Business news from Ukraine

KYIVSTAR MOBILE OPERATOR NOTES TWO-FOLD RISE IN DEMAND ON CONNECTION OF REMOTE SERVICES

The most popular service connection requests to the Kyivstar mobile communications operator from business during the month of quarantine were solutions allowing companies outside of offices to communicate with employees and clients, ensure staff with tools for joint work and establish the effective exchange of documents.
The company’s press service said on Friday that the number of connections to Microsoft Office 365 and StarTeams services over the specified period has grown more than 20-fold. In addition, the number of connections to the Star.Docs electronic document management service increased almost 2.5-fold. The vast majority of applications came from representatives of medium and small-sized businesses.
Another common request for Kyivstar was the organization of the remote work of sales departments and contact centers. So, according to the operator, the number of connections the Virtual Mobile PBX with the quick transfer of all calls from fixed telephone lines of offices to mobile numbers of employees working from home has more than quadrupled for large companies and more than doubled for medium and small-sized businesses.
The largest number of service connections for remote work was ordered by wholesale and retail companies, logistics, light and manufacturing industries, the agricultural and financial sectors, hotel and construction businesses, state-owned enterprises, healthcare institutions, natural resource providers, and companies providing services for business and the public.

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UKRPOSHTA AND CHINESE LOGISTICS OPERATOR LAUNCH CARGO FLIGHTS TO UKRAINE

Ukrposhta JSC and the Chinese international logistics operator Cainiao Network, part of the Alibaba Group, launch cargo flights to Ukraine.
Such cooperation will reduce the delivery time of orders from AliExpress under quarantine. Air routes started from the cities with the largest Cainiao distribution centers in Europe, the Ukrposhta press service said on Thursday.
According to the company, the partners in organizing flights are Eleron Airlines, AirBaltic and the national postal operator of Latvia. Regular flights (with a carrying capacity of five tonnes) are carried out by AN-26 aircraft to Lviv, where the parcels undergo customs clearance, sorting and will be delivered to recipients in Ukraine. At the first stages, the aircraft will arrive in Lviv twice a week, but the schedule will be revised later depending on the load.
Ukrposhta also reports that the delivery of parcels will be transferred to non-contact mode – all AliExpress orders worth up to $2 will be delivered to the mailbox (in good order). Home delivery options for more expensive items will be carried out either by a courier or a postman.
The Ukrainian postal operator added that in the first quarter of 2020, Ukrposhta delivered over 4 million items from AliExpress, an increase of 26% compared to the same quarter of the previous year. Among the most popular categories of goods that Ukrainians ordered in March were: electronics, accessories, clothing and household goods.

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VEGA TELECOMS OPERATOR SEES NET INCOME RISE BY 3%

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.

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VEGA TELECOMS OPERATOR SEES NET INCOME RISE BY 7%

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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UKRAINE SUSPENDS OPERATOR CERTIFICATE OF EUROPE AIR CARRIER

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 TELECOMS OPERATOR SEES EBITDA RISE BY 43%

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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