The mobile network operator Kyivstar in January-March 2021 increased its total revenue by 15% compared to the same period in 2020, to UAH 6.842 billion, according to a financial report of the company’s shareholder, the international Veon group.
According to data published on the official website of Veon, in the first quarter, Kyivstar increased its EBITDA by 15.3% compared to the same period last year, to UAH 4.658 billion. EBITDA margin grew by 0.2 percentage points (pp), to 68.1%.
Total operating revenue from mobile services rose by 14.9%, to UAH 6.357 billion.
According to the operator’s own report, Kyivstar accelerated the construction of high-speed data transmission networks, which resulted in a 24.3% increase in the number of 4G subscribers.
In turn, the use of mobile Internet per subscriber grew by 27.5%.
“We expect Kyivstar to continue to deliver double-digit revenue growth in the remainder of 2021,” Veon said in the financial report.
Veon said that Kyivstar’s 4G coverage in Ukraine reached 87%, (an increase of 10 pp year-over-year), and the penetration of 4G mobile communications in the operator’s network reached 38% of the total base.
The average revenue per user (ARPU) of mobile communications increased to UAH 82, or by 16.1%, the minutes of use (MoU) – by 5.1%, to 633 minutes.
The number of Kyivstar mobile customers in January-March decreased 1.15%, to 25.7 million.
“Kyivstar’s total mobile customer base showed a year-over-year decline largely due to the decline of second SIM cards in the market and lower gross additions during lockdown when the strict measures in 2Q20 resulted in the partial closure of Kyivstar stores and lower customer mobility,” Veon said.
Total operating revenue from fixed-line communication grew by 17.2%, to 451 million, broadband ARPU rose by 5.4%, to UAH 85. The number of broadband customers increased 11.5%, to 1.15 million.
Capex excluding licenses and leases (operational capex) increased by 11.7% year-over-year.
Revenue in the B2B segment grew by 6% in the first quarter of 2021, reflecting Kyivstar’s promotion of new digital solutions for its business customers and rapid growth in Big Data.
Veon said that digital adoption and usage have accelerated in the last twelve months. In Q1 2021, the number of MyKyivstar self-care users was at 2.7 million, up 76% year-over-year, while the Kyivstar TV service users increased to 414,342.
Kyivstar paid UAH 2.3 billion of taxes and duties to the national budget.
Kyivstar is a market-leading telecoms operator in Ukraine. It provides communication and data services based on a wide range of mobile and fixed-line technologies, including 3G.
The shareholder of Kyivstar is the international group VEON (earlier – VimpelCom Ltd.). The group’s shares are listed on the NASDAQ stock exchange (New York).