United Group is a large telecommunications company that operates in multiple countries in Southeastern Europe. It provides cable TV, broadband internet, telephony and other telecom services to millions of customers across the region. But who exactly owns and controls this major company?
History and Background
United Group was formed in 2005 through the merger of Serbian telecoms operator SBB and Slovenian telecoms operator KablTEL. It continued to grow through various acquisitions of other telecoms companies in the region over the following years.
Some of the major mergers and acquisitions that formed today’s United Group include:
- 2006 – Acquired Bulgarian telecoms operator NURTS
- 2007 – Acquired Bosnian telecoms operator LOGOSoft
- 2013 – Acquired Serbian cable TV provider Kopernikus Technology
- 2014 – Acquired Slovenian telecoms operator SiOL
- 2016 – Acquired Croatian telecoms operator Tele2 Croatia
Today, United Group operates in six countries – Serbia, Slovenia, Bosnia and Herzegovina, Montenegro, Croatia and Bulgaria. It provides services to over 8 million households across Southeastern Europe.
Current Ownership Structure
As of 2023, United Group is majority owned by the global investment firm BC Partners. Here is an overview of the company’s current ownership structure:
| Owner | Ownership Stake |
|---|---|
| BC Partners | 83% |
| United Group Management | 17% |
BC Partners acquired United Group in 2019 for around €2.6 billion. It purchased an initial 51% stake in the company, before increasing its ownership to 83% in 2021 through further share purchases.
The remaining 17% stake is held by United Group’s management team, including its CEO Victoriya Boklag.
About BC Partners
BC Partners is a leading international investment firm with over €40 billion in assets under management. The firm, which is headquartered in London, specializes in private equity, credit and real estate investments.
BC Partners has invested in a range of telecoms and media companies across Europe over the past decade. Some of its major telecoms investments besides United Group include:
- TDC – Leading telecoms operator in Denmark and Norway
- MasMovil – Major telecoms player in Spain
- SFR – Second largest telecoms company in France
By acquiring United Group, BC Partners has established a strong presence in the Southeastern European telecoms sector. United Group serves as the vehicle for its regional telecoms ambitions.
Company Operations
Although United Group is majority owned by BC Partners, it continues to operate as an independent company with its own management team.
Day-to-day operations across its country units are overseen by United Group’s CEO Victoriya Boklag and her management team. Boklag has served as CEO since 2016, having previously been the company’s Chief Operating Officer.
United Group has over 10,000 employees across its country operations. It maintains headquarters in Amsterdam and Belgrade.
Some key people in United Group’s management team include:
- CEO – Victoriya Boklag
- Chief Financial Officer – Louise Tait
- Chief Technology Officer – Thierry Delaporte
- Chief Commercial Officer – Robert Rafael
- Chief Business Development Officer – Nikola Trajkovic
Although major strategic and investment decisions have to be approved by owner BC Partners, United Group managers have considerable autonomy over the company’s operations, marketing and product development.
United Group Country Units
United Group operates through various country units and brands across Southeastern Europe. This includes:
- SBB – Serbia
- Telemach – Slovenia and Croatia
- BBI – Bosnia & Herzegovina
- Total TV – Montenegro
- Blizoo – Bulgaria
Despite having different brands, all the country operations are fully owned by United Group and operate as part of its overarching corporate structure.
United Group controls the product development, pricing, customer service, marketing and technology roadmap across its country units. This enables the company to leverage its scale while still maintaining strong local brands.
Financial Performance
United Group has achieved strong growth in revenue and profits over the past decade. Here is a snapshot of some of its key financial metrics:
| Year | Revenue (€m) | EBITDA (€m) | Subscribers |
|---|---|---|---|
| 2018 | 767 | 327 | 3.9 million |
| 2019 | 863 | 365 | 4.7 million |
| 2020 | 947 | 412 | 5.1 million |
| 2021 | 1,008 | 442 | 5.8 million |
As shown, United Group has grown revenue at a compound rate of around 10% per year since 2018. Profits as measured by EBITDA have grown even faster at 12% per year over this period.
The company’s subscriber base has also expanded rapidly, rising from 3.9 million in 2018 to 5.8 million in 2021.
This strong growth has been driven by United Group’s investments in new technologies like fiber broadband, acquisitions of local operators, and strong execution by management.
With continued investment and expansion planned, United Group is likely to achieve further growth in the coming years even amidst increased competition.
Competitive Position
United Group occupies a leading position in the telecom markets across Southeastern Europe. Some details on its competitive position in key countries:
- In Serbia, its SBB business is the market leader with around 40% market share in broadband and a strong #2 position in pay TV.
- In Slovenia, Telemach has 30% broadband market share and 18% pay TV market share.
- In Croatia, Telemach is the #2 broadband provider with 24% market share.
- In Bosnia & Herzegovina, BBI controls over 50% of the pay TV market.
- In Montenegro, Total TV is the dominant pay TV provider with around 70% market share.
- In Bulgaria, Blizoo has carved out a solid market share of 15% in broadband.
Some of United Group’s major competitors in the region include:
- Telekom Srbija – Serbian state-owned telecoms company
- A1 – Telekom Austria’s regional brand
- Telekom Slovenije – Incumbent operator in Slovenia
- T-HT – Croatia’s leading telco
- Vivacom – Largest telco in Bulgaria
Despite competitive pressures, United Group has maintained its leading industry position through continuous investments in new technologies, quality customer service, and strategic acquisitions.
Technologies and Services
United Group provides a wide range of telecommunications services across the region, including:
- Broadband Internet – Fixed broadband services up to 1 Gbps based on cable and fiber networks.
- Pay TV – Digital cable TV and IPTV services, with over 150 channels per market.
- Fixed telephony – Landline telephone services for residential and business clients.
- Mobile services – Mobile telephony and data services as an MVNO.
- OTT services – Video streaming apps like EON.
- Smart Home – Services like SmartWiFi mesh routers.
- B2B services – Cloud, cybersecurity, IoT solutions for businesses.
Broadband internet and pay TV are United Group’s core services, generating over 70% of revenue. But the company is rapidly expanding into new areas like OTT streaming to drive future growth.
United Group has invested over €2 billion in technology infrastructure over the past decade. It is now the leading provider of next-generation fiber-to-the-home and DOCSIS 3.1 broadband services across the region.
The company has adopted an ambitious digital transformation strategy to position itself as a frontrunner in digital services and smart technologies.
Key Technology Partners
Some of United Group’s key technology partners include:
- Cisco – Provider of routing, switching, and IP network technologies.
- Huawei – Supplier of fixed and mobile network equipment.
- ZTE – Fiber network technology partner.
- Harmoniq – Smart WiFi mesh system partner.
- CommScope – DOCSIS network equipment supplier.
- Irdeto – Partner for IPTV and OTT solutions.
- Symphony – Provider of customer engagement AI tools.
Leveraging technologies from world-leading vendors has enabled United Group to build best-in-class networks and launch innovative product offerings across its markets.
Investment Plans
United Group and its owner BC Partners have ambitious investment plans to cement United Group’s leadership across Southeastern Europe.
The company plans to invest over €2 billion through 2027 to further expand and upgrade its networks. Key investment priorities include:
- Accelerating fiber network rollouts across its entire footprint.
- Expanding 5G services through new MVNO partnerships.
- Enhancing its television platforms with new OTT functionalities.
- Developing exclusive local content offerings.
- Introducing new B2B service offerings.
United Group’s capital investments will be funded through a combination of cash from operations, debt facilities and equity injections from BC Partners.
The company’s rapid investments in next-generation networks and services are focused on cementing its market leadership amidst rising competition.
Recent Acquisitions
In addition to organic investments, United Group continues to grow through selective acquisitions. Some of its recent purchases include:
- 2020 – Acquired Albanian broadband provider Izzy
- 2021 – Acquired Croatian IT services firm Combis
- 2022 – Acquired Slovenian sports streaming firm Sportklub
These bolt-on acquisitions have enabled United Group to accelerate growth in existing and adjacent markets.
Future Outlook
United Group seems well-positioned for continued growth and industry leadership in the years ahead. The key advantages and growth drivers for United Group include:
- Leading market position across multiple countries
- Expanding fiber and 5G networks
- Increasing uptake of bundled and premium services
- New growth in areas like streaming and B2B services
- Support from owner BC Partners for further investments
- Experienced management team
However, the company also faces some challenges, such as:
- Increasing competition from national telecom incumbents
- High capital investment requirements
- Limits to market consolidation in most countries
- Evolving regulation of telecom markets
But by leveraging its extensive networks, strong brands, and execution capabilities, United Group seems well-placed to continue growing amidst an evolving industry landscape.
Conclusion
In summary, United Group today is majority owned by private equity firm BC Partners following its acquisitions over 2019-2021. While BC Partners provides strategic oversight and capital support, United Group continues to operate as an independent business under its seasoned management team.
The company has achieved rapid growth over the past decade by providing innovative services over its expanding networks, executing strategic acquisitions, and leveraging its strong market positions across Southeastern Europe. With substantial investment plans backed by owner BC Partners, United Group aims to cement its leadership across the region for the long-term.