Finance
Ukraine's kyivstar core profit rise 26% driven by digital services
Published by Global Banking & Finance Review®
Posted on March 13, 2026
2 min readLast updated: March 13, 2026
Quick Summary
Kyivstar’s core profit rose ~26% in 2025, propelled by surging digital services now accounting for around 16% of revenue, with EBITDA at €530 million and expecting 12–15% EBITDA growth in 2026.
Ukraine's Kyivstar core profit rises 26% driven by digital services
Kyivstar's 2025 Financial Performance and Digital Transformation
By Leo Marchandon
March 13 - Ukraine's lead telecom operator Kyivstar on Friday reported 2025 core profit up around 26%, driven by growth in digital sales which now make up 16% of its total revenue.
EBITDA Growth and Future Outlook
Its earnings before interests, taxes, depreciation and amortization (EBITDA) came in at 648 million USD. Kyivstar said it expected an EBITDA growth of 12% to 15% in 2026.
Surge in Digital Revenue
Impact of Uklon Acquisition
Digital revenue jumped 467% for the full year to $124 million, boosted largely by the April 2025 acquisition of ride-hailing platform Uklon, which contributed $80 million in revenue. In the fourth quarter alone, digital revenue surged more than sixfold.
Transformation to Digital Service Provider
"We are transforming Kyivstar from a telco service provider to a digital service provider with a telco license," Chief Executive Alexander Komarov told Reuters in an interview. He added that the company's own internally-developed digital applications grew 120% year-on-year.
Innovation and User Engagement
Development of Ukraine's First Large Language Model
Google Partnership and Gemma Framework
Kyivstar said Ukraine's first large language model, currently developed in partnership with Google using the Gemma open-source framework, has a first version expected in Q2 2026. A public naming competition is currently underway through the Diia government app.
Growth in Digital Monthly Active Users
The company's total digital monthly active users reached 15 million by year-end, up 41.6% year-on-year, spanning ride-hailing, healthcare, entertainment and its super-app.
Net Profit and Adjustments
Net profit fell to $124 million from $283 million a year earlier, weighed down by a one-time non-cash charge of $162 million related to the company's stock market listing. Adjusted net profit was broadly flat at $286 million.
(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)
Key Takeaways
- •Digital services are a major growth driver, contributing ~12% of revenue in Q3 2025 following over 500% YoY rise thanks to Uklon acquisition (531% jump to UAH 1.5 bn) (globenewswire.com).
- •Kyivstar's Q3 2025 revenue and EBITDA both grew ~21% YoY (UAH 12.3 bn revenue; UAH 7.1 bn EBITDA), underpinned by digital services and multiplay user growth (globenewswire.com).
- •Strategic initiatives like NASDAQ listing, Starlink Direct‑to‑Cell test, and national LLM development reinforce Kyivstar’s digital expansion and resilience strategy (marketchameleon.com)
References
Frequently Asked Questions about Ukraine's Kyivstar core profit rise 26% driven by digital services
1What drove Kyivstar's 26% core profit rise in 2025?
Kyivstar's core profit increased mainly due to growth in digital sales, which now account for 16% of the company's total revenue.
2How much was Kyivstar's EBITDA in 2025?
Kyivstar reported an EBITDA of 530 million euros in 2025.
3What EBITDA growth does Kyivstar expect for 2026?
Kyivstar expects EBITDA growth of 12% to 15% in 2026.
4Who reported on Kyivstar's earnings results?
The report on Kyivstar's earnings was made by Leo Marchandon in Gdansk.
