digi Communications Nv · BVB:DIGI
Digi Communications Nv — Investor Presentation (September 2020)
25 slides from Digi Communications Nv's investor presentation, September 2020
Slide 1: Investor presentation September 2020
Investor presentation September 2020
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: Digi is a leading telecommunication Group with business in Romania, Hungary, Spain and Italy
Group Digi is a leading telecommuncation Group with business in Romania, Hungary, Spain and Italy 23% 61% Romania Spain & Italy 16% Hungary 6M June 2020 6M June 2020 6M June 2020 Revenue1: Revenue1: Revenue1: €380mm €140mm €103mm Adj. EBITDA margin2: Adj. EBITDA Margin (Spain)2: Adj. EBITDA margin2:
Slide 4: Contents
Contents Digi at a glance: sustained growth profile, solid track record in revenues & EBITDA overcoming pandemic economical challenges Due to our leading commercial proposition for customers… We are market leaders in core business lines and benefit from robust RGU growth… Based on our advanced netwo
Slide 5: At a glance: Sustained growth profile, overcoming pandemic economical challenges
Group At a glance: Sustained growth profile, overcoming pandemic economical challenges Group revenue Group adjusted EBITDA Group capex2 (€mm) (€mm), margin (%) (€mm), % total revenues 1,186 IFRS 16 impact ~€2bn invested over last 10 years in network +14% infrastructure 31.2% 31.4% 31.3% 37.6% 34.7%
Slide 6: At a glance: Sustained growth profile
Group At a glance: Sustained growth profile RGUs ARPU’s RGU1 (thousand) Romania Hungary 16,853 7.5 8.2 8.3 7.9 7.2 Cable TV 5.3 5.2 5.0 5.2 5.1 754 1,760 2016 2017 2018 2019 Q2 2020 12,443 Romania Residential Hungary Fixed internet and 948 6,004 data1 1,692 7.8 7.6 7.6 8.5 8.3 5.0 5.0 4.8 4.8 4.7 +6
Slide 7: …underpinned by a prudent capital structure
Group …underpinned by a prudent capital structure Group net debt1 to adjusted EBITDA2 Peer net debt to adj. EBITDA4 As of Q2 2020 reported numbers Pre-IFRS 16 6.1x Post-IFRS 16 5.1x 4.0x Median: 3.9x 3.8x 2.8x 2.6x 2.6x 2.4x 2.1x 3 3 2018 2019 Q2 20 Notes: 1. Net debt (excluding impact of IFRS 16) f
Slide 8: COVID-19 impact
Group COVID-19 impact Up-dates Q2 Fixed and mobile networks have been working within normal parameters, coping with the increase in traffic Romania: -increase of usage for fixed internet (+30%) and cable TV services and in mobile networks (+5%) in the first half of Q2 but stabilized in the second ha
Slide 9: Highlights Q2 2020
Group Highlights Q2 2020 Continued Growth Profile, overcoming pandemic economical challenges REVENUES EUR 310 million group consolidated Revenues +5 % for Q2 2020 (+5% compared with previous period) RGU +9 % RGU YoY increase up to 16.9 million (+9% compared with previous period) Group EUR 95.9 milli
Slide 10: Contents
Group Contents Digi at a glance: sustained growth profile, solid track record in revenues & EBITDA overcoming pandemic economical challenges Due to our leading commercial proposition for customers… We are market leaders in core business lines and benefit from robust RGU growth… Based on our advanced
Slide 11: Leading commercial propositions for customers
Leading commercial propositions for customers Monthly price incl. VAT Digital TV L TV Complet TV TV 152 channels, 38 HD 137 channels, 44 HD 190 TV channels, 50 HD 130 channels, 36 HD Limited Limited geographic geographic FIBERLINK 1000 Internet L availability Net 500 Net prin fibră availability Inte
Slide 12: Contents
Group Contents Digi at a glance: sustained growth profile, solid track record in revenues & EBITDA overcoming pandemic economical challenges Due to our leading commercial proposition for customers… We are market leaders in core business lines and benefit from robust RGU growth… Based on our advanced
Slide 13: Market Leader in Romania
Market Leader in Romania Fiber network(1) Mobile(1) Internet Others 13% TV 1 13% / 18% 13% 18% 12% 53% 35% 17% 53% 34% 21% / Note: 1. Market shares are based on company and peers reported subscriber numbers and regulator data for market size as of Q4 2019. Source: Company data, ANCOM, Peer reporting
Slide 14: FMC market leader in Romania…
FMC market leader in Romania… Romanian market shares Telekom Romania Other 2 1 Pay-TV3 53% 17% 12% 18% Fixed 1 2 internet and 53% 21% 13% 13% data Fixed-line telephony 35% 40% 23% 2% Post-paid 24% 17% 32% 5 27% mobile Multiple - play % of Group 61% 1.0% 2.4% 1.7% - revenue4 UPC Rom
Slide 15: … and Leading Challenger in Hungary
… and Leading Challenger in Hungary Cable TV(1) Fixed internet and data(1) Fixed telephony(1) Others Others Others 16% 8% 17% 32% 38% 22% 48% 28% 23% 22% 24% 22% Note: 1. Market shares as of 30 June-2020. Source: NMHH
Slide 16: Strong sustained commercial success in Spain
Strong sustained commercial success in Spain RGUs Revenues & EBITDA RGU1 (thousand) +62% 2,283 EBITDA 14 12 Mobile 1,522 11 +4% 12 +7% 10 +10% 9 +11% +6% 2,019 2,098 +9% 1,894 +12% 1,728 +10% 62 66 Revenues 1,634 +9% 56 1,496 46 50 +18% 40 +15% +40% Fixed +65% +48% 157 185 26 +77% 46 68 112 Q1 2019
Slide 17: Contents
Contents Digi at a glance: sustained growth profile, solid track record in revenues & EBITDA overcoming pandemic economical challenges Due to our leading commercial proposition for customers… We are market leaders in core business lines and benefit from robust RGU growth… Based on our advanced netwo
Slide 18: Well invested fixed line network in Romania & Hungary
Well invested fixed line network in Romania & Hungary Modern, resilient fiber-based infrastructure in Romania Expanding fiber-footprint in Hungary • Very dense, nationwide network ~100% owned • Technologically advanced fixed fiber network1 • Nationwide last-mile 1Gbps connection with multiple • ~2.1
Slide 19: …and at the beginning of investment cycle in Spain
…and at the beginning of investment cycle in Spain Rolling out fiber-footprint in Spain • Launch of FTTH fixed broadband and fixed telephony in September 2018 • Indirect access on Telefonica FTTH GPON network based on the NEBA regulation • Currently provides fixed telephony and internet services to
Slide 20: Mobile network in expansion
Mobile network in expansion Newly built own mobile network, coverage increasing in Romania Testing proprietary network in Hungary • ~5,000 base stations (approximately 4,350 of which are • Launched own mobile network in May 4G) 2019, with services in testing phase and available only to existing cust
Slide 21: Growing further in a mature market (1/2)
Group Growing further in a mature market (1/2) Competition Council’s authorization for conclusion of network operation’s contracts by RCS & RDS • - On July 24, 2020, the Competition Council issued the authorisation for the economic concentration acomplished by RCS&RDS through gaining sole control ov
Slide 22: Growing further in a mature market (2/2)
Group Growing further in a mature market (2/2) • Further network reach to new areas in Romania • Increase in RGU’s for fixed services and potential for convergent up-sale • Investments in up-grading the existent network
Slide 23: Outlook
Group Outlook • Taking advantage of pockets of growth on a mature market • Continue network expansions into rural areas and densification and roll out of mobile network • Continue providing value for money offerings to its customers • On-going development of mobile network with a view of becoming a
Slide 24: Q&A
Q&A
Slide 25: Contact
Contact You can find us on: Web: www.digi-communications.ro Email: ipo.relations@digi-communications.ro
Digi Communications — Investor Presentation (September 2020) on 6ix