Results for January – March 2014


 

Almaty, April 23,  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 interim results for January – March 2014.

First quarter

  • Revenue increased by 2.4 percent to KZT 44,107 million (43,053).
  • EBITDA increased by 8.2 percent to KZT 25,673 million (23,728). The EBITDA margin increased to 58.2 percent (55.1).
  • Operating income grew by 10.6 percent to KZT 19,855 million (17,956).
  • Net finance cost decreased to KZT 280 million (612).
  • Net income increased by 14.5 percent to KZT 15,635 million (13,656).
  • Free cash flow rose to KZT 17,988 million (11,026).
  • The Company has made subscriber base clean up with the net effect -789 thousand.

 

Financial highlights

KZT in millions, except key ratios,
per share data and changes

Jan-Mar

2014

Jan-Mar

2013

Chg

(%)

Jan-Dec

2013

Revenue

  44,107

  43,053

2.4

187,599

EBITDA

  25,673

  23,728

8.2

104,727

Margin (%)

58.2

55.1

 

55.8

Operating income

19,855

17,956

10.6

81,600

Net income attributable to owners of the parent company

15,635

13,656

14.5

63,392

Earnings per share (KZT)

78.18

68.28

14.5

316.96

CAPEX-to-sales (%)

5.4

12.3

 

12.2

Free cash flow

17,988

11,026

 

80,743

In this report, comparative figures are provided in parentheses following the operational and financial results and refer to the same item in the first quarter of 2013, unless otherwise stated.

Comments by Ali Agan, CEO

“I am delighted to report a strong set of results for the first quarter of 2014. During the period, we delivered further revenue growth, with demand for data services continuing to increase as we make further progress in the rollout of the 3G network. A decline in voice revenue, in line with global industry trends, was offset by a significant increase in data revenue during the quarter.

We have again delivered strong profitability in a challenging operating environment. The Company has maintained its industry leading EBITDA margin in the face of strong pricing pressure, owing to our continued focus on cost discipline.

We are pleased that the recent court case regarding Daytime Unlimited tariff plan has now resulted in Kcell facing a substantially lower fine than had initially been proposed. 

Throughout the current financial year, we will focus on further developing our product and service offering to meet the needs of our customers and drive revenue and subscriber growth.”

Conference call

Kcell will host an analyst conference call on 23 April 2014 at 10:30 UK time / 15:30 Almaty / 13:30 Moscow. The conference will be held in English, audio webcast will be available at:

http://www.audio-webcast.com/cgi-bin/visitors.ssp?fn=visitor&id=2242

 

Dial in details are as follows:

UK Free Call Dial In:

Standard International Dial-in:

Russia Local Call number:

USA Free Call Dial-in:

0800 358 5263

+44 207 190 1596

+7 495 662 57 93

+1 877 941 6013

USA Dial-In:

Conference ID

+1 480 629 9822

4679741

A presentation will be available on the Company website shortly before the conference call on www.investors.kcell.kz./en

A replay will be available at: http://kcell230414-live.audio-webcast.com

 

Enquiries:

Kcell

 

Investor Relations

 

Irina Shol

Tel: +7 727 2582755 ext. 1205

Investor_relations@kcell.kz

 

 

Media

Natalya Eskova

 

Tel: +7 727 2582755

Pressa@kcell.kz

International Media

 

Instinctif Partners

Tel: +44 207 457 2020

Leonid Fink, Tony Friend,

Kay Larsen, Galyna Kulachek

 

Full version.