The share of revenue not from the core telecommunications business of Ukraine’s largest telecommunications operator Kyivstar, which will amount to about 20% by the end of this year, is expected to reach 50% in five years thanks to planned investments of $1 billion over the next three years, said Zoya Dronchkevich, Kyivstar’s business development director and member of the supervisory boards of Helsi.me and Uklon.
“In five years, we aim to have around 50% of the group’s revenue coming from non-telecom sources with our investments of around $1 billion over three years. That is our goal,” said Dronchkevich at the Forbes Money forum in Kyiv.
Among the areas of investment for Kyivstar, which this year acquired Uklon and bought out the minority stake in Helsi, she named healthcare, education, fintech, entertainment, and advertising.
“We have a number of interesting organic experiments that could grow into inorganic ones. And we have strategic bets on certain industries that will help us make up the missing percentage to achieve our goal,” added the business development director.
She also emphasized that the most important task is to increase revenue through synergies between these businesses.
“Our strategy is not to tell telecom companies what to do, but to give them access to capital, enable them to leverage synergies from telecom and the ecosystem, create new value, and scale Ukrainian products abroad,” Droshkevich described Kyivstar’s approach to cooperation with partners.
Commenting on the acquisition of up to 100% of Helsi, she said that this is not the last deal in the healthcare sector.
“We will definitely be developing healthcare for several years. And it will be a whole ecosystem in itself. In addition to being part of the larger Kyivstar ecosystem and galaxy,” the director emphasized.
According to her, this involves both the development of B2C areas, where customers will soon see new products in the Helsi app, and investments in B2B. “For example, a few months ago, we approved a separate investment in private clinics and will compete there as well,” said Dronshkevich, also mentioning medical insurance.
She added that the company is also investing in R&D for overseas expansion, and certain elements of the ecosystem will be expanded to the markets of VEON, Kyivstar’s parent company.
“We have already grown the second player in the entertainment market, OTT TV Kyivstar TV, and we will continue to develop this area.
We are definitely very interested in fintech, which fits very organically into the ecosystem. This is far from a simple story,” said the Kyivstar business development director, listing the next areas of focus. She clarified that in fintech, there is a choice between an organic and inorganic scenario.
Droshkevich also mentioned investments in delivery, where, thanks to the acquisition of Uklon, the company already has a few percent of revenue.
“Advertising Tech is also an area of interest for us, where our clients, our data, and the presence of our ecosystem are a competitive advantage for this business. And it will help it generate additional revenue,” the director noted.
According to her, Kyivstar is also interested in B2B SAS solutions and fundamental B2B infrastructure areas. She recalled that the operator has already become the largest Microsoft distributor in Ukraine, and this major strategic partnership will continue to develop.
Droshkevich also acknowledged Kyivstar’s significant interest in the education sector and said that she had already interviewed 17 founders of LMS (Learning Management System) companies in Ukraine.
“I have met with eight different founders over the past month. We have selected the top three, who are in completely different segments. Perhaps we will start with commercial partnerships, perhaps we will start directly with a joint venture, and education is definitely of interest to us,” said the director.
Kyivstar, Ukraine’s largest mobile operator, increased its revenue by 49.5% in January-March 2025 compared to the same period in 2024, to UAH 10.72 billion, doubling its investments to UAH 2.42 billion.
According to the financial statements published by the parent company VEON, the operator’s revenue in the first quarter increased by 36.9% in dollar terms, to $257 million.
Kyivstar’s revenue for the first quarter of 2025 grew by 49.5% thanks to an increase in ARPU (average revenue per user), which rose by 53.9% to UAH 140.6.
“These impressive results were achieved thanks to price adjustments, the stability of the 4G base, and the growing adoption of Kyivstar’s digital services, which in turn led to an increase in mobile internet consumption.
The dynamic revenue growth reflects the effective recovery from last year’s cyberattack,” VEON said in a statement.
The bulk of Kyivstar’s revenue in the reporting period came from telecom services, which grew by 47.8% to UAH 10.39 billion. However, revenue from digital services increased 2.4 times to UAH 329 million.
EBITDA increased by 64.2% to UAH 5.95 billion, and EBITDA margin increased by 5 percentage points (pp) to 55.6%. In dollar terms, EBITDA grew by 50.6% to $143 million. EBIT increased by 99% to UAH 4.18 billion, and EBIT margin by 9.8 p.p. to 39.1%.
Kyivstar’s subscriber base decreased by 4.9% to 22 million subscribers in the first quarter of 2025. The 4G subscriber base also decreased by 4.3% to 14.3 million.
“The decrease in the number of 4G users is mainly due to the overall decline in mobile subscribers. This was more than offset by a 21.2% increase in data consumption per user and an increase in the number of roaming subscribers,” VEON said in a statement.
Kyivstar recorded a 21.2% increase in data usage (the amount of gigabytes consumed by users) in January-March, to 11.4 GB. The digital MAU (Monthly Active Users) indicator grew by 32.9% to 10.3 million.
During the same period, the revenue of the Helsi digital platform grew by 41% compared to the same period last year. At the end of the first quarter, the platform had 1.8 million app users, which is 30% more than in the first quarter of last year. The number of medical professionals on the platform also increased by 3% compared to the same period last year. As of the end of March, the number of active doctors on the platform reached 39,000.
Kyivstar TV showed impressive revenue growth of 177%, thanks to a 34.9% increase in subscribers compared to the same period last year. The growth was driven by attractive content offerings, including the exclusive launch of the Setanta Premium sports channel and an updated sports section in the app, VEON said. Ukrainian-language content now accounts for 81% of the platform’s catalog. In addition, the Kyivstar TV app has expanded its reach with the launch on Xbox devices.
Kyivstar’s capital investments in January-March increased by 126% to UAH 2.42 billion and were mainly directed towards strengthening the network’s energy resilience and expanding 4G coverage.
Kyivstar, Ukraine’s largest telecommunications operator, has signed an agreement to increase its stake in Helsi, the country’s largest digital healthcare platform, from 69.99% to 97.99%, in line with its global strategy to develop its digital operator business model.
“The signing of the agreement will not affect Helsi’s operations. The company will retain its current management model under the leadership of co-founders Yevgen Donets and Yevgen Gubich and will continue to work on the development of e-health in Ukraine with its entire team,” Kyivstar said in a press release on Thursday.
Another co-founder of the Helsi project, Samvel Akobyan, will retain a strategic presence on the Supervisory Board, the statement said.
According to the press release, since the initial signing of the agreement between Helsi and Kyivstar in August 2022, shareholders have invested approximately UAH 240 million in the development of Helsi as of the end of March 2025. In 2023-2024, the company’s annual revenue increased by approximately 40% compared to the previous year, and the number of employees grew from 160 to almost 240 between December 2022 and December 2024.
“A new stage of partnership and increased investment in Helsi will allow us to accelerate the development of new business areas in the field of eHealth and strengthen opportunities for synergies,” Kyivstar CEO Alexander Komarov said in a press release.
It is noted that as of early 2025, Helsi had registered about 29 million patients. Between December 2022 and December 2024, the number of app users increased 2.5 times. In March 2025, about 229,000 appointments with doctors were made daily through the service, and the number of app downloads exceeded 10 million. The total number of appointments for 2024 exceeded 9 million. During 2024, more than 1,600 public and private clinics collaborated with Helsi. The number of medical personnel using the system in 2024 exceeded 60,000 employees throughout Ukraine, which is 26% more than in 2022.
According to YouControl, Helsi’s net income in 2024 increased by 36% compared to the previous year, to UAH 207.76 million, while net losses decreased 6.6 times, to UAH 3.56 million.
According to the financial statements published by its parent company VEON, Kyivstar increased its revenue last year by 11% compared to 2023, to UAH 37.27 billion, increasing capital investments by 60.7%, to UAH 10.22 billion.
The largest Ukrainian mobile operators Kyivstar and VF Ukraine (Vodafone Ukraine) have completed the exchange of frequencies in the 2100 MHz spectrum, which made it possible to eliminate the problem of “torn” spectrum, said Olga Ustinova, CEO of the company.
“We have completed the exchange of frequencies,” Ustinova said on the sidelines of the ‘SuperHumans’ forum organized by Forbes.
“Vodafone Ukraine and Kyivstar started the exchange of frequencies in late January, with Dnipropetrovs’k region being the last to be exchanged. As a result, the companies were able to form continuous 2X20 MHz bands in the 2100 MHz band, which allowed them to reduce costs through more efficient use of the resource and speed up data transmission.
“Kyivstar acquired a license for the use of additional radio frequency spectrum in the 2100 MHz band (3G and 4G tech-neutral) at an auction held by the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services (NCCS) on November 19, 2024. The acquired frequency band was not adjacent to the company’s existing one, so the company initiated the exchange process.
At its meeting on January 15, the NCCIR approved the exchange of frequencies in the 2100 MHz spectrum between Kyivstar and Vodafone Ukraine.
Last year, Kyivstar, the largest mobile operator, increased its revenue by 11% compared to 2023 to UAH 37.27 billion, while increasing capital investments by 60.7% to UAH 10.22 billion, according to the reports published by its parent company VEON.
According to the report posted on VEON’s official website on Thursday, Kyivstar’s revenue in the fourth quarter of last year increased by 15.9% compared to the fourth quarter of 2023 to $251 million, and for the whole of 2024 it grew by 12.8% compared to 2023 to $925 million. In hryvnia terms, the operator’s revenues in the fourth quarter increased by 31.5% to UAH 10.413 billion, and by 11% to UAH 37.27 billion for the whole of 2024. Moreover, revenues from telecommunications services and infrastructure increased by 29.6% to UAH 10.12 billion in the fourth quarter and by 9.6% to UAH 36.39 billion in 2024.
Revenue from digital services increased by 170.2% to UAH 286 million in the fourth quarter and by 122.3% to UAH 880 million in 2024.
EBITDA in the fourth quarter increased by 2.5% compared to the fourth quarter of 2023 to $140 million, and in 2024 decreased by 4.2% to $518 million compared to 2023. EBITDA in UAH equivalent in the fourth quarter increased by 36.9% to UAH 5.78 billion, and in 2024 increased by 5.8% to UAH 20.92 billion.
In the fourth quarter, EBITDA margin in UAH equivalent increased by 2.2 percentage points to 55.6%, while in 2024 it decreased by 2.7 percentage points to 56.1%.
Capital investments increased by 65.3% to UAH 4.25 billion in the fourth quarter and by 60.7% to UAH 10.22 billion in 2024.
The number of Kyivstar subscribers in the fourth quarter of last year decreased by 3.8% to 23 million compared to the fourth quarter of 2023. Moreover, the number of 4G users in this period decreased by 2.8% to 14.5 million. The number of multiplay customers (customers who use several communication and entertainment services from one provider – IF-U) increased by 50.2% to 6.1 million.
“The decrease in the number of 4G users caused by an overall decline in the number of mobile subscribers and an increase in the number of roaming users was more than offset by a 19.9% increase in data usage per user,” VEON said in its report.
Digital MAU (Monthly Active Users – the monthly number of active digital users of a particular online platform, application or digital service – IF-U) increased by 29.6% to 10.6 million. In the fourth quarter of last year, ARPU (average revenue per user) increased by 34.5% to UAH 136, while MOU decreased by 1.7% to 298 minutes (in the fourth quarter of 2024). The average amount of mobile Internet used by one user in the period increased by 19.9% to 11.2 GB.
In addition, it is reported that Helsi Ukraine, the largest digital healthcare platform in Ukraine, continued to grow. In the fourth quarter of last year, the number of patients registered on the platform increased by 5% to 28 million. The number of active medical facilities increased by 3% to 1.6 thousand active medical facilities. The number of medical specialists registered on the platform also increased by 5% (to 39 thousand). The number of downloads of the mobile application reached 9.2 million, including 2.4 million appointments with doctors (+8% yoy).
The average monthly audience of Kyivstar TV in 2024 increased by 54.8% compared to 2023 to 2 million, driven by demand for premium content. New features such as content downloads, multi-screen access and personalized recommendations further increased user engagement, VEON’s report says.
The largest mobile operator Kyivstar has announced that it has signed an agreement to buy 97% of the online taxi service Uklon, which it plans to expand to new markets with the help of its parent company VEON.
The deal is worth $155.2 million and is expected to close in April 2025.
After the deal is signed, Kyivstar and Uklon will remain separate businesses. The Uklon team will continue to work under the leadership of the current CEO Sergey Grishkov.
For Kyivstar, the investment in Uklon was a logical step in building an integrated digital ecosystem, as well as an important stage in the inorganic growth and scaling of the business on the way to fulfilling VEON’s investment commitments of $1 billion over 2023-2027, the company said in a statement.
“Our strategy involves not just providing communication, but creating a comprehensive digital environment where electronic communications are the basic platform for innovative services. Uklon is one of the leading players in its field… We have a lot in common, so by joining forces we will be able to strengthen each other and create even more innovative services, investing in the Ukrainian economy together,” said Kyivstar CEO Oleksandr Komarov.
The investment is fully in line with VEON and Kyivstar’s strategy of building a digital operator, added Zoya Dronshkevych, Kyivstar’s Director of Business Development and Corporate Strategy.
“After closing the deal, we will invest in expanding the ecosystem of Uklon services and products, including multifunctional applications for passengers and drivers, in developing synergies between our businesses in Ukraine, in further expansion of Uklon to other countries where VEON operates, as well as new markets where there is potential to create value for customers and shareholders,” she said.
The deal opens new development horizons for Uklon: from increasing strategic investments in digital services and creating additional jobs to entering new markets with the support of global digital operator VEON, the parent company of Kyivstar, the statement said.
“We have always had ambitions to move on, both in Ukraine and in new markets. I am confident that with the support of Kyivstar, Uklon will gain additional capabilities and expertise to further improve our service and products to provide even more value to all our users and partners,” Uklon co-founder Dmytro Dubrovsky said, as quoted by the press service.
The deal is an important signal for Ukrainian and international investors who are ready to join the rebuilding of Ukraine despite the ongoing war, Kyivstar emphasized.
Dragon Capital acted as the exclusive financial advisor to Uklon in the deal.
Commenting on the deal price at Concorde Capital’s request, Oleksandr Parashchiy, head of research at the investment company, said it corresponds to about 20 times EBITDA, based on Uklon’s Ukrainian financial statements.
“It’s not much for this sector, but it’s very generous for Ukraine. The main thing we don’t know for an adequate assessment is what growth rates the company is planning for,” the analyst added.
Another market participant, who asked not to be named, cited Kyivstar’s likely desire to complete the deal before its SPO on NASDAQ and the mobile operator’s significant free cash flow due to currency restrictions imposed by the National Bank as factors that influenced the deal and its price.
Earlier, the Antimonopoly Committee of Ukraine (AMCU) granted Kyivstar permission to acquire online taxi service Uklon: Tech Uklon LLC, Uklon Corporation and Uklon Ukraine. Kyivstar also applied to the AMCU with a second application for the purchase of MTPK LLC, which owns the online service of the price aggregator for medicines Tabletki.ua.
“Kyivstar is the largest mobile operator in Ukraine with about 24 million subscribers. The company’s digital services portfolio includes the digital medical platform Helsi with a registered base of 28 million users and the film and television platform Kyivstar TV. “Kyivstar bought a 69.99% stake in Helsi in August 2022 for UAH 555.74 million.
Kyivstar’s revenue in January-September 2024 increased by 4.7% to UAH 26.86 billion, while in dollars it decreased by 4% to $674 million. For 9 months of 2024, the company reduced EBITDA by 2.6% to UAH 15.13 billion.
Uklon, according to the company, operates in 27 Ukrainian cities and the Bukovel tourist complex and unites more than 100 thousand active partner drivers on the platform, who together fulfill more than 10 million orders per month. In 2023, the company began international expansion by launching an online car ordering service in Uzbekistan.
According to YouControl, Uklon Ukraine LLC ended 2024 with revenues of UAH 1 billion 717.8 billion, which is twice as much as in 2023, and its net profit amounted to UAH 232.3 million against a net loss of UAH 45.4 million in 2023.
The owners of the company are Dmytro and Victoria Dubrovsky – 38.46% each, Vitaliy Dyatlenko and Serhiy Smus – 11.54% each.
On Wednesday, VEON’s share price fluctuated between $45.3-47.0, but overall the change was insignificant – only a 0.09% decrease to $45.94 per share.
