September 20 (SeeNews) - Digi Communications N.V [BSE: DIGI], majority owner of Romanian company RCS&RDS, said that its subsidiary in Spain has launched fixed broadband and fixed telephony services in that country.
These new services will be provided based on the wholesale indirect access agreement concluded with Telefonica in Spain, that will offer access to the broadband infrastructure of FTTH and ADSL of Telefonica, Digi said in a filing to the Bucharest Stock Exchange late on Wednesday.
In the first phase, the Digi Spain fixed Internet and fixed telephony services are made available to customers from Madrid, while further expansions are expected to other Spanish provinces where Digi Spain already enjoys a favourable penetration of its mobile services, the company added.
Digi's revenues from operations in Spain surged by 35% to 57.1 million euro in the first half of 2018.
The company's consolidated net profit shrank by 51% year-on-year in the first half of 2018 to 15.3 million euro ($17.3 million), mainly due to higher finance costs. Total revenues increased 5% on the year to 475.8 million euro in the six months through June.
Romanian operations had the biggest share in Digi's total revenue, growing by 1.4% in the review period to 333.4 million euro, primarily driven by an increase in mobile telecommunication services and fixed internet, and cable TV.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998. Its parent company, Cable Communication Systems, now Digi Communications N.V., indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.
Digi is part of BVB's blue-chip BET and BET-TR indices.
Shares of Digi traded flat at 29 lei on the BVB as at 1010 CET on Thursday.
($=0.8547 euro)