Revenue of Ukraine’s largest mobile operator Kyivstar in April-June this year increased by 9.5% compared to April-June 2023 to UAH 9.425 billion, and in dollars by 0.4% to $236 million, the company’s parent company VEON said in a report on Thursday.
“EBITDA increased by 9.8% yoy in local currency (+0.8% yoy in dollars) despite continued pressure from operating expenses in the second quarter of 2024, including electricity and fuel costs, as well as continued charitable donations in addition to employee support programs,” VEON said.
It is specified that EBITDA amounted to UAH 5.585 billion or $140 million. Compared to the first quarter of this year, when Kyivstar’s financial performance was significantly affected by the customer compensation program following a large-scale cyberattack in December 2023, revenue in hryvnia increased by 31.5% and EBITDA by 54%, while in dollars, the growth of these indicators was 26.1% and 47.9%, respectively.
According to the report, operating profit (EBIT) in April-June this year amounted to UAH 4.16 billion, which is 10.5% better than in April-June 2023 and almost twice as much as in January-March 2024.
In the second quarter, Kyivstar’s total operating income from mobile services increased by 8.7% to UAH 8.77 billion, including 10.8% from data transmission to UAH 5.18 billion, while income from fixed-line services increased by 16.4% to UAH 0.56 billion.
It is noted that the increase in profitability was achieved mainly due to the growth of mobile data revenues, supported by the careful implementation of cost control measures.
Kyivstar’s 4G customer base grew by 7.9% year-on-year to 14.1 million, and data usage per user increased by 11.1% to 11.3 GB per month, while voice traffic decreased by 4.5% to 540 minutes.
In general, the number of Kyivstar mobile subscribers in the second quarter of 2024 decreased by 2.9% compared to the same period in 2023 to 23.4 million, while ARPU (average monthly revenue from fixed-line voice services per subscriber) increased by 11.5% to UAH 122.9.
“Kyivstar explains the decline in its total mobile subscriber base by the number of Ukrainians living outside Ukraine.
“During 2024, Kyivstar recovered from the cyberattack in December 2023, with the subscriber base returning to pre-attack levels thanks to the successful implementation of a special customer retention program,” the report says.
It is also noted that the operator maintained access to key services, including digital healthcare, information and entertainment services, resulting in the number of Kyivstar’s multi-user subscribers increasing by 53.0% year-on-year, and revenues from multi-user services growing by 58.9%.
In particular, it is noted that Helsi, the country’s largest digital healthcare platform, continues to develop digital medicine in Ukraine: about 28 million registered patients (+11.1% compared to last year) have access to 1.6 thousand existing medical facilities and more than 38 thousand specialists active on the platform (+12.5% compared to last year).
It is specified that the number of downloads of the Helsi mobile application reached 8.2 million at the end of the quarter, which allowed customers to book 2.3 million appointments through the platform during the reporting period (+27.7% compared to the same period last year).
According to the report, Kyivstar TV streaming service ended the quarter with a 51.7% increase in monthly active users (MAUs) compared to the same period last year.
Kyivstar emphasized that thanks to the company’s efforts, almost 100% of its telecom network in the government-controlled area is operating normally, providing subscribers with communication and data services around the clock.
In Q2 2024, VEON generated revenues of $1.03 billion, up 12.1% year-on-year, with service revenue accounting for $987 million, up 11.3% year-on-year.
The telecom holding’s EBITDA increased by 10.6% year-on-year to $0.46 billion.
VEON’s revenue in national currencies increased by 15.1% and EBITDA by 13.9%. In addition to Ukraine, six other VEON subsidiaries showed revenue growth in Pakistan, Kazakhstan and Uzbekistan.
VEON’s subscriber base increased by 1% to 157.4 million in the second quarter. The number of 4G users reached 98.4 million (up 11.2%). The share of 4G users in the total subscriber base increased by 5.7 percentage points to 62.5%.
The group’s CAPEX increased by 5.8% to $181.4 million. The balance of cash and cash equivalents amounted to $722 million compared to $632 million as of March 2024. At the same time, the amount of funds decreased by 70% year-on-year.
VEON’s net debt increased by 17.6% to $3.2 billion in the second quarter.
VEON has maintained its forecast for the whole of 2024 for revenue growth in local currencies by 16-18% and EBITDA growth in local currencies by 18-20%.
Mobile numbers with the destination network code “77”, which have been authorized by Kyivstar, the largest mobile operator, will go on sale in late June or July, the company’s president Oleksandr Komarov said.
“I think they will definitely appear in late June or July,” he said in an exclusive interview with Interfax-Ukraine.
According to him, when applying for a new destination network, the company was far from the critical phase in the NCCC. “Kyivstar operates five network codes: “67”, “68”, “96”, “97” і “98”.
“I remember the figure well when we migrated to the new billing system – we were transferring up to 40 million numbers (as of December 2023, Kyivstar served about 24 million mobile subscribers – IF-U). Why is this figure so high? It is because we have not disconnected the numbers that have gone silent for some time,” Komarov said.
The Kyivstar president also spoke about the all-Ukrainian initiative not to disconnect people who stayed in the occupied territories. It is planned to be implemented at the level of a regulatory decision.
“The National Commission is currently discussing a draft decision with us, the electronic communications market operators. Most likely, this decision will set a certain timeframe, for example, 3-4 years. “Kyivstar has been following this rule since the beginning of the full-scale invasion on its own initiative,” Komarov said.
Kyivstar, the largest electronic communications operator, together with Trimble, an American manufacturer of navigation systems and a leader in the agricultural industry in the areas of autonomy and smart farming using a mixed fleet of PTx Trimble machines, have created a profitable offer for Ukrainian farmers.
Starting from May and until the end of the year, when connecting an annual RTK signal package from Kyivstar, users will be able to unlock the Trimble GFX display-based autonomous driving system on agricultural machinery to the RTK level for free and receive activation of the Trimble xFill Premium service for RTK signal backup.
“There have been no similar offers on the Ukrainian market before. We understand that farmers, like other businesses, are going through difficult times. That is why we offer such special conditions that will allow them to save money and do their work even more efficiently to jointly support the Ukrainian economy,” said Ilya Poltakov, Kyivstar’s Director of New Business Development.
In agriculture, the RTK correction service is used to accurately orient and navigate machinery and helps to obtain real-time coordinates for it with an accuracy of 2.5 cm. The technology increases productivity, reduces production costs, makes it easier for drivers to work in the field, and allows for higher yields.
The offer is valid until the end of 2024, the promotional conditions are valid for one year from the date of connection. To take advantage of the special conditions, you need to contact a Trimble dealer or leave an application on the Kyivstar website.
About Kyivstar
Kyivstar is the largest Ukrainian telecommunications operator by subscribers, serving about 24 million mobile subscribers and more than 1.1 million Home Internet subscribers as of December 2023. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, RTK services for cybersecurity, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 600 million in this area over the next three years. The company is helping the country overcome the challenges of wartime and has allocated over UAH 1.8 billion over the past two years to support the Armed Forces, subscribers, local communities, and charitable initiatives. The sole shareholder of Kyivstar is the international VEON Group headquartered in the Netherlands. The Group’s shares are listed on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for more than 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company. For more information: pr@kyivstar.net , www.kyivstar.ua
Kyivstar’s Home Internet has the largest gigabit network among Ukrainian Internet providers. The company has invested more than UAH 44 million in Gigabit development during the full-scale invasion alone.
At the beginning of 2024, the number of Kyivstar fixed-line subscribers reached 1.15 million, and more than 70% of them have access to gigabit tariff plans.
Thanks to the rapid modernization of gigabit equipment, Kyivstar Home Internet subscribers can increase the speed from the standard 100 Mbit/s to 1 Gbit/s. In particular, this became possible in big cities: Kyiv, Dnipro, Lviv, Rivne, Khmelnytsky, Lutsk, Ternopil, and cities of regional significance: Bila Tserkva, Kamianets-Podilskyi, Netishyn, Drohobych, Mukachevo, Novovolynsk, Boryspil, etc.
“With the number of gadgets and users in Ukrainian homes constantly growing, increasing the standard speed from 100 Mbps to 1 Gbps is a hygienic improvement in the convenience of Internet access. That is why our focus in 2021 is to modernize our equipment in different cities of Ukraine for the qualitative development of Gigabit,” commented Sergiy Sukhoruk, Head of Fixed Line Communications at Kyivstar.
Subscribers can choose a tariff plan, and instead of the standard 100 Mbit/s speed, they can receive Internet at up to 1 Gbit/s. This allows users to download large files faster, connect more devices without sacrificing speed and watch videos on large screens in the best quality.
Before upgrading to a gigabit plan, users should make sure that their router is capable of supporting it. If it does not, they should replace it.
Gigabit speed from Kyivstar is available in most tariff plans of the Home Internet service. To test it, current subscribers can change their tariff to one that allows them to use speeds up to 1 Gbps, try it for 50 UAH/month or connect the appropriate Superfast. New Kyivstar fixed-line subscribers can use the Try Gigabit service and test gigabit speeds for free for the first 3 months.
For more information about Kyivstar’s gigabit speed, please follow the link.
In addition, Kyivstar continues to connect shelters across the country to the Internet free of charge. During the full-scale invasion, 1490 shelters were connected, and the company invested over UAH 700 thousand in this initiative. The company has also provided free Internet connection to 1550 modular houses for IDPs and will continue to do so upon request to wifi@kyivstar.net.
About Kyivstar:
Kyivstar is Ukraine’s largest electronic communications operator, serving about 24 million mobile subscribers and more than 1.1 million Home Internet subscribers as of December 2023. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 600 million in this area over the next three years. The company helps Ukraine overcome the challenges of wartime and has allocated over UAH 1.8 billion over the past two years to support the Armed Forces, subscribers, and social projects. Kyivstar’s shareholder is the international VEON Group. The Group’s shares are listed on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for 26 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company. For more information: pr@kyivstar.net, www.kyivstar.ua
Olesya Olenytska has been appointed Director of Corporate Communications at Kyivstar, a Ukrainian telecommunications operator. She will be responsible for the entire range of internal and external corporate communications, media relations, and corporate social responsibility.
“Kyivstar is not only a successful and responsible business, but also a part of the critical infrastructure that provides vital communications to millions of Ukrainians at the front and in the rear, implements large-scale projects to support the Armed Forces, is a major taxpayer and a significant investor in the Ukrainian economy. The speed, resilience, and energy independence of telecommunications networks, along with data protection, are the main challenges for the industry during the war. At the same time, communications in a period of permanent crisis are of utmost importance. It is not just about information and technology. It is about people. After all, people are the backbone of every business. Therefore, one of the main tasks of our team will be not only to ensure effective reputation management, but also to unite people around common values, inspire new achievements, provide emotional support, and engage in community projects to help society and Ukraine,” Olesya Olenytska comments.
Olesya has extensive experience in retail, tobacco, public sector and journalism. She started her career in the media, worked in the press service of the Presidential Administration of Ukraine and as a press secretary of a parliamentary group in the Verkhovna Rada. She holds the rank of civil servant.
For about ten years, Olesya Olenytska worked at Philip Morris Ukraine, where she rose from a specialist to head of communications and charity. In 2014, Olesia became the Head of Corporate Communications and Social Responsibility at METRO Ukraine, a German retailer, where she became the Director of Government Relations and Public Affairs in 2016.
Olesia graduated from Taras Shevchenko National University of Kyiv with a Master’s degree in Journalism with honors. She studied in graduate school and taught journalism at her alma mater. She also graduated from the Law Faculty of the National Academy of Management of Ukraine and the Lee Kuan Yew School of Public Policy at the National University of Singapore.
About Kyivstar:
Kyivstar is Ukraine’s largest electronic communications operator, which as of December 2023 served about 24 million mobile subscribers and more than 1.1 million Home Internet subscribers. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 600 million in this area over the next three years. The company is helping the country overcome the challenges of wartime and has allocated over UAH 1.8 billion over the past two years to support the Armed Forces, subscribers, local communities, and charitable initiatives. The sole shareholder of Kyivstar is the international VEON Group, headquartered in the Netherlands. The Group’s shares are listed on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for over 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company.
For more information: pr@kyivstar.net, www.kyivstar.ua
Kyivstar, the largest electronic communications operator, and SHERIFF, a holding of security companies, including SHERIFF Demining, which is a certified mine action operator, have signed a memorandum of cooperation.
Ukraine is currently the most mined country in the world. According to the State Emergency Service, about 175 thousand square kilometers of territory are contaminated with mines and unexploded ordnance. That is why Kyivstar and SHERIFF Demining are starting to work on a technology for humanitarian demining operators.
The companies will jointly test RTK signal correction services, which will ensure high accuracy of mapping contaminated areas and marking explosive objects.
“Helping to rebuild the country is an important mission not only for Kyivstar, but also for the entire Ukrainian business. To speed up the process of demining and rebuilding the country, we are ready to share our experience in implementing the latest technologies that will save lives of Ukrainians,” comments Ilya Poltakov, Kyivstar’s Director of New Business Development. “In particular, for safe demining it is important to ensure the identification of the exact coordinates of mines and the boundaries of contaminated areas. This requires high-quality GNSS equipment with RTK technology support.”
Kyivstar will provide its partners with access to RTK technology and provide recommendations on the selection and use of GNSS receivers. The company’s specialists will also conduct analytical research to test positioning and location technologies.
“We expect that cooperation with Kyivstar will help us to significantly improve the accuracy of explosive ordnance detection and subsequent demining. This will allow us to clean up contaminated areas faster and safer and return them to peaceful life,” commented Yevhen Antypenko, SHERIFF Director.
About Kyivstar
Kyivstar is the largest Ukrainian electronic communications operator, which as of December 2023 served about 24 million mobile subscribers and more than 1.1 million Home Internet subscribers. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, RTK cybersecurity services, digital TV, etc. Kyivstar is developing new telecom technologies in Ukraine and plans to invest USD 600 million in this area over the next three years. The company is helping the country overcome the challenges of wartime and has allocated over UAH 1.8 billion over the past two years to support the Armed Forces, subscribers, local communities, and charitable initiatives. The sole shareholder of Kyivstar is the international VEON Group headquartered in the Netherlands. The Group’s shares are listed on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for more than 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company.
For more information: pr@kyivstar.net, www.kyivstar.ua
About SHERIFF
SHERIFF Security Holding is a national security operator that has been operating in Ukraine since 2003 and is a leader in the security services market. The company offers the maximum portfolio of services in its field: demining (certified mine action operator), a license to provide collection services and a NBU permit for a cash processing and transfer center, physical security, fire alarm maintenance and monitoring, fire extinguisher recharging, installation of video surveillance systems (including analytical systems) and access control, monitoring and response to burglar alarms, as well as Transfer customer support services, cargo escort, armored taxi, and other services. More than 40,000 clients have entrusted their security to SHERIFF.
For more information: pr@sheriff.com.ua, www.sheriff.com.ua
