Ukrtelecom worsens its bottom line on UAH devaluation in 3Q14
27 October 2014
The top line of Ukraine’s leading fixed line telecommunications services provider Ukrtelecom (UTLM UK) decreased 3% yoy to UAH 4.73 bln in 9M14, according to its Oct. 24 filing. Its EBITDA improved 10% yoy to UAH 1.18 bln, mainly due to an 11x yoy increase in “other operating income” to UAH 320 mln. However, a 2.2x yoy increase in financial costs (which we attribute to a strengthened dollar, in which most of the company’s loans are denominated) caused the company to post a negative bottom line at UAH 27 mln in 9M14.
In 3Q14 alone, Ukrtelecom’s top line decreased 4% yoy (to UAH 1.57 bln), its EBITDA declined 21% yoy (to UAH 327 mln) and it reported UAH 73 mln in net losses (vs. UAH 86 mln in net profit a year ago).
