Vodafone Ukraine, the country’s second-largest mobile operator, increased its revenue by 13% to UAH 5.76 billion in January-March, compared to the same period last year, while net profit decreased by 12% to UAH 915 million.
According to a post on the operator’s website on Monday, Vodafone Ukraine’s revenue grew by 8% to $151 million in dollar terms, while net profit fell by 15% to $24 million.
OIBDA grew by 12% to UAH 3.18 billion and by 7% in dollar terms to $83 million. OIBDA margin decreased by 0.5% to 55.3%.
In January-April, capital investments decreased by 35% to UAH 815 million, and by 37% to $21 million in dollar terms. The company noted that capital expenditures in this reporting period decreased amid a 26% increase to UAH 5.65 billion in 2023.
Revenues from mobile voice and data services, fixed-line services, and sales of goods/services had a positive impact on the operator’s revenue. Roaming services had a negative impact, the company said.
In the first quarter of 2024, ARPU (average monthly revenue from fixed-line voice services per subscriber) increased by 8% to UAH 112.2 due to increased consumption of data and other services.
Vodafone Ukraine’s subscriber base grew by 2.7% to 15.8 million users. At the same time, in 2023, the operator’s subscriber base grew by 3.2% to 15.9 million compared to 2022.
“Throughout the reporting period, Vodafone Ukraine has seen stable dynamics in its subscriber base and operating performance,” the report says.
As of March 31, 2024, the company’s net debt amounted to UAH 10.068 billion ($257 million). The total nominal redemption amount of 5-year Eurobonds issued in 2020 as of March 31, 2024 is $100.1 million.
Earlier, Vodafone Ukraine CEO Olga Ustinova said that the company would invest UAH 10 billion in the development of mobile and fixed networks, transition to energy-efficient GPON Internet technology, and measures to increase energy independence over the next two years.
In 2023, mobile operator Vodafone Ukraine resumed paying dividends, having not paid them in 2022, according to its annual report posted on the company’s website on Tuesday.
“In 2023, the company declared dividends to shareholders totaling UAH 1.828 billion, or UAH 2.33 per share,” the report says.
It is stated that as of December 31, 2023, all declared dividends have been paid. In particular, Telco Solutions and Investments LLC received a dividend of UAH 1.810 billion on August 9, and PPT Telecom Kyiv received a dividend of UAH 18.28 million on October 26.
As noted, Vodafone Ukraine did not pay dividends to shareholders in 2022.
Earlier it was reported that in 2023, Vodafone Ukraine increased its revenue in hryvnia by 9% to UAH 21.6 billion, while reducing it in dollars by 4% to $591 million. At the same time, net profit increased 4.6 times to UAH 5.07 billion and 4.1 times to $139 million, respectively.
Vodafone will have another code with a “five”. Vodafone is adding +380 75 to the list of mobile network codes available to its subscribers. Vodafone received this permission today by the decision of the National Commission.
The company is starting to implement the new numbering resource in all internal systems and services. By the end of the year, subscribers will be able to choose a number starting with 075.
Vodafone already has four numbering codes at its disposal: 050, 066, 095, 099. The additional numbering resource significantly increases the choice of the desired combination of numbers for new and existing subscribers.
Recently, many people have been forced to change not only their homes but also their lifestyles. Some volunteer, some raise money, some try to speed up the Victory in other ways. Sometimes new initiatives are connected with getting a new or additional phone number. For some people, the number means a lot – it should be easy to remember, should be similar to another number, or simply be associated with something important, such as the date of an event.
Vodafone customers can choose a number among those available at points of sale or by visiting the Choose a Number (https://www.vodafone.ua/gold-number) page on the Vodafone website. The service allows not only to choose but also to reserve the desired number that meets the required criteria:
– Selection by mask: a constructor that allows you to flexibly set the search parameters (for example, specify 5XXXX111 and get numbers with exactly those digits)
– Match by date: all variants of numbers that coincide with the date of an event
– Favorite number: 3-4 identical or non-identical digits standing side by side anywhere in the number, for example, all variants of 123
– Similar number: a pool of numbers that are similar to the one proposed by the user
– Exclude digits: numbers that do not contain specific digits
– Word in the number: allows you to “encode” your favorite word in the number: to do this, you need to write it in Cyrillic or Latin as on the keyboard of an old push-button phone
– All numbers: the system itself offers the most beautiful number plates, you do not need to specify any parameters
The number matching service also allows you to restore your deactivated number. If such a number is not offered on the service page, you need to click the “Restore number” button and follow the instructions to create a request for number restoration. Vodafone supports the initiative of the Ministry of Digital Transformation of Ukraine to reserve mobile numbers of the fallen or missing defenders of Ukraine. Taking into account the different circumstances and situations in which the company’s customers may be: at the front, in the temporarily occupied territory, in other regions of Ukraine or abroad, and in order to protect their interests, taking into account the security and privacy requirements of electronic communications, the company decided not to use all deactivated numbers for 2 years without additional requests from users of such numbers.
Only those numbers that have been deactivated for 2 years or more will be used for sale in stores and on the website.
Vodafone Ukraine is a leading Ukrainian telecommunications company providing 3G and 4G high-speed Internet, fixed-line communications and Internet services. Vodafone’s investments in the period of active construction of high-speed networks in 2015 – Q3 2023 exceeded UAH 40.6 billion. These record investments have enabled the company to ensure technological leadership and develop new technological services, including the Internet of Things (IoT), Smart City technologies and solutions, big data analytics, fintech services, and cloud services. Vodafone services are used by 15.2 million customers in Ukraine. Since December 2019, Vodafone Ukraine has been a part of NEQSOL Holding.
The company has also restored 890 base stations and brought back connectivity to 815 settlements
Vodafone Ukraine has invested UAH 7.4 billion in the country’s telecom infrastructure since the beginning of the full-scale invasion. During this time, the operator has restored more than 890 base stations and brought 815 towns and villages back online. Vodafone has repaired 3,000 km of fiber optic cable for mobile and fixed-line communications and laid more than 225 km of new fiber optic lines.
Despite constant damage to the network and destruction of equipment, Vodafone maintains 90% of the network’s capacity thanks to the tireless work of its telecommunications staff.
The company not only restores but also builds – 5,040 base stations were put on the air during the active phase of the war in the country to expand coverage.
Vodafone is one of the world’s largest telecommunications companies providing a wide range of services, including mobile voice, data, messaging, fixed internet and cable TV. The operator operates in 17 countries and has partnership agreements with operators in 46 countries. As of September 30, 2023, Vodafone provides services to more than 300 million mobile subscribers and 28 million fixed-line Internet users, 21 million TV users, and connects more than 160 million IoT devices and platforms. For more information, please visit: www.vodafone.com.
Vodafone Ukraine is a leading Ukrainian telecommunications company providing 3G and 4G broadband, fixed-line and Internet services. Vodafone’s investments in the period of active construction of broadband networks in 2015 – Q3 2023 exceeded UAH 40.6 billion. These record investments have enabled the company to ensure technological leadership and develop new technological services, including the Internet of Things (IoT), Smart City technologies and solutions, big data analytics, fintech services, and cloud services. Vodafone services are used by 15.2 million customers in Ukraine. Since December 2019, Vodafone Ukraine has been a part of NEQSOL Holding.
Vodafone Ukraine, the second largest mobile operator in Ukraine, has announced that it has acquired a 90.6% stake in the authorized capital of Frinet LLC, which provides fixed-line Internet access services under the O3 brand, for UAH 746 million.
“The corresponding payment of UAH 746 million was made on the day of the Share Purchase Agreement. The transaction has been completed and registered in accordance with the current legislation,” the company said in its interim consolidated financial report published on its website on Tuesday.
The acquisition of Freenet LLC is part of the group’s strategy to develop converged services and tariffs.
The company also announced the payment of UAH 1.8 billion of outstanding debt to Telco Solutions and Investments LLC on August 9.
In addition, the company announced the payment of semi-annual interest to Eurobond holders in August in the amount of $12.4 million (UAH 453.3 million).
The text of the financial report emphasizes that as of June 30, 2023, Vodafone Ukraine was in compliance with all debt covenants. At the same time, the company remains concerned about the moratorium on cross-border currency payments, which may cause difficulties with the repayment of $400 million of Eurobonds in February 2025. In this regard, the company’s management is considering several options in case the moratorium remains in force, including refinancing with financial institutions, negotiations on changing the terms of the bonds with the Eurobond holders, and the introduction of additional measures to manage and control outflows to maximize debt repayment costs.
Earlier, VF Ukraine (Vodafone Ukraine) announced the completion of the acquisition of Frinet LLC, a national broadband Internet access operator providing services in Kyiv, Dnipropetrovs’k, Zhytomyr, Zaporizhzhya, Ivano-Frankivsk, Lviv, Kyiv, Rivne, Khmelnytsky and Chernihiv regions with 163 thousand subscribers.
The company has been operating in the market since 2008 and builds its networks using FTTx and GPON technology with 10 and 40 gigabit fiber optic trunks and modern managed equipment from leading manufacturers, which allows it to provide subscribers with Internet access channels with speeds up to 1 Gbps.
“Vodafone Ukraine provides 3G and 4G high-speed Internet and fixed-line services, mobile communications, and develops the Internet of Things (IoT), technologies and solutions for Smart City, big data analysis, financial and technological services, and cloud services. Since 2019, the company has been part of the NEQSOL Holding group of companies owned by businessman Nasib Hasanov.
NEQSOL Holding operates in the oil and gas, telecommunications, construction, and other high-tech sectors in the UK, USA, Turkey, Azerbaijan, Kazakhstan, UAE, and Bangladesh. The group entered the telecommunications industry in the early 2000s.
PJSC “VF Ukraine” (TM “Vodafone Ukraine”), the second largest mobile operator in Ukraine, in January-June 2023 increased net profit by 3.4 times compared to the same period last year – up to UAH 2.266 billion, the press service of the mobile operator reported.
According to the interim consolidated financial report of the company, its revenue increased by 4.9% to UAH 10.404 billion, and operating profit – by 45.1% to UAH 3.712 billion.
It is indicated that the company’s OIBDA increased by 3% year-on-year to UAH 5.934 bln. OIBDA margin slightly decreased by 1 p.p. to 57%.
The company clarified that the jump in net profit was due to a decrease in foreign exchange losses due to the fixation of the dollar to hryvnia exchange rate by the National Bank since July last year.
In addition, in the first half of 2023, Vodafone Ukraine’s losses from the war decreased by 8.2 times – to UAH 116 million.
Subscriber base in the second quarter of 2023 remained stable – 15.2 million customers. “Decrease by 8% compared to the second quarter of last year due to a decrease in the number of mobile users due to active hostilities, inaccessibility of mobile networks in temporarily occupied territories and in the war zone, mass migration”, – explained in the press release.
It is specified that more than 2 million subscribers of “Vodafone Ukraine” remain abroad and continue to use the services of the company. At the same time, revenue from roaming services decreased by 6.5% – to UAH 446 mln, while the total revenue from mobile services increased by 12.3% – to UAH 8.1 bln.
The company’s ARPU increased in the second quarter to 108.4 UAH per month from 104 UAH in the first quarter due to an increase in mobile Internet penetration and usage volumes.
“Vodafone Ukraine” increased capital investments by 75% – up to UAH 2.231 billion, directing them to the renewal of destroyed infrastructure, operational repairs of the network and preparation for work in conditions of possible power shortages in the winter period.
In particular, 9.5 thousand base stations of the company were equipped with new batteries of a new type, which are less sensitive to voltage fluctuations in the network and frequent power outages, as well as have 2.5-3 times higher charging speed.
To ensure emergency power supply, the company has additionally equipped 1.12 thousand nodal technical objects with backup power supply by means of stationary generator sets and prepared 522 mobile generators, a reserve of diesel fuel and gasoline has been created for their operation. It is indicated that the company’s specialists are testing new solutions at a number of facilities using alternative energy sources, in particular, solar power plants and microturbine generators.
The text of the financial report emphasizes that as of June 30, 2023, Vodafone Ukraine was in compliance with all debt covenants. At the same time, the company remains concerned about the moratorium on cross-border currency settlements, which may cause future difficulties with the redemption in February 2025 Eurobonds for $ 400 million. In this regard, the company’s management is considering several options in case the moratorium continues to operate: in particular, refinancing at the expense of financial institutions, negotiating changes in the terms of bonds with holders of Eurobonds, the introduction of additional measures to manage and control cash outflows to maximize the company’s ability to meet its debt covenants.
“Vodafone Ukraine” provides 3G and 4G high-speed internet and fixed-line services, mobile communications and develops the Internet of Things (IoT), technologies and solutions for Smart City, big data analytics, financial and technological services, cloud services. Since 2019, the company is part of NEQSOL Holding group of companies of businessman Nasib Hasanov.
NEQSOL Holding’s activities cover oil and gas, telecommunications, construction and other high-tech sectors in the UK, USA, Turkey, Azerbaijan, Kazakhstan, UAE, Bangladesh. The Group entered the telecommunications industry in the early 2000s.
