Ukrtelecom increases its Internet service revenues

Ukrtelecom increases its Internet service revenues


In Q1 2021, the company earned 9.4% more on the Internet access services. 

Ukrtelecom's income in Q1 2021 was UAH 1.8 billion, up by 14.5% year on year. EBITDA reached UAH 517 million, having increased 29% YoY. The EBITDA margin went up 3.2 percentage points to 28.8%.

Retail subscribers received services costing over UAH 765 million, and corporate subscribers enjoyed services of UAH 353 million. 

The company's earnings from fixed-line telephony amounted to UAH 506 million:  UAH 340 million in B2C and UAH 165 million in B2B. This is 11.9% less than last year, as the downtrend in voice service revenues continues. 

Internet services and data transmission continue generating higher revenues, which increased by 9.4% and reached UAH 573 million in Q1 2021. The B2B earnings exceeded UAH 160 million (a 6.6% increase versus Q1 2020), while the retail users brought UAH 405 million (up by 9% YoY). 
The revenues from telecommunication services totalled over UAH 1.2 billion in the reporting quarter. 

Ukrtelecom continues to improve its optical infrastructure, also locally, where copper is replaced with the modern optical solutions. The new multiservice optical network provides high-speed access, online telephony, and IPTV to hundreds of thousands of Ukrainians. Work is underway in more than 40 localities in 15 regions: Vinnytsia, Volyn, Dnipropetrovsk, Zhytomyr, Zaporizhia, Kirovohrad, Lviv, Mykolaiv, Odesa, Poltava, Rivne, Ternopil, Kharkiv, Kherson, and Khmelnytsky.   All the works respect the required quarantine measures. 

Despite the quarantine restrictions and bad weather, Ukrtelecom laid more than 1,500 km of fibre optics in the first three months of 2021. 

More social infrastructure facilities get connected to the modern telecom services. In Q1 2021, the optical Internet access was expanded to another 12 amalgamated communities, almost 150 educational institutions, and more than 90 medical facilities. Overall, Ukrtelecom's state-of-the-art optical services are currently available in 374 amalgamated communities, more than 1,100 educational establishments, and 780 medical institutions. 

In B2B segment, the company is developing projects and partnerships to meet the corporate needs for the cutting-edge ICT services. Ukrtelecom launched a new service for business customers, offering the anti-virus suites by Bitdefender, a global supplier of IT infrastructure protection solutions. The range of optics-based SaaS solutions was expanded as well. These comprehensive solutions include the ready-to-use suites of Microsoft Office 365 cloud services for organisations of any scale. 

Revenues from lease of idle property increased by 25% year on year to nearly UAH 110 million. 
In Q1 2021, the capital investments amounted to UAH 113 million.

However, the debt of local budgets for telecommunications services provided to benefit-entitled categories remains high, standing at UAH 122 million as of late March. 

Ukrtelecom paid over UAH 464 million in taxes to national and local budgets in Q1 2021.