Kyivstar 2005 Results Announced.

Telenor Group has announced Kyivstar’s 2005 results:

USD mln

                                       2004         2005                Change yoy

Sales                                625           1,129                  81%

EBITDA                            382             629                    64%

EBITDA margin                61%              56%               -5pp

Operating profit               300              423                   41%

Subscribers eoy, mln      6.25             13.93                  123%

ARPU, USD                   12.6               9.5                    -25%

Kyivstar’s ARPU and EBITDA margin decreased in 2005 due to the growing competition in Ukrainian mobile market. Concorde Capital: Kyivstar has become Telenor’s second largest mobile subsidiary in terms of Sales and EBITDA, and the largest subsidiary by subscriber base. It seems unlikely that Telenor will swap its stake in Kyivstar for Vimpelcom’s minority stake, despite the latter’s request.