Business news from Ukraine

EGYPT TO LAUNCH MOBILE TRAVEL APP

Egypt will launch a mobile application for tourists that will help them plan their holidays more efficiently, Minister of Tourism and Antiquities of Egypt Khaled El-Anany told Interfax-Ukraine.
“Accommodation, transport services, and offers for a wide variety of recreation: museums, activities will be combined on one platform,” the minister said.
According to him, the mobile application meets the trends of post-visual reality, when people prefer to relax in a more secluded way and independently plan their pastime, choosing and paying for services using the platform.
The minister said the mobile application will be launched within three months.

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VODAFONE ESTIMATES INVESTMENTS IN 4G PROJECT AT UAH 4 BLN

The mobile network operator Vodafone Ukraine estimates investments in the 4G project in the 900 MHz (LTE 900) band at UAH 4 billion.
“If we talk about investments in general, according to our estimates, only the LTE 900 technology project will take about UAH 4 billion. This is a lot of money. At the same time, we are increasing the network capacity in large cities. We are investing in transport. And this is only the LTE 900 figures,” CEO of Vodafone Ukraine Olha Ustinova said at a briefing on Tuesday.

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UKRAINIAN MOBILE COMMUNICATIONS OPERATOR KYIVSTAR HAS 13.2% RISE IN REVENUE IN 2018

Net revenue of JSC Kyivstar in 2018 totaled UAH 18.719 billion, which is 13.2% more than in 2017. According to a report of the VEON parent company, revenue of the operator from providing mobile communications services grew by 13.6%, to UAH 17.412 billion, and from the provision of fixed-line communication services – by 6.5%, to UAH 1.206 billion. In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) last year rose by 14.2%, to UAH 10.529 billion, and EBITDA margin – by 0.5 percentage points (p.p.), to 56.2%.
Kyivstar’s capital expenditure in 2018 (not including the cost of licenses) increased 18.4%, to UAH 3.1 billion. The number of mobile operator’s subscribers in the fourth quarter of 2018 decreased 0.5% compared with the fourth quarter of 2017, to 26.4 million, while the number of fixed-line subscribers increased 11%, to 0.9 million.
In the fourth quarter of 2018, the operator’s income increased 16.6%, to UAH 5.009 billion. Of these, UAH 4.671 billion was revenue from mobile services (a rise of 17.2%), and UAH 311 million – income from fixed-line services (a rise of 9.1%). EBITDA over this period increased 12%, to UAH 2.793 billion, EBITDA margin decreased 2.3 p.p., to 55.8%. Capital investment in the fourth quarter of 2018 amounted to UAH 749 million, which is 40.4% more than in the same period of 2017. According to the operator, mainly the funds were sent to the development of the 4G network, improving the quality of services.
In the last quarter of last year, the ARPU (average income per subscriber) grew by 18.2%, to UAH 58, while MoU (minutes per user) decreased 1%, to 584 minutes.
According to the Kyivstar’s press release, in the fourth quarter of 2018 the number of mobile Internet users increased 18.2% compared with the same period in 2017, to 14.8 million, the consumption of data traffic increased by 152.4%, to 2.753 GB per subscriber. “The 2.5-fold increase in the consumption of data traffic, the increase in the number of mobile Internet users influenced the ARPU indicator: in the fourth quarter, this figure increased 18.2%, to UAH 58,” the company said.
In addition, Kyivstar also reminded that in recent years, the need for subscribers to use several SIM cards at the same time has been decreasing in the mobile market of Ukraine. Last year, the operator transferred taxes and other payments totaling UAH 10.5 billion to the national budget, including more than UAH 4 billion for licenses to develop new communication technologies in the country.
Kyivstar is a Ukrainian mobile communications operator. VEON international group (earlier VimpelCom) is the shareholder in Kyivstar. The group’s shares are listed on NASDAQ (New York).

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MOBILE SUBSCRIBERS’ BASE NARROWS BY 0.75% IN 1Q

The number of mobile communications subscribers in Ukraine in January-March 2018 totaled 55.323 million, which was 0.75% down on the previous, fourth quarter of 2017, the State Statistics Service has reported. The number of households buying mobile communications services (private clients) shrank by 0.82% in the first three months of 2018 to 50.977 million people. Private subscribers accounted for 92% of the total number of mobile communications subscribers.
The number of cable TV subscribers in the first quarter of 2018 fell by 4.1%, to 2.242 million people.
The number of Internet access users as of April 1, 2018, was 23.836 million people, which was 0.86% up from the previous quarter. Private users accounted for 89.7%.
In the first quarter of 2018, broadband Internet access was available to 22.9 million subscribers (a 1.3% up on the fourth quarter of 2017).
Fixed Internet access services in the first three months of 2018 were provided to 5.16 million subscribers, wireless Internet services were available to 17.16 million subscribers.
Landline telephone communications services were provided to 5.938 million households in urban areas and to 802,500 households in rural areas.

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