Digital Network S.A.
Company Overview
Digital Network S.A. is a Warsaw-based holding company focused on digital out-of-home advertising. Through Screen Network S.A. and related subsidiaries, the group operates Poland’s largest integrated network of approximately 20,000 LED and LCD advertising screens. After acquiring 100% of Braughman Group Media Outdoor, the group also gained a major premium outdoor portfolio, including large-format sites, murals, traffic boards and roadside premium locations.
Business Segments
- Digital Out-of-Home: Super Size Screens, City Screens and a nationwide network of smaller digital screens in retail, transport, fitness, postal and urban locations
- Premium Outdoor: large-format outdoor advertising assets, murals, traffic boards and roadside premium locations acquired through Braughman Group Media Outdoor
- Other: small legacy distribution and consulting activities with limited relevance to group economics
Key Drivers
- Migration of advertising budgets from static outdoor formats to digital out-of-home screens
- Integration and digitalization of Braughman premium outdoor locations
- Higher utilization of existing screen inventory and annual price-list increases
- Expansion of premium screens, including flagship high-visibility locations such as the Złote Tarasy 3D screen
- Sales cooperation with Polsat Media and direct sales to advertisers
- Growth of programmatic DOOH, especially for international and digital-first advertisers
Key Risks
- Cyclicality of advertising budgets and sensitivity to macroeconomic slowdown
- Execution risk around the Braughman integration and large capex program
- Higher financial leverage after the Braughman acquisition
- Regulatory risk from local landscape resolutions affecting outdoor advertising locations
- Potential margin pressure from rising rents, energy, maintenance and financing costs
- Dependence on premium locations and sales effectiveness of the Polsat Media channel
What to Watch
- Revenue and margin progression after full Braughman consolidation
- Speed and profitability of digitalizing acquired premium outdoor locations
- Capex execution versus the PLN 20m+ annual investment plan
- Debt repayment pace and net debt/EBITDA after the acquisition
- Commercial performance of the Złote Tarasy flagship screen and other new premium locations
- Share of programmatic DOOH in total sales
Foundational Analysis
Business Model
Digital Network earns revenue by selling advertising time and space on digital and premium outdoor advertising assets. The model combines long-term access to physical locations, investment in screens and advertising infrastructure, and monetization through agency sales, direct sales and programmatic channels. Once a screen or location is installed, incremental advertising revenue carries high operating leverage because many costs are fixed or semi-fixed.
Competitive Positioning
Digital Network is the leading Polish DOOH operator, with national reach, a large installed screen base and strong exposure to premium locations. The Braughman acquisition broadened the group from a mainly DOOH player into an integrated DOOH and premium outdoor platform. Its main advantages are scale, access to scarce high-traffic locations, a broad sales partnership with Polsat Media, proprietary network-management know-how and the ability to offer nationwide bundled campaigns.
Economics & Capital Allocation
The business has structurally high EBITDA margins due to fixed-cost operating leverage, but near-term profitability is affected by the Braughman acquisition, higher depreciation, lease costs and financing costs. Q1 2026 revenue increased strongly to PLN 42.9 million, mainly due to Braughman consolidation, while EBITDA reached PLN 22.6 million and net profit PLN 7.0 million. LTM revenue is approximately PLN 140.4 million based on FY2025 revenue plus Q1 2026 less Q1 2025.
Capital allocation has shifted from a very conservative, cash-rich dividend model toward aggressive expansion funded by operating cash flow, acquisition financing and proceeds from treasury-share sales. The Braughman transaction introduced meaningful financial debt, but the company has already started deleveraging. Management plans materially higher capex, with PLN 20m+ in 2026 and elevated investment needs through 2029, focused on premium screens, road locations, indoor networks and digitalization of acquired sites.
Long-term Risks
Long-term risks include weaker advertising demand, failure to generate expected synergies from Braughman, poor returns on digitalization capex, adverse regulation of outdoor advertising, higher financing costs, and competitive pressure from other OOH operators increasing digital inventory.
What Would Break the Thesis
- Braughman integration fails to deliver expected sales and cost synergies
- New premium screens and digitalized locations do not generate attractive returns on capex
- Leverage remains elevated due to weaker cash conversion or slower debt repayment
- Landscape regulations materially reduce available premium locations without adequate compensation
- DOOH market growth slows materially or pricing power weakens
- Programmatic DOOH fails to become a meaningful incremental sales channel
Full Company Analysis
Digital Network S.A. — Full Analysis
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View News InsteadFinancial Performance
Quarterly Data
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| Metric | 2023Q2 | 2023Q3 | 2023Q4 | 2024Q1 | 2024Q2 | 2024Q3 | 2024Q4 | 2025Q1 | 2025Q2 | 2025Q3 | 2025Q4 | 2026Q1 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement Revenue (Quarterly) | 14.8M | 16.9M | 22.7M | 12.3M | 16.4M | 18.6M | 27.3M | 15.4M | 20.5M | 20.9M | 56.2M | 42.9M |
| Income Statement Gross Profit (Quarterly) | 8.2M | 10.6M | 14.4M | 5.8M | 9.1M | 10.7M | 17.8M | 7.8M | 12.6M | 12.7M | -33.1M | 18.6M |
| Income Statement EBITDA (Quarterly) | 8.5M | 10.6M | 9.9M | 6.0M | 9.6M | 11.4M | 16.7M | 8.6M | 12.9M | 13.5M | -35.0M | 22.6M |
| Income Statement EBIT (Quarterly) | 5.9M | 8.0M | 7.1M | 3.2M | 6.6M | 8.3M | 13.7M | 5.5M | 9.8M | 10.5M | -25.8M | 13.0M |
| Income Statement Net Income (Quarterly) | 5.4M | 11.9M | 6.2M | 3.3M | 6.3M | 7.3M | 11.3M | 5.0M | 8.1M | 8.9M | 18.1M | 7.0M |
| Costs Selling & Distribution Costs | 663.0K | 906.3K | 1.4M | 825.2K | 705.5K | 786.4K | 1.4M | 621.2K | 546.9K | 534.9K | -1.7M | 675.6K |
| Costs Administrative Expenses | 1.7M | 1.6M | 3.5M | 1.8M | 2.0M | 1.6M | 2.8M | 1.6M | 2.1M | 1.9M | -5.6M | 4.7M |
| Costs Administrative Expenses (LTM) | 3.4M | 5.0M | 8.5M | 8.6M | 8.9M | 8.8M | 8.1M | 7.9M | 8.1M | 8.4M | 0 | 3.2M |
| Cash Flow Operating Cash Flow | 4.5M | 7.1M | 14.4M | 7.2M | 4.8M | 8.2M | 13.7M | 9.1M | 11.3M | 6.9M | -16.3M | 16.3M |
| Cash Flow Capital Expenditure | -544.8K | -1.2M | -1.5M | -652.0K | -2.5M | -237.8K | -1.3M | -321.2K | -311.4K | -1.5M | 2.1M | -7.0M |
| Cash Flow Free Cash Flow | 4.0M | 5.9M | 13.0M | 6.6M | 2.3M | 8.0M | 12.4M | 8.8M | 11.0M | 5.4M | -14.2M | 9.3M |
| Cash Flow Depreciation & Amortization | 2.7M | 2.6M | 2.8M | 2.8M | 3.0M | 3.1M | 3.0M | 3.0M | 3.1M | 3.0M | -9.1M | 9.6M |
| LTM Metrics Revenue (LTM) | 24.7M | 41.6M | 64.3M | 66.8M | 68.4M | 70.1M | 74.7M | 77.7M | 81.7M | 84.0M | 112.9M | 140.4M |
| LTM Metrics EBITDA (LTM) | 12.8M | 23.4M | 33.3M | 35.1M | 36.2M | 37.0M | 43.7M | 46.3M | 49.5M | 51.7M | 0 | 14.1M |
| LTM Metrics Net Income (LTM) | 6.7M | 18.6M | 24.7M | 26.7M | 27.6M | 23.0M | 28.2M | 29.9M | 31.7M | 33.3M | 40.1M | 42.1M |
| LTM Metrics Net Profit Attributable (LTM) | 5.4M | 16.3M | 21.3M | 23.3M | 24.2M | 19.9M | 25.2M | 27.0M | 29.0M | 30.8M | 40.1M | 42.1M |
| LTM Metrics Operating Cash Flow (LTM) | 9.9M | 17.0M | 31.4M | 33.3M | 33.6M | 34.7M | 34.0M | 35.8M | 42.4M | 41.0M | 11.0M | 18.1M |
| Profitability Gross Margin | 55.4% | 62.5% | 63.2% | 47.1% | 55.3% | 57.4% | 65.3% | 50.5% | 61.4% | 60.9% | -58.8% | 43.3% |
| Profitability EBITDA Margin | 57.7% | 63.0% | 43.7% | 48.7% | 58.7% | 61.0% | 61.3% | 55.6% | 63.1% | 64.7% | -62.3% | 52.7% |
| Profitability EBIT Margin | 39.7% | 47.6% | 31.4% | 25.6% | 40.2% | 44.4% | 50.1% | 35.8% | 48.0% | 50.4% | -46.0% | 30.4% |
| Profitability Net Margin | 36.3% | 70.3% | 27.1% | 26.7% | 38.1% | 39.2% | 41.6% | 32.6% | 39.5% | 42.5% | 32.3% | 16.4% |
| Profitability ROIC | 13.9% | 21.9% | 21.8% | 24.1% | 23.1% | 27.1% | 39.1% | 38.5% | 43.5% | 52.9% | -17.1% | 0.4% |
| Profitability Cash Conversion | 84.0% | 60.0% | 235.0% | 220.0% | 77.0% | 113.0% | 121.0% | 182.0% | 140.0% | 77.0% | -90.0% | 232.0% |
| Balance Sheet Current Assets | 31.8M | 43.9M | 53.8M | 54.6M | 39.4M | 46.0M | 45.2M | 45.9M | 46.5M | 53.5M | 0 | 72.6M |
| Balance Sheet Current Liabilities | 19.2M | 20.0M | 23.4M | 20.8M | 20.1M | 19.5M | 22.5M | 16.8M | 19.0M | 16.7M | 0 | 80.0M |
| Balance Sheet Inventories | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet Trade Receivables | 10.9M | 14.4M | 13.7M | 9.3M | 12.6M | 13.8M | 17.2M | 11.2M | 13.7M | 15.8M | 0 | 32.9M |
| Balance Sheet Trade Payables | 5.8M | 5.8M | 7.9M | 6.3M | 8.9M | 8.0M | 9.2M | 8.7M | 10.0M | 8.8M | 0 | 18.7M |
| Balance Sheet Total Equity | 44.2M | 55.4M | 60.3M | 63.6M | 47.4M | 53.8M | 50.0M | 55.0M | 51.8M | 60.6M | 0 | 114.1M |
| Balance Sheet Total Debt | 15.0M | 25.0M | 16.4M | 0 | 24.3M | 22.9M | 23.3M | 22.3M | 20.8M | 0 | 0 | 75.9M |
| Balance Sheet Cash & Equivalents | 11.5M | 19.9M | 25.4M | 29.1M | 9.7M | 15.0M | 13.1M | 20.0M | 19.4M | 26.6M | 0 | 22.7M |
| Balance Sheet Invested Capital | 47.6M | 60.5M | 51.3M | 34.5M | 62.1M | 61.6M | 60.1M | 57.3M | 53.1M | 34.1M | 0 | 167.2M |
| Balance Sheet Net Working Capital | 5.1M | 8.7M | 5.8M | 3.0M | 3.8M | 5.8M | 8.0M | 2.5M | 3.7M | 7.0M | 0 | 14.2M |
| Ratios Current Ratio | 1.66 | 2.19 | 2.30 | 2.62 | 1.96 | 2.35 | 2.01 | 2.74 | 2.44 | 3.21 | - | 0.91 |
| Ratios Net Working Capital to Revenue | 0.34 | 0.51 | 0.26 | 0.25 | 0.23 | 0.31 | 0.29 | 0.16 | 0.18 | 0.33 | 0.00 | 0.33 |
| Ratios Administrative Expenses as % of Revenue | 13.6% | 11.9% | 13.2% | 12.9% | 12.9% | 12.6% | 10.8% | 10.2% | 9.9% | 10.0% | 0.0% | 2.3% |
| Ratios Days Inventory Outstanding (DIO) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Ratios Days Sales Outstanding (DSO) | 162 | 127 | 78 | 51 | 68 | 72 | 84 | 53 | 61 | 69 | 0.00 | 86 |
| Ratios Days Payables Outstanding (DPO) | 86 | 51 | 45 | 34 | 47 | 42 | 45 | 41 | 45 | 38 | 0.00 | 49 |
| Ratios Cash Conversion Cycle (days) | 75 | 76 | 33 | 17 | 20 | 30 | 39 | 12 | 16 | 30 | 0.00 | 37 |
Revenue (Quarterly) - Visual Analysis
Revenue (Quarterly) (PLN)
Growth Rates (QoQ% and YoY%)
Data Source: Financial data sourced from company filings and periodic reports. Values in PLN. Margins and ratios stored as decimals converted to percentages for display.
Recent News & Developments
Sentiment Analysis (Last 6 Months)
| Positive | 100% |
| Neutral | 0% |
| Negative | 0% |
Based on 2 articles
Digital Network S.A. Reports Strong Financial Performance for 2025, Driven by Strategic Expansion
Digital Network S.A., a leading Polish media and advertising company specializing in digital out-of-home (DOOH) and premium outdoor advertising, has reported robust financial results for the fiscal year ending December 31, 2025. According to the independent auditor's report conducted by 4AUDYT sp. z o.o., the company achieved a consolidated net profit and total comprehensive income of PLN 40.09 million, reflecting its strong operational performance and strategic growth initiatives.
The company's consolidated financial statement revealed a total asset and liability value of PLN 364.44 million, with an increase in equity capital by PLN 58.32 million. Additionally, the report highlighted a significant growth in revenue, with sales reaching PLN 112.92 million, marking a 51% increase compared to the previous year. This growth was attributed to the company's strategic acquisition of Braughman Group Media Outdoor, which added premium outdoor advertising assets to its portfolio, and the expansion of its digital screen network across Poland.
One of the key areas of focus in the audit was the valuation of intangible assets, particularly goodwill, which amounted to PLN 125.91 million, representing 35% of the total balance sheet. The increase in goodwill by PLN 117.88 million was linked to the acquisition of a new subsidiary. The auditor confirmed that the company adhered to International Financial Reporting Standards (IFRS) and Polish accounting regulations, presenting a fair and transparent financial position.
The report also confirmed that Digital Network S.A. complied with all legal and regulatory requirements, including the European Single Electronic Format (ESEF) for financial reporting. The audit firm expressed a positive opinion on the company's financial statements and its adherence to corporate governance standards.
Relevance to Digital Network S.A.: The article highlights Digital Network S.A.'s strong financial performance and successful strategic expansion, which align with its business focus on leveraging digital advertising trends and premium outdoor advertising opportunities in Poland.
```Digital Network S.A. Reports Robust Growth in Q1 2026, Driven by Strategic Acquisition and Market Expansion
Warsaw, May 27, 2026 – Digital Network S.A., a leading Polish media and advertising company specializing in Digital Out-of-Home (DOOH) and premium outdoor advertising, has reported a significant financial performance boost in the first quarter of 2026. The company achieved consolidated revenues of PLN 42.9 million, marking a remarkable 179% year-on-year increase. This growth was primarily fueled by the full integration of Braughman Group Media Outdoor, acquired in October 2025 for PLN 131.5 million, into its operations. The acquisition has significantly expanded Digital Network's portfolio, adding over 300 premium large-format advertising locations to its existing network of nearly 20,000 digital screens across Poland.
Key financial highlights for Q1 2026 include:
- Revenue growth of 179% year-on-year, reaching PLN 42.9 million.
- Operating profit (EBIT) of PLN 13 million, up 137% compared to Q1 2025.
- EBITDA of PLN 22.6 million, a 165% increase year-on-year.
- Net profit of PLN 7 million, a 40% rise from the same period last year.
The company also announced a recommendation to distribute a dividend of PLN 4.46 per share for 2025, reflecting its commitment to sharing profits with shareholders while maintaining a growth-oriented strategy. Additionally, Digital Network extended its partnership with Polsat Media, Poland's largest advertising broker, for three years, with an option to extend until 2030. This agreement integrates Braughman Group Media Outdoor's premium locations into a unique, comprehensive advertising offering that combines DOOH and large-format outdoor advertising.
Despite the strong financial performance, the company noted a decline in profitability margins due to the lower margins associated with the newly acquired premium outdoor segment. However, the management remains optimistic about future improvements, citing expected synergies from the integration of Braughman Group Media Outdoor's assets and operations.
On the global stage, the DOOH market continues to grow rapidly, with programmatic DOOH emerging as the fastest-growing segment. Digital Network S.A. is well-positioned to capitalize on this trend, leveraging its leadership in Poland's digital advertising market and its expanding portfolio of premium advertising locations.
Relevance to Digital Network S.A.: This article highlights Digital Network S.A.'s strategic growth through acquisitions and its strong financial performance, aligning with its business focus on leveraging digital advertising trends and premium outdoor locations to maintain its market leadership in Poland.
2026 EPS Estimates
- Bear case assumes slower advertising-market growth, weaker Braughman synergies, lower utilization of new screens, higher capex intensity, persistent financing costs, regulatory disruption or margin pressure from rents and competition
- Base case assumes continued double-digit revenue growth supported by Braughman consolidation, digitalization of premium locations, higher utilization of existing inventory and selective price increases
- Margins gradually normalize as integration synergies offset higher depreciation, lease and financing costs, while net debt declines over time
- Bull case assumes fast and profitable digitalization of 320+ premium locations, strong monetization of flagship screens, faster adoption of programmatic DOOH, successful annual price increases, continued market share gains and disciplined debt reduction
Note: EPS estimates are for informational purposes only and represent our analytical framework, not investment recommendations. These financial results estimates are based on stated assumptions and may change as new information becomes available.
Key Metrics
Company-specific performance indicators tailored to Digital Network S.A.'s business model.
No key metrics available yet
Custom performance indicators for Digital Network S.A. will appear here once available.
Examples of metrics we track:
Data Source: Key metrics are extracted from company disclosures, periodic reports, and management commentary.
Periodic Report Publication Calendar
| Quarter | Publication date |
|---|---|
| Q1 | 2026-05-29 |
| H1 | 2026-09-30 |
| Q3 | 2026-11-30 |
| Quarter | Publication date |
|---|---|
| FY | 2026-03-30 |
Schedule reflects the most recent ESPI announcement for each fiscal year. Past publication dates are shown in grey.