Digi Communications (1K) | Buy | Q1 shows solid commercial traction

研报英文原文证据摘录

Digi Communications (1K) | Buy | Q1 shows solid commercial traction

#EstimatesRevision

Release date: 20 May 2026

Company research

Buy Digi Communications

Romania | Telecom services MCap: RON13.4bn

Target Price: RON66.00 (66.67) Change in TP: -1.0% Bloomberg: DIGI RO Reuters: DIGI.BX

Current Price: RON46.10 Change in Sales: -0.4% 26E/-0.4% 27E Free float 42.1%

Avg. daily volume (RONm) 3.5 Up/downside: 43.2% Change in Adj EBIT: -22.5% 26E/-18.8% 27E

YTD abs performance 25.5%

Market data: 19 May 2026 Change in Adj. EPS: nm- 26E/NM- 27E

52-week high/low (RON) 50.53/22.17

Q1 shows solid commercial traction Price performance

Why this report?

The cancellation of the Spanish IPO and the UK venture have weighed on the 55

stock. But Q1 results showed the strength of the commercial model in Spain 50

and Romania, with Portugal also showing more traction, suggesting prior 45

quality issues are in the process of being fixed, and only Belgium continues to 35

show soft net adds. FCF was also a touch better than expected, and our long- 30

term FCF estimates remain unchanged (c. EUR630m by 2033E at the end of 25

the investment process), which gives a whopping 17% yield. 20

May 25 Nov 25 May 26

Key findings

▪Q1 results came broadly in line with estimates, showing ongoing solid EBITDAaL Price Stoxx Europe 600 (rebased)

growth (+14.8%) and improving Equity FCF (we estimate EUR3.4m vs EUR-48.3m

in Q1 2025), driven by positive working capital. The company reiterated its FY2026

guidance, ambitions and strategic priorities. FY to 31/12 (EUR) 12/26E 12/27E 12/28E

▪The commercial activity in Romania has moderated, as expected (but positive net Sales (m) 2,423.7 2,616.0 2,804.5

adds still contrast with the decline in fixed broadband net adds by VOD), while EBITDA adj (m) 809.3 912.8 1,031.1