Mobile communications operator lifecell in 2019 saw UAH 1.114 billion of net loss, which was 14.4% less than in 2018 (UAH 1.3 billion), according to financial statements of the company. The operator’s revenue grew by 13.6%, to UAH 5.984 billion.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 17.4%, to UAH 3.243 billion, and EBITDA margin grew by 1.8 percentage points (pp), to 54.2%.
“In 2019, lifecell achieved positive dynamics in all key indicators, such as the subscriber base and revenue, Internet traffic consumption and the number of LTE users. Our company continues leading in the penetration of smartphones in the network – 80% in the fourth quarter of 2019,” Chief Executive Officer of lifecell Ismet Yazici said.
The operator’s capital investments in 2019 decreased 75.6%, to UAH 1.895 billion.
The active subscriber base of the company over the past year expanded by 1.4% to 7.4 million customers, the total number of subscribers in the operator’s network decreased 10.1%, to 8.9 million subscribers. At the same time, the average revenue per user (ARPU) increased 26.2%, to UAH 54, while the ARPU of the active subscriber base grew by 25.3%, to UAH 71.80.
The number of voice minutes per month used by a subscriber in 2019 increased 2.8%, to 149 minutes.
In the fourth quarter of 2019, operator’s revenue grew by 9.9%, to UAH 1.56 billion (versus UAH 1.42 billion in the fourth quarter of 2018). This growth in the company is explained by an increase in profits from the use of mobile Internet thanks to the constantly growing consumption of traffic in the network.
“The share of the company’s revenue generated by digital services and lifecell products in 2019 is 10%. Moreover, compared with 2018, the income from digital services of the company grew by 32%,” lifecell said.
In the fourth quarter of 2019, the operator’s EBITDA decreased 24.4% year-over-year, to UAH 0.819 billion, EBIDTA margin fell by 24.0 pp, to 52.5%.
“Also in the fourth quarter, lifecell began to capitalize on the cost of using radio frequencies in accordance with IFRS16, and the overall impact, including retrospective adjustments for the previous quarters of 2018, was reflected in the fourth quarter of 2018,” the company said in the report.
In 2020, lifecell plans to invest in the deployment of its LTE network.
