29 Apr 2020 07:00
Kcell JSC
Results for January - March 2020
Almaty, 29 April 2020 - Kcell Joint Stock Company ("Kcell" or the "Company") (LSE, KASE: KCEL; AIX: KCEL, KCEL.Y), the leading provider of mobile telecommunications services in Kazakhstan, announces its interim results for January - March 2020.
First quarter
· Net sales increased by 13.9 percent to KZT 40,062 million (35,180). Service revenue up 9.4 percent to KZT 34,620 million (31,654).
· EBITDA, excluding non-recurring items, increased by 13.6 percent to KZT 15,846 million (13,952). The EBITDA margin was 39.6 percent (39.7).
· Operating income, excluding non-recurring items, grew by 30.8 percent to KZT 8,098 million (6,192).
· Net finance cost increased by 12.1 percent to KZT 2,309 million (2,059).
· Net income was KZT 5,354 million compared to a net loss of KZT 8,751 million in the first quarter 2019 due to the termination of the Network Sharing Agreement by KaR-Tel LLP, resulting in a KZT 14,552 million penalty reported as a non-recurring item.
· CAPEX-to-sales ratio of 6.5 percent (6.1).
· Free cash flow decreased to KZT 3,112 million (7,268).
· During the quarter, the subscriber base declined by 283 thousand to 7,992 thousand (8,275), as a result of moving from quantity driven distribution to value driven acquisition.
Financial highlights
KZT in millions, except key ratios,per share data and changes | Jan-Mar 2020 | Jan-Mar 2019 | Chg(%) | Jan-Dec 2019 |
Revenue | 40,062 | 35,180 | 13.9 | 156,657 |
of which service revenue | 34,620 | 31,654 | 9.4 | 137,564 |
EBITDA excl. non-recurring items | 15,846 | 13,952 | 13.6 | 63,533 |
Margin (%) | 39.6 | 39.7 |
| 40.6 |
Operating income | 8,203 | -8,360 |
| 22,814 |
Operating income excl. non-recurring items | 8,098 | 6,192 | 30.8 | 33,393 |
Net income attributable to owners of the parent company | 5,354 | -8,751 |
| 10,117 |
Earnings per share (KZT) | 26.8 | -43.8 |
| 50.6 |
CAPEX-to-sales (%) | 6.5 | 6.1 |
| 12.9 |
Free cash flow | 3,112 | 7,268 | -57.2 | 16,443 |
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 2019, unless otherwise stated.
Comments by Kaspars Kukelis, Chairman of the Management Board, CEO
"Since the start of 2020 we have entered unprecedented and extremely challenging times that have impacted the entire global community. Since 16 March 2020 Kazakhstan has been operating under emergency measures, including quarantine in major cities. This situation has highlighted the key role of communications infrastructure in supporting and enhancing economic activity, social cohesion and public mental health, and Kcell has undertaken a range of initiatives in order to support our key frontline workers as well as our society as a whole.
Whilst government measures to combat the Covid-19 pandemic impacted the second half of March, our financial performance during the first quarter was very robust, on the back of a strong 2019. Net sales increased by 13.9 percent to KZT 40,062 million, whilst service revenue rose 9.4 percent to KZT 34,620 million. Enterprise revenue growth was notably strong, up 34.0 percent to KZT 5,263 million, driven by strong demand for business solutions.
Profitability also increased with EBITDA, excluding non-recurring items, rising 13.6 percent to KZT 15,846 million, whilst the EBITDA margin was broadly stable at 39.6 percent.
ARPU rose 18.9 percent, boosted by the improved quality of our subscriber base as a growing number migrated to new offers with expanded content. This included a higher number of subscribers with fixed contracts, due to increasing volumes of devices sold through our online shops.
Handset sales grew 54.3 percent, with improved stock management processes facilitating far greater stock availability, in tandem with careful price monitoring, aggressive marketing campaigns and attractive tariff plans offering unlimited access to social networks.
The Board of Directors has recommended an annual dividend in the amount of KZT 9 billion, or KZT 45 per ordinary share and per Global Depositary Receipt (GDR), representing 55 percent of the Company's free cash flow for the twelve months ended 31 December 2019.
Since the start of the quarantine period, we have also focused on supporting our society and providing the tools to assist our customers as we all grapple with the personal and professional challenges that the pandemic has created.
Kcell has introduced free calls and internet traffic for medical professionals. We have also provided all our customers with free access to more than 400 e-learning web sites, to online book, movie and TV entertainment services and to online banking services mobile applications. In addition, we have granted bonus minutes and free roaming data for those subscribers who have not been able to return to Kazakhstan as a result of the current state of emergency. We also provided uninterrupted mobile service when subscribers' balance reaches zero. From early days of quarantine in Kazakhstan we urged our customers to remain home by displaying the slogan UYDEBOL (meaning "stay home" in Kazakh). Our initiatives were clearly communicated across all digital touchpoints, emphasizing our overarching message "Stay home, Kcell is at your service".
The current quarantine in Kazakhstan's major cities has had a significant impact on the level and scale of business activity. However, with the situation still ongoing it is not possible to assess the real impact of the pandemic on the longer term performance of Kcell.
Whilst we maintained our momentum in the first quarter of the year, the outcome for the remainder of 2020 remains uncertain. However, we will continue to pursue digital and self-service approach, with a clear focus on delivering innovative, high quality products and services. Thus, on the 18th of April, Kcell has introduced Simkomats, self-service terminals, that provide remote services such as new SIM, SIM change, top-up and E-SIM using biometrical ID scan. We will continue to do all we can to support the communications needs of our customers and our society during these unprecedented and challenging times."
Almaty
29 April 2020
CONFERENCE CALL
Kcell will host an analyst conference call on 29 April 2020 at 12:00 London time / 14:00 Moscow / 17:00 Almaty. The conference call will be held in English:
Dial in details are as follows:
UK: +44 203 984 9844
US: +1 718 866 4614
Russia: +7 495 283 98 58
Passcode: 411747
Web dial in: https://mm.closir.com/slides?id=411747
A presentation will be available on the Company website shortly before the conference call on investors.kcell.kz./en
Enquiries:
Kcell |
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Investor Relations |
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Irina Shol | Tel: +7 727 2582755 ext. 1002 Investor_relations@kcell.kz |
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International Media |
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Instinctif Partners | Tel: +44 207 457 2020 |
Kay Larsen, Galyna Kulachek |
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REVIEW OF THE FIRST QUARTER 2020
Net sales
Net sales increased by 13.9 percent to KZT 40,062 million (35,180). Service revenue up 9.4 percent to KZT 34,620 million (31,654).
Voice and other services
Revenue from voice and other services increased by 8.0 percent to KZT 19,279 million (17,851).
Enterprise revenue increased by 34.0 percent to KZT 5,263 million (3,927).
Data service revenue
Data revenue increased by 16.6 percent to KZT 13,787 million (11,822). Data traffic increased by 35.1 percent to 101.2 petabyte (PB) (74.9).
Value-added service revenue
Revenue from value-added services was down 21.6 percent to KZT 1,554 million (1,981).
Handset sales
Handset sales increased by 54.3 percent to KZT 5,442 million (3,526).
KZT in millions, except percentages | Jan-Mar 2020 | % oftotal | Jan-Mar 2019 | % oftotal |
Voice and other services | 19,279 | 48.1 | 17,851 | 50.7 |
Data services | 13,787 | 34.4 | 11,822 | 33.6 |
Value added services | 1,554 | 3.9 | 1,981 | 5.6 |
Handset sales | 5,442 | 13.6 | 3,526 | 10.0 |
Total revenues | 40,062 | 100.0 | 35,180 | 100.0 |
EXPENSES
Cost of sales
Cost of sales up by 9.5 percent to KZT 28,504 million (26,024), mainly due to an increase in sales of devices.
Selling and marketing expenses
Selling and marketing expenses increased by 21.8 percent to KZT 772 million (634), largely as a result of higher marketing expenses.
General and administrative expenses
General and administrative expenses increased by 16.4 percent to KZT 2,189 million (1,880), mainly due to an increase in headcount.
EARNINGS, FINANCIAL POSITION AND CASH FLOW
EBITDA, excluding non-recurring items, increased by 13.6 percent to KZT 15,846 million (13,952). The EBITDA margin was 39.6 percent (39.7).
Net finance cost increased by 12.1 percent to KZT 2,309 million (2,059).
Income tax expense was KZT 2,337 million compared to tax benefit of KZT 1,670 million in the first quarter 2019 due to the recognition of a deferred tax asset on the tax loss carried forward as a result of the accrual of a fine on the termination of the Network Sharing Agreement with KaR-Tel LLP.
Net income was KZT 5,354 million compared to a net loss of KZT 8,751 million in the first quarter 2019, mainly due to the recognised penalty of KZT 14,552 million resulted from the termination of the Network Sharing Agreement with KaR-Tel LLP.
CAPEX increased to KZT 2,604 million (2,132) with the CAPEX-to-sales ratio of 6.5 percent (6.1).
Free cash flow decreased to KZT 3,112 million (7,268).
KEY MILESTONES FOR THE FIRST QUARTER OF 2020
January
· Extraordinary General Meeting of Shareholders ("EGM") held on 15 January 2020, adopted the following decisions:
1. To determine the number of members of Kcell JSC Counting commission - three people and elect the following employees of Kcell JSC as members of the Counting commission for the period ending 1 June 2021:
o Irina Shol - Chairperson of the counting commission
o Diana Bratenkova
o Tatyana Barelko
2. To approve a new edition of Kcell JSC Corporate Governance Code.
3. To approve Kcell JSC Dividend Policy.
4. To elect Jere Calmes as a member of Kcell JSC Board of Directors, Independent Director. To set the term of office for Jere Calmes, Kcell JSC member of the Board of Directors, effective from the election date and until the expiration of the term of office of the current Kcell JSC Board of Directors, set forth by the Extraordinary General Meeting of Shareholders on 25 January 2019. To determine the annual fixed remuneration and the annual additional remuneration for Jere Calmes, Kcell JSC member of the Board of Directors, in the amount provided in the resolution of the Annual General Meeting of Shareholders dated 29 May 2019. To set the terms for payment of remuneration and compensation of expenses for Jere Calmes, Kcell JSC member of the Board of Directors, in accordance with the Policy on remuneration and reimbursement of expenses of Independent members of the Board of Directors of Kcell JSC for performing their duties, approved by the Annual General Meeting of Shareholders on 29 May 2019.
February
· On 6 February 2020, Kcell's ordinary shares and global depositary receipts (GDRs) were admitted to the Astana International Exchange (AIX) Official List. The trading commenced on 7 February 2020. Kcell shares are traded under the ticker "KCEL", while the Company's GDRs are traded under the ticker "KCEL.Y" with quotation and settlements in tenge and US dollars, and are fully fungible between London Stock Exchange, Kazakhstan Stock Exchange and AIX.
March
· On 4 March 2020 Kcell and KaR-Tel signed the Frequency Sharing Agreement, according to which KaR-Tel has a right to share 5 MHz radio frequency within the 1725-1730 MHz band and 1820-1825 MHz band.
· The agreement was reached in accordance with the Order of the Committee on Regulation of Natural Monopolies and Protection of Competition dated 10 July 2018, "On Granting Consent to Economic Concentration" at the request of Kazakhtelecom JSC (the "Order"). Under the terms of the Order, Kazakhtelecom JSC must ensure the sharing of radio frequency spectrum to other participants of the telecom market for the provision of cellular services that are not included in the Group of Kazakhtelecom JSC.
· On 18 March 2020, the Board of Directors approved the decisions to sign an Addendum to the current Agreement on the urgent line of credit dated 24 September 2013, signed between Kcell and Halyk Bank of Kazakhstan JSC, on the following conditions:
o Change the interest rate to 12.5 percent per annum on loans for a period of up to 12 months and to 13.0 percent per annum on loans for a period of between 12 months and 36 months;
o Extend the period of availability of the credit line until 31 December 2021;
o Extend the term of the credit line under this Agreement until 31 December 2025.
SIGNIFICANT EVENTS FOLLOWING THE END OF THE REPORTING PERIOD
April
· On 15 April 2020, the Board of Directors approved the attraction of KZT 15 billion within the existing credit line with Halyk Bank of Kazakhstan JSC, to replenish working capital and investments. The term of this loan facility is 36 months with an interest rate not exceeding 11.5 percent per annum.
Halyk Bank of Kazakhstan JSC confirmed the reduced interest rates for the KZT 42 billion open credit line:
o Interest rate of 11 percent per annum on loans up to 12 months;
o Interest rate of 11.5 percent per annum on loans up to 36 months (previously 13.0 percent per annum).
· On 15 April 2020, the Board of Directors recommended the annual dividend in the amount of KZT 9 billion, or KZT 45 per ordinary share and per Global Depositary Receipt (GDR).
According to Kcell's dividend policy, the amount of annual dividends on the Company's shares should not be less than 50 percent and not more than 100 percent of the Company's net cash flow for the previous financial year (cash flow from operations and investments). Given that the Company's free cash flow for 2019 amounted to KZT 16.443 billion and net profit of KZT 10.117 billion, the Kcell Board of Directors recommends distribution of KZT 9 billion as dividends for 2019.
The proposed record date of shareholders entitled to receive the dividends is the first Sunday following the date of the Company's Annual General Meeting of shareholders (AGM) (00:00 Almaty time). The proposed date for the dividend payment is the next working day after the date of compiling a list of shareholders entitled to receive dividends; and within 80 days from the proposed dividend payment date.
The dividend amount, the proposed record date of shareholders entitled to receive dividends, and the proposed date of commencement of dividend payment are subject to the AGM's approval.
· The Board of Directors approved a decision to convene the AGM on 28 May 2020 at 15:00 AM (Almaty time) at the following address: 2G, Timiryazev Street, Almaty, 050013, Republic of Kazakhstan. Registration of the participants will start at 14:00 AM (Almaty time).
In the event that the initial AGM does not take place, it will be rescheduled for 29 May 2020 at 15:00 AM (Almaty time).
Shareholders registered as at the record date of 20 April 2020 (00:00 Almaty time) will be eligible to participate in the AGM. The AGM will be held in person.
To register, participants will need to provide identification document and trustees are required to present a power of attorney to participate in the meeting with the right to vote.
The AGM agenda:
o Approval of Kcell JSC Annual Financial Statements for 2019;
o Approval of the distribution of Kcell JSC net income for the financial year, the decision on the dividend payment on ordinary share and the size of the dividend payout per one ordinary share;
o Approval of Regulation on the Board of Directors of Kcell JSC.
ADMINISTRATIVE AND LEGAL UPDATE
In October 2018, the Committee on Regulation of Natural Monopolies, Protection of Competition and Consumer Rights of the Ministry of National Economy of the Republic of Kazakhstan ("Committee") initiated administrative proceedings against Kcell for an alleged administrative violation related to the abuse of its dominant position in 2017. The potential fine, which can be imposed by the court, constitutes approximately KZT 2 billion.
According to the Committee, the violation resulted in the establishment of different prices for Kcell's mobile Internet access service with a data allowance, when the data allowance was exceeded or the monthly subscription fee was not timely paid.
The Company did not agree with the order issued by the Committee. On 3 July 2019, the Company appealed to the Court.
The management of the Company believed that the appeal would be successful and assessed the probability of outflow of cash as possible.
On 25 October 2019, Specialised Inter-district Economic Court of Almaty issued the resolution to cancel administrative proceedings due to the lack of an offense. However, the Committee has the right to appeal within 180 days after announcement of the resolution.
On 14 April 2020, the Committee appealed the decision of Specialised Inter-district Economic Court of Almaty. The case was initiated and submitted to the judge for the preliminary review of the motion for re-examination of the case. The cassation court hearing has not been scheduled yet. The management of the Company believes that the Committee's claims against the Company are not supported and an outflow of economic resources related to the above matter is remote.
***
Financial statements for January-March 2020 have been reviewed by the external auditors and their report will be available on the Kcell website after 15 May 2020.
The information was submitted for publication at 09:00 ALMT on 29 April 2020.
Financial Calendar |
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Interim Report January - June 2020 | 30 July 2020 |
Interim Report January - September 2020 | 30 October 2020 |
Definitions
EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization. Equals operating income before depreciation, amortization and impairment losses and before income from associated companies.
CAPEX: Capital expenditures for property, plant and equipment as well as software and licenses including investments in tangible and intangible non-current assets, but excluding goodwill and fair value adjustments recognized in acquisitions, and excluding the recording of assets retirement obligations.
IFRS 16 Leases: introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. IFRS 16 will supersede the current lease guidance including IAS 17 Leases and the related interpretations when it becomes effective.
IFRS 16 distinguishes leases and service contracts on the basis of whether an identified asset is controlled by a customer. Distinctions of operating leases (off balance sheet) and finance leases (on balance sheet) are removed for lessee accounting, and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognised for all leases by lessees (i.e. all on balance sheet) except for short-term leases and leases of low value assets.
The amortization of the right-of-use asset and the accumulation of interest on a financial liability replace lease payments recognized as rental expenses in profit or loss.
Condensed Consolidated Statements of Comprehensive Income
KZT in millions, except per share data,number of shares and changes | 2020 | Jan-Mar 2019 | Chg(%) | Jan-Dec 2019 |
Revenues | 40,062 | 35,180 | 13.9 | 156,657 |
Cost of sales | -28,504 | -26,024 | 9.5 | -109,195 |
Gross profit | 11,558 | 9,156 | 26.2 | 47,462 |
Selling and marketing expenses | -772 | -634 | 21.8 | -2,887 |
General and administrative expenses | -2,189 | -1,880 | 16.4 | -8,925 |
Penalty expenses | - | -14,552 |
| -14,552 |
Reversal of tax and related fine | 480 | - |
| 5,816 |
Impairment of assets | -874 | -450 | 94.2 | -4,100 |
Operating income/loss | 8,203 | -8,360 |
| 22,814 |
Other operating income and expenses, net | 210 | 13 |
| 191 |
Finance income and expenses, net | -2,309 | -2,059 | 12.1 | -10,085 |
Net forex gain/loss | 1,587 | -15 |
| -50 |
Profit/loss before income tax | 7,691 | -10,421 |
| 12,870 |
Income tax expense /benefit | -2,337 | 1,670 |
| -2,753 |
Net income/loss | 5,354 | -8,751 |
| 10,117 |
Other comprehensive income |
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Total comprehensive income/loss attributableto owners of the parent company |
5,354 |
-8,751 |
| 10,117 |
Earnings per share (KZT), basic and diluted |
26.8 |
-43.8 |
| 50.6 |
Number of shares (thousands) |
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Outstanding at period-end | 200,000 | 200,000 |
| 200,000 |
Weighted average, basic and diluted | 200,000 | 200,000 |
| 200,000 |
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EBITDA | 15,951 | -600 |
| 52,954 |
EBITDA excl. non-recurring items | 15,846 | 13,952 | 13.6 | 63,533 |
Depreciation, amortization and impairment losses | -7,538 | -7,747 | -2.7 | -29,948 |
Operating income excl. non-recurring items | 8,098 | 6,192 | 30.8 | 33,393 |
Condensed Consolidated Statement of Financial Position
KZT in millions | 31 Mar 2020 | 31 Dec 2019 |
Assets |
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Intangible assets | 36,729 | 38,820 |
Property, plant and equipment | 80,117 | 82,283 |
Advances paid for non-current assets | 343 | 233 |
Right to use assets | 22,071 | 23,067 |
Other non-current assets | 231 | 242 |
Deferred tax assets | 1,226 | 1,378 |
Long-term receivables | 1,449 | 1,118 |
Total non-current assets | 142,166 | 147,141 |
Inventories | 6,576 | 6,636 |
Trade and other receivables | 16,290 | 15,647 |
Other current financial assets | 612 | 1,371 |
Other current assets | 3,498 | 6,734 |
Financial assets held for trading | 5,804 | 4,965 |
Cash and cash equivalents | 11,200 | 8,825 |
Total current assets | 43,980 | 44,178 |
Total assets | 186,146 | 191,319 |
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Equity and liabilities |
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Share capital | 33,800 | 33,800 |
Retained earnings | 43,125 | 37,771 |
Total equity attributable to owners of the parent company | 76,925 | 71,571 |
Long-term borrowings | 38,374 | 55,548 |
Deferred tax liabilities | 1,108 | 1,248 |
Long-term lease liabilities | 20,780 | 21,620 |
Other long-term liabilities | 2,151 | 1,970 |
Total non-current liabilities | 62,413 | 80,386 |
Short-term borrowings | 22,398 | 6,384 |
Trade payables, and other current liabilities | 14,286 | 24,534 |
Short-term lease liabilities | 3,245 | 3,198 |
Deferred revenues | 5,015 | 4,149 |
Income tax and other taxes payables | 1,864 | 1,097 |
Total current liabilities | 46,808 | 39,362 |
Total equity and liabilities | 186,146 | 191,319 |
Condensed Consolidated Statement of Cash Flows
KZT in millions | Jan-Mar 2020 | Jan-Mar 2019 | Jan-Dec 2019 |
Cash flow before change in working capital | 16,452 | -171 | 51,269 |
Change in working capital | -5,267 | 13,488 | -16,643 |
Cash flow from operating activities | 11,185 | 13,317 | 34,626 |
Cash CAPEX | -8,073 | -6,049 | -18,183 |
Free cash flow | 3,112 | 7,268 | 16,443 |
Cash flow from financing activities | -1,307 | -6,522 | -13,597 |
Cash flow for the period | 1,805 | 746 | 2,846 |
Cash and cash equivalents, opening balance | 8,825 | 6,029 | 6,029 |
Cash flow for the period | 1,805 | 746 | 2,846 |
Exchange rate difference | 570 | -16 | -50 |
Cash and cash equivalents, closing balance | 11,200 | 6,759 | 8,825 |
Condensed Consolidated Statement of Changes in Equity
| Jan-Mar 2020 | Jan-Mar 2019 | |||||
KZT in millions | Sharecapital | Retained earnings | Totalequity | Sharecapital | Retained earnings | Totalequity | |
Opening balance | 33,800 | 37,771 | 71,571 | 33,800 | 33,626 | 67,426 | |
Dividends | - | - | - | - | - | - | |
Total comprehensive income | - | 5,354 | 5,354 | - | -8,751 | -8,751 | |
Closing balance | 33,800 | 43,125 | 76,925 | 33,800 | 24,875 | 58,675 | |
Basis of preparation
The interim condensed consolidated financial statements for the three months ended 31 March 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual consolidated financial statements as at 31 December 2019 and for the year then ended.
All amounts in this report are presented in KZT millions, unless otherwise stated. Rounding differences may occur.
Non-recurring items
KZT in millions | Jan-Mar 2020 | Jan-Mar 2019 | Jan-Dec 2019 |
Within EBITDA |
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Non-recurring items | -105 | 14,522 | 10,579 |
Total | -105 | 14,522 | 10,579 |
Investments
KZT in millions | Jan-Mar 2020 | Jan-Mar 2019 | Jan-Dec 2019 |
CAPEX |
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Intangible assets | 548 | 804 | 8,094 |
Property, plant and equipment | 2,056 | 1,329 | 12,106 |
Total | 2,604 | 2,132 | 20,200 |
Related party transactions
In the first quarter ended 31 March 2020, Kcell purchased services for KZT 4,638 million and sold services for a value of KZT 3,014 million. Related parties in these transactions were mainly Kazakhtelecom JSC and its group entities.
Net debt
KZT in millions |
| 31 Mar 2020 | 31 Dec 2019 |
Long-term and short-term borrowings | 60,772 | 61,932 | |
Less short-term investments, cash and bank | -11,200 | -8,825 | |
Net debt | 49,572 | 53,107 | |
Financial key ratios
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| 31 Mar 2020 | 31 Dec 2019 |
Return on equity (%, rolling 12 months) | 32.6 | 14.1 | |
Return on capital employed (%, rolling 12 months) | 29.7 | 15.1 | |
Equity/assets ratio (%) | 41.3 | 37.4 | |
Net debt/equity ratio (%) | 64.4 | 74.2 | |
Net debt/EBITDA rate (multiple, rolling 12 months) | 0.76 | 0.84 | |
Owners' equity per share (KZT) | 384.6 | 357.9 | |
Operational data
| Jan-Mar 2020 | Jan-Mar 2019 | Chg (%) | Jan-Dec 2019 |
Subscribers, period-end (thousands) | 7,992 | 8,741 | -8.6 | 8,275 |
Of which prepaid | 7,025 | 7,866 | -10.7 | 7,312 |
MOU (min/month) | 222 | 218 | 1.8 | 228 |
ARPU (KZT) | 1,419 | 1,194 | 18.9 | 1,334 |
Churn rate (%) | 42.4 | 45.7 | -7.2 | 44.5 |
Employees, period-end | 2,062 | 1,811 | 13.9 | 1,950 |
Forward-looking statements
This report may contains statements concerning, among other things, Kcell's financial condition and results of operations that could be forward-looking in nature. Such statements are not historical facts but, rather, represent Kcell's future expectations. Kcell believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include, but may not be limited to: Kcell's market position; growth in the telecommunications industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Kcell and the telecommunications industry in general. Forward-looking statements speak only as of the date they were made, and, other than as required by applicable law, Kcell undertakes no obligation to update any of them in light of new information or future events.