Vodafone Ukraine increased income and investments in H1 2023

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Vodafone Ukraine

Vodafone Ukraine reports on its performance in the first half of 2023. The company shows growth in most of the key operational indicators. The company’s revenue in the first half of 2023 amounted to 10.4 billion hryvnias, which is 5% more compared to the same period last year.

Despite the impact of the war, the company increased its investments in the network by 75% compared to the first half of last year. In doing so, the efficiency of the business remains at a stable level with a tendency to grow. The OIBDA indicator for the first six months of 2023 amounted to 5.9 billion hryvnias, which is +3% compared to last year’s indicators for the same period. The OIBDA margin indicator remains stable – at 57%, the decrease is 1 pp.

Vodafone’s net profit in the first half of 2023 amounted to almost 2.3 billion hryvnias. The increase in the indicator by 242% compared to the same period last year is due to a decrease in losses from exchange rate differences as a result of the NBU’s currency policy in conditions of martial law (from July 21, 2022, the NBU fixed the exchange rate of the US dollar to the hryvnia).

The subscriber base in the second quarter of 2023 compared to the 1st quarter of 2023 remains stable – 15.2 million customers. The decrease by 8% compared to the 2nd quarter of last year is due to a decrease in the number of mobile phone users due to active hostilities, unavailability of mobile networks in temporarily occupied territories and in areas of hostilities and mass migration.

More than 2 million of them remain abroad and continue to use Vodafone services. At the beginning of 2023, Vodafone extended the validity of a special offer – in most Vodafone tariffs, free connection to the “Affordable roaming” service is available. Within the service, 10GB of mobile Internet and 100 minutes for calls with subscribers in Ukraine and in the country of stay are available subject to payment of a Ukrainian package of services.

Million UAH 1H23 1H22 Dynamics
Income 10,404 9,916 +5%
OIBDA 5,934 5,764 +3%
OIBDA, % 57% 58,1% -1.1 п.п.
Net income/loss 2 266 663 +242%
Investment 2,231 1,276 +75%

The company’s ARPU also increased to 108.4 hryvnias per month as a result of growth in penetration of mobile Internet and volumes of use.

Vodafone increased its capital investments by 75% – in the first half of 2023 they amounted to 2.2 billion hryvnias. Thanks to this, Vodafone engineers restored destroyed infrastructure, quickly repaired equipment, developed and expanded the network, and also prepared infrastructure for possible power outages in winter.

To create a sufficient reserve of electricity, more than 9,000 base stations were retrofitted with new battery packs. Batteries of a new type are adapted to harsh operating conditions, less sensitive to voltage fluctuations in the network and frequent power outages, and have a charging speed that is 2.5-3 times higher than batteries that were used earlier.

To ensure emergency power supply, the company additionally equipped 1,124 nodal technical facilities with backup power using stationary generators. Additionally, 522 mobile generators are prepared. The company has created a sufficient reserve of diesel fuel and gasoline for generator operation and established backup logistics channels for fuel supply. The company’s power engineers are testing new solutions, alternative energy sources such as solar power plants and microturbine generators are already used at some facilities.

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