Ukrtelecom posts USD26.6 million loss in first half

28 Jul 2011

Ukrainian incumbent telco and 3G mobile operator Ukrtelecom has posted a net loss of UAH215.41 million (USD26.6 million) in the first half of 2011, compared to a net profit of UAH47.97 million in the same period of 2010. Gross six-month operating revenues of UAH3.955 billion were down from UAH4.035 billion a year previously, and net revenues fell by 2.1% year-on-year to UAH3.331 billion. Operating losses of UAH35.9 million in January-June 2011 were in comparison to operating profit of UAH130.5 million in the corresponding part of 2010. Ukrtelecom’s revenues in 1H11 consisted of segments including local telephony (37.5% of total sales), international/domestic long-distance telephony (32.3%) and internet access services (18.6%).

Ukrtelecom, which was privatised earlier this year, is looking to divest its cellular operations and unprofitable parts of its fixed line business. Alongside the financial results it was reported that the company put its losses from providing ‘special communications services’ in the first half of 2011 alone at UAH37.4 million. The Austrian-backed telco is waiting for permission to spin off the special communications sub-division into a state-held operation. It also added that the provision of universal telecommunications services to households at unprofitable prices also continues to drag down the financial performance of the company. The formation of a universal service fund to subsidise these operations is still pending approval by politicians.

Ukraine, Ukrtelecom (incl. TriMob)