Ukraine's Kyivstar lifts outlook as digital business gathers pace

On November 6, Ukraine's largest telecom operator, Kyivstar, raised its annual revenue guidance, attributing the increase to robust demand for mobile services and the rapid expansion of its digital services sector. Despite the ongoing conflict, the Nasdaq-listed company did not anticipate the end of the war. Kyivstar's third-quarter revenue grew by 17.5% to $349 million (S$447.06 million), and EBITDA increased by 10.3% to $189 million.

CEO Oleksandr Komarov informed Reuters that Kyivstar's infrastructure was targeted in recent Russian attacks, but the company's mitigation measures prevented any disruption to services. He mentioned that the primary change in Kyivstar's network was the shutdown of its 3G service, a process that took nearly three years to complete.

Over 70% of the company's data customers have transitioned to the newer network. Digital services revenue surged 68.9% to $76 million in the quarter, accounting for 21.7% of the group's total revenue and boasting an EBITDA margin of 40.7%.

Komarov stated that the margin decline was primarily due to investments in the modern mobility unit, including the Uklon ride-hailing service, which is expanding into delivery and travel. However, he clarified that the company's 2027 revenue forecast did not factor in the war's conclusion, as they tend to be conservative with their predictions.

He did not disclose the outlook for 2027 yet. When asked about Kyivstar's first year on Nasdaq, Komarov considered it to be highly successful, although the stock's valuation was influenced more by risk appetite than actual results.