Q2 2026 Kyivstar Group Ltd Earnings Call Transcript
Key Points
- Revenue grew 19% year-over-year to $339 million, with digital revenue surging 83% to $74 million, now 21.7% of total revenue.
- EBITDA increased nearly 14% to $188 million, with healthy margins in both telecom (59%) and digital (42%) segments.
- Equity free cash flow grew 32% to $104 million, and the company raised its full-year guidance for the second time in 2025.
- Multiplay customers grew 24% to 8.1 million, generating 50% higher ARPU ($5.80 vs. $3.90) and lower churn.
- Strategic acquisitions (solar plants, Tabletki.ua, E-wings) and partnerships (Starlink Direct-to-cell) are expanding the ecosystem and hedging energy costs.
- Mobile subscriber base declined nearly 3% year-over-year to 21.8 million due to double-SIM cleanup and demographic pressures.
- Net profit fell 6% to $77 million, impacted by a $21 million non-cash fair value charge on listed warrants.
- Digital EBITDA margin dipped to 42% from 44% due to investments in new services.
- Underlying mobile revenue growth slowed to about 5% in Q2, with sequential ARPU increases decelerating.
- The company faces ongoing geopolitical and macroeconomic risks, including currency volatility and the impact of war on operations.
Good afternoon, good morning. Thank you for joining us to discuss Kyivstar Group's or Kyivstar's first-quarter (sic - second-quarter) results. First, we're going to pass off to our moderators to provide you a few introductory instructions and then we'll return to the table.
Hello, and welcome to Kyivstar's 2Q '26 results presentation. (Operator Instructions) As a reminder, this conference is being recorded today. (Operator Instructions)
Cole Akeson, you may begin.
Thank you. As noted, I am Cole Akeson, Group Director for Kyivstar Investor Relations. Joining me today are Executive Chairman, Kaan Terzioglu; CEO, Oleksandr Komarov; CFO, Taner Kızıltoprak, and Anand Ramachandran, the Chief Corporate Development Officer for VEON. Before we begin, please note the date for your calendars. We will be hosting our first Capital Markets Day on November 16 in New York City.
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