In October 2008, revenues from the provision of telecommunications services in Ukraine decreased by 2.5% compared to September, falling from UAH 4,007.918 mln to
UAH 3,909.746 mln. This information was released by the State Statistics Committee of Ukraine.
The overall decrease in revenues for telecommunications services occurred as a result of lower revenues for the mobile cell phone segment. Revenues for mobile
telephone operators in October decreased 8.1% MoM to UAH 2,414.611 mln. The share of revenue from this type of telecommunication services, in general, accounted
for 61.8% of all telecom revenues.
In January-October revenues from all forms of telecommunication amounted to UAH 38,114.367 mln.
September revenues from telecommunications services decreased by 0.9% MoM, dropping from UAH 4,043.739 mln to UAH 4,007.918 mln.
In 2007, revenue from all forms of telecommunications amounted to UAH 39,869.797 mln.
Our view:We see this news as NEUTRAL for Ukrtelecom [UTEL UZ, U/R] since the overall drop in revenues for telecommunications service in October was mainly dependent upon
an 8.1% revenue drop for the mobile phone segment.
In revenue terms, the effect on the market share for UTEL, which has a 3G license and as a subsidiary of Ukrtelecom, is negligible. However, Ukrtelecom’s traditional
services have demonstrated positive dynamics in October. Revenue from urban communications rose by 9.8% and domestic long distance (DLD) grew 4.8%. Only rural
communications experienced as slight decreased of 0.3%.
92.79% of the OJSC Ukrtelecom is currently owned by the state, with the other 7.14% held by the company’s staff. We currently have this company under review and
will keep investors posted as to important developments concerning this company as they arise.