Telekom Serbia spends 310 million euro on acquiring two cable companies

Telekom Serbia has officially acquired two cable companies – Radijus Vektor for 108 million euro and AVcom for 12.5 million euro – the company has confirmed.

Following the acquisition, Telekom Serbia is now becoming an important stakeholder in the cable Internet market since these are the second and third cable companies that the national operator has bought after acquiring Kopernikus in November 2018 for 195 million euro.

As previously stated by Vladimir Lucic, Telekom’s coordinator for the internet and multimedia, the national telecom has thereby gained 120,000 new internet and TV users, formerly the users of Radijus Vektor’s services, as well as 18,000 former AVcom users.

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This makes the acquisition price per user of Radijus Vektor close to the price paid for Kopernikus, which was slightly under 1,000 euro per user. Telekom paid around 900 euro for each former Radijus Vektor user and around 700 euro for each AVcom user.

According to the latest available report by RATEL for the Q3 of 2018, Radijus Vektor was the fourth biggest market stakeholder in the broadband internet market, with a 2.6% market share, and the fifth biggest cable TV provider in terms of the number of users, with a 3% share.

Although RATEL doesn’t provide data on the individual number of users of every company, calculations based on the company’s market share put the number of users of Radijus Vektor at the end of the third quarter of 2018 at around 94,000.

Using this parameter, it turns out that Telekom paid around 1,050 euro per user.

There was some confusion about the number of users during the purchase of Kopernikus as well. According to RATEL’s report for the Q2 of 2018, Kopernikus had around 59,170 internet users and around 51,000 cable TV users, whereas Telekom announced that it had acquired an operator with 200,000 users.

The report for the third quarter, however, claims that Kopernikus has 8%, not 3% of the cable TV market, that is, 145,000 instead of 49,170 users.

As France Pesetnik, the former owner of AVcom, told Danas daily, Telekom took over the operator in mid-December. On the other hand, Zoran Bulatovic is still registered as the owner of Radijus Vektor. The Commission for Protection of Competition approved the takeover of AVcom on December 13th and Radijus Vektor on December 31st 2018.

As Telekom has announced, the company will buy another five smaller cable operators by the end of the first quarter of 2019. There is only one remaining major operator in the Serbian market and that is the Post Office of Serbia with a 4% share of the cable TV market (around 72,400 users), according to the data from the end of September 2018, as well as 1.7% of internet subscribers (around 26,000 users).

This acquisition would bring Telekom considerably closer to its target of one million users. The recent acquisitions have brought the number of users up to 750,000. 

(Danas, 15.01.2019)


This post is also available in: Italiano

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