2014 is likely to be an eventful year in Central and Eastern Europe, with M&As featuring more prominently than they have in the last 12 months.
It will start with companies such as Telekom Austria in the ascendency, others like CME in deep trouble and several, including Liberty Global (UPC), perhaps questioning their commitment to the region.
Telekom Austria has already established itself as a key player in South East Europe and may be targeting more acquisitions in 2014. At the same time, it will be interesting to see how the rollout of its white label DTH service, launched in Croatia this autumn, continues.
South East Europe will remain a growth area, with the DTH platform Total TV, now under new ownership, set to expand to more markets.
CME, present in Central and Eastern Europe for decades, will meanwhile start 2014 in serious financial difficulties. It goes without saying that its new management team will have to dispose of some assets and there is the possibility that the company could exit one or two countries.
Liberty Global, on the other hand, remains committed to the region, and in particular large markets such as Poland.
However, following its major acquisitions in Germany and the UK, not to mention its current efforts to buy the Dutch operator Ziggo, in which it already holds a minority stake, the company’s activities are firmly focused on Western Europe.
Perhaps the best its CEE operations can hope for in 2014 is the introduction of Horizon, which now feels long overdue.
Deutsche Telekom will remain a key player in CEE in 2014 and we could see at least one major telco sale, with the Slovenian incumbent perhaps being sold to its Croatian counterpart.
The M&A theme will probably feature quite strongly in Russia, especially in the VOD sector. There, we already have around a dozen companies providing online on demand services – arguably too many even for a market of its size.
Arguably, the biggest winners in CEE in 2014 will be consumers. Advanced services such as HD, VOD, multiscreen and catch-up are becoming increasingly available throughout the region and their take-up will continue to grow.
