Net profit of “Ukrtelecom” in 2017 has increased by 44%, net income – 2%

PJSC “Ukrtelecom” has finished 2017 with a net profit of 867 million, which is 44.3% more than at the end of 2016, said Director General of PJSC Yuriy Kurmaz at a press conference in Kyiv on Wednesday.

He noted that the past due summer 2017 the audit of the company previously published net profit figure for the year 2016 was changed from UAH 244 million to UAH 601 million.

According to General Director of “Ukrtelecom” , the net revenues for the year increased slightly by 1.7% to 6,654 billion.

EBITDA rose 4.9% to 1,867 million, the EBITDA margin by 1.8 percentage points, to 28.1%.

At the same time, capital investment decreased by 0.7% to 948 million.

Yuri Kurmaz also noted that the data presented on the basis of the cessation of work on the occupied territory of Donetsk and Lugansk regions.

“Such stability in 2017, and over the past three years validates the company’s strategy”, – said the Director of “Ukrtelecom”.

He added that the income from telecommunications services, compared with the previous year also decreased and amounted to 5,767 billion. For 2017, the company has provided fixed telephony services in the amount of 3,042 billion. At year end the company served more than 4.7 million active telephone lines in fixed network (reduction in average 14-15% in annual terms). Income from provision of broadband Internet in 2017 increased by 9.8% to 1,722 billion.

As noted by Yury Kurmaz, service access to the Internet from Ukrtelecom is used by approximately 1.5 million users. In total services of Internet access can get the 2200 residents of Ukrainian towns, 70 of them the operator has connected to its network in 2017. The number of users of “Interactive TV” in 2017 decreased slightly, reaching 94 thousand users.

PJSC has also noted increased in 2017 receivables of the state to the company for the provision of services preferential categories of the population.

“The debt of the implementation of these services today is approximately 190 million, which is five times more than in 2015,” he said.

In 2017, the fees and charges in budgets of all levels made by the company amounted to 1,795 billion.

Ukrtelecom is the largest fixed line operator in Ukraine, the company is the sole founder and member of Trimob mobile operator 3G/UMTS.

The state property Fund of Ukraine in the beginning of 2011 sold 92,79% of stocks “Ukrtelecom” company “ESU” for 10 billion 575.1 million UAH (at the time – about $1.3 billion). However, in 2017 the Fund accused the “ESU” in default of investment obligations, which consisted in investing $450 million investment and the transfer state of sparsity regard, and by mid-December, achieved in a second court decision on the return of 92,79% of stocks in the state. The owner of “Ukrtelecom” declared intention to appeal.

Currently the owner of “ESU” is a group of “SCM”, which in 2013 bought the company from Cyprus Raga (earlier) and accuses it of violating conditions of sale in the form of the failure of privatization investment obligations, seeking the termination of the contract of sale and return “ESU” in the property Raga.

In turn, Raga requires SCM pay $820 million for the above contract.

The dispute between the companies is considered in the London court. SCM invites the state to wait for the decision of this court for final resolution of the privatization of the dispute.

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