What impact, if any, will the acquisition of Virgin Media have on Liberty Global’s activities in Central and Eastern Europe?
On the face of it, this is something of a ‘glass half full or half empty’ type of question. The pessimists among us may say that the deal shifts Liberty’s focus even more to West European markets, thereby casting doubts on its commitment to the CEE region.
Those of a more positive disposition, however, will probably feel that Liberty’s expansion, no matter where it is taking place, can only be for the benefit of all its operations and their subscribers.
I tend to the latter view and am truly impressed by the recovery Liberty has staged in the last few years, prior to which, as many readers will probably recall, it had been in serious financial difficulties.
The real turning point was undoubtedly the company’s entry into the German market, where through Unitymedia KabelBW it now finds itself the second largest cable operator. Its RGU (revenue generating unit) total already stood at 11 million Q3 2012 and this figure will probably show a significant increase when Q4 and full-year results are published later this month.
The much talked about and eagerly anticipated Horizon, which was finally launched in the Netherlands and then Switzerland late last year, has also given Liberty a spring in its step.
As for CEE, there is no doubting its commitment to such markets as Poland, where it acquired the country’s fourth largest cable operator (Aster) just over a year ago and was in the running to buy the second (Multimedia Polska) last year before it was suddenly taken off the market.
Elsewhere, it remains the leading cable operator in the Czech Republic, Slovakia and Hungary, while UPC DTH is growing in what are very competitive markets. Meanwhile in Romania, talk of Liberty exiting the country finally appears to have subsided.
These are indeed exciting times for Liberty Global and one gets the impression that its acquisition spree is far from over.
