Home Business Kyivstar reports on the third quarter: 26.4 million Subscribers, 3G available to...

Kyivstar reports on the third quarter: 26.4 million Subscribers, 3G available to 73% residents and 108% data traffic growth

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Kyivstar subscribers began to talk more and become more active in using mobile internet. Due to this fact, the company goes on demonstrating excellent results. Kyivstar remains the leader both in terms of market share and NPS (loyalty metric).

26.4 million customers used Kyivstar services in the third quarter of 2017. This is 0.8% more than in July-September 2016. The consumption of voice services and mobile Internet increased as well, i.e. up to 570 minutes and 835 MB per subscriber monthly. As a result, the average revenue per subscriber (ARPU) grew up to 50 hryvnias (by 8.2%, against the same period of past year).

The company’s total income increased by 10.0%, reaching UAH 4.3 billion, and the income from mobile services grew by 10.2% up to UAH 4.0 billion. The growth of mobile data transmission services amounted to 70.4%, against the same quarter of 2016. Kyivstar gained more mobile Internet users (by 11% compared to the same period last year) largely due to its advantageous marketing strategy aimed at developing consumption of new technologies in Ukraine.

The income from fixed-line services increased by 5.1% up to UAH 275 million in the third quarter of 2017. At the same time, the earning from “Home Internet” service grew by 12%, which is mainly due to the growing demand for the offer “Kyivstar All Together”, where subscribers can pay for mobile communications, fixed Internet and digital TV services in one bill with significant discounts. Moreover, the average revenue per subscriber grew by 11.7% up to 69 hryvnias.

In the third quarter of 2017, Kyivstar’s earnings before taxes (EBITDA) increased by 8.2% up to UAH 2.3 billion.

“We keep on investing in the development of new technologies in Ukraine”, as stated by the President of Kyivstar Petr Chernyshov. – Just in the third quarter of 2017 the company invested UAH 645 million in the network development and infrastructure upgrade. We are ready to launch 4G at 1800 frequencies and are eagerly looking forward to technological neutrality”.

Let us remark that Kyivstar network operates on the Single RAN solution (Radio Access Network), which supports communication services of various standards, including 3G and 4G. In the third quarter of 2017, Kyivstar went on extending 3G network, thus the third-generation mobile Internet is available for 73% of residents, while in the third quarter of 2016 the figure was 52%.

Kyivstar is the top 1 taxpayer on the telecom market. In Q3 2017, the total amount of taxes and deductions of the company amounted to UAH 1.4 billion, and in just nine months of 2017 Kyivstar transferred UAH 3.5 billion to the state treasury.

Let us recall that in the third quarter of 2017, five countries, including Ukraine, launched the global personal Internet platform VEON, available for all mobile subscribers. This solution allows customers to call, exchange messages, communicate with friends, share photos and videos, as well as to get exclusive content and unique offers from partners. For Kyivstar subscribers, the application is free of charge: megabytes and funds are not debited. VEON functions also allow Kyivstar subscribers to check their state at account, the balance of minutes and megabytes, as well as to top up their mobile account without any fee.

“Earlier this year, we announced our strategy in order to become the first and the industry’s best communications provider in our target markets, as well as to reach a breakthrough in the personal experience of Internet use by means of the global platform VEON. This product is designed by the international VEON team in London and Amsterdam and is localized. I’m glad that the platform is interesting for both users and business in Ukraine. We have already managed to sign more than 20 successful partnership agreements, which facilitate us to integrate new high-quality services into the platform. And this is just the beginning!”, as resumed by VEON’s CEO Jean-Yves Charlier.

Key performance indicators of “Kyivstar” in the 3d quarter of 2017, against the previous period

Financial and operating performance (million UAH)

 

Q3 2017 Q3 2016 Annual 9 mos 2017 9 mos 2016 Annual
Total income 4,316 3,922 10,0% 12,245 11,079 10,5%
Income from mobile services 4,024 3,652 10,2% 11,325 10,250 10,8%
Income from fixed-line services 275 261 5,1% 847 782 8,3%
EBITDA 2,349 2,170 8,2% 6,727 6,019 11,8%
EBITDA margin 54,4% 55,3% (0,9 pct) 54,9% 54,3% 0,6 pct
Capital costs (exclusive of license fee) 643 860 (25,3%) 2,084 1,836 13,5%
Mobile services
Total operating income 4,042 3,661 10,4% 11,398 10,297 10,7%
Data transmission service included 1,123 659 70,4% 2,901 1,699 70,8%
Subscribers (million) 26,4 26,3 0,8%
Mobile Internet subscribers included 11,8 10,6 10,8
ARPU (UAH) 50 46 8,2%
MOU (minute) 570 544 4,8%
Data traffic (average consumption) 835 400 108,4%
Fixed-line services
Total operating income 275 261 5,1% 847 782 8,3%
Operating income from BBA services 167 150 11,9% 504 448 12,6%
BBA subscribers (million) 0,8 0,8 (0,2%)
BBA ARPU (UAH) 69 62 11,7%