Datagroup, Vega report third-quarter results; Ukrtelecom parent posts USD68m 9M net loss

30 Oct 2012

Ukrainian triple-play telco and data communications provider Datagroup has reported that it finished the third quarter of 2012 with around 275,000 subscribers to its retail services, with the number of ‘Home Telecom’ broadband internet subscribers reaching 167,000, up by 5,000 in three months, while fixed voice telephony customers under the Home Telecom brand stood at 107,000. Home Telecom’s service coverage footprint reached 865,000 households.

Fellow Ukrainian fixed broadband network operator Vega, controlled by Farlep-Invest, recorded a net loss of UAH16.25 million (USD1.97 million) in the three months to the end of September 2012, as it pressed ahead with investing in an integration and expansion programme across its regional divisions, while the group’s consolidated net revenue in the quarter leapt up by UAH100.6 million to UAH180.2 million compared to the corresponding period of 2011. In January-September 2012 Vega posted a net loss of UAH57.94 million, on net revenues which increased by 81.1% year-on-year, or by UAH195.5 million, to UAH436.5 million for the nine-month period.

Comparably, Ukraine’s largest fixed line operator Ukrtelecom posted a net profit of UAH223.48 million in the third quarter of 2012, or 42 times more than in the same period of 2011, while its 9M 2012 profits reached UAH348 million, on total turnover of UAH5.866 billion for the first three quarters of the year. Net revenues for the telco in the third quarter fell by 4.5% to UAH1.65 billion, it reported to the stock exchange. However, Ukrtelecom’s parent company Epic Services Ukraine (ESU), a unit of Austrian investment fund Epic, posted a net loss in July-September 2012 of UAH196.8 million, and for the nine months ended 30 September ESU’s net loss increased by 93% year-on-year to UAH559.19 million, or around USD68 million, which it attributed mainly to financial costs including interest on bonds and payment of loans. The largest investments in the period went into mobile networks owned by Ukrtelecom’s TriMob 3G subsidiary (69.1%, including 16.6% on construction of base stations) and modernisation of fixed networks (24.7%).