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Romanian RCS&RDS parent company's net profit plummets in Jan-Sept

Romanian RCS&RDS parent company's net profit plummets in Jan-Sept Digi Communications

BUCHAREST (Romania), November 14 (SeeNews) - Digi Communications [BSE: DIGI], the majority owner of Romanian company RCS&RDS, said that its net profit shrank to 18.9 million euro ($21.2 million) in the first nine months of the year from 44.2 million lei in the year-ago period, mainly due to higher finance costs.

Net finance costs rose to 44.7 million euro in the first nine months, of this year from 35 million euro in the same period of 2017, Digi said in a statement filed with the Bucharest Stock Exchange, BVB, on Wednesday.

Total revenues increased 9.9% on the year to 752 million euro in the nine months through September.

Romanian operations had the biggest share in Digi's total revenue, growing by 3.8% in the review period to 509.9 million euro, primarily driven by an increase in mobile telecommunication services and fixed internet, and  cable TV.

Revenues in Hungary rose by an annual 19.4% to 135 million euro, while revenues from operations in Spain surged by 34.5% to 90 million euro.

Total operating expenses increased 4% on the year in the first nine months, reaching 416.5 million euro.

"The development of electronic communications infrastructure is important for the evolution of society as a whole and we will continue to invest in the fiber optic network both in Romania and Hungary, where we reach in over 7 million homes," Digi Communications Group CEO Serghei Bulgac said.

In February, Digi secured a 163 million euro syndicated loan to refinance a short-term loan contracted in October.

RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998. Its parent company, Cable Communication Systems, now Digi Communications N.V., indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.

Digi is part of BVB's blue-chip BET and BET-TR indices.

Shares of Digi traded 3.15% lower at 30.7 lei on the BVB as at 1252 CET on Wednesday.

($=0.8899 euro)