Page 154 - RusRPTSept22

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IT giant EPAM’s profits in Ukraine fell drastically. The net profit of the international IT service company EPAM, which is one of the largest IT employers in Ukraine, amounted to $18.6M in the second quarter. This is 16% of the $114.7M profit from the same period in 2021. At the same time, EPAM's quarterly revenue grew by 35.6% to almost $1.2B, Forbes Ukraine writes. According to the results of the first half of 2022, the company's profit fell by more than half - from $223.72M to $108.32M. EPAM reported direct losses due to its exit from the Russian market in the amount of $16.22M. In addition, the company contributed $100M for humanitarian aid in Ukraine. In addition, the company spent $33.07M to relocate its employees and $34M to support employees and their families working abroad. The company expects that in the third quarter, its revenue will be $1.21B. This corresponds to an annual growth rate of at least 22%.
The Moscow Arbitration Court will hold a preliminary hearing of Google’s protest against the legality of antitrust’s RUB2 billion fine on the U.S. giant for unclear rules of blocking on its video hosting YouTube on September 23. The Federal Antimonopoly Service in February found Google guilty of violation of the antitrust law because of obscure rules muting YouTube channels. In late July, the watchdog said that it imposed the turnover-based fine on the company as a result of an administrative investigation. Google must pay the fine within two months after the relevant document comes into force.
Dell ceases all operations within Russia. On Aug. 27, Dell Technologies announced that it will make a full withdrawal from Russia after closing its offices in mid-August. Dell was a major supplier of servers in Russia. In February, after Russia's invasion of Ukraine, the American company halted all services and sales but maintained a presence within the country.
9.2.8 Telecoms corporate news
Veon released 2Q22 IFRS results on August 4. The numbers appeared decent in aggregate, but mixed in Russia alone.
● Consolidated revenue grew 6% y/y (to $2.01bn), EBITDA grew 13% y/y (to $0.91bn; 45% margin); net income grew 34% y/y (to $0.14bn; 7% margin).
● The revenue and EBITDA growth came on the back of respective 6% and 14% organic increase in local currencies. EBITDA growth y/y was impacted by non- cash one-offs in 2Q22 and 2Q21 – a 10.7% organic increase, excluding one- offs. Net FX impact on growth was minor this quarter: strength in ruble against dollar offset weakness in some other currencies.
154 RUSSIA Country Report September 2022 www.intellinews.com