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.
