12 augustus 2022
14:01
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The Romanian telecom group Digi Communications, the new mobile operator in our country, saw its profits shrink almost completely in the second quarter.
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It was a big surprise at the auction of the 5G licenses in June. The Belgian market for mobile telephony is getting a fully-fledged new player, in the form of a tandem of the Romanian Digi Communications for private customers with Citymesh (ICT group Cegeka) for business users.
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Publicly traded Digi Communications released its second-quarter results on Friday. The main thrust was a sharp decline in profits despite a 19 percent growth in turnover to 370.4 million euros. Net profit ended up at 3.6 million euros against 23.8 million a year earlier. That’s an 85 percent drop.
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Spain
The profit drop is mainly attributable to higher expenses. With an increase of almost a third, they grew almost twice as strong as the turnover. This is partly due to higher wages, network and marketing expenses. For the first half, however, the picture looks completely different with a profit explosion to 415.7 million euros, a result of the sale of the Hungarian activities.
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Digi Communications is mainly active in Romania. Spain, where it operates as a virtual mobile operator (MVNO), is the second most important market. Italy and Portugal are still very small in terms of income. In Italy, Digi is also an MVNO, while in Portugal it also won mobile frequency spectrum.
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It half year report only mentions in one paragraph the acquisition of mobile spectrum in our country and the plans to start building a national network. There are no details about those plans.
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