The largest electronic communications operator Kyivstar continues to provide communications for Ukraine and increases investments in future development. In Q1 2024, the operator’s capital expenditures increased by 37.4% compared to Q1 2023 and exceeded UAH 1 billion.
4G everywhere
In the first quarter of 2024, Kyivstar continued to implement its 4G Everywhere strategy and installed 170 new 4G sites and upgraded 900 existing base stations to be LTE-compliant.
To rebuild and develop its telecom network and strengthen energy independence, the operator increased capital expenditures by 37.4% compared to Q1 2023 to UAH 1.072 billion. Thanks to the company’s efforts, almost 100% of the telecom network in the government-controlled area is operating as usual and provides subscribers with communication and data services around the clock.
In the first quarter of 2024, 4G services continued to grow in popularity. Thus, the number of subscribers using high-speed mobile data transmission increased by 8.9% compared to Q1 2023 and reached 14.5 million. Mobile Internet usage per subscriber increased by 3.8%.
The total number of mobile subscribers in Q1 2024 decreased by 1.9% as a result of war-related factors, such as migration outside the country and the temporary occupation of a number of settlements.
Digital businesses
Kyivstar’s new digital businesses show steady growth. In Q1 2024, the number of Kyivstar TV subscribers increased by 45.3% compared to Q1 2023. In the reporting quarter, more than 20 thousand subscribers used the service’s training and educational content, which the operator provides free of charge.
The number of customers registering on the digital platform of Helsi medical service increased by 11% quarter-on-quarter. The number of subscribers using My Kyivstar digital self-service increased by 17.3%.
Income and benefits
In Q1 2024, the company’s total revenue decreased by 14.1% to UAH 7.1 billion compared to Q1 2023 due to an unprecedented cyberattack on Kyivstar’s network in December 2023. The company has canceled one monthly tariff fee for all mobile and fixed-line users as a sign of gratitude to subscribers for their loyalty. The main amount of compensation under the loyalty program was allocated in Q1 2024.
Kyivstar continues to help the country bring victory and peace closer. In Q1 2024, the company allocated UAH 10 million for the medical center “Unbreakable”, launched an educational initiative for children who lost their parents due to the war, and allocated UAH 50 million to the army’s competent assistance fund “Come Back Alive” to purchase integrated communication systems for the Air Command “South”.
In Q1 2024, Kyivstar paid over UAH 2 billion in taxes and other payments to the state budget of Ukraine.
Kyivstar performance in Q1 2024 compared to the same period of 2023
| Financial and operational indicators (UAH million) | 1Q 2024 | 1Q 2023 | Q1 2024/
1Q 2023 |
| Total operating income | 7 169 | 8 346 | (14,1%) |
| Capital expenditures*. | 1 072 | 780 | 37,4% |
| EBITDA | 3 627 | 4 921 | (26,3%) |
| Number of subscribers, mln | |||
| Mobile subscribers | 23,9 | 24,3 | (1,9%) |
| Home Internet subscribers | 1,1 | 1,1 | (1,1%) |
| Operational results of mobile communications | |||
| Total operating income | 6 661 | 7 830 | (14,9%) |
| Including data transmission services | 3 875 | 4 472 | (13,3%) |
| Mobile Internet subscribers (mln) | 17,7 | 17,3 | 2,1% |
| Including 4G subscribers | 14,5 | 13,3 | 8,9% |
| 4G penetration | 60,6% | 54,6% | 6.0 pp. |
| ARPU (UAH) | 92 | 106 | (12,4%) |
| MOU (min.) | 549 | 554 | (0,9%) |
| Data usage (GB/subscriber) | 9,9 | 9,5 | 3,8% |
| Fixed line operating results | |||
| Total operating income | 419 | 463 | (9,5%) |
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