You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

Romanian RCS&RDS' parent Digi posts higher 9-mo net profit

Romanian RCS&RDS' parent Digi posts higher 9-mo net profit Digi CEO Serghei Bulgac

BUCHAREST (Romania), November 14 (SeeNews) - Digi Communications [BSE: DIGI], the majority owner of Romanian company RCS&RDS, said on Thursday its net profit rose to 24 million euro ($26.4 million) in the first nine months of 2019, from 20.9 million euro in the same period of 2018.

Net finance costs rose to 62.6 million euro in January-September 2019, compared to 41.2 million euro a year earlier, Digi said in a statement filed with the Bucharest Stock Exchange, BVB.

Total revenues grew 15.6% on the year to 874.6 million euro in the nine months through September. Total operating expenses increased to 766.6 million euro, from 668.2 million euro.

Romanian operations contributed 63% of Digi's total revenue. They grew by 8.4% year-on year in the review period, reaching 557.2 million euro, primarily driven by an increase in the fixed internet and data and cable TV RGUs, as well as increase in mobile telecommunication services and cable TV ARPUs.

"We have accelerated the investments in important projects for the evolution of the group in all markets where we carry out operations. Launch of 5G services in June 2019, followed by the extension of the 4G offer in the  900 MHz band and a steady increase in mobile data traffic for all Digi users, demonstrate our commitment to the continuous improvement of mobile communications services. We continue the extension of fixed services in Romania, Hungary and Spain, as well as the development of the mobile network in Hungary," Digi Communications CEO Serghei Bulgac said.

Revenues in Hungary rose by an annual 21.2% to 163.3 million euro in the first nine months, while revenues from operations in Spain surged by 52.7% to 137.4 million euro.

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 flat at 33 lei on the BVB as at 1324 CET on Thursday.

($=0.908 euro)