Vodafone Ukraine highlights effects of war in H1 report

30 Aug 2022

Mobile operator Vodafone Ukraine, a subsidiary of Azerbaijan’s NEQSOL Holding, reported that its revenue in the first half of 2022 increased by 3% year-on-year to UAH9.90 billion (USD265 million), with operating income before depreciation and amortisation (OIBDA) exceeding UAH5.76 billion, boosting the H1 OIBDA margin by 2.1 percentage points to 58.1%. Six-month net profit amounted to UAH663 million. The report notes that costs related to the war in Ukraine – with factors including emergency restoration work on the network, assistance to the country and customers, and mass migration of customers abroad – significantly affected the dynamics of the main financial indicators, bolstered somewhat by results from the first two months of the year.

Capital investments in H1 2022 amounted to UAH1.28 billion, 14% less than in the same period last year. About 87% of the network is currently working and this percentage is growing, the operator claims, while ‘all critical elements of the technical and IT infrastructure are already diversified.’ The estimated amount of asset losses due to war is running at about UAH806 million.

Mass migration due to the war significantly affected the size of the subscription base. Of 16.6 million customers, 1.76 million are situated ‘forcibly outside the country’. In assistance programmes, Vodafone Ukraine has connected 13 million users inside the country to free services representing UAH270 million in value, while abroad it has provided UAH596 million worth of free services for 1.5 million users in 32 countries.

Ukraine, Vodafone Ukraine