Romanian telco operator Digi has made a significant move by launching its television service, DIGI TV, in Spain. This offers over 100 channels at an affordable price of just EUR 7 per month. Analysts view this as a challenge to the country's major television providers.

Customer Survey Insights

According to the latest study by consulting firm Oliver Wyman, 40% of Spanish customers surveyed expressed their willingness to switch from traditional operators like Movistar, MASOrange, or Vodafone to low-cost providers such as Digi, Avatel, or Finetwork in 2024. This shows a notable increase of three percentage points compared to 2023. The allure of lower costs and a diverse range of channels is clearly attracting Spanish customers.For instance, the Romanian operator's TV package encompasses a wide variety of content including channels for movies, series, sports, documentaries, children's programming, music, and news. This comprehensive offering is set to meet the diverse entertainment needs of Spanish viewers.

Service Expansion and Availability

Initially, the service will be available in certain areas of Spain, with plans to expand nationwide in the future. For those in areas where the service is not yet accessible, the company has set up an online registry. Customers can leave their contact information or provide it by phone, ensuring they are notified as soon as the service becomes available in their region.This approach shows Digi's commitment to reaching as many Spanish customers as possible and providing them with access to its high-quality television service.

Financial Performance and Offerings

Digi currently has over 7.5 million customers in Spain. In 2023, despite increased investments, the company reported net losses of EUR 14.3 million, which is more than double the EUR 6.4 million loss recorded the previous year. However, the company managed to introduce an attractive offer of 300 Mbps internet speed for just EUR 10 per month.This combination of customer growth and competitive pricing strategies positions Digi well in the Spanish market and indicates its potential for further expansion.

Executive Appointments and Expertise

Digi has continued its expansion in Spain by recruiting Carlos Robles as a key executive. Robles is the former general manager of the Spanish branch of the American investment fund Carlyle and will join the Board of Directors of Digi Spain.Previously, Robles worked at Merrill Lynch in Spain, where he advised companies like Iberdrola, Endesa, BBVA, and Banco Santander. His expertise and experience are expected to bring valuable insights and strategic direction to Digi's operations in Spain.

Analyst Recommendations

Analysts of the Concorde Securities brokerage house in Budapest have recently reiterated their buy recommendation for the shares of the telecommunications operator Digi Communications (BVB: DIGI) and maintain a target price of RON 84.This shows the confidence of analysts in Digi's growth prospects and its ability to deliver value to shareholders.