Results from Kiev: crisp on surface, but lukewarm contents

23 Feb 2011

Ukrainian full-service telco Ukrtelecom has reported that its fixed broadband subscriber base grew by 34% in a year to reach 1.17 million at the end of December 2010, whilst mobile customers on the Kiev-based firm’s 3G-only network increased by 252,000 in twelve months to 631,000. On the negative side, though, the HSPA mobile service is still being criticised for its relatively slow growth since being launched in November 2007, whilst annual growth of broadband internet revenue stood at 26%, lower than 58% reported in 2009, which the company attributed to tough competition in the sector from rivals including fibre-based Kyivstar/Beeline. Mobile service revenues rose by 73% in twelve months to UAH223 million (USD28 million), although mobile ARPU slipped to UAH29 on an annualised monthly basis compared to UAH31 in FY09. Fixed broadband ARPU also declined to UAH94 in 2010 from UAH112 in 2009. The telco’s fixed lines in service declined by 1.5% year-on-year to 10.13 million, and it calculated that its wireline market share shrank to 82.5% in FY10 from 83.2% the previous year.

Total group service revenues dropped by 1.6% in full-year 2010 to UAH7.936 billion (USD986 million), whilst net loss shrank from UAH462 million the previous year to UAH259 million in 2010. On a US dollar basis, Ukrtelecom said it invested CAPEX of USD540 million in the year in projects including adding 129,000 new ADSL ports and continuing the development of its 3G network.

Ukraine, Ukrtelecom (incl. TriMob),

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