«Kcell has remained on a positive trajectory of the previous year and delivered strong operational and financial results in Q3 of this year. Net sales increased by 6.1 percent to KZT 41,121 million (Q3 2018: 38,758). In the third quarter, EBITDA (excluding non-recurring items) also showed significant growth by 34.3 percent to KZT 17,957 million (Q3 2018: 13,370)» — noted Kaspars Kukelis, Chief Executive Officer and Chairman of the Management Board of Kcell JSC.
The Company’s operating profit, excluding non-recurring items, during the period increased by 57.6 percent to KZT 10,419 million (Q3 2018: 6,610) and net profit increased to KZT 10,907 million (Q3 2018: 1,393). The net profit increase was mainly due to the reversal of the provision for additional taxes and related fines in the amount of KZT 5,069 million. Revenue growth during the quarter was primarily driven by improved pay as you go (PAYG) billing for bundled offers, the introduction of new tariff plans with unlimited access to social media, and an increasing number of subscribers transitioning to the tariff plans offering more content.
«Since the transaction, we have jointly managed to improve both corporate governance and financial performance. Naturally, the qualitative changes entailed the growth of the subscriber base, which means that our customers also felt positive changes in the processes that were taking place. We plan to continue to work to improve the quality of communication, after-sales service and increase customer satisfaction. Another strategic objective is the creation of an integrated data network, thanks to which the opportunities for implementing a number of ambitious projects in the country will increase» — noted Kuanyshbek Yesekeyev, Chairman of the Management Board of Kazakhtelecom JSC.
The customer base in Q3 was 8.4 million users as a result of the successful implementation of our strategy to transition from quantity driven distribution to value driven acquisition.
«ARPU rose 19% during the third quarter. This trend has been primarily driven by the number of subscribers now opting for bundled offers, which now account for over a half of our total subscriber base. We have now launched our new strategy, which will leverage the developments in the ownership structure of the Group, our market leading technology and our leading market position.
The strategy will ensure that we maintain our number one position across all our operations, with diversified product portfolios that meet the ever-evolving needs of all customer segments. We will continue to identify synergies across the entire group whilst we further develop our handset sales business and drive the monetization of data. We are also renewing our focus on areas where there is clear potential for substantial growth, including mobile financial services, big data and the introduction of 5G infrastructure and services.
We look forward to delivering further improvements in our performance as we continue to enhance our efficiency and develop innovative, customer-centric products and services» — noted Kaspars Kukelis.
Revenue growth in our B2B operations was notably strong, with an 18.1% increase year-on-year, mainly driven by a 28.9% rise in business solutions. The contribution to total revenue from our B2B operations now amounts to 12%.
In the third quarter, data revenue increased by 18.6 percent to KZT 13,471 million (Q3 2018: 11 356), data traffic grew by 31.3 percent to 81.4 petabytes (PB) (Q3 2018: 62.0 PB).
Company Overview
Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass-market subscribers. The Company offers its services through its extensive, high quality network, which covers substantially all of the populated territory of Kazakhstan.
In December 2012, Kcell successfully completed its offering of GDR’s on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share. The offering consisted of 50 million shares, which represent 25 percent of Kcell’s share capital.
On 21 December 2018, Kazakhtelecom JSC acquired the 75 percent stake in Kcell held by Telia Company and Fintur Holdings B.V.
Kcell plans to continue investing in the deployment of its 3G/4G network to expand coverage and to introduce high quality services. Kcell aims to provide high quality services at competitive prices, expand its offering of products and services, while maintaining the high quality of its network and enhancing its brand value.
For more information, contact:
8 /7272/582-755,1905, www.kcell.kz, www.activ.kz, pressa@kcell.kz