Kcell is to begin refunding Kcell brand subscribers

 

Almaty, 21 July 2015 - JSC "Kcell" ("Kcell" or the "Company") (LSE, KASE: KCEL), the leading operator in the telecommunications market of Kazakhstan in terms of revenues and subscriber base, announces that it is to start refunding its Kcell brand subscribers.

Despite the fact that the Supreme Court of the Republic of Kazakhstan confirmed Kcell's right to interrupt or not to interrupt connection (voice and Internet access) when a Kcell brand customer's balance reaches zero, the Antimonopoly Agency's ruling has not been cancelled. Kcell, therefore, has started to refund its customers for non-interruption of services.

The Company is currently refunding Kcell brand subscribers for the period from January 2012 to September 2013. These customers will be notified about the refund via SMS. Individuals who are not currently subscribed to the Kcell brand services will be informed in writing.

Kcell voluntarily decided to refund its subscribers for the subsequent period.

This refund does not apply to Active brand subscribers. When an Active brand customer's balance reaches zero, connection is automatically terminated.

Since the Kcell brand subscribers are being refunded for the services rendered, the Company's tax liabilities towards the state budget will be reduced by approximately KZT 1 billion.

Enquiries:

Kcell

 

Investor Relations

 

Irina Shol

Tel: +7 727 2582755 ext. 1205

Investor_relations@kcell.kz

Media

Natalya Eskova

Теl: +7 727 2582755

Pressa@kcell.kz

   

International Media

 

Instinctif Partners

Tel: +44 207 457 2020

Leonid Fink, Galyna Kulachek, Kay Larsen

 

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 a sale by TeliaSonera of 50 million shares, which represent 25 percent of Kcell's share capital. TeliaSonera holds directly and indirectly 61.9% of the Company's common shares.

Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.