Page 60 - bne IntelliNews Country Report: Ukraine Dec17

9.2.7 TMT corporate news
Ukrtelecom (UTLM), Ukraine’s largest fixed-line telecom operator, reported 9M17 net sales of UAH4.6bn, down 3% y/y (-7% y/y to $175m in $terms), and EBITDA of UAH1.5bn, up 13% y/y (+9% y/y to $55m in $), with net income more than doubling to UAH639m (+146% y/y to $24m in $). As a result, the EBITDA and net margins improved to 31.4% (+4.4pp y/y) and 13.8% (+8.6pp), respectively. The company’s fixed-line subscriber base shrank a further 17% y/y to 4.9mn customers in 9M17, causing a decline in fixed-line service revenues of 22% y/y to $68m, or 39% of total sales (-8pp y/y). The number of broadband Internet subscribers dropped by 4% y/y to 1.5 mn, generating $50m (-4% y/y) or 28% of total revenue (+1pp y/y). (Interfax)
Net profit of Vodafone Ukraine , the country's second largest mobile communications operator, increased by 66.9% year-over-year to UAH1.58bn ($59.7mn) in January-September , Interfax news agency reported on November 15. The company's revenue in Ukraine grew by 4.3% y/y to UAH8.72bn with growth of capital investment by 74.5% y/y to UAH2.81bn January-September. OIBDA rose by 40.6% y/y to UAH3.8bn, operating profit by 74.1% y/y to UAH1.7bn. Vodafone Ukraine is owned by the Netherlands-based Prelludium B.V., a part of Russia-headquartered MTS group. MTS is 50.44% majority-owned by Sistema, Russia's largest publicly-traded diversified holding company. Russia illegally annexed Ukraine's Crimea in 2014 and ignited the Kremlin-backed military uprising in the Donbas region in 2014.
Total revenue of Ukraine's mobile operator Kyivstar increased by 10.5% year-on-year, to UAH11.1bn ($418,5mn) in January-September , Interfax news agency reported on November 9. Ebitda increased by 11.8% y/y to UAH6.02bn, while Ebitda margin increased by 0.6%age points (pp), to 54.3%. CapEX (excluding spending on the license) grew by 13.5%, to UAH1.836bn in January-September. In July-September, Kyivstar's total revenue increased by 10% y/y, to UAH4.3, while mobile communications revenue grew by 10.2%, reaching UAH4bn.
9.2.10 Metallurgy & mining corporate news
Steel output at the subsidiaries of Ukraine's largest steelmaker Metinvest , controlled by the country's richest oligarch Rinat Akhmetov, decreased by 3% quarter-on-quarter to 1.80mn tonnes in July-September . Azovstal’s output dropped 8% q/q to 1.00mn tonnes in the third quarter, while Ilyich Steel’s output increased 4% q/q to 0.80mn tonnes, according to its operating update, Kyiv-based brokerage Concorde Capital wrote in a research note on November 3. In January-September, crude steel output fell 10% year-on-year to 5.73mn tonnes at Metinvest’s subsidiaries due to an 82% y/y plunge in output at Yenakiyeve Steel to 269 tonnes, which was partly offset by a 15% increase at Azovstal and an 8% rise at Ilyich Steel. The holding reduced its output of steel products by 4% to 6.30mn tonnes in January-September. Production of semi-finished products increased 15% y/y to 1.96mn tonnes in January-September, owing to slab output rising by 63% y/y to 960 tonnes and pig iron output climbing by 12% y/y to 989 tonnes. In January-September, production of square billets, which used to be produced by Yenakiyeve Steel, plummeted 94% y/y to 15 tonnes. The holding’s finished products output decreased 11% y/y, including a 6% increase in flat products (to 3.49mn
60 UKRAINE Country Report December 2017 www.intellinews.com