The mobile operator Kyivstar has published a report on financial results based on the results of work in the second quarter of 2020.
It is noted that in the second quarter of 2020, Kyivstar subscribers increased the use of communication and Internet services. Thus, consumption of minutes per subscriber (MoU) increased by 12.2% – from 571 in the second quarter of 2019 to 641 in the second quarter of 2020. In the same period, mobile internet usage grew 54.3% to 5.0 GB per subscriber, while average revenue per user (ARPU) increased by 9.4%.
The subscriber base of Kyivstar in the second quarter of 2020 amounted to 25.4 million. The tendency towards a decrease in the number of active SIM cards is caused by negative demographic processes, as well as the gradual refusal of subscribers from using multiple SIM cards. In addition, the quarantine restrictions also affected the decline in retail sales.
At the same time, the subscriber base of the Home Internet service increased by 9% compared to the second quarter of 2019, and exceeded 1 million users. Fixed internet traffic has also grown significantly.
Capital expenditures of Kyivstar increased in the second quarter of 2020 by 53% compared to the same period last year and reached UAH 1.766 billion. The funds were mainly used to build 4G networks for rural areas and improve the quality of communication. In the reporting period, the operator connected more than 2 thousand small settlements to high-speed mobile Internet.
The company’s total revenue in the second quarter of 2020 increased by 6.8% compared to the same period last year – to UAH 6 billion. At the same time, more than half of the income came from mobile Internet services. In the reporting period, Kyivstar transferred taxes and other payments to the budget of Ukraine in the amount of more than UAH 2 billion. And for the first half of 2020, the company transferred UAH 4.6 billion to the state budget.
Key performance indicators of Kyivstar in the second quarter of 2020
Financial and operational indicators (UAH mln) Q2 20202 sq. 20192 q 2020 /
Q2 2019 6 months 20206 months 20196 months 2020 /
6 months 2019 Total operating income6 0095 6246.8% 11 96 010 75 011.3% Revenue from mobile services5 5935 2576.4% 11 12 310 02011.0% Revenue from fixed line services 38833316.7% 77366216.8% EBITDA4 0753 65611.5% 8 1166 88018.0% EBITDA margin 67.8% 65.0% 2.867.9% 64.0% 3.9 Capital expenditures1 7661 15253.4% 3 1142 13445.9% Mobile communications Total operating income5 5935 2486.6% 11 12310 02011.0 % Including from data transmission services3 1492 78413.1% 6 1535 23817.5% Subscribers (million) 25.426.2-3.1% 25.426.2-3.1% Including mobile Internet 15.915.71.1 % 15.915.71.1% ARPU (UAH) 72669.4% MOU (min.) 64157112.2% Data usage (MB / subscriber) 5 1603 34554.3% Fixed line Total operating income 38833316.7% 77366216.8% Operating income Broadband access 25,721,519.4% 50,542,419.1% Broadband subscribers (million) 1.01.09.1% ARPU Broadband access (UAH) 83,769.0%