Business news from Ukraine


Vega, a large Ukrainian telecoms operator, in 2019 received UAH 661 million in net income, which is 3% more than in 2018, the company has said.
According to the operator’s press release, EBITDA reached UAH 192.2 million, which is 17% more than last year.
In 2019, the number of users of Vega high-speed optical Internet increased by 1.5 times.
In general, revenues from the provision of telecommunications services to customers using high-speed fiber-optic communications channels in 2019 rose by UAH 53.7 million, to UAH 195.5 million.
The company notes that the number of fixed-line users has slightly decreased, while in the reporting year, telephony brought the provider UAH 151.7 million of income.
“We are following the course of digital transformation and approaching the goal of transferring all subscribers to modern high-speed fiber-optic technologies. In 2019, Vega also upgraded the switches, integrated the new IP-MPLS core of the network and successfully migrated resources and services to the next generation routers, which allowed us to improve the quality of our services and had a positive impact on the financial results of the business,” Vega CEO Murat Chynar said.



Vega, a large Ukrainian telecoms operator, in January-September 2019 received UAH 503 million of net income, which is 7% more than in the same period in 2018.
According to the company’s website, EBITDA for the specified period reached UAH 153.5 million, which is 21% more than last year. At the same time, the company managed to increase ARPU (average revenue per user) by 10%.
The amount of capital investment in January-September 2019 compared to the same period in 2018 rose to UAH 59.3 million. Basically, as Vega notes, funds were invested in upgrading networks and equipment.
“The priority of the company as a national telecoms operator is the continuous improvement of services in all regions of our presence. One of the main tasks in this direction is to transfer all customers who receive services via copper networks to optical ones. We have been working on this since last year and have positive results. Over 40,000 telephony and Internet subscribers have already appreciated the benefits of new technologies,” the press service of the company said citing its CEO Murat Chinar.
Vega transferred UAH 99.8 million in taxes and fees to the budgets of Ukraine.
The national telecoms operator Vega offers solutions in the field of fixed telephony, broadband Internet access and data transfer. It is part of the telecommunications sector of SCM Group belonging to Rinat Akhmetov.
Currently, Vega is present in 22 regions of Ukraine.

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The State Aviation Service of Ukraine suspended the Air Operator’s Certificate No.UK 046 of Europe Air Kyiv Airline from 00:00 UTC (03:00 Kyiv time) on July 27, 2019.
The decision was taken by the permanent Commission on certification of operators, organizations for the maintenance and continuing airworthiness, designers and manufacturers of aircraft, schools for pilot training in Ukraine, flight and technical personnel of the State Aviation Service, as the regulator’s press service reported.
According to the State Register of Aircraft of Ukraine, Europe Air operates five freight IL-76 TD planes, which were produced in 1900-1992 and belong to Infinite Seal Inc.
The company’s airport is based in Kryvyi Rih, however, the flights are mainly served from the airport in Sharjah (United Arab Emirates) to the states of Africa, India, Pakistan, Afghanistan, Sri Lanka, Indonesia, Turkey, Kazakhstan, Bulgaria, Georgia and Lithuania, the company says on its website.
Revenue of Europe Air was UAH 2.2 million, a net profit – UAH 0.26 million in 2017.

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Vega, the largest Ukrainian telecoms operator, in January-September 2018 saw EBITDA rise by 43%, to UAH 127 million, the company’s net income amounted to UAH 469 million, which is 4% more than in the same period of 2017.
At the same time, the company did not provide information on the company’s net profit/loss for the first half of the year.
According to the operator’s press release, the positive dynamics of the company’s revenues is related to the growth in revenues from the provision of services by fiber-optic channels and from IP services. The revenue in the key business sector of the company is also constantly growing.
In the first nine months of this year, Vega invested UAH 60 million in the development of its own networks and modernization against UAH 66.8 million in the nine months of 2017.
The company also noted that the share of IP telephony clients (VoIP) in the B2B base of subscribers of telephony services increased by 21% compared to the same period last year.
At the same time, the average revenue per user (ARPU) for the above mentioned period rose by 18.4% due to the growing share of the business segment in the subscriber base and the increasing popularity of high yield products.
The volume of taxes and fees the company paid to the budgets of various levels in January-September amounted to UAH 104 million, which is 20% more than last year.

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The mobile communications operator lifecell in January-September 2018 saw a rise of 76% in net loss year-over-year, to UH 570.5 million.
According to financial statements of the parent company Turkcell (Turkey) posted on its official website, lifecell’s revenue grew by 6.8%, to UAH 3.852 billion. The increase is linked to growth in profit from consumption of mobile Internet and expansion of data traffic, the company said.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 68.7%, to UAH 1.679 billion. EBITDA margin grew by 16 percentage points, to 43.6%.
Capital investment in January-September soared 3.38-fold, to UAH 3.099 million.
According to the report, revenue in June-September 2018 increased 9.1%, to UAH 1.367 billion.
In Q3 2018, the company’s net loss doubled, to UAH 185.6 million.
EBITDA grew by 64%, to UAH 610 million, and EBITDA margin – by 14.9 p.p., to 44.6%.
“The new IFRS (International Financial Reporting Standards) in the third quarter of 2018 had a positive impact in the amount of UAH 213 million on the company’s EBITDA,” the lifecell press service said.
Capital investments of the company during this period increased 2.46-fold, to UAH 576.8 million.
“lifecell continued to deploy 4.5G network in the third quarter, launching high-speed communication services in the 1800 MHz band on July 1, following the launch in the 2600 MHz band in March. Also, in accordance with the global strategy for developing digital services of Turkcell, the operator lifecell continues expanding the portfolio of digital services for its subscribers,” the Ukrainian subsidiary of Turkcell said.
In the third quarter of 2018, the active three month subscriber base of the lifecell operator decreased by 7.3% on an annual basis, to 7.6 million subscribers, which the company continues to explain by reducing the number of users of several SIM-cards.
Active three month ARPU (average revenue per user per month) in the third quarter of 2018 increased by 17.7% on an annual basis and amounted to UAH 59.3 compared to last year’s figure (UAH 50.4), which is associated with an increase in the consumption of data traffic, which increased by 156% per subscriber on an annual basis. At the same time, the indicator of the 12 month active MoU (minutes per user) grew by 13.7%, to 145.8 minutes.
The company also said that the three month active user base of high-speed Internet based on 3G and 4.5G exceeded 4.2 million subscribers at the end of the third quarter of 2018 and continues to grow. The penetration of smartphones in the operator’s network at the end of the third quarter was 73%.

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