České Radiokomunikace
Country: Czechia
Region: Praha
Investors: Mid Europa Partners
A combination of in-depth regional knowledge, expertise in the communications industry, and a hands-on approach to company management underpinned Mid Europa’s investment in Czech television and radio broadcaster České Radiokomunikace (CRa) in 2006. Private equity helped recruit a high calibre management team and streamlined and reorganised the business that now reaches over 99% of Czech households.
In doing so, Mid Europa and CRa have set the standard for similar broadcasters across the region for operational efficiency and financial performance. During the firm’s ownership, CRa invested in digitising the terrestrial television networks, disposed of non-core retail operations and focused on the central broadcast business. The company was sold to specialist infrastructure investor Macquarie in 2010.
Jane Hannah
CEO - Ceske Radiokomunikace
Mid Europa has been a reliable and responsible owner of this critical infrastructure and a supportive partner for management.
99.6%
of population reached
2x
increase in profit margins 2006-2010
What did the business need?
Investment in digital television infrastructure
Expansion of senior management team and board
Streamlining and reorganisation of business structure
How did private equity backing create lasting value?
Invested heavily behind digital television network rollout
Recruited leading management team (CEO, finance director, commercial, legal and HR directors)
Reduced company debts
Sold non-core telecoms retail operations
Acquired 37% stake in the business held by Lehman Brothers after the US bank’s collapse in 2008
Began trials of high definition television and digital radio services
What outcomes did private equity investment achieve?
Largely completed transition from analogue to digital broadcasting, reaching 99.6% population coverage at exit, from zero in 2006
Increased profit margins from 34% to 61% during investment
Established Czech Republic as leader for digitisation in Central and Eastern Europe
Investors
