Business news from Ukraine

UKRTELECOM SEES 26% RISE IN NET PROFIT IN H1 2016, REVENUE 1.1% UP

25 July , 2016  

KYIV. July 25 (Interfax-Ukraine) – Public joint-stock company Ukrtelecom saw a 1.1% rise in revenue in January-June 2016 year-over-year, to UAH 3.35 billion, the operator said in a report published at a press conference in Kyiv on Friday.

The company’s net profit in H1 2016 totaled UAH 178 million and this was 26% up year-over-year.

Capital investment grew by 72%, to UAH 113.2 billion, earnings before interest, tax, depreciation and amortization (EBITDA) – by 2.4%, to UAH 969.6 million. EBITDA margin was up by 0.3 percentage points, to 28.9%.

Total revenue in Q2 2016 slightly fell year-over-year – by 0.5%, to UAH 1.637 billion.

EBITDA in Q2 2016 decreased by 6.3% year-over-year, to UAH 469 million. EBITDA margin decreased by 1.8 percentage points, to 29%.

Ukrtelecom Director Yuriy Kurmiz said at a press conference that in 2016 the company’s revenue from telecom services continue growing. Services worth UAH 950 million were provided to private users and worth UAH 311 million to business consumers, which is 4% and 5% up year-over-year.

Revenue from services provided to operators decreased by 21%, to UAH 234 million. This is linked to the market trends and the reduction of the voice traffic volumes.

Revenue from fixed communications grew by 1.6%, to UAH 805.4 million. Revenue from Internet access and data transfer grew by 11%, to UAH 404 million.

In Q2 2016, the operator paid almost UAH 440 million of taxes and duties to the budgets of all levels.

Ukrtelecom is the largest fixed communications operator in the country. Ultimate owner of Ukrtelecom is SCM Group of businessman Rinat Akhmetov.