Kyivstar's revenue declines 24.1% yoy in 1Q09

Kyivstar GSM’s 1Q09 results were published yesterday by Telenor: net revenues of NOK 2.3 bln, down 24.1% yoy; EBITDA of NOK 1.37 bln, down 26.8% yoy; and operating profit of NOK 991 mln, down 31.1% yoy. The mobile operator’s subscriber base decreased 2.7% yoy and NOK-nominated ARPU by 23.8% yoy. The company remained the #1 telecom operator in Ukraine with its subscriber base of 23.05 mln (Telenor estimates Kyivstar commands ~52% market share). Alexander Paraschiy: Taking into account that the Ukrainian hryvnya (the currency in which Kyivstar generates all its revenues) has depreciated 20% yoy compared to the NOK, Kyivstar’s relative performance does not look frustrating: the company’s revenue dropped by 5.0% yoy in local currency (UAH). The company’s EBITDA margin decreased from 60.5% in 1Q08 to 58.3% in 1Q09, still the highest in the Telenor group.