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Growing Revenues from Internet Services and Decreasing Ones from Fixed Telephony: Results of the “Ukrtelecom”’s Operation in Q2

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In the second quarter of 2017, the “Ukrtelecom” went on increasing revenues from providing broadband access services. The growth of earnings in the mass segment amounted to almost 3%, and in the business segment it was 20%.

The “Ukrtelecom”’s total income remains sustainable, and in the second quarter of present year it amounted to over UAH 1.63 billion. The receipts from telecom services were UAH 1.43 billion, which is 4% less than last year.

The main negative impact on telecom earnings from fixed telephony resulted in a 17% decrease in inter-operator revenue, due to a 15% decrease in traffic, including the international one.

Following the results of the second quarter of 2017, EBITDA totaled UAH 503 million. The EBITDA margin remained rather high and was 30.7%.

The company closed the second quarter with a profit of near UAH 232 million.

The broadband Internet access revenues keep on growing.

Against the past year they grew by 20% up to almost UAH 74 million in the business segment. The revenues from providing services to private users amounted to UAH 314.5 million, which is 2.7% more than in the second quarter of 2016.

The company goes on expanding coverage and improving quality of services. In Q2, the BBA services appeared in 32 new settlements. In 36 cities and villages, the subscribers using ADSL technology are offered an option of connecting to an optical network (FTTB technology). In general, the Internet by “Ukrtelecom” is enjoyed by residents of almost 2170 settlements of Ukraine.

At the same time, compared to the previous year, the receipts from fixed telephony decreased as follows: by 7% in the mass segment, and by near 3% in the corporate one. In general, they now amount to some UAH 756 million. This is due to a number of reasons, including a decrease in the subscriber base by near 15% over the year. Today, the active base exceeds 5 million telephone lines. The main base reduction reasons are regular copper cable thefts (11,200 cases over six months) and the subscriber churn in view of using mobile telephony.

In the corporate segment, the “Ukrtelecom” implemented a number of projects that generate revenue growth on the data center market thanks to new services. It was started a commercial operation of the “cloud” service, the resources of which are located in the Data Center “Dattum” in Riga (Republic of Latvia, EU).

Against the previous year, the investment in the development of telecom infrastructure has increased. It amounted to UAH 313 million. The network is being modernized in six major cities, where about 200 thousand subscribers already enjoy the services of the upgraded network.

In Q2 2017, the “Ukrtelecom” paid some UAH 460 million of taxes to the treasuries at all levels.