Lifecell reports on Q4 and 2023 in general

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lifecell

The operator lifecell summarizes its financial and operational results for the fourth quarter of 2023 and the whole year. The company demonstrates an increase in financial performance – annualized revenue from continuing operations increased by 24.4%, adjusted EBITDA – by 25.0% on an annualized basis. Also, lifecell’s 3-month active subscriber base increased to 9.9 million.

Financial indicators

Financial data of lifecell   Quarter   Year
4 sq. 22 4 sq. 23 Yearly
% change
2022 2023 Yearly
% change
Income from ordinary activities, UAH million 2,606.8 3,140.4 20.5% 9,411.7 11,712.1 24.4%
Adjusted EBITDA, UAH million 1,505.6 1,840.0 22.2% 5,446.5 6,808.9 25.0%
Adjusted EBITDA margin (%) 57.8% 58.6% 0.8pp 57.9% 58.1% 0.2pp
Profit, UAH million 408.8 885.1 116.5% 972.3 2,567.7 164.1%
Capital investments, UAH million 997.4 1,171.4 17.4% 3,007.6 4,207.1 39.9%

Income from ordinary activities

In 2023, lifecell’s revenue increased by 24.4% year-on-year to UAH 11,712.1 million (compared to UAH 9,411.7 million in 2022). In the fourth quarter of 2023, the operator’s revenue increased by 20.5% to UAH 3,140.4 million (compared to UAH 2,606.8 million in the fourth quarter of 2022). This increase in revenue was mainly driven by ARPU growth and increased consumption of data services.

Adjusted EBITDA and EBITDA margin

For the year, Adjusted EBITDA increased by 25% to UAH 6,808.9 million (compared to UAH 5,446.5 million in 2022). In the fourth quarter of 2023, Adjusted EBITDA increased by 22.2% year-on-year to UAH 1,840.0 million (compared to UAH 1,505.6 million in the fourth quarter of 2022).

At the same time, in 2023, the adjusted EBITDA margin for the year increased by 0.2 points to 58.1%, compared to 57.9% in 2022. In the fourth quarter of 2023, this indicator increased by 0.8 points to 58.6% (compared to 57.8% in the fourth quarter of 2022).

Capital investments

Over the year, capital investments increased by 39.9% to UAH 4,207.1 million compared to UAH 3,007.6 million in 2022. In the fourth quarter of 2023, this figure increased by 17.4% year-on-year to UAH 1,171.4 million (compared to UAH 997.4 million in the fourth quarter of 2022).

Profit

In 2023, lifecell recorded a profit of UAH 2,567.7 million compared to a profit of UAH 972.3 million in 2022. At the same time, in the fourth quarter of 2023, the company’s profit increased by 116.5% to UAH 885.1 million (compared to UAH 408.8 million in the fourth quarter of 2022).

lifecell отримав телеком-нагороду за роботу під час війни

Work during the war

“Last year, lifecell team continued to do everything to keep our subscribers connected. We quickly rebuilt the base stations destroyed by the enemy, expanded the existing coverage, purchased batteries and accumulators to be ready for possible blackouts, and strengthened the protection of our network from cyber attacks,” said Ismet Yazıcı, CEO of lifecell.

According to him, the operator has built, modernized and restored more than 6,500 base stations during the full-scale war. 94% of the network is still operational despite all the difficulties of wartime.

“The result of the dedicated work of our entire team was the growth of our base to 9.9 million active lifecell subscribers at the end of the year, and, accordingly, we grew in all key indicators – revenue from ordinary activities, adjusted EBIDTA and profit. In 2023, the company paid taxes in the amount of UAH 2.7 billion,” the CEO said.

Lifecell also continued to support the defenders of Ukraine by charging them with service packages and providing them with necessary IT and telecom equipment worth over UAH 41 million.

“We are working to provide our subscribers with quality services and, at the same time, contribute to the country’s economic stability every day,” adds Yazıcı.

Operational performance

Operational data of lifecell   Quarter   Year
4 sq. 22 4 sq. 23 Yearly
% change
2022 2023 Yearly
% change
Number of subscribers, mln1 10.2 11.7 14.7% 10.2 11.7 14.7%
 Active (3 months)2 8.5 9.9 16.5% 8.5 9.9 16.5%
148.0 125.9 (14.9)% 156.9 127.8 (18.5)%
ARPU (monthly revenue per user) mixed, UAH 86.0 92.7 7.8% 77.1 88.5 14.8%

Subscriber base

On a year-on-year basis, the active 3-month subscriber base grew by 16.5% to 9.9 million in 2023 (compared to 8.5 million in 2022) due to the expansion of coverage and optimal tariff plans for subscribers.

ARPU and MOU

In 2023, active 3-month ARPU increased by 21.2% year-on-year to UAH 110.9 compared to UAH 91.5 in 2022. At the same time, the 12-month active MOU decreased by 18.5% in 2023 and by 14.9% year-on-year in the fourth quarter of 2023.

lifecell continued to hold the lead in terms of smartphone penetration in the network, which reached 73.9% at the end of the fourth quarter of 2023. As of the end of December, on average, about 97% of lifecell stores were open every day across Ukraine.

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