Interim Results for January – September 2018

Almaty, 19 October 2018 – Kcell Joint Stock Company (“Kcell” or the "Company") (LSE,
KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan, announces its interim results for January – September 2018.

Third quarter

  • Net sales increased by 3.8 percent to KZT 38,970 million (37,549). Service revenue decreased to KZT 33,668 million (34,695).
  • EBITDA, excluding non-recurring items, was stable at KZT 14,593 million (14,626). EBITDA margin of 37.4 percent (39.0).
  • Operating income, excluding non-recurring items, decreased by 11.9 percent to KZT 7,875 million (8,943).
  • Net financial items decreased to KZT -2,181 million (-2,267).
  • Net income decreased by 22.7 percent to KZT 3,007 million (3,889).
  • Free cash flow decreased to KZT 3,762 million (3,986).
  • During the quarter, the Company’s subscriber base declined to 9,234 thousand (10,062). This was due to higher churn of inactive promo SIM cards as a result of the revised strategic priorities - moving from quantity driven distribution to value driven acquisition.

Nine-month period

  • Net sales grew by 2.2 percent to KZT 111,659 million (109,262). Service revenue down 2.8 percent to KZT 98,000 million (100,848).
  • EBITDA, excluding non-recurring items, decreased by 3.5 percent to KZT 39,974 million (41,427). EBITDA margin of 35.8 percent (37.9).
  • Operating income, excluding non-recurring items, down 16.5 percent to KZT 20,354 million (24,376).
  • Net financial items decreased to KZT -6,346 million (-6,911).
  • Net income increased by 10.3 percent to KZT 9,380 million (8,506).
  • Free cash flow decreased to KZT 4,103 million (8,190).

The number of subscribers decreased by 767 thousand year-on-year (10,001)