The mobile operator lifecell reported on its operation results in the third quarter of this year, i.e. the revenue goes on growing, despite the subscriber base decline.
November 3, 2016. The mobile operator lifecell made public its financial and operating results for the third quarter of 2016. The revenue of the operator with the largest geographical 3G+ coverage grew by 4.7% over the year.
Financial results
In the third quarter of this year, the operating revenue of lifecell increased by 4.7% over the year and amounted to UAH 1 239.0 million (against UAH 1 182.9 million in the third quarter of 2015), and this is due to almost double proceeds from mobile 3G+ Internet services and the sales growth of POS terminal business started in June 2016.
The EBITDA indicator over the year decreased by 19.2% in the third quarter of 2016, up to UAH 333.4 million (against UAH 412.5 million in the third quarter of 2015) due to the growth of investment in the deployment of 3G+ network, as well as marketing and operating leasing costs. At the same time, there observed an EBITDA margin decrease by 8.0 points up to 26.9% in the third quarter of 2016 (against 34.9% in the third quarter of 2015).
Lifecell’s capital investment went up by 22.8% over the year, up to UAH 389.4 million, against UAH 317.0 million in the third quarter of 2015. The operator reduced its net loss in the third quarter of 2016 by 73.6% up to UAH 120.0 million, against UAH 455.2 million in the third quarter of 2015.
Subscriber base and ARPU
At Q3-end, the lifecell’s three-month active subscriber base dropped by 10.2% on a year-on-year basis, up to 9.7 million subscribers (against 10.8 million in the third quarter of 2015), what may be due to the decreasing number of users of several SIM-cards and the subscriber base reduction in the eastern areas of the country.
The three-month active ARPU in the third quarter grew by 16.3% on a year-on-year basis and amounted to UAH 42.7, against the last year’s figure of UAH 36.7, due to an increased use of mobile Internet and new service packages. At the same time, the figure of 12-month active MoU fell by 3.4% over the year, up to 140.5 minutes (against 145.4 minutes in the third quarter of 2015), due to changes in consumer behavior.
Third-generation connection 3G+
Lifecell also informed about expanding 3G+ coverage. The operator stays the leader in deploying 3G+ network in Ukraine.
As of the late September this year, the network was available in 4 150 cities and communities of Ukraine. At that, in 2 112 cities and communities lifecell is the only operator providing third-generation connection using 3G+ technology.
At Q3-end, the company increased its geographic 3G+ coverage by 40% over the area with 23.3 million residents. That is to say, the operator opened access to its high-speed 3G+ network in 4 150 cities and communities. And the number of cities and communities with 3G connection provided only by lifecell accounted for 2 112.
Even since introducing third-generation technology, the number of mobile 3G+ Internet users of lifecell increased up to 3.15 million subscribers (as of late September 2016), which is 89% more than a year ago.
