Ukrtelecom, the country’s largest fixed-line operator, increased its revenue by 12.7% year-on-year to UAH 3.6 billion in January-September, while cutting EBITDA by 15% to UAH 850 million.
Ukrtelecom continues to demonstrate a high level of operational efficiency: in 9M2024, the company generated total revenue of approximately UAH 3.6 billion, up from UAH 3.14 billion in January-September a year earlier, according to a statement on the company’s website on Tuesday.
At the same time, revenues from commercial lease of real estate released due to the network modernization increased by almost a third (+35%), up to UAH 325 million, compared to the same period last year.
The company’s EBITDA margin in 9M2024 decreased by 4% to 24%. Net profit was not disclosed. In 9M2023, Ukrtelecom posted a net profit of UAH 242.39 million compared to a net loss of UAH 755.18 million in 2022.
In January-September this year, Ukrtelecom paid UAH 1 billion in taxes and fees, the same as a year earlier. The company has paid UAH 3.8 billion to the budget over the entire period of the full-scale invasion.
Capital investments amounted to UAH 725 million.
“Ukrtelecom continues to replace copper infrastructure, develops optical infrastructure and invests in FTTH/P network using GPON (general purpose over-the-air network) technology.
“This year, we have already laid about 5.5 thousand km of optics throughout Ukraine, including Sumy, Chernihiv, Donetsk, Zaporizhzhia, Kharkiv and Kherson regions. In total, Ukrtelecom’s optical network reaches about 90 thousand km and covers 2.7 million Homepasses,” the company said.
It is noted that the development of the optical infrastructure contributes to the growth of broadband subscribers.
“During the full-scale war, the percentage of optical users in the total Internet subscriber base has increased significantly. At the beginning of 2022, optical subscribers accounted for 34% of the total Internet user base, while now this figure is 68%,” Ukrtelecom said.
The total number of optical Internet users increased to 360 thousand at the end of the third quarter of 2024, and revenue from optical Internet services increased by 17.5% over 9 months. Ukrtelecom’s optical internet has been installed in 1306 medical and 1763 educational institutions.
The company is improving energy efficiency, continuing preparations for the winter period and possible outages, and updating its battery and generator fleet. Since the beginning of 2023, the company has invested over UAH 60 million in the renewal of power equipment, including the purchase of batteries and diesel generators. The company has also created strategic fuel reserves. Ukrtelecom reminded that during the large-scale power outages in July 2024, it consumed up to 13.5 thousand liters of diesel fuel per day at a cost of UAH 600-650 thousand.
Joint Stock Company (JSC) Ukrtelecom is the largest fixed-line operator in Ukraine, providing a full range of telecommunications services in all regions of the country. The company’s national network consists of almost 1.5 million km of communication lines, which ensures its presence in all regions of Ukraine. “Ukrtelecom covers 11,000 settlements (400 cities and 10,900 villages and urban-type settlements). The company’s fixed-line subscriber base includes 3.9 million active telephone lines. Ukrtelecom’s Internet subscriber base includes almost 1.35 million users with a presence in 2,230 settlements (including 1.5 thousand urban-type settlements).
“Ukrtelecom is the sole shareholder and founder of TriMob LLC, which provides UMTS/WCDMA mobile services under the TriMob brand.
In 2013, the company joined SCM’s business.
Citroёn has fulfilled an order to supply 290 vehicles to Ukrtelecom, the country’s largest fixed-line operator, with financing from Avis Ukraine, the automaker’s representative office in Ukraine has announced.
“This is the first experience of supplying Citroёn vehicles to Ukrtelecom. The deal was made through the Citroën Ilta Lviv dealership with financing from Avis Ukraine, which will also provide Ukrtelecom with a full package of operational leasing services: car maintenance at service stations, tire storage, replacement cars for the duration of service and other services,” the representative office said in a press release.
Avis Ukraine has been providing leasing services to Ukrtelecom for three years. As part of the fleet renewal, the operator requested vehicles that meet the company’s current development program.
“Citroёn cars showed the best ratio of consumer properties for a competitive price,” the company said in a statement without specifying the value of the agreement.
As part of the agreement, Ukrtelecom received 235 Citroёn Berlingo minivans and 55 Citroёn C-Elysée sedans.
The press release notes that as part of Ukrtelecom’s requirement to deliver the vehicles directly to the operator’s branches in all regional centers of Ukraine, the vehicles were prepared and delivered by Citroën Ilta Lviv, one of the largest dealers of Stellantis vehicles in Ukraine.
The official representative office of Citroën in Ukraine has been operating since 2010. Currently, the brand is represented by Stellantis.
In 2024, the company plans to increase Citroën sales in Ukraine by more than 1.5 times compared to 2023 – up to 3,057 thousand (including 2,885 thousand passenger cars).
“Avis Ukraine is a division of Avis, an international car rental and leasing provider with offices in 185 countries. In Ukraine, the company provides services under the Avis (since 1997) and Payless (since 2016) brands, ranging from car rental for individuals and legal entities to the formation of car fleets for operational leasing.
According to the company’s website, its fleet includes more than 3.5 thousand vehicles.
Ukrtelecom, Ukraine’s largest fixed-line operator, reported revenue of UAH 5 billion in 2023, down 10% year-on-year, according to its unaudited financial statements.
According to the company’s press release on Monday, its EBITDA last year amounted to more than UAH 1 billion, while its EBITDA margin decreased by 1.3 percentage points (p.p.) to 21.1%.
The report notes that the company’s losses from the consequences of Russian aggression amounted to UAH 2.8 billion and were mainly due to the economic impairment of operating assets and the loss of assets in the temporarily occupied territories in the amount of over UAH 700 million. In particular, the hostilities damaged about 260 of the company’s buildings and destroyed about 50 of them.
Ukrtelecom’s capital investments in 2023 amounted to more than UAH 500 million, while despite the war, the company continued to implement projects to build an optical network and invest in the security of its own infrastructure against cyberattacks, the company said in a statement.
During the reporting period, almost 5.3 thousand kilometers of fiber-optic cable were laid, and by the end of 2023, the company provided more than 2 million households in all regions of the country with the opportunity to use modern optical network services. In general, the company’s optical Internet user base grew by 15% compared to 2022, which ensured an 18% increase in revenues in this segment, the report says.
In 2023, Ukrtelecom invested UAH 20 million to restore 430 km of optical lines and 16 km of copper lines, and restored the functioning of 10 regional communication hubs. Ukrtelecom’s optical infrastructure connected more than 150 medical and 185 educational institutions. In total, more than 1.25 thousand medical and almost 1.7 thousand educational institutions have access to high-speed optical Internet. As of February 24, 2022, 90% of the company’s national coverage was provided with Internet access.
Income from commercial rental of real estate freed up by the network modernization amounted to over UAH 500 million, which is 35% more than in 2022.
It is also noted that in 2023 Ukrtelecom paid more than UAH 1.35 billion in taxes and fees to the budgets of all levels, donating about UAH 210 million in charity to the needs of the defenders. As part of the Rinat Akhmetov’s Steel Front initiative, the company has donated dozens of UAVs, including Valkyrie and Leleka unmanned aerial systems, hundreds of drones, thousands of special command and control equipment, medical supplies and hundreds of vehicles.
Almost 400 Ukrtelecom employees are serving in the Ukrainian Armed Forces, the press release says.
“Ukrtelecom is the largest fixed-line operator in Ukraine. A large part of its customers are government agencies, educational, administrative and medical institutions, and emergency services. The company is a provider of high-speed fixed-line Internet with the widest coverage. Ukrtelecom’s Internet access is available in almost 4,000 settlements across the country and is available in 90% of them. Ukrtelecom is also the sole shareholder and founder of TriMob LLC, a provider of UMTS/WCDMA mobile services.
In 2013, the company joined SCM’s business.
Ukrtelecom’s revenue in the first nine months of 2023 amounted to UAH 3.14 billion, down 6.1% year-on-year. Net profit amounted to UAH 242.39 million compared to a loss of UAH 755.18 million in 9M2022.
“Ukrtelecom, Ukraine’s largest fixed-line operator, laid almost 11,000 km of optical lines in 2022-2023, the company’s press service said on Friday.
“During the full-scale war, Ukrtelecom built almost 11 thousand kilometers of optical lines. During this time, the company has provided hundreds of thousands more households in all regions of the country with the opportunity to use modern services,” the statement said.
Most fiber-optic lines were laid in Odesa, Kyiv, Zhytomyr, Lviv, and Dnipro regions.
The optical infrastructure is being expanded by laying new lines, replacing old copper networks with fiber optics, and restoring the network in the de-occupied territories, the company said.
“Despite the challenging operating environment, Ukrtelecom continues to provide Ukrainians with access to high-speed optical internet. The company, in line with its pre-war strategy, has decided to continue ambitious projects to build optical networks across the country and optical modernization of copper infrastructure,” the company’s press service quoted Ukrtelecom CEO Yuriy Kurmaz as saying.
He emphasized that uninterrupted high-quality Internet is critical as it allows citizens to instantly receive information about the security situation, increases the sustainability of business, and serves as the basis for the sustainability of educational processes and continuous interaction between government agencies.
“In 2024, Ukrtelecom will continue to build a modern optical network by investing in the development of GPON, a non-volatile Internet technology, Kurmaz added.
Ukrtelecom said that in 2023, more than 150 medical and 185 educational institutions connected to the company’s optical infrastructure. The company has access to high-speed optical Internet in 1.25 thousand medical and 1.7 thousand educational institutions.
The settlements where the operator is building fiber-optic networks can access the Internet at speeds of up to 1 Gbps, which in turn allows them to use the full potential of digital services in the public and private sectors, the telecom operator’s press service said.
IP-based services, including interactive TV in HD and 4K quality, video conferencing and Internet telephony, have become available to the public, the company said.
“Ukrtelecom is the largest fixed-line operator in Ukraine. A large part of its customers are government agencies, educational, administrative and medical institutions, and emergency services. The company is a provider of high-speed fixed-line Internet with the widest coverage. Ukrtelecom’s Internet access is available in almost 4,000 settlements across the country and is available in 90% of them. Ukrtelecom is also the sole shareholder and founder of TriMob LLC, a provider of UMTS/WCDMA mobile services.
In 2013, the company joined SCM’s business.
“Ukrtelecom, Ukraine’s largest fixed-line operator, posted a net profit of UAH 242.39 million in January-September 2023, compared to a net loss of UAH 755.18 million in the same period last year, the company said in a report on its website on Monday.
Ukrtelecom’s revenue decreased by 6.1% to UAH 3.14 billion in the first nine months of the year.
Gross profit increased by 26.4% to UAH 791.6 million, and EBITDA amounted to over UAH 1 billion compared to UAH 975 billion in January-September 2022, resulting in an EBITDA margin of 28%.
The company notes that amid the war, Ukrtelecom continues to develop its optical infrastructure, providing Internet access at almost 90% of the number of settlements covered by the operator’s network before the full-scale Russian invasion.
According to a release on Monday, since the beginning of the year, the company has already laid almost 4 thousand kilometers of fiber optic lines, compared to about 5 thousand kilometers in the first nine months of last year. Both new users – business representatives and individuals – are connected to the high-speed optical Internet. It is noted that in the first nine months of this year, 120 medical and 140 educational institutions were also connected to optics.
According to the report, Ukrtelecom paid UAH 1 billion in taxes and duties to the budgets of all levels in January-September 2023 compared to UAH 1.12 billion in January-September 2022, and more than UAH 70 million has already been allocated for the needs of the Ukrainian defenders (UAH 50 million in January-September 2022). Almost 400 Ukrtelecom employees are defending Ukraine in the Armed Forces of Ukraine, compared to about 350 a year ago.
“Ukrtelecom, Ukraine’s largest fixed-line operator, posted an EBITDA profit of more than UAH 700 million in January-June 2023, while its EBITDA margin rose to 27.8%, the company said on Friday.
“Even in the difficult conditions of operating during a full-scale war, Ukrtelecom demonstrates a stable high level of operational efficiency… Based on its results in the first half of the year, Ukrtelecom generated total revenue of more than UAH 2.5 billion,” the telecom operator said in a press release.
A full quarterly report is not yet available, but for the first half of 2022 Ukrtelecom reported an EBITDA margin of 24.3%, which, given the reported total revenue of UAH 2.9 billion, allows the company to estimate EBITDA for that period at UAH 705 million and talk about maintaining this figure in the first half of 2023, despite a decline in total revenue by about 14%.
In the first half of pre-war 2021, the company generated UAH 3.4 billion in total revenue (up 10%), its EBITDA amounted to UAH 1.1 billion (+29%), and its EBITDA margin was 31.3% (+4.5 percentage points).
The press release notes that Ukrtelecom continues to operate, providing access to Internet services at 88% of the number of settlements covered by the operator’s network prior to the full-scale Russian invasion. At the same time, the number of optical Internet subscribers increased by 10% year-on-year to 320,000.
“In the conditions of martial law, the company continues to meet the demand for optical internet connection, accordingly the subscriber base of users connected via optics is increasing,” it said.
In 2023, Ukrtelecom has already built 2.023 thousand km of fiber-optic lines. 80 medical and 82 educational institutions and almost 20 business objects are connected to high-speed optical Internet. In general, as of the beginning of July, more than 1.7 thousand educational and 1.28 thousand medical institutions, as well as 550 territorial communities have fiber optics from Ukrtelecom.
“Despite the difficult economic conditions, Ukrtelecom continues to effectively dispose of the property that is released due to the modernization of technological infrastructure,” the company stressed.
Revenues for the first half of the year from commercial lease of property amounted to UAH 230 million, the statement said.
According to preliminary data, the direct losses of the company from the buildings destroyed in the occupation troops of the Russian Federation, lost equipment, telecom networks and other assets in the temporarily occupied territories amount to about 700 million UAH, and in general, the total devastating consequences of Russian aggression for “Ukrtelecom” are estimated at 2.8 billion UAH, which is mainly due to the economic depreciation of operating assets.
“During the full-scale war, the company lost a number of real estate in temporarily occupied settlements, quite a few buildings are damaged and destroyed by the enemy,” Ukrtelecom pointed out.
The company also reports on reorganization, within the framework of which, in order to increase the efficiency of telecom business, generation of new opportunities for its development, as well as consolidation of responsibility for telecom revenues, a commercial directorate was created, which united the directions of development of corporate and mass segments and inter-operator telecom business.
“The company is implementing new important projects and decisions regarding business improvement and development… The reorganization will unify and increase the efficiency of business processes, introduce new interesting products, as well as methods of sales organization and customer service,” the release said.
It is also said that Ukrtelecom fulfills its obligations to the state, having paid over UAH 750 mln of taxes to budgets of all levels in January-June 2023.
In addition, the company implemented another project on large-scale assistance to the AFU – more than 20 units of the Defense Forces were provided with almost 2.5 thousand special hardware and software. During the full-scale war, the company sent dozens of UAVs, including Valkyrie and Leleka unmanned aerial systems, to the defenders as part of the Steel Front initiative of businessman Rinat Akhmetov. About 65 million hryvnias of financial aid has already been directed to the needs of the defenders, more than 230 cars from the corporate fleet have been handed over.
More than 370 employees of Ukrtelecom are defending the Ukrainian soil in the ranks of the AFU.
