Vodafone Ukraine reports on its results for 9 months of 2023. The group of companies almost doubled its investments in the network, while maintaining high business efficiency and strengthening its fixed-line Internet access business. The company continues to actively help the country and the population in the context of a full-scale war.
Financial indicators
Vodafone demonstrates strong growth in all key performance indicators. The company’s revenue for the three quarters of 2023 amounted to UAH 15.9 billion, up 8% year-on-year. OIBDA also showed 8% growth and exceeded UAH 9 billion.
OIBDA margin remains stable due to high business efficiency. Net profit reached UAH 3.8 billion, an increase of 7 times compared to the same period last year, due to a decrease in foreign exchange losses as a result of the NBU’s martial law currency policy (from July 21, 2022, the NBU fixed the exchange rate of the US dollar to the hryvnia).
| Million UAH | 9 months of 2023 | 9 months of 2022 | Dynamics |
| Income | 15 911 | 14 720 | +8% |
| OIBDA | 9 050 | 8 372 | +8% |
| OIBDA, % | 56,9% | 56,9% | 0.0 pp. |
| Net profit | 3 807 | -620 | x7 times |
| Investments | 3 778 | 2 030 | +86% |
Operating activities
The subscriber base remained stable compared to the previous quarter of 2023 at 15.2 million customers. The decrease compared to the third quarter of last year is due to a decrease in the number of mobile users as a result of active hostilities, unavailability of mobile networks in the temporarily occupied territories and in the war zone and mass migration.
Due to the increase in the volume of mobile Internet usage and the number of data users, ARPU increased to UAH 112.4.
Vodafone increased its investments by 86% in 9M2023 compared to the same period last year. The company invested UAH 3.8 billion over three quarters. This allowed the company to continue to repair damaged equipment and overhaul the network affected by the hostilities, as well as to develop and expand its network – 4,800 4G base stations were put on air during the active phase of the war in the country.
Fixed Internet
Vodafone also focuses on developing its fixed-line business. In Q3 2023, Vodafone Group completed the acquisition of Frinet, which provides fixed-line Internet access services under the O3 brand. The acquisition is part of Vodafone Ukraine’s strategy to develop converged services and tariffs.
The Group is actively developing its previously acquired asset, Vega. GPON technology is a priority for development, so the company is actively expanding its coverage.
Vodafone was one of the first to resume GPON construction in the first months of the Russian invasion. In 2022, the company put into operation 1072 new zones in Kyiv, Vyshneve, Dnipro, Lviv, Kharkiv, Zaporizhzhia, Odesa and Chornomorsk, providing access to energy-efficient internet for 150 thousand households. Since the beginning of 2023, the company has covered 2,273 buildings with GPON network, connecting 322,000 apartments and offices.
In September 2023, the company connected 130% more fixed-line subscribers compared to the same period in 2022. An important aspect of growing demand and developing the subscriber base is ensuring reliable Internet access even during power outages.
Taking into account the purchase of batteries, generators, fuel, construction of new GPON zones, modernization and restoration of equipment and networks since the beginning of the hostile invasion, the company has already invested over UAH 245 million in the resilience of its fixed network.
