Mobile operator Vodafone Ukraine announced financial results for 2Q 2020

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Mobile operator Vodafone Ukraine announced an improvement in key financial indicators for the second quarter of 2020. In particular, the company’s income in April-June 2020 amounted to UAH 4.1 billion, which is 9% more than in the same period last year. According to the press service, Vodafone demonstrates the highest dynamics of revenue growth in the market, associated with the growth of consumption of data services and the increase in coverage of high-speed mobile Internet.

The volume of Internet traffic on the Vodafone network in the first half of 2020 increased by 42%. The main reasons for the growth in speed and traffic in the company include an increase in 4G coverage, network capacity and the number of data users.

During quarantine, Vodafone did not stop building new coverage and expanding capacity using new equipment and technologies such as AirScale, CloudAIR, LTE1800 4×4 MIMO + LTE2600 4×4 MIMO Carrier Aggregation. During this period, Vodafone expanded the network capacity in the Transcarpathian region, Odessa and Odessa region, in the Dnieper and Dnipropetrovsk region, Zhytomyr region, Kherson, Kharkov, Chernivtsi regions, Poltava, Volyn regions, in the city of Uman, Cherkasy region, in Kiev, Sumy, Chernigov, Ivano-Frankivsk, Zaporozhye and Kropyvnytskyi. In general, the modernization covered more than 10 thousand sectors of base stations at 4 thousand sites. As a result, according to the results of the 2nd quarter, Vodafone’s 4G network is available to 74% of Ukrainians, 86% of the population can use 3G coverage.

Vodafone invested about UAH 1.9 billion in the development of the network in the 1st half of 2020, including the cost of a license in the 900 MHz range – UAH 265 million. The company’s total investments in the construction of high-speed mobile Internet networks amounted to UAH 27.3 billion.

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Growth in data revenues balanced out the negative factors that affected the company’s operations in Q2: a significant decrease in roaming revenues and a decrease in revenues from its own retail, caused by partial closings of quarantined stores. ARPU in Q2 amounted to UAH 68.4 and remains the lowest on the market, which indicates the availability of Vodafone tariff lines.

Operating efficiency indicators demonstrate growth: OIBDA increased by 11% compared to Q2 2019 and exceeded UAH 2.1 billion. OIBDA margin increased to 52.6%. Operating efficiency was improved thanks to cost optimization and increased revenue from data services.

In the first quarter, Vodafone Ukraine’s net profit increased by 97% compared to the same period last year and exceeded UAH 1 billion. According to the results of the second quarter of 2020, the company’s subscriber base amounted to 19 million, annual fluctuations were -3.2%, which is associated with a decrease in the dynamics of new connections as a result of the partial closure of retail outlets in quarantine. At the same time, there is an increase in the segment of contract and corporate connections, as well as an increase in connected IoT cards.

Source: Vodafone Ukraine