March 13 - Ukraine's lead telecom operator Kyivstar on Friday reported core profit up around 26% across 2025, driven by growth in digital sales which now make up 16% of the company's total revenue.
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)
