Home Business “Kyivstar” in Q2 2017: Twice as Much Traffic, Less Churn, Higher ARPU

“Kyivstar” in Q2 2017: Twice as Much Traffic, Less Churn, Higher ARPU


The number of mobile subscribers in the second quarter of 2017 grew by 2.8%, up to 26.1 million, due to increasing total connections and decreasing churn, and the average revenue per subscriber (ARPU) grew by 8.5%, i.e. up to 48 hryvnias.
The average mobile data consumption per subscriber more than doubled in the second quarter of 2017, against the same period of past year. As a result, the income from mobile Internet services increased by 71.6%, which affected the overall growth of the company’s revenue. So, in 2nd quarter of 2017, the company’s income grew by 10%, against the same period in 2016.
The income from fixed-line services grew by 5.9%, i.e. up to UAH 277 million, due to the fixed BBA service (“Home Internet”), the growth rate of which exceeds the market trend. The number of fixed BBA customers remains stable, accounting for some 0.8 million users. At the same time, the average revenue per fixed BBA subscriber grew by 11.5% in the second quarter of 2017, i.e. up to 69 hryvnias.
In the second quarter of 2017, the EBITDA increased by 13.7% to UAH 2.3 billion, and the EBITDA margin was 56.8%. This is due to revenue growth and reducing inter-operator interconnection costs.
The capital costs amounted to UAH 705 million in the 2nd quarter of 2017. Most of the investment was allocated to the 3G network building and development, as well infrastructure upgrading. So, the radio network “Kyivstar” operates on the basis of the Single RAN (single radio access) solution, which allows supporting communication services of various standards, including 3G and 4G. As of now, 92% of the radio network has been upgraded. In the 2nd quarter of 2017, “Kyivstar” kept on developing its 3G network, increasing population coverage from 48% to 69% (compared to the same period of past year).
“Kyivstar” remains the leader on the telecom market in terms of the amount of taxes paid to the state budget. In particular, in the 2nd quarter of 2017 the total amount of taxes and deductions of the company amounted to UAH 1.1 billion, and just in the first half of 2017, “Kyivstar” transferred UAH 2.1 billion to the state treasury.
“We have something to be proud of, as the number of subscribers is growing, and they are active in using 3G, recommending “Kyivstar” to others. I am very grateful to them and I would like to declare that we would go on developing innovative services, bringing in new products, and making our customers happy with the quality of communication services”, as stated by the President of Kyivstar Petr Chernyshov.
Key performance indicators of “Kyivstar” in the 2nd quarter of 2017, against the previous period