Hungary’s 4iG has just released its first report as a converged service provider.
Besides summarising developments in the first quarter, it provides a few insights of what may lie ahead at what is undoubtedly a rising star in Central and Eastern Europe’s media and telecom sector.
The first thing that should be said is that the “significant transformation”, as the group calls it, into a converged service provider was achieved by its acquisition of a majority (51%) stake in Vodafone Hungary in January. This was subsequently increased to 70.5% following a share swap that involved PPF Group subsidiaries, Vodafone Hungary and the Hungarian state and resulted in 4iG becoming the leading provider of fixed broadband and TV services and second largest provider of fixed and mobile telephony in the country.
Despite this strong market position, 4iG has hinted that it may sell off some of its assets – specifically part of its mobile network infrastructure and radio frequencies allocated for mobile services – at some stage in the future.
Meanwhile in Albania, 4iG also became a converged service provider in the first quarter when it merged its subsidiaries ALBtelecom and One Albania into a single operator which now uses the ONE brand. In Montenegro, the focus of its subsidiary ONE Crna Gora is on CAPEX investments and the rollout of 5G services.
Elsewhere, 4iG continued its progress in the satellite market by increasing ownership in Israel’s Spacecom from 9.538% to 20%. If all goes according to plan, it will hold a majority (51%) stake in the operator in three years’ time.
Although the group posted a net loss of HUF1.17 billion (€3.15 million) in the first quarter due to a number of factors related mostly to acquisitions in the previous period and deferred tax payments, it is clearly on an upward trajectory.
Indeed, it envisages expansion of its IT/SI business into global markets in the near future through joint ventures with Rheinmetall.
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