Business news from Ukraine

NEW COMMERCIAL CARS MARKET IS STILL GROWING IN UKRAINE

The market of new commercial vehicles in Ukraine (including heavy trucks) in January-July 2018 increased by 17% compared to the same period in 2017, to 7,300 units, according to the Ukrautoprom association. Thus, following the results of seven months, the market reduced its growth rates (in January-May the growth from the same period of 2017 was 22%, in January-June some 24%).
This situation is associated with a fall in sales of commercial vehicles in July this year by 18% from July 2017 and by 25% from June this year, to 928 units.
The highest demand in the July market (like in June) was recorded for Renault cars, which occupied almost 23% of the market with the registration of 211 vehicles (18% more than in July last year). Fiat ranked second with 109 registrations, which is 36% more than last year’s July figure, and Mercedes-Benz ranks third with a reduction of 31% and with 83 vehicles sold. According to the association, the Ukrainian auto brand ZAZ ranks 13th with 21 cars (against 15 units in July of last year and 13 in June of the current year), KrAZ, as in last year’s July, sold 13 trucks. At the same time, Russian brands UAZ (22 cars against 11 in July 2017) and KAMAZ (20 against 10) increased their registration, while GAZ more than halved sales, to 60 units. Belarusian MAZ in July also significantly reduced sales from July of last year, by 55.8%, to 42 vehicles.

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UKRAINE’S FOREIGN TRADE (EXPORT OF GOODS) IN JAN-MAY, 2018

Foreign trade operations were conducted with partners from 210 countries. The ratio of coverage of imports by exports in Ukraine was 0.9.
The deficit of Ukraine’s foreign trade in goods in January-May 2018 increased by 1.4 times compared with January-May 2017 and amounted to $2.055 billion, the State Statistics Service has said.
Russia is still on the first place among main export markets for Ukrainian goods (7,8% of all trade volume), 4 years ago a share of Russia was more than a quarter of all Ukrainian export..
The second goes Poland (7,0%), the third one is Turkey (6,2%).
Also in top-ten export destinations are Italy, India, China, Germany, Egypt, Hungary, the Netherlands. The USA is the 13-th export market of Ukraine, the UK and France are not presented even in top-20 of the main markets for Ukrainian goods.

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UKRAINE INTERNATIONAL AIRLINES TO LAUNCH FLIGHTS FROM KYIV TO GOA AND DOMINICAN REPUBLIC

Ukraine International Airlines (UIA) from October 25, 2018 will launch direct flights from Kyiv to La Romana (the Dominican Republic) and from December 27 – to Goa (India). According to the press service of the airline, flights to the Dominican Republic will be serviced on Mondays and Thursdays with an interval of ten days. UIA also optimizes the winter season schedule for 2018/2019.
In particular, since December 20, the airline will increase the frequency of flights between Kyiv and Bangkok to six a week, Kyiv and Istanbul – up to three daily flights. At the same time, the intensity of flights between Kyiv and Almaty will be reduced from seven to four, and between Kyiv and Astana – up to three flights a week.
“In the winter, the frequency will be slightly reduced on such European destinations from Kyiv as Larnaca, Venice, Athens, Barcelona, Madrid, Rome, Frankfurt, Brussels, Riga, Vilnius, Stockholm, Helsinki, London, Copenhagen, Ankara, Milan (Bergamo), Prague and Vienna, the frequency of long-haul flights to Beijing and Toronto will be reduced by one and two flights a week, respectively,” the press service of the airline said.
Also, a slight reduction in the number of flights to Tel Aviv, Baku, Yerevan, Tbilisi, Amman and Tehran is planned.
From the regions of Ukraine, there will be less direct international flights from Ivano-Frankivsk to Valencia and Alicante, and also from Lviv to Madrid.
One flight a week less will be serviced from Kyiv to Kharkiv and Lviv.
UIA was founded in 1992. According to the National Commission for Securities and the Stock Market and the state register, 100% directly or indirectly is controlled by Cypriot-based Ontobet Promotions Limited which beneficiaries are not disclosed.

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LARGEST UKRAINIAN MOBILE OPERATOR KYIVSTAR HAS 8% RISE IN EBITDA IN Q2

The mobile communications operator Kyivstar in April-June 2018 saw an 11.4% rise in revenue year-over-year, to UAH 4.521 billion, the Veon international group (VimpelCom Ltd. before rebranding) has said in a quarterly report on Thursday. According to the report, over the period Kyivstar increased earnings before interest, taxes, depreciation and amortization (EBITDA) by 8%, to UAH 2.49 billion, EBITDA margin fell by 1.7 percentage points (p.p.), to 55.1%. Revenue from mobile communications services in Q2 2018 came to UAH 4.2 billion, which is 11.4% more than a year ago.
The press service of Kyivstar reported that data consumption in April-June 2018 grew by 139% year-over-year, to 1.8 gigabytes per user on average. Voice service consumption remained stable: in Q2 2018 on average 580 minutes per user was recorded, which is 1.2% more than a year ago. The number of mobile Internet users over the period grew by 21% year-over-year, to 13.5 million, and the total number of active users totaled 26.5 million, which is 400,000 more than a year ago.
“The growth in the consumption of services, the increase in the number of users, the launch of new communication technologies are just a few qualitative changes that have positively affected our financial performance in the second quarter of 2018,” acting Kyivstar president Oleksandr Komarov said in a report. The minutes of use (MoU) increased by 1.2%, to 580 minutes, and ARPU (average revenue per user per month) of mobile communication increased by 9.6%, to UAH 52.
The revenues of the mobile operator from fixed-line services in the second quarter increased by 7.3% to UAH 297 million, including revenues from fixed-line Internet that increased by 8.5% to UAH 185 million, while the number of users increased by 6.5% %, to 0.858 million. ARPU for fixed-line Internet grew by 4.3%, to UAH 72.
Capital investments, with the exception of payment for licenses, for the reporting period amounted to UAH 927 million, which is 31.5% more than in the same period last year. At the end of the second quarter of 2018, the “3G Kyivstar” service was available in the territory where 74% of Ukrainians live. Kyivstar said that in the first half of the year its revenues increased by 10.8% compared to the same period in 2017, to UAH 8.785 billion, while EBITDA increased by 12%, to UAH 4.902 billion.
At the same time, revenues from mobile services for six months increased by 11.2% to UAH 8.149 billion, and from fixed-line telephony – by 3.6%, to UAH 593 million.
In the second quarter of 2018, Kyivstar transferred almost UAH 4 billion of taxes, fees and payments for licenses to the Ukrainian budget, and for the first half of the year the amount of all payments to the national budget reached UAH 6.8 billion. Kyivstar is the largest Ukrainian mobile communications operator.

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