Business news from Ukraine

lifecell increased its net profit by 2.6 times

In 2023, Ukrainian mobile operator lifecell increased its net profit by 2.6 times compared to 2022, to UAH 2 billion 567.7 million.

According to the report of Turkcell’s parent company on its website on Wednesday, lifecell’s revenue increased by 24.4% last year to UAH 11 billion 712.1 million.

The operator’s EBITDA increased by 25.3% to UAH 6 billion 808.9 million, while the EBITDA margin grew by only 0.3 percentage points to 58.1%.

The operator’s capital expenditures in 2023 increased by 39.9% to UAH 4 billion 207.1 million.

According to the report, lifecell’s active subscriber base reached 11.7 million in the fourth quarter, up from 11.4 million in the third quarter and 10.2 million a year earlier.

As reported, in the first nine months of 2023, lifecell’s revenue increased by 26% to UAH 8 billion 571.8 million, EBITDA by 26.1% to UAH 4 billion 968.9 million, and net profit by 2.9 times to UAH 1 billion 68.6 million. The company also increased its capital investments by 51% to UAH 3 billion 035.7 million.

Lifecell is the third largest mobile operator in Ukraine. Turkcell owns 100% of the shares in Lifecell LLC.

Lifecell’s revenue in 2023 amounted to 75.9% of Turkcell International’s revenue and 8.4% of Turkcell’s total revenue. The Ukrainian operator accounted for 10.6% of consolidated EBITDA and 7.4% of consolidated profit of Turkcell.

On December 29, 2023, Turkcell signed an agreement to transfer 100% of the shares, as well as all rights and debts of Lifecell LLC (TM lifecell), as well as the contact center outsourcing company Global Bilgi LLC and the tower rental service provider Ukrtower LLC to the French investment company NJJ Capital. In the last report, the operations in Ukraine are listed in discontinued operations. However, the deal has been stalled due to the lack of approval from the Antimonopoly Committee of Ukraine and the arrest of some Ukrainian companies in the case against Russian businessman Mikhail Fridman, who is an indirect minority shareholder of Turkcell.

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Ukraine’s Antimonopoly Committee has revealed grounds for banning acquisition of mobile operator lifecell by French NJJ

The Antimonopoly Committee of Ukraine (AMCU) has identified grounds for banning the acquisition of control over lifecell group by French billionaire Xavier Niel’s DVL Telecom, a member of NJJ group.

In particular, the antitrust agency believes that it is necessary to check the relationship of control of lifecell itself and the parent company Turkcell with the person to whom the decision of the national security and defense Council of Ukraine applied personal special economic and other restrictive measures (sanctions).

“When considering applications for the acquisition of control over the group “Lifecell” by the company “DVL Telecom” arose the need to verify the relationship of control of the participants of the concentration, in particular the group “Lifecell” and the group “Turkcell” with the person to whom the personal special economic and other restrictive measures (sanctions) applied by the decision of the National Security and Defense Council of Ukraine,” – said the press service of the AMCU on Monday.

The report states that, having considered the applications on the acquisition of control by DVL Telecom over Lifecell LLC, Global Bilgi LLC and Ukrtauer LLC (lifecell group), the AMCU has identified grounds for banning the said concentrations.

“Given that the concentrations in the form of acquisition by DVL Telecom of control over Lifecell LLC, Ukrtauer LLC and Global Bilgi LLC constitute a single transaction and will take place under a single sale and purchase agreement, a separate authorization for DVL Telecom’s acquisition of control over Global Bilgi LLC cannot be granted by the Committee either,” the AMCU notes.

Considering the above, on March 7, 2024, the Committee again started consideration of the concentration cases in the form of acquisition by DVL Telecom of control over Lifesell, Global Bilgi and Ukrtauer LLC. At the same time began consideration of the case on concerted actions, which are directly related to the implementation of these concentrations, specified in the press service.

Earlier it was reported that at the meeting on March 7 AMCU allowed DVL Telecom to acquire control over Datagroup Holding Limited (“Datagroup-Volya”). In addition, the antimonopoly agency allowed concerted actions between NJJ UPAM (Paris, France), Lorimer II Ventures Limited (Nicosia, Cyprus), DVL Telecom (Paris, France) and a natural person – citizen of Ukraine in the form of implementation of provisions on refraining from competition, provided by Section 19 of the shareholders’ agreement, which will be concluded between these entities for a period of five years.

On December 29, 2023, Turkcell, a Turkish company, signed an agreement to transfer 100% of the shares, as well as all rights and debts of Lifecell LLC (TM lifecell), Ukraine’s third largest mobile operator, including contact center outsourcing company Global Bilgi LLC and tower rental service provider Ukrtauer LLC, to the French investment company NJJ Capital.

The decision to sign the agreement was made by the Board of Directors on December 20, but as early as May 9 it decided not to disclose information about the possible deal. Turkcell specified that the nominal price of Lifesell shares is UAH 12 billion 711.849 million, Global Bilgi – UAH 47.226 million and Ukrtauer – UAH 1 billion 964.04 million.

Authorized representatives of NJJ Capital (Paris, France) and Global Bilgi LLC (Kyiv, Ukraine) applied to the Antimonopoly Committee (AMCU) for authorization of NJJ Capital to indirectly acquire a part in the authorized capital of Global Bilgi, which provides for exceeding 50% of votes in the supreme governing body of the company, as well as parts providing for exceeding 50% of votes in the supreme governing bodies of Lifesell and Ukrtauer on December 29, 2023. The applications were returned to them as they did not meet the requirements set by the committee.

On January 23, 2024, AMCU received a second application to acquire the stake that provides control in Lifsell, Global Bilgi and Ukrtauer LLC from DVL Telecom, a member of the NJJ group.

According to market participants, a problem for the completion of the deal may also be the partial seizure of stakes in the companies being sold on charges against the under-sanctioned Mikhail Fridman, who indirectly controls a minority stake in Turkcell.

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lifecell opened 48 branded stores in 2023

Mobile operator lifecell opened 48 branded stores in 2023, increasing their total number by 11.4%, the lifecell press service said on Tuesday.

“Over the past year, lifecell has been actively expanding its network of sales outlets and opened 48 new stores in 18 regions of Ukraine, including cities where there were no branded stores before,” the company said in a statement.

According to the report, more than 470 stores have been opened in 247 cities and towns, employing about 1,000 people. In particular, residents of Artsyz, Bobrovytsia, Burshtyn, Vilnohirsk, Horodnia, Horodok, Dolynska, Yelanets, Zhovti Vody, Ivankiv, Irshava, Kamianets-Podilskyi, Kamianets-Podilskyi, Kotsiubynske, Lokhvytsia, Pyriatyn, Pochaiv, Staryi Sambir, Chornobai and Yarmolyntsi now have access to lifecell branded stores.

In addition, it is stated that in 2023 lifecell deepened its cooperation with the postal service Meest Express. According to the report, the mobile operator has equipped all stores with Meest delivery points where such services can be provided.

lifecell is a Ukrainian telecommunications operator with an active 3-month subscriber base of 9.1 million at the end of Q3 2023.

lifecell is owned by Turkcell, Turkey’s largest provider of converged telecommunications and technology services, but Turkcell announced at the end of last year an agreement to sell lifecell and other Ukrainian assets to French investment company NJJ Capital. Later it was clarified that the value of the assets in the deal is estimated at about $525 million.

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lifecell increased its net profit by 45.5%

In July-September 2023, Ukrainian mobile operator lifecell increased its net profit by 45.5% year-on-year to UAH 555.4 million.

According to the report of Turkcell’s parent company on its website on Tuesday, lifecell’s revenue in the third quarter of this year increased by 25.7% to UAH 2.98 billion, which is explained by price adjustments.

The operator’s EBITDA increased by 16.3% to UAH 1.65 billion, while the EBITDA margin decreased by 4.5 percentage points to 55.3%.

“lifecell achieved an EBITDA margin of 55.3%. The decline is due to increased costs for roaming, interconnection services and electricity costs,” Turkcell said in a press release.

The operator’s capital expenditures in the third quarter increased by 48.9% to UAH 952.1 million.

According to the report, lifecell’s active subscriber base amounted to 9.1 million in the third quarter, up from 8.6 million in the previous quarter and 8.2 million a year earlier. The total number of customers increased to 11.4 million from 11.1 million in the previous quarter and 10.1 million a year earlier.

At the same time, ARPU (average revenue per user per month) among active users increased by 19.2% year-on-year and by 0.9% quarter-on-quarter to UAH 113.7.

“The penetration of lifecell smartphones amounted to 84.3% at the end of the third quarter. As of the end of June, on average, about 97% of stores in the country were open daily,” the report said.

Turkcell added that lifecell’s current cash reserves are “more than sufficient” to support its operations.

Overall, in the first nine months of the year, lifecell’s revenue increased by 26% year-on-year to UAH 8 billion 571.8 million, EBITDA by 26.1% to UAH 4 billion 968.9 million, and net profit by 2.9 times to UAH 1 billion 68.6 million. The company also increased its capital investments by 51% to UAH 3 billion 035.7 million.

lifecell is the third largest mobile operator in Ukraine. Turkcell owns 100% of the shares in Lifecell LLC.

In the third quarter, lifecell’s revenue accounted for 75.9% of Turkcell International’s revenue and 8.4% of Turkcell’s total revenue. The Ukrainian operator accounted for 10.6% of consolidated EBITDA and 7.4% of consolidated profit of Turkcell.

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lifecell gets UAH 611.5 mln net profit

Ukrainian mobile operator lifecell earned UAH 611.5 million in net profit in April-June 2023, while it ended April-June 2022 with a net loss of UAH 27.4 million.

Parent company Turkcell said in a report on its website on Thursday that lifecell’s revenue rose 36.5 percent to UAH 2 billion 903.1 million in the second quarter.

“Lifecell’s revenue grew by 36.5% year-on-year in local currency, mainly due to ARPU growth, which was supported by price adjustments and increased data consumption,” the company pointed out in a press release.

EBITDA increased by 39.3% to UAH 1 billion 715.1 million, while EBITDA margin increased by 1.2 percentage points to 59.1%. Turkcell attributed this improvement mainly to lower interconnection and electricity costs as a percentage of revenue.

At the same time, the company’s capital expenditures for April-June increased 2.2 times to UAH 1 billion 445.6 million.

According to the report, the base of active lifecell subscribers for this period amounted, as in the previous quarter, to 8.6 million against 8.4 million a year earlier, while the total number of customers increased to 11.1 million from 10.8 million in the previous quarter and 10.2 million a year earlier.

Meanwhile, ARPU (average revenue per user per month) among active users rose 36.1% year over year and 7.7% to 112.7 UAH in the quarter.

“The penetration of lifecell smartphones amounted to 84.6% as of the end of Q2. On average, about 96% of stores were operating daily as of the end of June. On average, about 7.3% of the nearly 9,000 sites were temporarily out of service on a daily basis in Q2,” the report also said.

Turkcell added that lifecell’s current cash reserves are “more than sufficient” to support its operations.

Overall in the first half of the year, lifecell’s revenue grew by 26.1% year-on-year to UAH 5 billion 590.6 million, EBITDA by 31.6% to UAH 3 billion 320.1 million and net profit by 6.2 times to UAH 1 billion 127.2 million. The company also increased capital investments by 52% to UAH 2 billion 83.6 million.

lifecell is the third largest mobile operator in Ukraine. Turkcell is the owner of 100% of lifecell’s shares.

Lifecell’s revenue in the second quarter amounted to 75.3% of Turkcell International’s revenue and 7.6% of the consolidated revenue of Turkcell as a whole.

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“Kyivstar” and lifecell offer new cybersecurity solutions for their customers

Kyivstar and lifecell have launched new security solutions for their customers: “Kyivstar, in cooperation with Fortinet, a network security company specializing in devices, announced new cyber security solutions, while lifecell announced access to the DefensX browser with enhanced cybersecurity and credential protection to protect Internet users from online threats.
According to Kyivstar’s release, Fortinet solutions will be available in different versions: from physical hardware to specialized virtual machines. In particular, they will be available on a subscription basis.
It is also claimed that customized services to counter cyber threats can be offered, taking into account the needs of companies, with support at all stages of implementation and use.
“The peculiarity of the DefensX browser is that all web pages accessed by the user are opened in the cloud, i.e. remotely from the device traffic and the user’s endpoint, which ensures reliable blocking of malicious code fragments and potential threats,” lifecell explained the essence of its offer.
The company added that the browser’s features also include the ability to block ads and phishing warnings.
DefensX was developed by lifecell’s partner Secure Industries, Inc. The product was available as part of a comprehensive corporate solution for the partner’s B2B customers.
As reported, during the year of full-scale war, Kyivstar’s cybersecurity department successfully blocked more than 450 DDoS attacks on the network and more than 13 thousand phishing attacks.
Earlier, in 2021, Kyivstar business customers already have access to the AntiDDoS service to protect against DDoS attacks (a solution based on FortiDDoS from Fortinet).

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