Business news from Ukraine

LARGEST UKRAINIAN MOBILE OPERATOR KYIVSTAR HAS 8% RISE IN EBITDA IN Q2

The mobile communications operator Kyivstar in April-June 2018 saw an 11.4% rise in revenue year-over-year, to UAH 4.521 billion, the Veon international group (VimpelCom Ltd. before rebranding) has said in a quarterly report on Thursday. According to the report, over the period Kyivstar increased earnings before interest, taxes, depreciation and amortization (EBITDA) by 8%, to UAH 2.49 billion, EBITDA margin fell by 1.7 percentage points (p.p.), to 55.1%. Revenue from mobile communications services in Q2 2018 came to UAH 4.2 billion, which is 11.4% more than a year ago.
The press service of Kyivstar reported that data consumption in April-June 2018 grew by 139% year-over-year, to 1.8 gigabytes per user on average. Voice service consumption remained stable: in Q2 2018 on average 580 minutes per user was recorded, which is 1.2% more than a year ago. The number of mobile Internet users over the period grew by 21% year-over-year, to 13.5 million, and the total number of active users totaled 26.5 million, which is 400,000 more than a year ago.
“The growth in the consumption of services, the increase in the number of users, the launch of new communication technologies are just a few qualitative changes that have positively affected our financial performance in the second quarter of 2018,” acting Kyivstar president Oleksandr Komarov said in a report. The minutes of use (MoU) increased by 1.2%, to 580 minutes, and ARPU (average revenue per user per month) of mobile communication increased by 9.6%, to UAH 52.
The revenues of the mobile operator from fixed-line services in the second quarter increased by 7.3% to UAH 297 million, including revenues from fixed-line Internet that increased by 8.5% to UAH 185 million, while the number of users increased by 6.5% %, to 0.858 million. ARPU for fixed-line Internet grew by 4.3%, to UAH 72.
Capital investments, with the exception of payment for licenses, for the reporting period amounted to UAH 927 million, which is 31.5% more than in the same period last year. At the end of the second quarter of 2018, the “3G Kyivstar” service was available in the territory where 74% of Ukrainians live. Kyivstar said that in the first half of the year its revenues increased by 10.8% compared to the same period in 2017, to UAH 8.785 billion, while EBITDA increased by 12%, to UAH 4.902 billion.
At the same time, revenues from mobile services for six months increased by 11.2% to UAH 8.149 billion, and from fixed-line telephony – by 3.6%, to UAH 593 million.
In the second quarter of 2018, Kyivstar transferred almost UAH 4 billion of taxes, fees and payments for licenses to the Ukrainian budget, and for the first half of the year the amount of all payments to the national budget reached UAH 6.8 billion. Kyivstar is the largest Ukrainian mobile communications operator.

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KYIVSTAR LAUNCHES 4G MOBILE COMMUNICATIONS IN KYIV FROM JULY 1, IN ODESA FROM JULY 3, IN LVIV FROM JULY 5

The Kyivstar mobile communications operator from July 1, 2018 launched 4G (LTE) mobile Internet in the 1800 MHz band in Kyiv, and then with intervals of two days it will be launched in Odesa, Lviv and other regions, Kyivstar President Peter Chernyshov told reporters at a meeting in Lviv.
“Starting July 1, we are launching 4G in the 1800 MHz band. These are additional frequencies that will make broad coverage. Our competitors want to announce in a beautiful way that they are launching immediately and everywhere. We have another strategy: we want everything to work well. There are a lot of towers in Kyiv, and we want us to have two days to check how it works, and if everything works well, then on July 3 we start in Odesa and the resorts, and on July 5 – in Lviv and the suburbs,” he said.
Chernyshov also said that in the event that something will not work perfectly – the company plans to postpone the dates of subsequent launches until troubleshooting is finished.
At the same time, the operator’s president said that Kyivstar does not have any problems with the General Staff of the Armed Forces or receiving approved documents.
As reported, lifecell on July 1 will launch 4.5G (LTE Advanced Pro) mobile Internet in the 1800 MHz band in 232 cities and towns in Ukraine.

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MOBILE OPERATOR KYIVSTAR PLANS TO LAUNCH OWN APPLICATION SMART MONEY

The Kyivstar mobile operator plans to launch an application for own Smart Money financial service within one month, Head of the mobile financial services department of the operator Taras Horkun has said. “We originally designed our financial services in a way that we could cover those cities and towns where the bank network is poorly represented. We have the opportunity of creating financial services that can be managed via SMS messages not only from smartphones, but also from button phones,” he told journalists at a meeting in Lviv on June 29.
According to Horkun, now the service is undergoing the latest testing, and if the testing is successful at all stages – within a month the application should appear in the markets.
He said that Smart Money from Kyivstar is not a competitor of the banking system, since the application includes services that the operator launches together with banks, in particular, Ukrgasbank and Pravex-Bank, and there are certain segments that are represented by other banks.
“We are open and we cooperate with different payment systems and various banks. Our electronic money is the money of the Prostir system of the National Bank. We consider ourselves as part of building a national program for establishing Cashless Economy in Ukraine,” Horkun said.

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KYIVSTAR LAUNCHES M-AGRI APPLICATION FOR FARMERS WITH SUPPORT OF AGRICULTURE MINISTRY

The Kyivstar mobile communications operator with support of the Agricultural Policy and Food Ministry of Ukraine has launched m-Agri mobile application for small farms, the company has said in a press release.
“The business application should provide farmers with access to best practices, knowledge base, industry price proposals, news, training resources and online consultations, as well as to bring farmers to new markets to sell their products and provide them with opportunities to grow their business,” the operator said.
Currently, seven basic sections are available in the application: news, market prices, weather, finance, knowledge base, Smart Assistant and messages.
In the future, it is planned to supplement the functionality of the platform with financial services, a trading platform, and other things.
The application is designed for mobile devices on the Android system. It is free of charge for Kyivstar users.
On Google Play the application is a free trial version.

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LEADING MOBILE OPERATOR KYIVSTAR SEES 10% RISE IN REVENUE IN Q1

The mobile communications operator Kyivstar saw a 10.1% rise in total revenue in January-March 2018 year-over-year, to UAH 4.263 billion, according to a financial report of the company’s shareholder – Veon international group (before the rebranding it was VimpelCom Ltd.) posted on its official website. According to the report, during this period, Kyivstar increased earnings before interest, taxes, depreciation and amortization (EBITDA) by 16.4% compared to the same period in 2016, to UAH 2.412 billion. The EBITDA margin increased 3 percentage points (p.p.), to 56.6%.
Revenue from mobile operator services for the first three months of 2018 amounted to UAH 3.968 billion, an 11% increase over the same period in 2017, which is explained by the growth in both the number of mobile Internet users (by 1.6 million) and their mobile data use (average consumption of mobile data traffic per month increased by 121%, to 1.5 GB per subscriber).
At the same time, revenue from mobile Internet for the year increased by almost 59%. Its share was 33% of total revenue from mobile communications. The number of mobile subscribers of Kyivstar in January-March 2018 increased 1.9% to 26.5 million. The minutes of use (MoU) grew by 2.1%, to 586 minutes. The average revenue per user (ARPU) rose by 8.5%, to UAH 49 per month.
Revenue of the mobile operator from fixed-line communications remained unchanged in the first quarter of 2018, being UAH 295 million. The number of fixed-line Internet users slightly grew – by 2.7%, to some 800,000 users, and ARPU from fixed-line Internet grew by 4.3%, to UAH 72.
Capital investment over the period fell by 6.8% (not taking into account the cost of 4G licenses), reaching UAH 687 million.
According to the report, the operator continued to deploy its 3G network in the first quarter, expanding its coverage of the area with the 3G network from 64% in the first quarter of 2017 to 74% in the first quarter of 2018. In April 2018, the company began to provide communication services in the 4G (LTE) standard. In the first quarter of 2018, Kyivstar transferred more than UAH 2.9 billion taxes and duties to the national budget of Ukraine.

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LARGEST UKRAINIAN MOBILE OPERATOR KYIVSTAR: UKRAINIANS SPEAK ON CELL PHONE THREE TIMES MORE THAN EUROPEANS

Subscribers of the largest Ukrainian mobile communications operator Kyivstar speak 589 minutes on average on cell phones, and average voice calls in the European Union (EU) amount to 200 minutes a month, President of Kyivstar Peter Chernyshov wrote on his Facebook page. He said that Ukrainians on average use mobile phone more and pay less.
“According to GSMА Intelligence, in 2017, subscribers in the EU used 200 minutes a month on average. The average revenue per user (ARPU) was UAH 267 ($13.72). Each subscriber of the Kyivstar network used 589 minutes a month on average with ARPU of UAH 49 ($1.8),” Chernyshov said.
He also said that a Frenchman or a Portuguese used near 3 gigabytes of data traffic a month in 2017, and a Ukrainian used 1 gigabyte. The president of Kyivstar believes that after the full launch of 4G communication in Ukraine the situation would change and Ukrainians would use mobile Internet more actively.

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