Ukraine’s largest fixed network operator Ukrtelecom posted an annual net profit of UAH244 million (USD8.91 million) for 2016, down by 45.2% from 2015’s profit of UAH445 million, which it blamed on amortisation expenses related to the revaluation of fixed assets, BizLiga reported. The company’s annual revenue dropped by 2.0% to UAH6.636 billion, compared to UAH6.773 billion the previous year, whilst twelve-month EBITDA also fell, by 5.3% from UAH1.864 billion to USD1.765 billion.
Ukrtelecom reported that its number of fixed telephony subscribers in the consumer segment plunged by 14% year-on-year to 4.80 million at end-December 2016, whilst B2B fixed line subscriber lines declined by 3.8% in the year to 992,000. The telco’s consumer high speed fixed internet subscribers decreased by 1.7% in 2016 to 1.42 million – which director Yuri Kurmaz attributed to intense fibre broadband competition in large cities – whereas its B2B fixed broadband subscribers increased by 1% year-on-year to 177,600.
During 2016 Ukrtelecom expanded fixed broadband services to an additional 170 settlements across the country, reaching a total of 2,130 towns, cities and villages. Investment in telecommunications infrastructure was near-quadrupled in the year, amounting to UAH954 million, boosted by Ukrtelecom’s large-scale fibre-based technical modernisation of its network in six major cities.