Business news from Ukraine

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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KYIV MAYOR KLITSCHKO WANTS TO BUILD INCINERATION PLANT IN UKRAINIAN CAPITAL

It is planned to build a new incineration plant in Kyiv within the next two or three years, according to the information department of Kyiv City State Administration, with reference to Kyiv mayor Vitali Klitschko. “Rubbish is the problem of not only of Kyiv, it is a problem of the whole country. Now we have one incinerator plant in the capital – Energy. We need a new incineration plant. Such a plant should be built within two or three years,” Klitschko said on the air of the Snidanok z 1+1 (Breakfast with 1+1) TV program.
According to the mayor, almost 1.2 million tonnes of garbage accumulate in Kyiv every year.
He stressed that a strategic decision had already been made to abandon the practice of dumping waste and begin to process it.
“We have studied in detail the experience of other countries. The competitive commission is already working, a tender for the construction of an incineration plant has been announced,” he said.
According to the mayor, the capacity of the planned plant should be more than 420,000 tonnes of waste per year. Landfill No. 5, which will be closed in future, has approximately the same capacity.
“Soon, work will begin on the reconstruction of landfill No. 5. The dams will be strengthened, the capacity of the filtrate processing equipment will be increased. We will strengthen the landfill, install a degassing system and then close it,” Klitschko said.

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CORUM GROUP TO LEASE TUNNELING MACHINES TO POLISH COMPANIES

Corum Group has signed contracts for supply five tunneling machines for Polska Grupa Górnicza (PGG) and Jastrzębska Spółka Węglową (JSW, both based in Poland) for the total amount of PLN 22.8 million (EUR 5.3 million), which the companies will lease for three years.
The press service of Corum told Interfax-Ukraine that the first tunneling machine, intended for JSW, in August will begin operations at the Szczyglowice mine.
A number of modifications have been made to the design of the mass model of the tunneling machines in accordance with the requirements of the customer for maximum adaptation to the conditions of the customer mine. It is equipped with a 150 kW engine and a sector irrigation system for suppressing dust in the face and preventing sparks from working in the face.
“Our tunneling machines have proven themselves at the coal mining enterprises of Poland, working here since 2013. We put the first tunneling machine on the Polish market for JSW, and it has been successfully operated to this day,” the press service of the Corum Group reported, citing CEO Mykhailo Potapov.
The tunneling machine for JSW is supplied with additional equipment, which includes belt conveyor, power train, pumping unit, data transmission system, visualization and monitoring system. Terms of the contract also include comprehensive maintenance of machinery.
Corum intends to deliver another four tunneling machines to the company Polska Grupa Górnicza. One of them for the RUDA mine is scheduled for shipment by the end of September this year, the next three for the Bolesław Śmiały mine between June and September 2019.
Corum Group unites the machine-building assets of the SCM financial and industrial group. In 2017, the company’s share of exports increased to 41%. The key countries of presence are Russia, Kazakhstan, Poland, Vietnam and Estonia.

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