Kyivstar increases revenue by 11% in 2024, boosting capex by 60.7%
Ukraine's largest mobile operator Kyivstar increased revenue last year by 11% compared to the 2023 figure, to UAH 37.27 billion, increasing capital expenditure (capex) by 60.7%, to UAH 10.22 billion, according to the financial statements released by the parent company VEON.
According to a report posted on VEON's official website on Thursday, Kyivstar's revenue in the fourth quarter of last year grew by 15.9% compared to the fourth quarter of 2023, to $251 million, and for the whole of 2024 it grew by 12.8% compared to 2023, to $925 million. In hryvnia equivalent, the operator's revenue in the fourth quarter grew by 31.5%, to UAH 10.413 billion, and for the whole of 2024, by 11%, to UAH 37.27 billion. Moreover, revenue from telecommunications services and infrastructure grew by 29.6% in the fourth quarter, to UAH 10.12 billion, and by 9.6% in 2024, to UAH 36.39 billion.
Digital services revenue increased by 170.2% in the fourth quarter to UAH 286 million, and by 122.3% in 2024 to UAH 880 million.
EBITDA increased by 2.5% in the fourth quarter compared to the fourth quarter of 2023 to $140 million, and decreased by 4.2% in 2024 compared to 2023 to $518 million. EBITDA in hryvnia equivalent increased by 36.9% in the fourth quarter to 5.78. EBITDA margin in the fourth quarter in hryvnia equivalent increased by 2.2 percentage points to 55.6%, and decreased by 2.7 percentage points to 56.1% in 2024.
Capex in the fourth quarter grew by 65.3% to UAH 4.25 billion, in 2024 by 60.7% to UAH 10.22 billion.
In the fourth quarter of last year, Kyivstar's subscriber base declined by 3.8% year-over-year to 23 million. The number of 4G users also dropped by 2.8%, reaching 14.5 million. However, the number of multiplay customers – users subscribing to multiple telecom and entertainment services from a single provider – surged by 50.2% to 6.1 million.
"The decline in 4G users, driven by an overall decrease in mobile customers and increased roamers, was more than offset by a 19.9% YoY increase in data usage per user, supported by new customer value propositions that enhanced user engagement," VEON said in its financial statements.
Meanwhile, the number of Digital MAU (Monthly Active Users of Kyivstar's digital services) grew by 29.6% to 10.6 million. The company's ARPU (Average Revenue Per User) increased significantly, rising by 34.5% to UAH 136 in Q4, while MOU (Minutes of Use) dropped by 1.7% to 298 minutes. The average mobile internet consumption per user saw a 19.9% increase, reaching 11.2GB during the period.
Additionally, Ukraine's largest digital healthcare platform, Helsi Ukraine, continued its expansion. In Q4 2024, the number of registered patients on the platform increased by 5% to 28 million, while the number of active medical institutions grew by 3% to 1,600. The platform also saw a 5% rise in the number of registered medical professionals, reaching 39,000. Mobile app downloads totaled 9.2 million, with 2.4 million appointments booked through the platform, reflecting an 8% year-over-year increase.
Kyivstar's TV service also experienced significant growth. The average monthly audience for Kyivstar TV in 2024 surged by 54.8% compared to 2023, reaching 2 million users. The rise in demand for premium content, along with new features like content downloads, multi-profile access, and personalized recommendations, further boosted user engagement, according to VEON's financial statements.