Ukrtelecom bottom line triples in 1H15
27 July 2015
Ukraine’s leading fixed line telecom and Internet operator Ukrtelecom (UTLM UK) reported a 2% yoy increase in net revenue to UAH 3,314 mln in 1H15. The growth was fueled by its improved Internet segment (+5% yoy to UAH 718 mln) and the value of services provided to international operators (+48% yoy to UAH 464 mln). Revenue at its local voice segment dropped 3% yoy to UAH 1,375 mln, while revenue at its long-distance voice segment plunged 40% yoy to UAH 127 mln.
The company’s EBITDA slid 21% yoy in 1H15 as a result of significant cost savings due to falling headcount (-10% in employee and social costs to UAH 1,272 mln). That was offset by a 4.4x jump in unidentified “other operating costs” (to UAH 467 mln).
As a result, Ukrtelecom’s 1H15 bottom line surged 206% yoy to UAH 142 mln, mainly due to a 46% decrease in D&A expenses and 4x jump in “other incomes.” Ukrtelecom’s net debt increased 6% YTD to UAH 2,157 mln as of end-1H15, and its net debt-to- LTM EBITDA ratio amounted to 1.9x.
