H1 performance: 7% rise in Internet service revenues, wider fibre optic network, and new digital communities

H1 performance: 7% rise in Internet service revenues, wider fibre optic network, and new digital communities

24.07.2020
Ukrtelecom

In strict compliance with the sanitary standards to combat COVID-19, Ukrtelecom has built nearly 3,000 km of optical lines in hundreds of localities, bridging the digital divide between urban and rural areas

In H1 2020, Ukrtelecom's total revenues remained stable, making over UAH 3.1 billion. The company's telecoms income was UAH 2.545 billion.

EBITDA reached over UAH 833 million, and EBITDA margin remained rather high, making 27%.

Retail services yielded almost UAH 1.579 billion, and B2B sales brought UAH 708.5 million.

Revenues from Internet services were on the rise, making UAH 943 million in H1 2020, up by 7% year on year. The revenues increased by 11% to UAH 205 million in the business segment and by 6% to UAH 738 million in the mass segment.

Ukrtelecom continues developing its optical infrastructure, having already laid almost 3,000 km of fibre optic cables this year. All the works done through local contractors respect the quarantine measures. This year, we have connected over 380 localities to the modern optical network. Of these, 180 localities with almost 200,000 residents have started enjoying the optical Internet for the first time.

The optical Internet by Ukrtelecom covers over 1,100 medical and educational institutions, with more than 15% (170) connected this year, almost 300 amalgamated communities (+20%, or 60 communities in H1 2020), and over 1,500 business clusters.

Overall, Ukrtelecom offers Internet access in more than 2,600 Ukrainian cities, towns, and villages.

Ukrtelecom implemented a number of projects to build fibre optic channels for various business centres, shopping malls, office centres, and other facilities to provide them with cutting-edge services such as cloud services, DDoS protection, and access to TV content.

In H1 2010, capital investments stood at UAH 337 million.

Income from lease of idle property made UAH 151 million, up by more than 9% year on year. It should be mentioned though that, given the difficult situation for many businesses amid the lockdown, Ukrtelecom proactively offered a special 50% discount to tenants that suspended their operations because of the quarantine. This led to a loss of income, but allowed to keep good relations with tenants.

The debt of local budgets before the Company for telecommunications services provided to benefit-entitled categories remained high, making UAH 141 million.
The Company continues to work amid the adaptive quarantine, adhering to measures preventing the spread of COVID-19 in Ukraine. In particular, almost 60% of our office employees continue to work remotely, 300 customer service centres have returned to normal operation, and almost 30 centres still telework. Ukrtelecom has allocated over UAH 5 million to epidemiological response. 

In H1 2020, Ukrtelecom paid almost UAH 918 million in taxes to national and local budgets.