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What were the key takeaways from Kyivstar’s earnings call?

- **Revenue Surge**: 21% YoY growth, with digital services contributing 12% of total revenue, driven by Uklon consolidation.
- **Multiplay Dominance**: 32% of users now multiplay, generating 45% of revenue and reducing churn to 9.9%.
- **Starlink Innovation**: Free direct-to-cell service pilot launched, targeting 16,000 users, with commercialization in 2026.
- **AI Leadership**: Developing Ukraine’s first national LLM, set for Q4 release, enhancing digital services.
- **Cash Strength**: $472M cash on hand, $373M LTM free cash flow, no external debt.
- **Growth Targets**: 24-27% revenue growth, 23-26% EBITDA growth for 2025, with 30-33% CapEx intensity.

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue rose 21% YoY to UAH 12.3 billion ($297 million), driven by telecom and digital services. Digital revenue surged 5x to 12% of total, with Uklon contributing UAH 1 billion in Q3.
- **Digital Expansion**: Multiplay users (using telecom + digital services) grew 29% YoY to 6.6 million, accounting for 32% of mobile users and 45% of revenue. Key digital verticals include ride-hailing (Uklon), health (Healthy), and enterprise solutions.
- **Strategic Initiatives**: 
  - **Starlink Direct-to-Cell**: Completed technical tests, launching a 16,000-user pilot in Q4, with free service for 1 year.
  - **Ukrainian LLM**: Developing a national AI model with the Ministry of Digital Transformation, targeting Q4 release.
  - **Network Resilience**: Invested in 3,600 generators and 240,000 batteries to enhance coverage amid conflict.

**【CFO Financial Commentary】**
- **Profitability**: EBITDA climbed 21.5% YoY to UAH 7.1 billion ($171 million), with a 57.6% margin (up 300bps YoY). Adjusted net profit was $73 million (excluding $162M listing charge).
- **Cash Flow**: Generated $174M free cash flow in Q3, with LTM free cash flow of $373M. Ended Q3 with $472M cash, no external debt.
- **CapEx**: LTM CapEx intensity 29.1% ($89M Q3), driven by network modernization and digital platform investments.

**【Q&A Highlights】**
- **Churn Improvement**: Annualized churn dropped to 9.9% (from 16.2% YoY), attributed to multiplay engagement and digital service cross-sell.
- **Uklon Performance**: Generated UAH 378M EBITDA (36.8% margin) in Q3, with 42.2M rides booked (+13% YoY). Uzbekistan expansion underway.
- **Starlink Monetization**: Free service for 1 year, with commercialization strategy to be determined post-pilot.
- **M&A Strategy**: Prioritizing digital ecosystem acquisitions (e.g., health, fintech, e-commerce) and alternative energy investments.
- **2025 Outlook**: 24-27% YoY revenue growth, 23-26% EBITDA growth, and 30-33% CapEx intensity.


Kyivstar Group Ltd (KYIV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KYIV

KYIV fundamentals

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