United Group announced that it continued its successful growth and achieved record financial results in 2023. The leading telecommunications and media company in Southeastern Europe achieved a seven percent increase in revenues and EBITDAal to EUR 2.791 million, ie EUR 988 million. Adjusting for the impact of the sale of the tower portfolio in August 2023, United Group achieved an organic EBITDAal growth of 10% in 2023, the announcement states.
As further stated, in general, all business units of the Group achieved strong organic revenue growth. These results were particularly contributed by: 1) continuous expansion of the mobile post-paid subscriber base in the group's key markets; 2) high demand for B2B IT solutions and equipment, especially in Greece; and 3) growth in United Media due to increased media advertising and sales. EBITDAal benefited from the same factors supporting strong revenue growth and proactive cost management, which enabled the Group to maintain EBITDAal margins at 35 percent, despite inflationary pressure.
"2023. was a year of strategic integration of our acquisitions in Greece, Bulgaria and Croatia, with all major initiatives, including cost synergies, completed by the end of the year. Additionally, our further investments in optical and 5G technology, as well as key spectrum acquisitions, contributed to strengthening our position in all major markets," said Vitktorija Boklag, CEO of United Group and added: "In a challenging environment, we continued to drive strong growth by consistently implementing our strategy of providing superior products and services on a modern and reliable infrastructure."
Integrated business model as a key differentiator
United Group continuously achieves long-term growth. As a leading multi-play telecommunications and media company in Southeast Europe, United Group provides its markets with the largest broadband network, the most modern fixed and mobile connectivity, TV content production, broadcasting and streaming of the main sports and entertainment formats and many of the most reliable information portals in these markets, it states. in the announcement of the Group. It is also emphasized that in 2023, more than 5,30 million households relied on United Group's broadband and telecommunications services, while its mobile services reached over 7,34 million subscribers. The company's commitment to cross-selling multi-play packages, including the convergence of fixed and mobile telephony, is a key driver of this continued success, the Group said.
"Additionally, United Media reaches 8,2 million households through its channels, while an in-house content production team creates compelling content for its Pay-TV channels, which has led to historic increases in Pay-TV subscriptions. United Media currently produces approximately 50% of total content in its TV portfolio, including FTA (terrestrial) and Pay-TV operations, excluding sports channels, and its main prime-time programs typically command between 25% and 40% share in the main markets where its media segment operates," it says in the announcement.
Proven success in acquisitions
As pointed out, since 2000, United Group has successfully completed close to 150 acquisitions, five of which will take place in 2023. The main milestone is the successful conclusion of the acquisition of Bulsatcom EOOD, the third Bulgarian provider of fixed telecommunications services, in February 2024. This strategic acquisition will, as it was announced, will allow the company to expand the scope of addressable households in Bulgaria and to offer Bulsatcom customers products and services of the United Group for which there is a demand.
Unlocking the potential for further growth
It further states that United Group saw a significant improvement in operating cash flow during 2023, driven by EBITDAal growth and a reduction in CAPEX (from 27% of revenue in 2022 to 23% in 2023, driven in part by a decline in capitalized inventory accumulated in anticipation of supply chain disruptions during the COVID pandemic years). Most importantly, in 2023 United Group took advantage of the strong demand for telecom tower infrastructure and sold its non-core tower portfolio for €1,2 billion in revenue.
"These proceeds were used to significantly de-leverage the business, in turn freeing up cash flow for future growth. As at 31 December 2023, net gearing (the ratio of the Group's net debt to annual adjusted EBITDAal for the last two quarters) decreased to 4,20x, compared to 4,96x as of December 31, 2022. United Group's credit rating has been confirmed as B2 (stable) / B (positive) (Moody's / S&P)," the statement added.
Major Milestones in 2024
The United Group made significant progress in 2023, which made it possible, as stated in the announcement, to continue its success in the first quarter of 2024. The Group said that its efforts paid off, as it secured the position of the second largest mobile operator in Slovenia. This achievement reflects the company's commitment to expanding its influence in the region, it added. "United Group's investment in fiber-to-the-home (FTTH) infrastructure has seen it become the second largest FTTH network provider in Greece, underscoring the company's ambition to bring high-speed internet connectivity to Greek households. The strategic move to acquire Bulsatcom has already cemented its position as the largest operator in Bulgaria. By integrating Bulsatcom's operations, United Group wants to improve its services and reach a wider user base," the announcement states.
United Group is a leading provider of telecommunications and media services in Southeast Europe, providing users with a wide range of telecommunications services. It has one of the widest coverage networks in the region and offers users a unique selection of content, from local to the best selection of content from around the world. This important strategic step will enable the Group to focus on continuing to provide the best telecommunication services to its users and maintain its leading market positions, the announcement concludes.
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