Ukrtelecom posts small profit in Q1, announces USD68 million broadband investment target

3 May 2012

Ukraine’s largest telecoms group Ukrtelecom has targeted new investments in its fixed broadband network totaling around UAH550 million (USD68 million), quadruple the total CAPEX budget of UAH135.4 million set for 2012, according to the telco’s acting head Igor Kravets, quoted by newspaper Kravets said that Ukrtelecom hopes to attract a further 400,000 subscribers to its fixed broadband user base, which totaled 1.406 million at the end of March 2012 according to TeleGeography’s GlobalComms Database. The company plans to issue up to UAH600 million worth of bonds this quarter to help finance an overall investment programme of UAH888 million, around 60% of which is earmarked for broadband development.

For the first three months of 2012, the fixed line, internet and 3G mobile operator posted a net profit of UAH5.4 million, on quarterly net revenues of UAH1.642 billion, but did not provide a direct year-on-year comparison due to a switchover to IFRS reporting standards. Under local accounting standards, the firm had reported a net loss in Q1 2011 of UAH200.2 million (with losses widening that quarter by 5.5 times), and a 2.7% drop in net revenue to UAH1.631 billion. Ukrtelecom’s mobile unit, assets of which were transferred to a new entity, TriMob, at the beginning of this year, is up for sale, although Austrian parent fund Epic is reported to be in elongated discussions with prospective buyers over a suitable price.

Ukraine, Ukrtelecom (incl. TriMob)