For-sale Ukrtelecom earmarks UAH1.1 billion investment

12 Oct 2010

Ukrainian incumbent telco Ukrtelecom has set a capital expenditure budget of UAH1.1 billion (USD137 million) for the second half of 2010, including investments aimed at developing new value added services; broadband internet access expansion; the construction of fibre-optic backbone infrastructure; and further 3G mobile network rollouts. In particular, CAPEX for broadband access projects will total an expected UAH651 million whilst the expansion of mobile networks will cost UAH222.8 million, with the reconstruction of backbone IP/MPLS links costing UAH119 million. Over full-year 2010, Ukrtelecom says it is aiming to double its number of cellular subscribers to at least 756,000 and increase its fixed broadband customer base by around 50% to 1.3 million.

Ukrtelecom’s revenues in the first half of 2010 increased by 4.2% year-on-year, as it made a modest UAH48 million net profit for the period compared to a UAH124 million loss in the first six months of 2009, attibuted to one-off income items and strong cost savings, according to a company statement. CAPEX in January-June 2010 reached USD166 million. The former monopoly is being put up for sale by the government, which has approved the auction process – mooted for the end of this year – but has not yet set a date.

Ukraine, Ukrtelecom (incl. TriMob)