Ukraine's Ukrtelecom reports 49% fall in net profit in Jan-Sept 2016

Ukraine's Ukrtelecom reports 49% fall in net profit in Jan-Sept 2016Public joint-stock company Ukrtelecom saw a 49% fall in net profit in January-September 2016, reaching UA 249 million, the financial operator said in a report presented at a press conference in Kyiv on Tuesday.

Revenue fell by 0.5% over the period, to UAH 4.98 billion.

"Amortization payments in the company considerably grew after the revaluation of fixed assets which value grew from UAH 6.7 billion to UAH 11.2 billion. If the fixed asset value was at the level of lsat year, we would have seen net profit of around UAH 600 million today," Ukrtelecom Director Yuriy Kurmaz said.

Read also: Boryspil airport's net profit rises 2.2-fold to UAH 1.026 bn in Jan-Sept

Capital investment over the period grew by 74.4%, to UAH 193 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 2.6 percentage points, to 27.1%. Kurmaz said that the indicators fell due to the factor that does not depend on the company's operations.

"The key factor influencing the decline of absolute EBITDA is the debt of the state for the provision of services to the public entitled with benefits. The debt for these services today is around UAH 150 million," he said.

The company also said that as of late Q3 2016 the company services around 4,600 lines of "cloud automatic telephone station." This was 9 times more than a year ago.

"Revenue from Internet, Interactive TV and cloud services are growing," Kurmaz said.
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