Ukraine’s largest mobile operator by users Kyivstar has reported that its cellular base decreased by 0.7% year-on-year to 25.4 million at the end of June 2014, while its number of fibre broadband subscribers rose by 13% to 790,000. Due to the ongoing turbulence in Ukraine and the difficult environment, Kyivstar’s financial results were negatively impacted by more conservative spending behaviour from its customers. Total revenue decreased 5% year-on-year in local currency terms to UAH3.0 billion (USD238 million) in Q2 2014, with mobile service revenue declining 4% y-o-y to UAH2.7 billion primarily due to lower mobile voice and VAS revenue partly offset by mobile data revenue growth of 11% y-o-y. Fixed network service revenue increased 5% y-o-y due to solid growth in fixed residential broadband revenue, while net operating income from the fixed business segment grew by 10% to UAH111 million. Kyivstar’s consolidated EBITDA decreased 12% to UAH1.3 billion in the April-June period.
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