Kyivstar sees 10% rise in revenue in Q2 2017

Kyivstar mobile communications operator in April-June 2017 saw a 10% rise in total revenue year-over-year, to UAH 4.058 billion, Veon international group (VimpelCom Ltd. before the rebranding) has said in a quarterly report.

Kyivstar saw a 13.7% rise in earnings before interest, taxes, depreciation and amortization (EBITDA), to UAH 2.305 billion, and EBITDA margin grew by 1.9 percentage points, to 56.8%.

Mobile communications revenue in Q2 2017 totaled UAH 3.781 billion (10.3% up year-over-year).

The company said that this was driven by continued strong growth of mobile data revenue, which grew 71.6% as a result of growing data customers, successful marketing activities stimulated by the continued 3G network roll-out and data-centric tariffs.

"As a result, data consumption per user more than doubled in Q2 2017 compared with the same quarter in the previous year," the company said.

Kyivstar's mobile customer base increased 2.8% to 26.1 million in Q2 2017.

The minutes of use (MoU) grew by 2.5%, to 573 minutes, and the average revenue per user (ARPU) of mobile communications services rose by 8.5%, to UAH 48.

Revenue from fixed-line communications in Q2 2017 grew by 5.9%, to UAH 277 million, including a 12.5% rise in revenue from fixed-line Internet services, to UAH 169 million with the same number of subscribers – 800,000. ARPU for fixed-line Internet services was 13.9% up, to UAH 69.

Capital investment over the period totaled UAH 705 million, and this was 3% less than a year ago.

Kyivstar continued to roll out its 3G network in Q2 2017 reaching a population coverage of 69% from 48% in the same quarter last year.

Kyivstar said that in H1 2017 revenue grew by 10.8%, to UAH 7.929 billion and EBITDA increased by 13.8%, to UAH 4.378 billion.

Revenue from mobile communications services were 11.1% up, reaching UAH 7.328 billion and from fixed-line communications – 9.9%, to UAH 572 million.