Ukrtelecom reports 20% EBITDA margin in 3Q10

Ukrtelecom (UX: UTLM UK), Ukraine’s largest fixed-line telecom operator, posted UAH 1,671 mln in revenues in 3Q10 (flat y-o-y), UAH 334 mln in EBITDA (a margin of 20% vs. 31% in 3Q09) and net losses of UAH 110 mln (vs. UAH 70 mln losses in 3Q09), according to company filings yesterday. Yegor Samusenko: Though the net loss was primarily the result of its interest payment schedule, which required company to make most of its payments in the first and third quarter, the decline of in EBITDA margin is more disappointing news. However, we do not expect significant profitability improvement until a new majority owner takes over the company. The privatization of state’s 93% stake is scheduled for December 28.