PJSC “VF Ukraine” (TM “Vodafone Ukraine”), the second largest mobile operator in Ukraine, in January-June 2023 increased net profit by 3.4 times compared to the same period last year – up to UAH 2.266 billion, the press service of the mobile operator reported.
According to the interim consolidated financial report of the company, its revenue increased by 4.9% to UAH 10.404 billion, and operating profit – by 45.1% to UAH 3.712 billion.
It is indicated that the company’s OIBDA increased by 3% year-on-year to UAH 5.934 bln. OIBDA margin slightly decreased by 1 p.p. to 57%.
The company clarified that the jump in net profit was due to a decrease in foreign exchange losses due to the fixation of the dollar to hryvnia exchange rate by the National Bank since July last year.
In addition, in the first half of 2023, Vodafone Ukraine’s losses from the war decreased by 8.2 times – to UAH 116 million.
Subscriber base in the second quarter of 2023 remained stable – 15.2 million customers. “Decrease by 8% compared to the second quarter of last year due to a decrease in the number of mobile users due to active hostilities, inaccessibility of mobile networks in temporarily occupied territories and in the war zone, mass migration”, – explained in the press release.
It is specified that more than 2 million subscribers of “Vodafone Ukraine” remain abroad and continue to use the services of the company. At the same time, revenue from roaming services decreased by 6.5% – to UAH 446 mln, while the total revenue from mobile services increased by 12.3% – to UAH 8.1 bln.
The company’s ARPU increased in the second quarter to 108.4 UAH per month from 104 UAH in the first quarter due to an increase in mobile Internet penetration and usage volumes.
“Vodafone Ukraine” increased capital investments by 75% – up to UAH 2.231 billion, directing them to the renewal of destroyed infrastructure, operational repairs of the network and preparation for work in conditions of possible power shortages in the winter period.
In particular, 9.5 thousand base stations of the company were equipped with new batteries of a new type, which are less sensitive to voltage fluctuations in the network and frequent power outages, as well as have 2.5-3 times higher charging speed.
To ensure emergency power supply, the company has additionally equipped 1.12 thousand nodal technical objects with backup power supply by means of stationary generator sets and prepared 522 mobile generators, a reserve of diesel fuel and gasoline has been created for their operation. It is indicated that the company’s specialists are testing new solutions at a number of facilities using alternative energy sources, in particular, solar power plants and microturbine generators.
The text of the financial report emphasizes that as of June 30, 2023, Vodafone Ukraine was in compliance with all debt covenants. At the same time, the company remains concerned about the moratorium on cross-border currency settlements, which may cause future difficulties with the redemption in February 2025 Eurobonds for $ 400 million. In this regard, the company’s management is considering several options in case the moratorium continues to operate: in particular, refinancing at the expense of financial institutions, negotiating changes in the terms of bonds with holders of Eurobonds, the introduction of additional measures to manage and control cash outflows to maximize the company’s ability to meet its debt covenants.
“Vodafone Ukraine” provides 3G and 4G high-speed internet and fixed-line services, mobile communications and develops the Internet of Things (IoT), technologies and solutions for Smart City, big data analytics, financial and technological services, cloud services. Since 2019, the company is part of NEQSOL Holding group of companies of businessman Nasib Hasanov.
NEQSOL Holding’s activities cover oil and gas, telecommunications, construction and other high-tech sectors in the UK, USA, Turkey, Azerbaijan, Kazakhstan, UAE, Bangladesh. The Group entered the telecommunications industry in the early 2000s.
Benchmark oil prices continue to rise on Wednesday afternoon amid concerns over Hurricane Idalia and the situation in Gabon.
The price of October futures for Brent on the London-based ICE Futures exchange at 14:29 Q2 is $86.02 per barrel, up $0.53 (0.62%) from the previous session’s close.
Quotes of futures for WTI crude oil for October at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time increased by $0.56 (0.69%) and amounted to $81.72 per barrel.
Tropical Storm Idalia strengthened to a hurricane the day before, the National Hurricane Warning Service (National Hurricane Center, NRC) of the United States reported. On Wednesday, it was assigned category three on the Saffir-Simpson scale.
Meteorologists expect Idalia to further strengthen to an “extremely dangerous” category four storm. It is forecast to cause a dangerous rise in ocean levels and heavy downpours.
The Gulf of Mexico, where the hurricane is raging, accounts for about 15% and 5% of all U.S. oil and gas production, respectively, according to the U.S. Department of Energy’s Energy Information Administration (EIA).
Market participants are also assessing signals about changes in energy stocks in the States and following the situation in Gabon, where a group of military officers announced the deposition of President Ali Bongo Ondimba, who has been in power for 14 years and was re-elected for a third term on Saturday.
According to the American Petroleum Institute (API), oil inventories in the States collapsed by 11.5 million barrels last week.
Official data from the U.S. Department of Energy will be released at 5:30 p.m. Wednesday. Analysts surveyed by S&P Global Commodity Insights forecast that the data will indicate a reduction in oil stocks by 5.2 million barrels, gasoline – by 600 thousand barrels, distillates – by 1.4 million barrels.
Meanwhile, analysts still see no signs of disruptions in oil production in Gabon, a member of OPEC, writes MarketWatch.
Stock indices of the countries of Western Europe are changing multidirectionally at trading on Wednesday, but the overall dynamics is rather negative due to weak statistical data from the euro zone.
The composite index of the largest European companies Stoxx Europe 600 as of 11:47 a.m. fell by 0.16% and amounted to 459.09 points.
British indicator FTSE 100 added 0.13%, Italian FTSE MIB – 0.26%. Meanwhile, Germany’s DAX lost 0.3%, France’s CAC 40 lost 0.25% and Spain’s IBEX 35 lost 0.23%.
The composite index of business and consumer confidence in the eurozone in August fell to 93.3 points from 94.5 points a month earlier. The index fell for the fourth consecutive month, and its value became the lowest since November 2020.
Meanwhile, inflation in Spain accelerated to 2.6% in August from 2.3% in July, preliminary official data showed. Excluding energy and food prices, consumer prices rose 6.1% in August after rising 6.2% in July.
Prices of goods imported into Germany collapsed 13.2% in July, the fastest pace since January 1987, due to falling energy costs, the country’s Federal Statistical Office (Destatis) said.
Producer prices in Austria fell 1.3% year-on-year in July, declining for the first time in two and a half years.
Shares of British insurer Prudential Plc. are rising 3.3% on data showing operating profit rose 6% in the first half of the year to $1.46 billion.
Meanwhile, ASR Nederland’s securities are getting cheaper by 0.5%. The Dutch insurance company posted an operating profit of €460 million in the first half of the year against a revised €454 million in the same period a year earlier.
Quotes securities Rio Tinto in London are up 0.7%, while the market value of Anglo American, Glencore and Antofagasta declines by 0.1-1%.
The price of securities of British banks Barclays, Standard Chartered and Lloyds increases by about 0.8%.
In Germany, the leader of growth are the shares of Commerzbank, rising in price by 1.3%, the leaders of the decline – the securities of RWE and Siemens Energy, falling in price by 3.4% and 2.6%, respectively.
At the auction in Milan actively growing quotations of securities Banca Monte dei Paschi di Siena (by 2.3%), in Paris – shares Capgemini (by 1.3%), and in Madrid falls in the price of shares Iberdrola (by 2.5%).
Short-term rains and thunderstorms are expected on the night of August 31 in the western, Zhytomyr, Vinnytsia and Odesa regions, during the day – on the Right Bank, in some areas during the day hail and squalls of 15-20 m/s, in the rest of the territory – no precipitation.
According to the Ukrainian Weather Center, the wind will be southeast (in the afternoon in the western regions it will change to west) 5-10 m/s.
The temperature at night will be 16-21, up to 23 on the coast, 12-17 in the eastern and northeastern regions; during the day 26-31°, up to 35° in the southeast, 20-25° in the western regions; in the Carpathians at night 10-15°, 13-18° during the day.
In Kyiv, on August 31, no precipitation at night, short-term rain and thunderstorm in the afternoon. Southeast wind, 5-10 m/s. The temperature at night will be 18-20°, during the day 28-30°.
According to the data of the Borys Sreznevsky Central Geophysical Observatory. For the entire period of meteorological observations on August 31, the highest daytime temperature was recorded at +35.6° in 1890, and the lowest at +5.4° in 1966.
On Friday, September 1, there will be short-term rains throughout Ukraine, sometimes thunderstorms, only at night in the eastern, southeastern, and most of the western, Zhytomyr, Vinnytsia, and Kyiv regions without precipitation.
West, northwest wind, 5-10 m/s. Temperature at night will be 15-20°, up to 23° on the coast, 11-16° in the western regions; during the day 21-26°, 25-30° in the eastern regions, 18-23° in the western regions.
In Kyiv, on September 1, there will be short-term rain at night. West, northwest wind, 5-10 m/s. The temperature at night will be 18-20°, during the day – 24-26°.
On August 24, PJSC Ukrgasvydobuvannya (Kyiv) opened a tender for compulsory civil liability insurance of business entities for damage that may be caused by fires and accidents at high-risk facilities, including fire-hazardous facilities and facilities where economic activity may lead to environmental and sanitary-epidemiological accidents.
According to the Prozorro electronic public procurement system, the expected cost of the services is UAH 120,145 thousand, with the lowest price offer from Trnasmasmagistral Insurance Company at UAH 57,009 thousand.
The following insurance companies participated in the tender: Brokbusiness – UAH 58,260 thousand, Promstrakh – UAH 59,459 thousand, Universalna – UAH 59,744 thousand, Mega-Policy and VUSO – UAH 98,635 thousand each, and Krayina – UAH 118,9 thousand.
The companies are waiting for the final decision
INSURANCE, INSURANCE COMPANY, UKRGASVYDOBUVANNYA, Трансмагістраль
Kyiv’s catering establishments will extend their working hours by one hour to 23:00, Kyiv Mayor Vitali Klitschko said on his Telegram channel on Wednesday. According to him, the decision was made by the Kyiv Defense Council. It will come into force on September 1.
“Representatives of the National Restaurant Association of Ukraine addressed the city authorities with this request. The decision to restrict the operation of establishments until 22:00 was made when the curfew in the capital began at 23:00. Now it starts at 00:00. During a meeting with the city authorities, where they justified the feasibility of such a decision, entrepreneurs emphasized that extending the opening hours of establishments would help improve the economic situation in the capital, create additional jobs, and increase revenues from taxes, fees, and payments to budgets of all levels,” Klitschko wrote.
