United Group, a leading telecommunications and media operator in Southeast Europe, achieved record financial results for 2023. The group recorded a 7% growth in revenues and EBITDAal, to EUR 2,791 million and EUR 988 million, respectively. Taking into account the impact of the sale of its tower portfolio in August 2023, the Group achieved 10% organic growth in EBITDAal in 2023.
All business units achieved strong organic revenue growth. A particularly favorable influence on the results is exerted by: 1) the continued expansion of mobile service subscribers in the main markets of the Group; 2) the strong demand for business IT solutions and equipment, especially in Greece; and 3) growth in United Media’s business, driven by increased sales of advertising and media content.
Earnings before interest, taxes, depreciation and amortization and after rent (EBITDAal) were positively affected by these factors, supporting strong revenue growth and proactive cost management, allowing the Group, despite inflationary pressures, to maintain an EBITDAal margin of 35%.
“2023 was the year of strategic integration of our acquisitions in Greece, Bulgaria and Croatia, with all major initiatives, including cost optimization, completed by the end of the year. In addition, our additional investments in optical and 5G technologies, as well as the key acquisitions of radio frequency spectrum, have contributed to strengthening our positions in all major markets,” said Victoria Bocklag, CEO of United Group. “In this challenging environment, we continue to achieve strong growth by following our strategy of providing high-quality products and services through a modern and stable infrastructure.”
The integrated business model as a key advantage
United Group achieves sustainable growth in the long term. As a leading telecommunications and media operator in Southeast Europe, United Group provides in all its markets the largest and most advanced high-speed data network in both mobile and fixed connectivity, produces television content, broadcasts and streams major sports and entertainment formats, as well and a wide range of news portals in these markets. In 2023, more than 5.30 million households rely on Internet and TV service from United Group, and its mobile services reach more than 7.34 million subscribers. The company’s commitment to offering combined value-added packages, including the unification of fixed and mobile services, is a key factor in this continued success. In addition, United Media reaches 8.2 million households through its channels, and the in-house production team creates compelling media products for its channels, driving pay-TV subscribers over the long term. United Media currently produces nearly 50% of the total content in its television portfolio, including FTA (terrestrial) and pay television products other than sports channels, with its core programs in prime time typically achieving ratings between 25% and 40% per the main markets in which the media segment of the Group operates.
Proven track record in acquisitions
Since 2000, United Group has successfully completed nearly 150 successful acquisitions, with 5 of them completed in 2023. As an important milestone, in February 2024, United Group successfully completed the acquisition of Bulsatcom EOOD – the #3 provider of fixed telecommunications services in Bulgaria. This strategic acquisition will allow the company to expand its coverage of households in Bulgaria and provide the products and services in demand to United Group and Bulsatcom customers.
Building on the potential for further growth
In 2023, United Group reported a significant improvement in operating cash flow as a result of both EBITDAal growth and a reduction in capital expenditure (from 27% of revenue in 2022 to 23% in 2023, due in part to of the reduction in capital stocks built up in anticipation of supply chain disruptions during the COVID years). Crucially, in 2023 United Group took advantage of strong demand for telecom tower infrastructure to sell its tower portfolio for €1.2 billion. These proceeds were used to significantly deleverage the business, which in turn freed up cash flow for future growth. As of December 31, 2023, net leverage (the ratio of the Group’s net debt to Adjusted EBITDAal for the last two quarters, restated on an annualized basis) decreased to 4.20x compared to 4.96x as of December 31, 2022. The rating agencies have affirmed the credit rating of United Group from B2 (stable) / B (positive) (Moody’s / S&P).
Milestones in 2024
In 2023, United Group made significant progress, laying the foundations for success in the first quarter of 2024. The efforts are paying off, securing the position of the second largest mobile operator in Slovenia. This achievement reflects the company’s commitment to expanding its presence in the region. United Group’s investments in fiber-to-the-home (FTTH) infrastructure have made it the second largest FTTH network provider in Greece, underscoring the company’s ambition to bring high-speed internet connectivity to Greek households. And the strategic move to acquire Bulsatcom has already strengthened its position as the largest operator in Bulgaria. By integrating Bulsatcom, United Group aims to improve its services and reach a wider customer base.
