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SGT with more IPTV users thanks to Vectra

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SGT – Jambox cable network operator – plans to activate 15,000 new IPTV subscribers in 2019. The company’s strategy is to be supported by its presence within the structures of the Vectra Group.

SGT customer base is growing steadily

SGT company – wholesale integrator and Jambox cable network operator – in its published financial statements for 2018 reported that last year it had nearly 61,000 subscribers for its TV packages using IPTV technology. During the year, the number of subscribers of the operator increased by nearly 12,000 new customers. At the end of last year, SGT serviced 294 partner networks (increase by 27 partners as compared to 2017).

The growing number of users of the SGT television packages translates into the company’s financial results. In 2018, SGT generated PLN 31.5m revenues from sales, which is 29% higher than in the previous year. At the same time, the company recorded PLN 5m in operating profit and PLN 3.4m in net profit.

More benefits from synergy with Vectra

SGT is one of the outstanding entities providing wholesale IPTV services on the Polish market, dedicated to local ISP. The platform, created by the company, supports Jambox television made available by ISP operators who have fibre-optic infrastructure in many Polish cities.

In July 2018, Vectra became the new major shareholder of SGT and acquired 66.5% of shares in the company from the 3S Group and private investors, including 3S managers. This means that, for the time being, shares held by SGT partners remain outside Vectra’s control. The value of the transaction is estimated at approximately PLN 48m.

Since the beginning of this year, the synergy of both companies has resulted in signing agreements with 20 new ISP operators in Poland, thanks to which Jambox TV services are already offered by 320 partners. It is worth noting that last year the Jambox Lajt service was also introduced, which gives the possibility of cooperation to operators who offer their customers radio technology (WiFi or Ethernet connection). At the beginning of 2019, three new programme packages (Jambox Plus) were introduced from Vectra’s offer to IPTV Jambox television (SGT company).

Thanks to the integration with Vectra at the end of 2019, (the first full calendar year in the Vectra Group), SGT plans to achieve record sales results. The company wants to activate 15,000 new IPTV subscribers during the year, which will increase the operator base to 75,000 users in total.

IPTV creates growth trends on the pay TV market

The Polish IPTV market is still relatively small, at least in comparison to other segments of the pay TV market. However, it is developing most dynamically, which is to a large extent dictated by the low base effect. PMR’s overall assessment of the pay TV market in Poland shows that in the last three years the number of IPTV subscribers has been growing so much (as a result of growing investments in FTTH) that it is holding back the whole market from a downward trend, as we have written about here. It also turns out that despite the saturated overall market, the IPTV offer is able to attract completely new subscribers. An important factor in this respect is the bundling of TV services with internet access over fibre. Moreover, IPTV competition is mainly limited to cable networks, since the coverage of both standards is de facto limited to urban areas, whereas digital platforms are mainly concentrated in rural areas.

PMR stresses that an important trend in IPTV is the growing willingness of customers to purchase IPTV services in this standard and premium channels available in its offer. The growing base of IPTV users in the country and the growing ARPU of services are building a strong market situation. This is facilitated by the development of NGA networks and a general increase in the popularity of fibre-optic accesses.

More information on the IPTV market in Poland in the PMR report: Pay TV and VOD market in Poland 2019. Market analysis and development forecasts for 2019-2024

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