Business news from Ukraine

lifecell increased its net profit by 45.5%

8 November , 2023  

In July-September 2023, Ukrainian mobile operator lifecell increased its net profit by 45.5% year-on-year to UAH 555.4 million.

According to the report of Turkcell’s parent company on its website on Tuesday, lifecell’s revenue in the third quarter of this year increased by 25.7% to UAH 2.98 billion, which is explained by price adjustments.

The operator’s EBITDA increased by 16.3% to UAH 1.65 billion, while the EBITDA margin decreased by 4.5 percentage points to 55.3%.

“lifecell achieved an EBITDA margin of 55.3%. The decline is due to increased costs for roaming, interconnection services and electricity costs,” Turkcell said in a press release.

The operator’s capital expenditures in the third quarter increased by 48.9% to UAH 952.1 million.

According to the report, lifecell’s active subscriber base amounted to 9.1 million in the third quarter, up from 8.6 million in the previous quarter and 8.2 million a year earlier. The total number of customers increased to 11.4 million from 11.1 million in the previous quarter and 10.1 million a year earlier.

At the same time, ARPU (average revenue per user per month) among active users increased by 19.2% year-on-year and by 0.9% quarter-on-quarter to UAH 113.7.

“The penetration of lifecell smartphones amounted to 84.3% at the end of the third quarter. As of the end of June, on average, about 97% of stores in the country were open daily,” the report said.

Turkcell added that lifecell’s current cash reserves are “more than sufficient” to support its operations.

Overall, in the first nine months of the year, lifecell’s revenue increased by 26% year-on-year to UAH 8 billion 571.8 million, EBITDA by 26.1% to UAH 4 billion 968.9 million, and net profit by 2.9 times to UAH 1 billion 68.6 million. The company also increased its capital investments by 51% to UAH 3 billion 035.7 million.

lifecell is the third largest mobile operator in Ukraine. Turkcell owns 100% of the shares in Lifecell LLC.

In the third quarter, lifecell’s revenue accounted for 75.9% of Turkcell International’s revenue and 8.4% of Turkcell’s total revenue. The Ukrainian operator accounted for 10.6% of consolidated EBITDA and 7.4% of consolidated profit of Turkcell.