In a sea of contradictory macroeconomic information and forecasts from economic analysts for this year, we wanted to clarify the actual business situation ‘on the ground’ and what signals are emerging for the rest of the year. We asked the leaders of companies that are members of the Lider Exporters Club whether this year is as stressful as the last or if they notice that the market situation is calming down, what recent trends are in their industry and how they are adapting, what their key business challenges are, and what signals they are receiving from their export markets.
Today we publish the responses of Mate Botica, CEO of OIV.
The Croatian economy is no longer an ‘island’, but is increasingly reliant on and oriented towards the broader European market, and it is completely certain that OIV and Croatia increasingly share the economic perspective of European economies.
As a capital-intensive and infrastructure-oriented company, OIV recognizes these realities and invests in long-term projects, basing its growth on the stability and long-term expectations of the Croatian and broader European market. The instability in Eastern Europe still has the greatest impact on the European economy. The geopolitical tensions that have escalated into armed conflicts in Ukraine have remained within geographical boundaries. The European economy, which has deeply integrated Russian energy resources and energy infrastructure into its operations, has absorbed the initial shock and found responses to the imposed crisis. Wise policies of austerity and the replacement of energy supply chains have avoided potentially catastrophic consequences for the economy, and the policy of unity among European countries and solidarity with the attacked Ukraine has prevented the spread of the crisis, spillover, and broader destabilization of the European continent.
Within global movements, the Croatian economy is one of the most dynamic. Good fiscal and monetary policy, good international positioning of the Republic of Croatia, as well as an increase in credit ratings and the simultaneous entry of Croatia into the Eurozone and Schengen area have significantly changed the economic attractiveness of our country. Tax, administrative, and parafiscal reliefs, improvements in the business climate through simplification of operations and digitalization of public administration also positively affect the development of the economic climate, and thus the prospects for the development of OIV. The influx of funds from structural and cohesion EU funds opens additional opportunities and possibilities for OIV and other companies. The available funds represent an unprecedented opportunity in Croatian economic history, but they also represent a great responsibility for the state and all economic entities.
Global trend arrives in Croatia
At the beginning of this year, one of the international telecommunications operators operating in the Croatian market monetized a large part of its telecommunications infrastructure through a spin-off. This trend among telecom operators has been ongoing for several years in the North American and European markets, and it has now arrived in Croatia. We expect this trend to continue, resulting in changes in the Croatian telecommunications market in which OIV actively participates.
Radical and rapid changes in technologies and business models require the economy, and thus OIV, to quickly adapt and develop a large number of competencies. The uniqueness and market position of OIV is not eternal for revenue growth, and we must fight for our clients. Broadcasting – our core business – has a time-limited and revenue-limited future that we see in expanding our business focus and diversifying our operations through four strategic directions, changing our service portfolio, expanding into other markets, restructuring the organization and processes, and expanding sales and distribution channels for services.
