Year-end Report January-December 2013


Almaty, January 30,  2014 - Kcell Joint Stock Company (“Kcell” or the "Company") (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces its results for January-December 2013.

Fourth quarter

• Revenue increased by 1.3 percent to KZT 49,526 million (48,900).

• EBITDA, excluding non-recurring items, rose by 8.9 percent to KZT 28,598 million (26,254). The EBITDA margin increased to 57.7 percent (53.6).

• Operating income, excluding non-recurring items, increased by 12.1 percent to KZT 22,851 million (20,379).

• Net finance cost decreased to KZT 434 million (601).

• Net income 15.9 percent higher at KZT 18,264 million (15,756).

• Free cash flow increased to KZT 19,773 million (18,361).

Full year

• Revenue increased by 3.1 percent to KZT 187,599 million (182,004).

• EBITDA, excluding non-recurring items, was up by 3.3 percent to KZT 104,727  million (101,426). The EBITDA margin increased to 55.8 percent (55.7).

• Operating income, excluding non-recurring items, increased by 3.8 percent to KZT 81,600 million (78,645).

• Net finance cost increased to KZT 2,119 million (516).

• Net income increased by 2.5 percent to KZT 63,392 million (61,828).

• Free cash flow grew to KZT 80,743 million (61,203).

• Subscriber base increased by 845 thousand to 14.3 million.


Full version of Year-end Report January-December 2013 is located on the following link:


Comments by Ali Agan, CEO

“We are delighted to report results for Kcell’s first full financial year since listing the Company at the end of 2012 in London and Almaty. I am pleased to announce that we have delivered on all the performance indicators we outlined at the time of the IPO.

We have maintained our leading market position and have again recorded an increase in our subscriber base, in the face of an increasingly competitive domestic market and a tough regulatory framework. We have also seen further revenue growth, driven by demand for our data services as the rollout of the 3G network continues. Despite strong pricing pressure, we have also sustained an EBITDA margin at a sector-leading level of more than 55%.

The successful provision of attractive and accessibledata services to drive revenue and subscriber growth remains a key strategic focus for Kcell in the current financial year. At the same time, we are reviewing our operations on an ongoing basis to ensure that sustainability underpins and informs our activities across all areas of business.

In 2014 and beyond, Kcell will continue to develop new products and innovative services as we continue to fulfil the constantly shifting requirements of our customers.”