14:52 26.02.2021

Ukrtelecom sees EBITDA rise by 4.8%, net income fall by 2% in 2020

3 min read
Ukrtelecom sees EBITDA rise by 4.8%, net income fall by 2% in 2020

PJSC Ukrtelecom in 2020 reduced its net income by 2%, to UAH 6.214 billion, the company's CEO Yuriy Kurmaz said at a press conference in Kyiv on Friday.

At the same time, EBITDA increased by 4.8%, to UAH 1.698 billion, and EBITDA margin by 1.8 percentage points, to 27.3 compared to the operator's audited statements for 2019.

The company's capital investments decreased by 0.5%, to UAH 688 million.

In 2020, Ukrtelecom built 10,000 km of fiber-optic communication lines, providing 270,000 households with the access to the optical Internet network.

In total, according to the operator, in 2020, some 135 merged territorial communities, more than 200 medical institutions, almost 500 educational facilities and 250 business concentration facilities were connected to the high-speed optical Internet network. In general, over the past year, the number of optical Internet users from Ukrtelecom has doubled, to almost 170,000.

As of the beginning of 2021, Ukrtelecom's Internet access network covers 3,322 settlements.

"There is a net profit, and we expect it to be solid," the CEO of Ukrtelecom said.

At the same time, he noted that the company did not plan to disclose this indicator until the end of the financial statement audit.

In total, revenue from telecommunications services amounted to UAH 5 billion. Private subscribers were provided with services for more than UAH 3 billion, and business consumers for almost UAH 1.4 billion, revenue from services to operators exceeded UAH 520 million.

The operator's revenue from the provision of Internet services and data transmission in 2020 increased by 7%, to UAH 2.087 billion.

Fixed-line telephony revenue fell by 15%, to UAH 2.174 billion.

In 2020, Ukrtelecom served 1.54 million fixed-line subscribers, 900,000 users of Internet services and 65,000 television subscribers in the B2C segment. Revenue in this segment from telephony decreased by 20%, to UAH 1.491 billion, revenue from Internet access services increased by 6%, to UAH 1.46 billion.

In the B2B segment over 2020, the operator served 700,000 fixed-line subscribers with an average ARPU of UAH 76 without VAT (UAH 70 in 2019), and 131,000 users of Internet services with an average ARPU of UAH 238 (UAH 195 in 2019).

In addition, Ukrtelecom provides 23,000 cloud PBX lines (more by 14.5 versus 2019), 5,800 data center units, and serves 1,100 business television screens.

Revenue in the B2B segment from telephony for the specified period decreased by 1%, to UAH 682 million, and from Internet services by 7%, to UAH 596 million.

The company's revenues from commercial lease in 2020 increased by 14%, to UAH 332 million, and from technological lease decreased to UAH 104 million (UAH 134 million in 2019).

Revenues from the sale of technological cable scrap decreased by 13.5%, to UAH 230 million, and from the sale of outdated equipment increased by 93.3%, to UAH 458 million.

Kurmaz also noted the presence of accounts receivable from the state for the provision of services to preferential categories of the population, which amounted to about UAH 116 million over 2020.

The leaders in terms of debt are Kyiv region (UAH 22 million), Kyiv city (UAH 18 million) and Chernihiv region (UAH 17 million).

In 2020, operator's payments and fees to budgets of all levels amounted to almost UAH 1.9 billion.

Ukrtelecom provided data for 2020 according to unaudited financial statements.

Ukrtelecom is the largest fixed-line operator in Ukraine. It is the sole founder and participant of TriMob LLC – a mobile operator of 3G/UMTS standard.