Harald Rösch

Leading Maltese telecom operator


Sector: TMT Investment date: 2016 Apax position: Majority Activity: MidMarket
Why did we invest?

Melita is the leading converged fixed-mobile telecom operator, the leader in the pay-TV and broadband markets and a challenger in the mobile market. It has a technological advantage over competitors, notably a faster internet speed.

Melita is one of the first converged cable operators in Europe providing fixed- mobile services as well as triple-play (3P) and quadruple play (4P) offers, for which consumer demand is very high.

The Maltese market has robust fundamentals: a good macro outlook, a growing population and a buoyant economy with an increasing demand for B2B telecom and hosting services. There is a clear path to revenue growth, driven by (i) competitive Mobile/4P offers, (ii) demand for higher internet connection speeds, and (iii) the development of B2B activities. Meanwhile, operational efficiency improvement is expected to lead to margin improvement.

How do we intend to create value?

The investment thesis is to: (i) continue to invest in cable infrastructure to maintain the company’s broadband leadership, by increasing the internet speeds offered to customers, and regain TV market share by improving the content and customer experience; (ii) develop Mobile market share through bundling with fixed services; (iii) unlock B2B market potential; and (iv) improve customer care and operational efficiency.

In May 2017, Apax Partners, Fortino Capital et Vodafone Group announced their intention to combine Melita with Vodafone Malta to create a fully integrated telecommunications operator in Malta. The parties have cooperated extensively with the Maltese Competition Authority (the «MCCAA») to obtain approval for the transaction. However, they were unable to satisfy the MCCAA’s requirements and consequently they decided to terminate the project and withdraw the notification.

  • Launch of a new TV platform offering all services in OTT
  • E-shop was set up. Internet now represent c. 10% of all orders.