Volia feels strain of recession

17 Feb 2010

Sergie Boyko, the president of Ukraine’s largest cable operator by subscribers, Volia, has reported that the company earned gross income of UAH800 million (USD100 million) in full-year 2009, an increase of 26% from 2008 in local currency terms, but a decrease of around 12%-14% in US dollars due to the recent effects of recession and the weakening of the Ukrainian hryvnia. In a report from Interfax, Boyko was quoted as saying that the cableco’s EBITDA margin remained flat at 40% in the year, whilst total annual investment reached UAH230 million in twelve months. By end-2009 Volia’s cable network covered 2.5 million households, with a total of 1.7 subscribers, including more than 380,000 cable modem broadband internet customers. Meanwhile, the company expects inflation in Ukraine – estimated at near to 20% in 2009 – to remain above 12% in 2010, which it says ‘is likely to force all players to adjust their price offers to compensate for the losses. We do not expect an explosion of consumer activity and increased growth rate of the total market in terms of number of users. This in turn will cause even more tightening of competition.’

Ukraine, Volia (owned by Datagroup)