Ukrainian mobile operator lifecell in the fourth quarter of 2022 increased net profit by 71.8% compared to the same period last year – up to 408.8 million UAH, while in general it increased by 59.2% – to 972.3 million UAH.
According to the report of the parent company Turkcell on its website, the revenue of lifecell in the fourth quarter of 2022 increased by 8.3% – to 2.607 billion UAH, and for the whole of 2022 – by 11%, to 9.41 billion UAH.
EBITDA in the fourth quarter increased by 14.1% to UAH 1.505 bln, and for the year as a whole by 14.6%, to UAH 5.45 bln.
At the same time, the capital expenditures of the company in the fourth quarter decreased by 24.4% – to UAH 997.4 million, and for the year as a whole by 16.3%, to UAH 3 billion.
Base of active subscribers of lifecell in the fourth quarter increased from 8.2 million to 8.5 million, but this is less than a year ago, when there were 9.2 million people. At that ARPU (average revenue per user) among active users in 2022 increased by 10% – up to 91.5 UAH. At that if in the first half of the year ARPU was slightly decreasing then in the second half rose quickly enough – from 82.8 UAH to 95.4 UAH in the third quarter and to 104.5 UAH in the fourth quarter thanks to price adjustments and growth in data usage.
Due to the war, as of December 31, 2022, 23% or about 9 thousand of the company’s mobile communication stations in Ukraine were out of operation. The state of the stations in the occupied territories is unknown, the report said. At the same time, 92% of the company’s stores were working and returned to prewar levels in the fourth quarter. It is noted that the company’s operating systems worked steadily, as well as the banking system, including payments.
It is specified that as of December 31, 2022, the amount of write-downs of assets in the Russian-occupied territories recognized in the consolidated financial statements is 214.2 million Turkish liras (about $11.3 million).
As the risks that may affect the company’s activities, the ongoing military operations and changes in the hryvnia’s exchange rate due to the economic situation in the country are noted. The risk of loss of control or expropriation of the company’s assets in Ukraine due to the actions of the Russian Federation is also singled out.
The company plans to focus on ensuring the safety of its employees and providing quality service to Ukrainian consumers.
The activities of the parent company turkcell were seriously affected by the earthquake in Turkey, due to which the company had to adjust its financial results for 2023. The negative impact on income is estimated at about 1.5 billion Turkish liras (about $79 million). It is reported that on the first day of the disaster almost 3.3 thousand base stations in the region stopped working due to power outages and destruction. One mobile tower and 150 base stations were destroyed. 1,200 employees were sent to the affected regions to carry out repair work. 250 mobile communication stations were deployed and 1.4 thousand power generators were installed.
Lifecell is the third largest mobile operator in Ukraine. The company Turkcell (Turkey) is the owner of 100% of shares of Lifecell. The share of Ukraine, where its subsidiaries UkrTower, Global LLC and Paycell LLC also operate, accounts for 8.9% of Turkcell’s total revenue and 14% of its non-current assets.
“Kernel, one of Ukraine’s largest agribusiness groups, earned $208.71 million in net income in the second quarter of fiscal year 2023 (FY, July-September 2022), down just 2.1% from the same period in the previous FY.
According to a financial report on the company’s Web site Friday evening, the agriholding’s revenue for the period fell 34.2 percent to $1 billion 235.28 million.
Gross profit was down 14.9 percent to $294.06 million, operating income was down 2.3 percent to $244.36 million and EBITDA was down 5.1 percent to $277.15 million.
These numbers are significantly better than the first quarter of this fiscal year.
The company attributed the 34% year-on-year decline in revenues to lower exports of grain, sunflower oil and meal.
The report notes that the net change in fair value of biological assets did not have a significant impact on the group’s results in the second quarter, with a profit of $0.3 million versus a profit of $27 million in the same period last year.
According to the document, shipping and handling costs accounted for 23% of cost of sales in October-December 2022, up 120% quarter-on-quarter and 64% quarter-on-quarter, reflecting sharply higher logistics costs in exporting goods from Ukraine. This caused a 15% decrease in gross profit.
“Kernel also recognized a $5 million gain from the reversal of previously recognized asset impairments, primarily related to inventories located in territories previously occupied by Russia, as the company was able to access and use such inventories in its operations.
General and administrative expenses in the second quarter of fiscal 2023 were $59 million, an increase of 33% over the first quarter of fiscal 2023, reflecting higher payroll-related accruals.
Regarding EBITDA, Kernel clarified that in the Oilseeds Processing segment, it increased 10% year-over-year to $66 million, mainly due to the second consecutive quarter of strong profitability for those players who were able to organize the logistics of sunflower oil exports from Ukraine.
“Despite improved profitability year-over-year in the reporting period for all businesses in the Infrastructure & Trading segment, a more than two-fold decline in export volumes led to a 46% year-over-year decline in segment EBITDA to $62 million,” the report said.
According to it, the Agriculture segment recorded a solid EBITDA of $204 million, up 45% from last year. This growth is largely due to the devaluation of the hryvnia, the document said.
Kernel added that its net profit from exchange rate differences in the reporting period amounted to $8 mln.
Kernel’s net debt, according to the report, decreased during the quarter by 30% – to $1.048 billion, and the ratio of net debt to EBITDA decreased from 13.5 to 11, but it is still much higher than a year ago, which was 1.9.
Overall, in the first half of 2023FG Kernel’s net profit decreased by 12.6% to $370.31 million compared to the same period last year, while revenues fell by 41.3% to $1 billion 889.78 million.
Gross profit was down 30.8% to $467.41 million, operating income was down 21.8% to $386.83 million and EBITDA was down 21.9% to $445.52 million.
As reported, Kernel ended FY 2022 with a net loss of $41 million versus $506 million in net income in the previous fiscal year on a 5% decline in revenue to $5.332 billion.
Raiffeisen Bank’s profit for January 2023 was UAH 742 million, up 62% from the same period in 2022 (UAH 457 million), the bank’s press service said Thursday.
According to the report, the bank’s income in January amounted to 1.8 billion UAH, which is 1.6 times more than in January 2022 (1.1 billion UAH).
Including net interest income amounted to 1.4 billion UAH, or 78% of the total income.
It is indicated that the fee and commission income increased by 28% up to UAH 270 billion, indicating the growth of client operations, including remote service channels.
The trade result grew by 30% year-on-year and made up UAH 124 mln.
Besides, in January the bank allocated UAH 380 mln. to provisions for possible credit and operational risks caused by war, that is 4.7 times more than a year before.
The share of NPLs in the loan portfolio of the bank by the end of January was 14.8%, while the loan portfolio decreased slightly to UAH 72 bn.
According to the message, funds of corporate clients in Raiffeisen Bank increased by 6 billion UAH to 61 billion UAH, and funds of individuals – by 1% to 6 billion UAH.
It is noted that half of the 300 operating branches of Raiffeisen Bank are equipped with generators and backup communication channels.
Ukrainian banks’ profits in January 2023 amounted to 14.694 billion UAH, which is 2.1 times more than during the same month in 2022 (7.145 billion UAH), the press service of the National Bank of Ukraine (NBU) said Wednesday.
The regulator noted that banks’ revenues in January increased by 55% to UAH 38.65 billion, and expenses – by 35%, to UAH 23.956 billion.
At the same time, the fee and commission income rose by 4.6% – to UAH 8.3 billion.
At the same time the result of revaluation and from purchase and sale operations was positive and amounted to UAH 5.9 billion, while in the same period last year it was negative and amounted to UAH 42 million.
At the same time, deductions to the reserves rose by 58%, to 2.488 billion UAH, and the commission expenses increased by 31%, to 3.985 billion UAH,
As reported, the Ukrainian banks in 2022, net profit decreased by 3.1 times – to 24.716 billion UAH compared with 77.376 billion UAH in 2021.
Raiffeisen Bank (Kyiv)’s profit in 2022 amounted to UAH 1.5 billion, which is 3 times less than in 2021 (UAH 4.6 billion), the bank’s press service said on Wednesday.
According to the press release, the bank’s operating profit almost doubled to UAH 11.4 billion.
In addition, the bank increased allocations to reserves to cover war-related risks by UAH 9.5 billion.
According to the bank, the share of non-performing assets in its loan portfolio increased to 14%, and the lost income from commission and interest operations, in particular from the abolition of fees and the introduction of “credit customers”, is estimated at UAH 400 million.
It is noted that the financial institution’s liabilities portfolio grew by 35% over the year at the expense of individuals and legal entities, which allowed the bank to increase its share in the liabilities market by 0.8 percentage points to 7.8%.
It is also noted that the bank’s total loan portfolio increased by 1% to UAH 71.39 billion.
At the same time, according to the press service, Raiffeisen Bank focused on lending to critical sectors of the economy, namely the agricultural sector, logistics and retail, pharmaceuticals and fuel supply.
In 2022, the bank issued UAH 10 billion of new loans using its own funds and participation in government programs, declared and transferred UAH 1.9 billion of taxes and fees.
In addition, in 2022, the financial institution increased the volume of cash foreign currency imports into the country by 4 times and helped to return to Ukraine more than UAH 1.2 billion of cash exchanged by Ukrainians abroad for local currencies.
“In 2022, Raif bought $2.5 billion more from its customers than it sold, which is four times more than in 2021. The bank sold most of this currency on the interbank market, thereby reducing the need for the NBU to sell currency from Ukraine’s foreign exchange reserves,” the statement said.
According to the report, in 2022, Raiffeisen Bank invested UAH 370 million in uninterrupted operation, providing 42% of its network, or 120 branches, with generators. The financial institution also increased staff support by UAH 271 million, retaining the salaries of 150 mobilized employees, and allocated UAH 220 million of its own funds for humanitarian aid to war victims.
The net profit of state-owned PrivatBank (Kiev) in 2022 was 30.25 billion UAH, down 13.7% from 2021 (35.05 billion UAH), the bank’s press service said Thursday.
“PrivatBank ended 2022 with a net profit of 30.25 billion UAH amid martial law in Ukraine, prolonged uncertainty and the need to support its own employees customers and small and medium businesses. This is preliminary data on the confirmation of the bank’s annual and financial statements by an external auditor”, – reads the statement.
According to the press-service, since the beginning of the year PrivatBank increased the number of active clients by 150 thousand – up to 19,1 million individuals and legal entities, and the number of active Privat24 clients – by 1,3 million, up to 13,1 million clients.
In addition the volume of payments by cards in POS-terminals of the bank increased by 551 billion UAH or 17%, deposits and funds of population increased by 107.7 billion UAH (or 48%).
Business funds for the year increased by 35.6 billion UAH or 37%, loan portfolio of legal entities (net) – by 58%.
For the year there were given 23,8 billion UAH of loans to small and medium businesses.
Every day 1 thousand branches, 5 thousand ATMs, 10 thousand terminals and 180 thousand commercial terminals work in PrivatBank network.
