DIGI Communications NV reported a noticeable decrease in subscriber numbers in all fixed line segments. DIGI Távközlési Kft., its Hungarian operation, is revealed in the second quarter business report of the Dutch parent company issued last Friday. The telecommunications segment, which has had its own mobile infrastructure since May last year, has only been able to grow the mobile segment, whose further prospects and growth potential depend to a large extent on how the company is listed or included in the National Media and Communications Authority's autumn frequency sale process.
According to the business report, DIGI Távközlési Kft. (Later DIGI) reduced the size of its cable TV customer base by 2% year-on-year, from 696 thousand to 682 thousand, while the number of internet subscriptions decreased by 2.6%, from 757 thousand to 737 thousand. The largest loss was in the fixed telephony segment, where the number of connected trunks managed by the company decreased from 691 thousand to 650 thousand, which corresponds to a drop-out rate of almost 6%.
At the same time, the main reason for the decline in the various fixed line segments can be deduced from the latter, which the group mentions in the business report: According to the decision of the Hungarian Competition Authority in March this year, DIGI could acquire Invit if after the acquisition, it will sell its interest in any municipality where the overlap would substantially eliminate competition. According to DIGI, the subscriber base was sold to 15 settlements by June 30, through which a total of about 34,000 old Invitel subscriptions – mostly landline terminals – were handled by a new service provider.
The sale did not have a significant effect on the mobile segment. , DIGI Mobil, which was just unfolding its wings last June, was able to record a significant increase accordingly. The customer base of the test service reached 136,000 subscriptions on June 30, which corresponds to an annual growth of almost 143%. At the same time, the pace of expansion has slowed noticeably, so the number of DIGI Mobile subscriptions increased by only 14,000 in the second quarter – the service provider reported 122,000 mobile subscribers in Hungary on March 31.
revenue for the company, however, the company managed to offset the expenses related to the operation and development of the network by reducing program fees and labor costs. The company's second-quarter sales decreased from € 55.4 million to € 50.5 million, a decrease of 0.8% after adjusting for currency effects. The operating expenses of the Hungarian subsidiary in the second quarter were EUR 35.3 million, 10.2% less than a year earlier.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.