Internet revenues grew 8.2% in H1 2019

Internet revenues grew 8.2% in H1 2019


Ukrtelecom continued migrating to fibre optics and connecting local communities to the web and increased its Internet revenues.

In H1 2019, Ukrtelecom’s total revenues remained stable, making almost UAH 3.3 billion. The company’s telecoms income was UAH 2.755 billion. 

EBITDA reached over UAH 919 million, up by 10.8% year on year, and EBITDA margin remained rather high, making 28.1%. 

Retail subscribers received services costing almost UAH 1.78 billion, and corporate subscribers enjoyed services of UAH 688 million.

Revenues from Internet services continued to grow, having increased by 8.2% to over UAH 880 million over the year: UAH 184 million (+8.6%) in the corporate segment and UAH 698 million (+8.1%) in private households. Ukrtelecom continues to deploy optical infrastructure required to roll out such national initiatives as the Government in Smartphone project. This year, the company has built and commissioned 1,400 km of fibre optic cables.

Today, Ukrtelecom’s Internet coverage map includes about 2,300 Ukrainian settlements. In Q2 2019, the company launched a large-scale project to build more than 3,500 km of fibre-optic lines and provide optical Internet to almost 300 towns and villages. The first stage of the optic network construction covers 16 regions countrywide: Zaporizhia, Volyn, Ivano-Frankivsk, Rivne, Khmelnytsky, Chernivtsi, Mykolaiv, Odessa, Kherson, Poltava, Sumy, Kharkiv, Vinnytsia, Zhytomyr, Cherkasy, and Chernihiv Oblasts. Thousands of residents in 65 localities will enjoy the Internet connection of up to 200 Mbit/s, VoIP telephony, and interactive TV. 

The fixed-line telephony revenues dropped year on year by 6.5% in the retail segment and by 1.6% in the corporate segment, totalling about UAH 1.385 billion in H1 2019. This echoes the downward trends of voice service revenues experienced by mobile operators. 

In the corporate segment, Ukrtelecom extensively developed modern ICT. Revenues from optic Internet, cloud solutions, DDoS protection, access to TV, and other services increase as the number of users grow. Over the year, cloud exchange subscribers have reached about 20,000 (up by 5,000), and the number of screens connected to TV Business rose to over 1,500. The company witnesses a steady growth of optic Internet users in shopping malls, business centres, and recreational facilities. Ukrtelecom continues providing telecoms services to educational and healthcare institutions, as well as amalgamated communities. By early July, the company connected 300 hospitals, 300 educational institutions, and over 100 amalgamated communities. 

Ukrtelecom’s investments in the development of telecommunications infrastructure grew by more than 67% year on year, making almost UAH 362 million. Revenues from the commercial lease of property made redundant in the course of the infrastructure upgrade went up 35% to UAH 138 million. This is due to the effective management of real estate not required for business operations and Ukrtelecom’s cooperation with ProZorro e-procurement system for the right to lease non-residential premises.

In H1 2019, Ukrtelecom paid almost UAH 900 million in taxes to national and local budgets.