Business news from Ukraine

STATE-RUN UKRTELECOM RAISES EBITDA BY 10%

PJSC Ukrtelecom cut its net income by 1.4%, to UAH 6.357 billion in 2019, the company’s CEO Yuriy Kurmaz said at a press conference in Kyiv.
According to him, the revenue is expected at the level of 2019 amounting to about half a million hryvnia, but this figure will be announced only after the financial audit of the company.
At the same time, EBITDA increased by 9.4%, to UAH 1.766 million, EBITDA margin – by 2.8 percentage points (p.p.), to 27.8% compared to 2018.
The company’s capital investments grew by 14.6%, to UAH 692 million.
In the total amount of income, revenues from telecoms services amounted to UAH 5.288 billion (a decrease of 4.1% from 2018), while total revenues from providing Internet access and data transmission services continue growing – by 6.2%, to UAH 1.949 billion, revenues from telephony continue declining – by 9.1%, to UAH 2.56 billion.
In 2019, Ukrtelecom served 2.3 million fixed-line subscribers, 1.04 million Internet access subscribers, and 78,000 television subscribers in the B2C segment. Revenues from telephony in this segment decreased by 10.9%, to UAH 1.865 billion, those from Internet access services grew by 6.2%, to UAH 1.372 billion.
According to the results of 2019, the operator in the B2B segment serviced 790,000 fixed-line telephony subscribers with an average revenue per user (ARPU) of UAH 70 without VAT (UAH 68 in 2018), and 150,000 subscribers of the Internet access service with an average ARPU of UAH 198 (UAH 175 in 2018).

NATIONAL BANK OF UKRAINE’S OFFICIAL RATES AS OF 27/02/20

National bank of Ukraine’s official rates as of 27/02/20

Source: National Bank of Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF FEBRUARY 27

Official rates of banking metals from national bank as of February 27

One troy ounce=31.10 grams

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STATE-RUN UKRPOSHTA RESUMES ACCEPTING SHIPMENTS TO CHINA

JSC Ukrposhta has resumed accepting all types of export shipments to China from February 26, the company has reported on its website.
“This was possible with the help of the People’s Republic of China Embassy Delegation to Ukraine,” the company reported.
According to Ukrposhta, today, there are no bans on the part of the National Post of China on receiving parcels.
Thus, the import shipments from China continue to be delivered to Ukraine. However, due to a significant reduction in flights by most airlines, the transit terms for mail to Ukraine may be increased.

UKRAINE INCREASES EXPORTS OF IT SERVICES IN 2019 BY 30% TO $4.17 BLN

Ukraine has increased exports of IT services in 2019 by 30.2%, to $4.17 billion, according to a posting on the website of the IT Ukraine association, referring to data of Ukraine’s balance of payment.
“The export of computer services in 2019 increased 30.2% compared to the previous year and amounted to $4.17 billion. Accordingly, the amount of taxes and duties paid to the national budget of Ukraine increased by 28% and amounts to UAH 16.7 billion (an increase of 28.5%),” the association said.
The IT Ukraine association said that, in fact, taxes on the export of IT services for 2019 can cover a third (32%) of the national budget of Ukraine for education for the specified year.
“IT export grows by 20-25% annually. To maintain the current growth rate amid fierce global competition for talents, first of all, we need a balanced government approach to reviewing existing tax models and developing IT education,” Executive Director of IT Ukraine Association Kostiantyn Vasiuk said.
According to IT Ukraine, the growth factor of Ukrainian IT exports is, first of all, the high demand of the global market for IT solutions and the preservation of the contract model in the interaction between companies and IT specialists.
The IT Ukraine Association was founded in 2004. The association includes export IT companies that develop software and products with a total staff of more than 160,000 employees, which together account for 50% of the industry’s total revenue in Ukraine.
The IT Ukraine Association is the silver sponsor of the Ukraine House.

UKRAINIAN TOUR OPERATORS RECORD NO DECLINES IN TOURIST FLOW AND EARLY BOOKED TOURS TO EUROPE

Ukrainian tour operators have not yet recorded declines in tourist flow and early booked tours to Western Europe cancellation due to new coronavirus spread, but the number of early bookings may be cut, experts have told Interfax-Ukraine.
“There are no epidemics in Europe yet, the situation in Italy does not affect tourism volumes and flows. Perhaps if in the future the situation gets out of control and becomes threatening, then we will review programs related to Europe trips in order to restrict them. However, there are no cancellations, nor fear. We are working as usual,” Oleksandr Novikovsky, the Director General of Tez Tour operator, said.
At the same time, tourists, who early booked tours to Italy would like to know, how to cancel the trip, Mandruy travel agency said.
“With regard to the news about coronavirus spread in Italy, customers who had early booked tours there began to be interested in option of cancellation, especially for tours to the Northern part of Italy. Basically, they are only specifying the possibility, since the competent authorities did not officially forbid visiting Italy. The air flights have not yet been canceled, as happened earlier, for example, with China,” the company said.
According to the Director of Tourism Development Center, Volodymyr Tsaruk, it is likely that the number of early bookings may be cut.
“It may be supposed that the demand for early booking will decrease, although in 2020 the level of early booking was already much higher than in 2019 and 2018. Due to the fact that it is not clear how the situation will develop, people will be careful even with regions of traditional trips that haven’t suffered so far, like Turkey and Spain. So I think there will be a quiet period, it’s not yet clear how European countries will react,” he said.
As reported, from February 24, there is an obligatory temperature screening of citizens who arrive by direct flights from Italy to Boryspil and Kyiv international airports.
According to Italian media, the Italian authorities are ready to take emergency measures related to the outbreak of Wuhan coronavirus Covid-19 in the north of the country.