Digi Communications N : - Communications announces the closing of the Hungarian operations sale

București

Press release: January 3th 2022

, 2022

DIGI COMMUNICATIONS N.V. ANNOUNCES THE CLOSING OF THE TRANSACTION FOR THE SALE OF ITS OPERATIONS IN HUNGARY TO 4iG

Digi Communications N.V. ("DIGI") announces that today, January 3, 2022, the Company's Romanian subsidiary (RCS&RDS) and 4iG Plc. successfully closed the transaction regarding the acquisition of its Hungarian operations, after the parties signed the documents for the transfer of DIGI's Hungarian subsidiaries and operations on November 29, 2021. The transaction was subject to the fulfilment of certain conditions, including the Hungarian competition authority's clearance.

Following completion of the conditions set by the parties in the sale and purchase agreement, signed by each side on November 29, 2021, today, January 3, 2022, approximately EUR 625 million, representing the value of the transaction, was transferred by 4iG to the Romanian fixed and mobile operator.

DIGI commenced operations in Hungary in 1998 and has established from the ground up a telecommunications service operator with a leading position in the local market, offering a comprehensive portfolio of cable and satellite TV (DTH), fixed and mobile data, as well as fixed and mobile telephony services. The company has developed its telecommunications network through high-performance fiber optic infrastructure, as well as state-of-the-art equipment, data center systems and highly technically capable teams of trained and experienced employees, which has led to a rapid expansion of services offered to customers.

During its 23 years of activity, the company has been an innovative telecommunications operator on the Hungarian market and has implemented a bold strategy, which has secured its second position, according to the Hungarian National Media and Telecommunications Authority (NMHH), in each of the three relevant segments: television (28.3%), internet (23%), fixed telephony (22%), by the number of revenue generating units - RGUs.

It has quickly distinguished itself through major investments in the fiber-optic network, a technology required for modern equipment, which now covers more than 46.3% of Hungarian households, equivalent to 2.1 million homes.

In the mobile segment, from May 2019, when it introduced services using its own network, until 31 December 2020, Digi Hungary registered 173,000 RGUs.

Furthermore, DIGI is the first telecom operator to launch Fiberlink 10G, the highest bandwidth package, marking a new chapter of technological development in this market.

By 2020, DIGI subscribers in Hungary reached 1.1 million nationwide, while the number of revenue generating units (RGUs) exceeded 2.5 million. In 2020, the subsidiary's operations recorded consolidated revenues of HUF 70 billion (EUR 200 million) and adjusted EBITDA of HUF 19 billion (EUR 54 million).

"Following 23 years of continuous development, DIGI is handing over to the 4iG operator a competitive business with exceptional results, whose impact on the telecommunications market will be remembered for many years to come.We would like to thank our customers for their trust during this long period - without them none of this would have been achieved. I am grateful, as well, to all my colleagues in Hungary for their professionalism, perseverance, loyalty and their contribution to the company's evolution. Thanks to these qualities, together we have built a business that we are proud of, that has successfully achieved its growth targets, which has provided its customers with quality, affordable services, based on the latest technology. We wish them and their colleagues at 4iG the best of luck and we look forward to hearing news that will make us proud of the development of the story we've started", said Serghei Bulgac, CEO of Digi Communications N.V.

With a unique business model in the local market, DIGI's activities in Hungary have included the operation of several TV stations, sports channels and four other thematic networks. The extensive scale of the Hungarian activities was supported by the large number of employees, around 3,000.

4iG Plc. is one of the leading companies in the Hungarian IT and telecommunications market, contributing significantly to the growth of the knowledge-based and digital economy in the neighbouring country. 4iG has more than 25 years of experience in the technology market and technological innovations.

AboutDigi Communications NV

Digi Communications N.V. is the parent company of the electronic communications operator RCS & RDS, the market leader in internet, pay-TV and convergent services in Romania, with operations in Spain and Italy. Established 29 years ago, the company owns almost the entirety of the most modern (state-of-the-art) and extensive fiber-optic network in the region. DIGI brings the most affordable electronic communications services to the market, both in fixed and mobile communications. Over time, this competitive advantage has become a benefit for millions of customers, who have gained faster and cheaper access to high-quality services. In Romania, the DIGI Group is currently the largest employer in the local business environment, with approximately 14,700 employees.

The DIGI Group's cross-media content includes DIGI4K TV channels, the first ULTRA HD TV channel launched in Romania, Digi 24, DigiSport 1, 2, 3, 4, Film Now (pay-TV), DIGI World, DIGI Animal World, DIGI Life, UTV, Music Channel and Hit Music Channel, Digi FM radio stations, PROFM and Dance FM online communication platforms under the Digi Online framework.

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