Business news from Ukraine


22 February , 2018  

Net revenue of JSC Kyivstar in 2017 totaled UAH 16.54 billion, which is 10.6% more than in 2016.
According to a report of VEON, the parent company of the operator, Kyivstar’s revenue from provision of mobile communications services grew by 10.7%, to UAH 15.338 billion, and from provision of fixed-line communications services – by 7.6%, to UAH 1.132 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA) in 2017 grew by 18.15, accounting for UAH 9.221 billion, EBITDA margin rose by 3.5 percentage points, to 55.7%.
Capital expenses in 2017 (not including the fee for licenses) fell by 2%, totaling UAH 2.618 billion.
The number of mobile communications subscribers in 2017 grew by 1.7%, to 26.5 million. The number of fixed-line communications subscribers did not change, being 800,000 users.
In Q4 2017, revenue of the operator increased 10.7%, to UAH 4.297 billion, including UAH 3.986 billion from mobile communications (10.7% up) and UAH 285 million from fixed-line communications (5.4% up). EBITDA in Q4 2017 grew by 39.1%, to UAH 2.494 billion, EBITDA margin – by 11.8 percentage points, to 58%. Capital investment amounted to UAH 534 million (36.2% down year-over-year).
In Q4 2017, the average revenue per user (ARPU) grew by 9.1%, to UAH 49, and the minutes of use (MoU) by 4.3%, to 589 minutes.
According to the press release of the parent company, growth of revenue was driven by continued strong growth of mobile data revenue, which increased by 64.5% as a result of growing data usage, and successful marketing activities driven by the continued 3G network roll-out and data-centric tariffs. Kyivstar continued to roll out its 3G network, reaching a population coverage of 74% up from 61% in the same quarter last year.