Ukrtelecom’s internet revenues climb 9%; total telecoms turnover stagnates

25 Oct 2018

Ukrainian nationwide fixed network operator Ukrtelecom posted revenue from telecommunication services totalling UAH1.371 billion (USD48.2 million) in the third quarter of 2018, down slightly from the 3Q17 figure of UAH1.382 billion, whilst underlying internet services revenue increased by 9%. Quarterly business end user internet access turnover increased by 14.6% year-on-year to UAH86 million – largely due to an increase in the number of new fibre-optic B2B connections, which accounted for over 30% of the B2B subscriber base at end-September – whilst consumer broadband access revenues climbed 7.4% to UAH330 million. Ukrtelecom’s total revenue for the quarter increased by 3% y-o-y to UAH1.644 billion.

Ukrtelecom reported a continuation in fixed telephony subscriber losses due to mobile replacement and significant theft and damage of its telecoms cables – with almost 16,000 separate cases of cable theft/breakage in the year to-date. Active fixed voice lines were reported at ‘more than four million’ at 30 September, down from ‘almost 4.9 million’ twelve months previously. 3Q18 revenue from fixed telephony was UAH700 million, down from UAH722 million in the year-ago quarter.

Third-quarter EBITDA totalled UAH502 million (an EBITDA margin of 30.5%), down from UAH544 million (34% margin) in Q3 2017. Net profit in July-September 2018 fell to UAH160 million (3Q17: UAH283 million), influenced by higher tax payments, negative fluctuations in exchange rates and increased depreciation payments due to commissioning new equipment as part of the telco’s network modernisation programme. Investments in telecoms infrastructure amounted to UAH185 million in Q3 (UAH207 million in the same period last year).

Ukraine, Ukrtelecom (incl. TriMob)