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Romanian RCS&RDS' parent Digi swings to net profit in Jan-Sept

Romanian RCS&RDS' parent Digi swings to net profit in Jan-Sept Digi CEO Serghei Bulgac

BUCHAREST (Romania), November 15 (SeeNews) - Digi Communications [BSE: DIGI], majority owner of Romanian company RCS&RDS, turned a 39.7 million euro ($45.4 million) profit in the first nine months of 2021, compared to a 23.5 million euro net loss in the same period last year.

Total revenues rose to 1.06 billion euro in the first nine months of 2021, compared to 950.6 million euro in the same period of 2020, Digi said in a preliminary financial statement filed with the Bucharest Stock Exchange, BVB, on Friday.

Total operating expenses for January-September increased to 954 million euro, compared to 826 million euro in the same period of last year, while net finance costs decreased to 55.8 million euro, from 130 million euro.

Operating profit fell to 108.6 million euro at end-September 2021, compared to 122.7 million euro at end-September 2020.

"The DIGI Group continues its growth path and solid performance, with consistent results in the third quarter of 2021, both financially and operationally, which is the effect of the commitments we have made to customers, investors and partners," Digi Communications CEO Serghei Bulgac said in a separate press release.

"We are convinced that next year will be full of challenges, but also of significant opportunities for our activity. Recently, we obtained spectrum licenses in Portugal, which will allow us to expand activity in a new market, in order to offer high quality, affordable telecommunications services based on the latest technologies."

Romania was leader among the markets of the group, contributing 58% of the company's overall revenues during January-September 2021, followed by Spain (26%), Hungary (14%) and Italy (2%).

In the third quarter alone, Digi Communications swung to a 8.7 million euro net loss compared to a 17.5 million euro net profit in the same period of 2021.

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's net profit decreased to 16.35 million euro in 2020, from 40.58 million euro achieved in the previous year.

Digi is a member of the BVB's blue-chip BET and BET-TR indices.

Its shares traded 2.06% lower at 38 lei ($8.8/7.7 euro) on the BVB as at 0958 CET on Monday.

($= 0.8739 euro)