In the 4th quarter of 2016, the national telecom operator “Kyivstar” strengthened its financial results, despite the tough macroeconomic environment and weakening of the hryvnia. The company states, it further strengthened its leadership in terms of market share and customer loyalty (NPS).
In October-December 2016, the total revenue of “Kyivstar” increased by 12%, i.e. up to UAH 3.9 billion, against the same period of the previous year. The revenue from mobile services also grew by 12%, i.e. up to UAH 3.6 billion, thanks to new commercial offers and the continuing growth of income from mobile Internet services. Thus, the proceeds from mobile Internet increased by 63% in the accounting quarter, as a result of the ongoing 3G development, mainstreaming of smartphones and online tariffs. The penetration rate of smartphones within the “Kyivstar” network increased from 26% to 34% over the year.
In the 4th quarter of 2016, the customer base of “Kyivstar” increased by 3%, i.e. up to 26.1 million, due to attracting new subscribers and reducing subscriber churn. Over the year, the churn rate decreased by 5% and reached its historic low of 18%, as a result of successful customer experience enhancement campaigns.
The income from fixed-line services grew by 5% and amounted to UAH 270 million, during the accounting period. This result was achieved thanks to increasing proceeds from providing broadband to households (the “Home Internet” service). The number of “Home Internet” clients increased up to 818 thousand, while the average revenue per user (ARPU) increased up to 64 hryvnias per month (+9%). The income from the “Home Internet” service grew by 9%, in the 4th quarter of 2016, exceeding the market trend figures.
“Kyivstar” goes on investing heavily in the 3G network, which, in the 4th quarter of 2016, covered the residential territory of 61% of Ukraine’s population, and thus increased almost twice, against December 2015.
In the 4th quarter of 2016, the capital costs amounted to UAH 836 million.
During 2016, the company transferred to the state budget of Ukraine some UAH 4.3 billion of taxes, including UAH 1.3 billion for the 4th quarter of 2016.
Let us recall that the VimpelCom International Group (the shareholder of “Kyivstar”) announced its rebranding and renaming to VEON. This rebranding will not affect the operation of “Kyivstar”.
