Kyivstar Reports Net Revenue Of USD 1.7 bln In 2006.

Telenor reported results of the largest Ukrainian mobile operator Kyivstar: net revenue USD 1.7 bln (51% growth yoy – much higher than Telenor group’s 37%), EBITDA USD 1.0 bln (61% growth yoy, compared to Telenor group’s 40%). The company’s EBITDA margin grew 3pp yoy to 59% (Telenor’s margin was 36%). This is on the base of an ARPU decrease from USD 9.6 to USD 8.4. Kyivstar’s subscriber base grew 54% during 2006 to 21.5 mln (or 44% of the total Ukrainian mobile base and 31% of Telenor’s consolidated mobile subscriber base). Alexander Paraschiy: Kyivstar seems to be one of Telenor’s most attractive and fastest growing assets. Thus we expect Telenor to continue actively protecting this asset from Russia’s Alfa Group. Significant growth of revenues and profits suggests that mobile telecom business in Ukraine is profitable and there is room for new entrants.