Kyivstar boosts profit outlook as confidence rises in Ukraine
Kyivstar Raises Full-Year Outlook Amid Geopolitical Optimism
By Gianluca Lo Nostro and Leo Marchandon
May 13 (Reuters) - Kyivstar on Wednesday raised its full-year outlook after improved energy stability and what its chief executive described as rising geopolitical optimism lifted confidence in Ukraine.
Financial Performance and Upgraded Forecasts
The telecom operator now expects revenue growth in U.S. dollar terms of 11% to 14%, up from a March forecast of 8% to 11%, while earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of core profit, are seen rising 7% to 10% versus an earlier 5% to 8%.
First-quarter EBITDA rose 23.5% from a year earlier to $173 million on revenue of $323 million, up 26.6%.
CEO Comments on Market Sentiment
"We see a certain kind of optimism in the eyes of the people and key geopolitical stakeholders," CEO Oleksandr Komarov said. "We are still, by nature, conservative, taking into account how volatile the external environment is. But at the end we are probably less conservative than we used to be in March."
Consumer Demand and Market Resilience
The upgrade points to steady consumer demand in Ukraine, where operators have kept networks running despite repeated disruption since Russia's invasion.
Expansion Beyond Core Mobile Business
Kyivstar is also pushing beyond its core mobile business.
Artificial Intelligence and 5G Initiatives
Komarov said artificial intelligence products were nearing commercial use, with a first model due at the start of autumn and a larger model for Ukrainian institutions and the government app Diia expected in early 2027. He also said 5G pilot zones would expand to Odesa after trials in Lviv, Kharkiv and Kyiv.
Challenges to Nationwide 5G Rollout
A nationwide rollout is, however, unlikely until at least months after the war due to military constraints, Komarov said.
Integration with European Union
Ukraine joining the European Union single roaming area in January was probably one of the best examples demonstrating Kyiv's efforts to join the EU, he added, as millions of Ukrainians now use Kyivstar SIM cards from within the bloc.
Diversification Through Acquisitions
Kyivstar has expanded beyond telecoms through acquisitions following its 2025 spin-off U.S. listing and now owns ride-hailing, streaming and healthcare businesses in Ukraine.
Additional Information
(1 euro = $1.1733)
(Reporting by Gianluca Lo Nostro and Leo Marchandon; Editing by Matt Scuffham)
