Ukraine's Kyivstar raises outlook as digital business surges despite ongoing war
on Google
Ukraine's largest telecom operator Kyivstar said it expects to earn more revenue this year after reporting strong growth in mobile and digital services.
Kyivstar now expects its revenue to grow by 15%–17% this year, up from its original forecast of 14%–16%. Its revenue reached $349 million in the third quarter, up 17.5% from a year earlier, according to its quarterly financial results.
The company also reported a 10.3% increase in third-quarter operating profit to $189 million.
Kyivstar, which last year was the first Ukrainian company to list on Nasdaq, has moved away from being a traditional mobile operator by expanding into digital services, including ride-hailing, health care and cloud technology. The move has helped the company build new sources of revenue at a time when Russian attacks continue to threaten Ukraine's infrastructure.
Its digital services business recorded the fastest growth, with revenue jumping nearly 69% to $76 million, the company said in a press release on Nov. 6. Services such as ride-hailing and online health care now account for more than one-fifth of Kyivstar’s total revenue, showing how the company is expanding beyond mobile services.
One of Kyivstar’s key digital businesses is Uklon, a Ukrainian ride-hailing and delivery platform, which it acquired last year. Uklon has been expanding both at home and abroad: in September, Uklon launched in four additional Ukrainian cities, while in August it announced plans to enter five cities in Uzbekistan’s Fergana Valley.
Kyivstar is also expanding its technology services for businesses, building on its planned acquisition of Ukrainian cloud provider GigaCloud for nearly $50 million.
The company’s expansion is taking place amid continued Russian attacks on Ukraine’s infrastructure. CEO Oleksandr Komarov told Reuters that Kyivstar’s infrastructure had been directly hit in recent Russian attacks, but emergency measures prevented interruptions to services. In its quarterly results announcement, Komarov said: "Our network stayed online even in the most demanding conditions."
Kyivstar is also planning for continued uncertainty. Komarov said Kyivstar does not expect the war to end in the near future and has not included an end to the conflict in its 2027 business plans.
The company has yet to release its financial forecast for next year.
