Ukrtelecom earns EUR 15 mln on Euro-2012

Ukrtelecom (UTLM UK), Ukraine’s official telecom partner for the UEFA Euro-2012 football championship in Ukraine, received direct revenue from UEFA worth EUR 15 mln (USD 18.6 mln), Kommersant wrote, citing a company representative. The company had previously denied to disclose its contract details with UEFA. Ukrtelecom also said it spent UAH 260 mln (USD 32.5 mln) on infrastructure to prepare for the contest and EUR 6.5 mln as a sponsorship fee.

Alexander Paraschiy: We see the news as broadly neutral for Ukrtelecom, as direct revenue from the football championship coincides with our expectations. We also expect the company to have an indirect effect from the event on its P&L. The news supports our belief that the company will report a very strong bottom line in 2Q12 (refer to our news from April 26), after reporting just USD 0.1 mln in 1Q12.