Kyivstar sees 11% rise in revenue in 2016, EBITDA 23% up
Net revenue of joint-stock company Kyivstar in 2016 was UAH 14.96 billion, and this was 11% more than in 2015.
According to a report of parent company Vimpelcom Ltd., the operator's revenue from provision of mobile communications services grew by 11%, to UAH 13.851 billion and from provision of fixed communications services – by 8.8%, to UAH 1.051 billion.
Earnings before taxes, depreciation and amortization (EBITDA) grew by 23.4% in 2016, to UAH 7.811 billion and EBITDA margin rose by 5.2 percentage points, to 52.2%.
Capital expenses (not including the fee for licenses) fell by 25.1%, to UAH 2.672 billion.
The number of mobile communications subscribers in 2016 grew by 2.6%, to 26.1 million. The number of fixed communications subscribers did not change, being 800,000.
In Q1 2016 revenue grew by 11.8%, to UAH 3.881 billion, including a rise of 12.3% from mobile communications, to UAH 3.601 billion and a rise of 5.2% from fixed communications, to UAH 270 million. EBITDA in Q4 2016 grew by 5.1%, to UAH 1.793 billion, and the margin fell by 2.9 percentage points, to 46.2%. Capital investment totaled UAH 838 million (3.8% down year-over-year).
Last quarter average revenue per user (ARPU) grew by 9.4%, to UAH 45, and minutes of use (MoU) increased by 1%, to 565 minutes.
According to the press release of the operator, revenue from mobile communications in Q4 2016 was driven by the continued 3G roll-out, active promotions of smartphones and data-oriented tariff plans (revenue grew by 63% in Q4 2016). Smartphone penetration grew from 26% to 34% in a year.
The customer base grew thanks to growth of new connections and the reduction of outflow of subscribers by 5%.
Revenue from fixed communications was up thanks to growth of revenue from the provision of broadband Internet access for households.
Kyivstar continues developing 3G. In Q4 2016 it covered the territory where 61% of Ukrainians live (almost doubled compared to December 2015).
In 2016, the company paid UAH 4.3 billion of taxes to Ukraine's national budget, including UAH 1.3 billion in Q4 2016.
According to the press release, on February 27 VimpelCom Group announced its rebranding. The group will be renamed Veon. In Ukraine the services will be provided under the Kyivstar brand.
