Vodafone Ukraine results in Q1 2023

Vodafone Ukraine reports on its performance in the first quarter of 2023. Costs associated with the war – emergency work on the network, assistance to the country and clients, mass migration of clients abroad – significantly affected the dynamics of key financial indicators compared to Q1 2022.

However, Vodafone Ukraine continues to maintain business stability. Despite the impact of the war, the company increased investments in the network by more than three times compared to Q1 2022. At the same time, business efficiency remains stable.

The company’s revenue in Q1 2023 amounted to UAH 5.1 billion. The decrease by 2% compared to the same period last year is due to a decrease in the number of mobile communication users – due to active hostilities, unavailability of mobile communication networks in temporarily occupied territories and in the combat zone and mass migration. Compared to Q4 2022, the subscriber base remains stable – 15.4 million subscribers use Vodafone Ukraine services.

More than 2.2 million of them remain abroad and continue to use Vodafone services. In Q1 2023, Vodafone extended the validity of a special offer – most Vodafone tariffs include free access to “Affordable Roaming”. The service includes 10GB of mobile internet and 100 minutes for calls with subscribers in Ukraine and in the country of stay provided that a Ukrainian package of services is paid.

OIBDA amounted to UAH 2.85 billion, down 3% compared to last year’s quarterly figures. The OIBDA margin remains stable at 55.8%, with a decrease of less than 1 percentage point. Vodafone’s net profit in the first quarter of 2023 exceeded UAH 1 billion. The doubling of the indicator compared to the same period last year is due to a decrease in expenses from exchange rate differences due to the NBU’s currency policy in conditions of martial law (since July 21, 2022, the exchange rate of the US dollar to the hryvnia has been fixed).

 The company’s ARPU also increased to UAH 104 per month due to the growth of mobile internet penetration and usage volumes. Vodafone increased its capital investments by 3.3 times – in the first quarter of 2023 they amounted to UAH 1.25 billion. Thanks to this, Vodafone engineers restored destroyed infrastructure, promptly repaired equipment, developed and expanded the network

Million UAH	1Q22	1Q23	Dynamics
Income	5 183	5 103	-2%
OIBDA	2 937	2 845	-3%
OIBDA, %	56.7%	55.8%	-0.9 п.п.
Net income/loss	515	1 037	+101%
Investment	376	1 246	+231%