On September 9, 2025, Ukraine’s second-largest mobile operator, Vodafone Ukraine (VFU), acquired a 9.4% stake in fixed-line operator Frinet LLC for $2 million (83 million UAH), bringing its total stake to 100%.
“$2 million was paid to shareholders whose stakes did not provide control. The book value of non-controlling interests in Frinet LLC was 27 million UAH,” according to Vodafone Ukraine’s annual report.
According to the report, in 2025 the group increased revenue by 14% compared to the previous year—to UAH 27.8 billion—and net profit by 18%, to UAH 4.18 billion.
It is noted that revenue from mobile subscribers grew by 16.4%—to UAH 22.09 billion—while revenue from the fixed-line business increased by 15.9%, to UAH 1.09 billion, revenue from interconnection with other mobile operators rose by 1.5% to UAH 2.51 billion, from roaming by 3.1% to UAH 0.78 billion, and from merchandise sales by 0.6% to UAH 923 million.
Last year’s increase in cost of sales to UAH 7.02 billion from UAH 6.01 billion in 2024 was largely due to higher electricity costs and other production expenses—rising to UAH 2.86 billion from UAH 2.4 billion, as well as fees for radio frequency usage—to UAH 1.38 billion from UAH 1.13 billion—and roaming expenses—to UAH 0.41 billion from UAH 0.33 billion, while expenses for traffic transit on other mobile operators’ networks even decreased slightly—to UAH 1.15 billion from UAH 1.16 billion.
In addition, last year Vodafone Ukraine’s expenses for advertising and marketing rose to 0.51 billion UAH from 0.43 billion UAH a year earlier, commissions to dealers – to 0.50 billion UAH from 0.43 billion UAH, for consulting – to 0.69 billion UAH from 0.57 billion UAH, and billing and data processing to UAH 0.46 billion from UAH 0.36 billion.
According to the report, the number of the group’s full-time employees remained unchanged over the year—approximately 4,500 people.
It is noted that the company plans to continue servicing its financial obligations on time, although there is inherent uncertainty related to the moratorium on cross-border payments. “The ability to repay the principal amount of debt (on Eurobonds), which amounts to $281 million with a maturity date in February 2027, depends to a large extent on the continuation of currency control restrictions at that time. It also depends on the Group’s ability to secure refinancing from financial institutions or to negotiate changes to the bond terms with creditors,” the document states.
According to the document, the Group may take additional measures to manage and control cash outflows in order to secure refinancing or reach agreements, and management is currently considering all options on this list depending on the status of foreign exchange controls.
“Based on management’s forecasts, it is expected that the Group will be able to meet the terms of its debt financing agreements regarding financial covenants over the next twelve months from the date of these consolidated financial statements,” the report states.
The company noted that in February it made its regular semi-annual interest payment on Eurobonds in the amount of $13.4 million (578 million UAH).
According to the report, in 2025, “Vodafone Ukraine” declared dividends to shareholders totaling UAH 3.01 billion; as of December 31, 2025, dividends in the amount of UAH 412 million remained unpaid, but in the first quarter, an additional UAH 151 million in dividends were paid.
It is also noted that to manage currency risk and purchase foreign currency, the group acquired dollar- and euro-denominated domestic government bonds with maturities of up to 12 months. At the same time, their total volume at the end of 2025 decreased to the equivalent of 0.97 billion UAH from 1.33 billion UAH a year earlier, and while all securities were denominated in dollars at the end of 2024, by the end of 2025, the equivalent of $0.28 billion had been invested in euro-denominated bonds.
As of the end of 2025, Vodafone Ukraine’s available cash amounted to UAH 8.09 billion, compared to UAH 10.34 billion a year earlier, of which 49.1% was in hryvnia, and nearly all the rest was in dollars.
In addition, as of the end of 2025, the company held a short-term deposit at 0.4% for the equivalent of UAH 0.85 billion in one of the subsidiary banks of a major international banking group, which was classified as a short-term investment, whereas a year earlier, similar deposits at 0.3–0.35% per annum were held in three subsidiary banks of major international banking groups for a total of 2.02 billion UAH.
