Business news from Ukraine

Business news from Ukraine

OFFICIAL RATES OF BANKING METALS FROM NATIONAL BANK AS OF FEBRUARY 18

Official rates of banking metals from national bank as of February 18

One troy ounce=31.10 grams

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INCOME OF KYIVSTAR AMOUNTS TO UAH 25 BLN IN 2020

Kyivstar increases income by 12.4%, EBITDA by 15.6% in 2020
The net income of Kyivstar over 2020 amounted to UAH 25.158 billion, which is 12.4% more than in 2018.
According to the company, the operator’s income from mobile services grew by 12%, to UAH 23.418 billion, and from fixed-line services by 18.7%, to UAH 1.602 billion.
In addition, EBITDA last year increased by 15.6% and amounted to UAH 16.979 billion, while EBITDA margin increased by 1.9 percentage points to 67.5%.
Capex (excluding licenses and leases) for the year increased by 22.1% and amounted to UAH 4.851 billion.
Kyivstar’s total mobile customer base in the fourth quarter of 2020 decreased by 1.3% compared to the same period in 2019, to 25.9 million, while the number of fixed-line subscribers increased by 10.9%, to 1.1 million.
“Kyivstar’s total mobile customer base showed a y-o-y decline of 1.3%, to 25.9 million users due to the decline of second SIM cards in the market and lower gross additions during lockdown when the strict measures resulted in the partial closure of Kyivstar stores,” the company said.
According to Kyivstar, in the fourth quarter of 2020 the number of mobile Internet users reached 17.1 million, which is 1.3% more than in the fourth quarter of 2019. At the same time, the number of subscribers using 4G Internet increased by 30% over the year. The growth in the 4G users and the associated increase in data usage contributed to an ARPU increase of 16,9%, to UAH 80 y-o-y.
Users in 2020 increased the usage of mobile Internet and voice services. Thus, in the fourth quarter of 2020, the average consumption of data traffic per subscriber was 6.1 GB, which is 43% more than a year earlier.
Usage of voice traffic per subscriber for the specified period amounted to 651 minutes, or 12.7% more than in the same period last year.
In the fourth quarter of 2020, the operator’s income increased by 15.2%, to UAH 6.697 billion. Of these, UAH 6.229 billion accounted for income from mobile services (more by 15%), and UAH 430 million for income from fixed-line services (more by 21.3%). EBITDA during this period increased by 10.4%, to UAH 4.452 billion, the margin decreased by 2.8 percentage points, to 66.5%.
Capital investments in the fourth quarter of 2020 amounted to UAH 1.251 billion, which is 25.9% more than in the fourth quarter of 2019.
Over the past year, Kyivstar transferred taxes and other payments to the state budget for a total of UAH 9.3 billion.
In addition, since the beginning of the COVID-19 pandemic, Kyivstar has provided assistance to society and subscribers for UAH 80 million – free communication services, benefits for health workers, the purchase of ventilators for a number of medical institutions, and much more.

GERMAN AMBASSADOR ANKA FELDHUSEN NOTES IMPORTANCE OF JUDICIAL REFORM IN UKRAINE

Reform of decentralization and judicial reform are important on the path of Ukraine’s European integration, German Ambassador to Ukraine Anka Feldhusen has said.
“This is already my 12th year in Ukraine, and I really want to make a contribution to bring Ukraine closer to the EU and, in my opinion, there are two very important topics. The first is the reform of decentralization. Last year we successfully completed the stage of unification of territorial communities, there were very successful local elections, and now we are still working on what legal status the communities will have, what kind of finance they will receive directly,” Feldhusen said at a virtual meeting, broadcasting on Facebook on Tuesday.
According to her, it is important that communities can now actively work in the interests of their residents.
“But this reform, indeed, is already at its final stage. There is another reform that has hardly started yet. This is judicial reform, and I think this will be my most important priority this year,” Feldhusen said.
The ambassador also said that Germany has already received an invitation to take part in the celebrations of the Independence Day of Ukraine in 2021, adding that high-ranking guests from Germany are expected to visit Ukraine to participate in the first summit of the Crimean Platform on August 23.

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UKRAINIAN MOBILE OPERATORS CONNECT 2,383 SETTLEMENTS TO HIGH-SPEED INTERNET IN JANUARY 2021

In January 2021, Ukrainian mobile operators connected 2,383 settlements to high-speed mobile Internet, of which 4G appeared for the first time in 543 cities and villages, where about 117,400 citizens live, Deputy Prime Minister, Minister of Digital Transformation of Ukraine Mykhailo Fedorov said.
“More than 7 million Ukrainians from 11,800 settlements received access to 4G due to the implementation of the LTE 900 project, which started in July 2020. At the same time, more than 2 million Ukrainians in 5,600 cities and villages received access to 4G for the first time,” he wrote on Facebook.
According to Fedorov, the Digital Transformation Ministry is to provide 95% of Ukrainians with Internet access.
Currently, high-speed mobile Internet is available in 22,000 settlements of Ukraine.

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METINVEST CUTS SALES IN EUROPE, CIS BUT RAISES SUPPLIES TO SOUTHEAST ASIA

Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metallurgical group Metinvest, in 2020 reduced sales of products in Europe by 21% compared to the previous year, to $ 2.851 billion.
According to the audited consolidated financial results for 2020, sales in Europe fell mainly due lower sales prices for steel products. This was also affected by a decrease in sales of semi-finished products by 31% and iron ore products by 48%. As a result, the region’s share in total revenue decreased by 7 percentage points (p.p.) compared to the previous year, to 27%.
In 2020, revenue in Ukraine decreased by 7%, to $ 2.939 billion, mainly due to a decrease in the average price for metal products and coke, as well as a 26% reduction in pellet sales. The decrease in revenues was partially offset by an increase in the supply of long products by 23%, coke by 14% and iron ore concentrate by 43%. In general, the share of Ukraine in the consolidated revenue decreased by 1 p.p. compared to 2019, to 28%.
Revenue in the Middle East and North Africa region rose 9%, to $ 1.8 billion, mainly driven by an increase in slab (2.5 times) and flat products (12%) shipments. As a result, the region’s share in the consolidated revenue increased by 2 p.p., to 17%.
Revenue in Southeast Asia rose 56%, to $ 1.467 billion thanks to the resumption of sales by Metinvest to China amid strong demand in the country. During the reporting period, the group sold 862,000 tonnes of semi-finished products and finished metal products in the country. In addition, supplies of iron ore products to China increased 1.7 times. As a result, the market share of the region in total revenue increased by 5 p.p., to 14%.
Revenue in the CIS decreased by 23%, to $ 635 million due to a decrease in sales volumes and sales prices for flat products. The region’s share in the consolidated revenue decreased by 2 p.p., to 6%.

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NUMBER OF UNEMPLOYED IN UKRAINE AND JOB OPPORTUNITIES, JAN 2020 – JAN 2021

Number of unemployed in Ukraine and job opportunities, Jan 2020 – Jan 2021.

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