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24 May 2017

DRFG Telco Division - continuing acquisitions of regional providers

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DRFG Telco
Inside the DRFG Telco Division, we are continuing with the acquisition of regional providers. Currently, we have bought the FOFRNET Group, which consists of a merger of nine smaller companies. We entered the internet connection market this year. In the first quarter, following the acquisition of DAT, Oxid Networks and Redikom, we became the leader in the Uherské Hradiště region. By taking over FOFRNET, which is by far the biggest player in the Olomouc region, we have increased our customers to 33 thousand. We are planning further acquisitions before the end of the year. We hope to enter 2018 with over 100 thousand clients. We have set aside 750 million crowns for this year’s expansion.

Internet connections are a relatively high-margin enterprise. The ratio of EBITDA to turnover is generally between one third to one fourth. There are over one thousand companies active on the market, of which the majority are very small. Their coverage is at the level of streets or city neighbourhoods.

Another of our assets in the area of telecommunications is Suntel Group, which builds and maintains telecommunications networks from Košice to Geneva. Our key customers, those which will form the foundation of our company, are Cetin, the Czech subsidiary of Vodafone, and the Swiss mobile phone operator Salt. Suntel’s turnover this year should increase to 500 million crowns from 350 million crowns last year. Further acquisitions, which could boost the company’s sales into the billions, are planned. Suntel Group also builds steel pylons and develops cell phone applications.

Through our subsidiary Suntel Net, we are taking part in an auction for the 3,7Ghz range, which will allow us to provide high-quality internet to customers who are now using lower quality technology in the 5Ghz free range.

Thanks to the growth of Suntel Net and Suntel Group, DRFG Telco will by far surpass the billion crown mark in sales.

DRFG-Suntel Group
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