26 Jan 2018 07:06
Kcell JSC
Year-end Report January-December 2017
Almaty, 26 January 2018 - 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 results for the financial year ended 31 December 2017.
Fourth quarter
· Net sales remained stable at KZT 38,154 million (38,223). Service revenue grew by 0.4 percent to KZT 34,914 million (34,779).
· EBITDA, excluding non-recurring items, increased by 11.2 percent to KZT 16,110 million (14,485) with EBITDA margin of 42.2 percent (37.9).
· Operating income, excluding non-recurring items, increased by 19.9 percent to KZT 10,015 million (8,355).
· Net financial items of KZT -2,508 million (-3,380).
· Net income increased to KZT 5,173 million (1,051).
· Free cash flow increased to KZT 2,710 million (-12,301).
· During the quarter, the customer base increased by 8 thousand customers to 10,009 thousand (10,001).
Full year
· Net sales increased by 0.1 percent to KZT 147,229 million (147,037). Service revenue down 0.5 percent to KZT 136,591 million (137,337).
· EBITDA, excluding non-recurring items, decreased by 1.2 percent to KZT 57,321 million (57,989). The EBITDA margin decreased to 38.9 percent (39.4).
· Operating income, excluding non-recurring items, grew by 1.3 percent to KZT 34,174 million (33,740).
· Net financial items of KZT -9,419 million (-8,285).
· Net income declined by 19.5 percent to KZT 13,434 million (16,684).
· Free cash flow increased to KZT 10,899 million (-13,293).
· During the reporting year, the customer base increased by 23 thousand customers to 10,009 thousand (9,986).
Financial highlights
KZT in millions, except key ratios,per share data and changes | Oct-Dec 2017 | Oct-Dec 2016 | Chg (%) | Jan-Dec 2017 | Jan-Dec 2016 | Chg (%) |
Revenue | 38,154 | 38,223 | -0.2 | 147,229 | 147,037 | 0.1 |
of which service revenue | 34,914 | 34,779 | 0.4 | 136,591 | 137,337 | -0.5 |
EBITDA excl. non-recurring items | 16,110 | 14,485 | 11.2 | 57,321 | 57,989 | -1.2 |
Margin (%) | 42.2 | 37.9 | 38.9 | 39.4 | ||
Operating income | 10,015 | 6,267 | 59.8 | 31,501 | 31,041 | 1.5 |
Operating income excl. non-recurring items | 10,015 | 8,355 | 19.9 | 34,174 | 33,740 | 1.3 |
Net income attributable to owners of the parent company |
5,173 |
1,051 |
392.3 | 13,434 | 16,684 | -19.5 |
Earnings per share (KZT) | 25.9 | 5.3 | 392.3 | 67.2 | 83.4 | -19.5 |
CAPEX-to-sales (%) | 21.1 | 23.1 | 14.7 | 34.7 | ||
Free cash flow | 2,710 | -12,301 | 10,899 | -13,293 |
In this report, comparative figures are provided in parentheses following the operational and financial results and refer to the same item in the fourth quarter or the full year 2016, unless otherwise stated.
Comments by Arti Ots, CEO
"In the fourth quarter of 2017, we saw further momentum in our financial performance. Service revenue increased over the previous year for the first time in three years, whilst EBITDA for the quarter was 11 percent higher year-on-year, driven by tight cost control and the ongoing migration of our subscribers to new tariff plans.
The B2B business continued to deliver notable growth in revenue, while revenue from business solutions rose 45 percent in the fourth quarter over the previous year. Our portfolio of new business also grew substantially and we now have more than five hundred thousand subscribers to our music, TV, books and financial services.
We made strong progress in the rollout of our 4G/LTE network in 2017. Kcell's 4G/LTE services have achieved population coverage of 49 percent, with almost 40 percent of total Kcell traffic now carried on the 4G/LTE network.
Throughout 2017 we focused on simplifying our product portfolio and automating customer processes, making notable progress in our digital transformation programme to bring greater efficiency and effectiveness across all Kcell's operations.
In December 2017, we celebrated the five-year anniversary of our listing on the KASE and London Stock Exchange. During the past five years, we have seen clear benefits from operating as a listed entity with an international shareholder base and our strong commitment to international best practice continues across all our operations and in our corporate governance.
In 2018, we are continuing to build on Kcell's leading market position and technology excellence. We are focused on driving uptake of our new products and the conversion of smartphone users to bundles and contract phones as we roll out our 4G/LTE network further.
We will also make further progress in the digital transformation of Kcell's operations to ensure greater efficiency, in order to increase service quality for all our customers and deliver value for all our shareholders."
26 January 2018
Arti Ots
CEO
Conference call
Kcell will host an analyst conference call on 26 January 2018 at 9:30 UK time / 15:30 Almaty / 12:30 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=5245
Dial in details are as follows:
UK Toll Free: Standard International Dial-in: Russia Toll Free: Russia Local Call number: | 0800 358 6377 +44 330 336 9105 8 800 500 9283 +7 495 213 1767 |
USA Toll Free: | 800 281 7973 |
USA Dial-In: Conference ID | +1 646 828 8156 8719643 |
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://kcell260118-live.audio-webcast.com
Enquiries:
Kcell | |
Investor Relations | |
Irina Shol | Tel: +7 727 2582755 ext. 1002 Investor_relations@kcell.kz |
Media Natalya Eskova |
Tel: +7 727 2582755 Pressa@kcell.kz |
International Media | |
Instinctif Partners | Tel: +44 207 457 2020 |
Kay Larsen / Galyna Kulachek / Adrian Duffield |
REVIEW OF THE FOURTH QUARTER 2017
Net Sales
Net sales remained stable at KZT 38,154 million (38,223). Service revenue grew by 0.4 percent to KZT 34,914 million (34,779).
Revenue from voice services fell by 6.9 percent to KZT 20,018 million (21,495). Data revenue increased by 12.5 percent to KZT 12,214 million (10,858). Revenue from value-added services increased by 11.5 percent to KZT 2,682 million (2,406). Other revenue decreased to KZT 3,239 million (3,465).
KZT in millions, except percentages | Oct-Dec 2017 | % of total | Oct-Dec 2016 | % of total |
Voice services | 20,018 | 52.5 | 21,495 | 56.2 |
Data services | 12,214 | 32.0 | 10,858 | 28.4 |
Value added services | 2,682 | 7.0 | 2,406 | 6.3 |
Other revenues | 3,239 | 8.5 | 3,465 | 9.1 |
Total revenues | 38,154 | 100.0 | 38,223 | 100.0 |
Voice service
Revenue from voice services fell by 6.9 percent to KZT 20,018 million (21,495). Voice traffic decreased by 6.1 percent to 5,558 million minutes (5,919), and ARMU fell to KZT 2.1 (2.2).
Interconnect revenue declined by 3.9 percent to KZT 5,571 million (5,797), mainly due to a reduced volume of off-net traffic offered by all operators in the market.
Data service
Data revenue increased by 12.5 percent to KZT 12,214 million (10,858). Data traffic grew by 47.8 percent to 56,050,712 GB (37,935,011). Growth in data traffic was partially offset by offering packages with lower tariffs per MB, which led to a decrease in average revenue per MB (ARMB) to KZT 0.2 (0.3).
Value-added service
Revenue from value-added services increased by 11.5 percent to KZT 2,682 million (2,406), largely as a result of an introduction of new OTT services.
Other revenue
Other revenue decreased to KZT 3,239 million (3,465), reflecting lower demand for iPhone 8.
EXPENSES
Cost of sales
Cost of sales decreased by 6.3 percent to KZT 22,922 million (24,476), mainly due to lower interconnect cost of KZT 5,622 million (6,544).
Selling and marketing expenses
Selling and marketing expenses decreased by 18.3 percent to KZT 2,694 million (3,297), as a result of an introduction of digitalisation programme, as well as due to reduced staff costs.
General and administrative expenses
General and administrative expenses decreased by 36.9 percent to KZT 3,026million (4,794), primarily due to the tax provision made in the fourth quarter of 2016.
EARNINGS, FINANCIAL POSITION AND CASH FLOW
EBITDA, excluding non-recurring items, increased by 11.2 percent to KZT 16,110 million (14,485) with an EBITDA margin of 42.2 percent (37.9).
Net financial items were at KZT -2,508 million (-3,380).
Income tax expense increased by 27.1 percent to KZT 2,334 million (1,836 ).
Net income attributable to owners of the parent company increased to KZT 5,173 million (1,051), while earnings per share grew to KZT 25.9 (5.3).
CAPEX decreased to KZT 8,049 million (8,830) with the CAPEX-to-sales ratio of 21.1 percent (23.1).
Free cash flow improved during the reporting period and amounted to KZT 2,710 million (-12,301).
REVIEW OF FULL YEAR 2017
Net Sales
Net sales increased by 0.1 percent to KZT 147,229 million (147,037). Service revenue was down 0.5 percent to KZT 136,591 million (137,337).
Revenue from voice services decreased by 7.2 percent to KZT 80,400 million (86,634). Data revenue increased by 12.1 percent to KZT 46,358 million (41,339). Revenue from value-added services increased by 26.1 percent to KZT 9,837 million (9,351). Other revenue increased by 9.5 percent to KZT 10,633 million (9,713).
KZT in millions, except percentages | Jan-Dec 2017 | % of total | Jan-Dec 2016 | % of total |
Voice services | 80,400 | 54.6 | 86,634 | 58.9 |
Data services | 46,358 | 31.5 | 41,339 | 28.1 |
Value added services | 9,837 | 6.7 | 9,351 | 6.4 |
Other revenues | 10,633 | 7.2 | 9,713 | 6.6 |
Total revenues | 147,229 | 100.0 | 147,037 | 100.0 |
Voice services
Revenue from voice services decreased by 7.2 percent to KZT 80,400 million (86,634). Voice traffic decreased by 1.2 percent to 22,678 million minutes (22,948), while ARMU decreased to KZT 2.2 (2.5).
Interconnect revenue increased by 1.0 percent to KZT 21,549 million (21,335).
Data services
Data revenue increased by 12.1 percent to KZT 46,358 million (41,339). Data traffic increased by 58.5 percent to 192,691,522 GB (121,587,949). Growth in data traffic was partially offset by packages with lower tariffs per MB, which resulted in a decrease in average revenue per MB (ARMB) to KZT 0.2 (0.3).
Value-added services
Revenue from value-added services increased by 5.2 percent to KZT 9,837 million (9,351), largely due to the introduction of new OTT services.
Other revenue
Other revenue increased by 9.5 percent to KZT 10,633 million (9,713), reflecting higher handset sales.
EXPENSES
Cost of sales
Cost of sales decreased by 1.9 percent to KZT 90,107 million (91,866), primarily due to lower interconnect expenses of KZT 22,870 million (24,283).
Selling and marketing expenses
Selling and marketing expenses decreased by 4.4 percent to KZT 10,506 million (10,988), mainly as a result of the digitalisation programme and lower staff costs.
General and administrative expenses
General and administrative expenses increased by 9.7 percent to KZT 15,524 million (14,150), mainly as a result of the tax provision.
EARNINGS, FINANCIAL POSITION AND CASH FLOW
EBITDA, excluding non-recurring items, decreased by 1.2 percent to KZT 57,321 million (57,989). The EBITDA margin was 38.9 percent (39.4).
Net financial items increased to KZT -9,419 million (-8,285).
Income tax expense increased by 42.4 percent to KZT 8,648 million (6,073).
Net income attributable to owners of the parent company decreased by 19.5 percent to KZT 13,434 million (16,684), while earnings per share decreased to KZT 67.2 (83.4).
CAPEX was lower at KZT 21,648 million (51,017) and the CAPEX-to-sales ratio decreased to 14.7 percent (34.7). In 2016, CAPEX included the acquisition of LTE frequencies for KZT 26 billion.
Free cash flow increased to KZT 10,899 million (-13,293).
Net debt/equity ratio was 77.6 percent (78.3).
Net debt/EBITDA rate was 1.06 (1.03).
The equity/assets ratio was 41.4 percent (40.1).
KEY MILESTONES 2017
January
· Kcell became the official mobile operator of the 28th World Winter Universiade. The 28th World Winter Universiade was held in Almaty from 29 January to 8 February 2017. 2000 athletes from 58 countries took part in the Universiade. Kcell provided the high-quality mobile communication signal within sports facilities and launched the single reference contact center to provide the participants and guests of the Universiade with all the necessary background information, including competition schedule and locations of sports facilities.
May
· The AGM held on 24 May 2017, approved the proposal of Kcell Board of Directors to distribute KZT 11,678 million, representing 70 percent of the net income for 2016, as an annual dividend. The total dividend amount equates to a gross figure of KZT 58.39 per ordinary share (each GDR representing one ordinary share). Kcell shareholders registered at the record date of 25 May 2017 were entitled to receive the dividends.
· Other decisions adopted by the AGM include the approval of the Company's Separate and Consolidated Financial Statements for the year ended 31 December 2016, the Independent Auditor's Report, the Instructions relating to allocation of work between the Board and the CEO, and Kcell JSC Charter in the new version. Shareholders were also informed on the amount and structure of remuneration for the members of Board of Directors and Executive Body of the Company. The Board of Directors received no queries from shareholders regarding the performance of the Company and its executives.
June
· The dividends of KZT 58.39 per ordinary share (each GDR representing one ordinary share) were paid in a lump sum by electronic transfer into shareholders' bank accounts.
· Kcell's Board of Directors approved an extension of KZT 10 billion loan under the Master Facility Agreement #82.2090/2016 dated 8 June 2016 between Kcell JSC and Subsidiary Bank Alfa Bank Kazakhstan JSC. The credit line was extended for a term of twelve months.
· Kcell completed a drawdown of a KZT 22 billion tranche under the Term Loan Facility Agreement dated 24 September 2013 between Kcell JSC and Halyk Bank of Kazakhstan JSC. The credit line was extended for a term of 18 months.
August
· The Board of Directors approved the appointment of Andis Locmelis as the Company's Finance Director. The appointment of Andis Locmelis followed the decision by Finance Director Trond Moe for personal reasons to leave the Company when his contract comes to an end.
November
· Kcell was assigned a Long-Term Issuer Default Rating (IDR) of 'BB' and a Kazakhstan National Long-Term Rating of 'A(kaz)' by Fitch Rating with stable outlooks. Fitch Ratings also assigned 'BB'/'A(kaz)' ratings to JSC Kcell's (BB/Stable) senior unsecured debt and 'BB(EXP)'/'A(kaz)(EXP)' ratings to its proposed domestic bond issue.
· The Board approved the extension of a KZT 42 billion credit facility with Halyk Bank JSC along with certain amendments to the terms and conditions. Under the new agreement, the facility is extended until 2 December 2022. The interest rate for all existing and new loans within the facility was reduced to 12.5% p.a. (from 14.5%), whilst maturity for new tranches within the facility agreement increased to 36 months.
The Board also approved the extension of a KZT 8 billion loan within the credit facility agreement with Halyk Bank until 2 December 2019.
December
· Kcell marked the fifth anniversary of the listing of its Global Depositary Receipts ("GDRs") on the London Stock Exchange ("LSE"), as well as the listing of its shares on the Kazakh Stock Exchange (KASE). Kcell's senior management team held a reception at the LSE to celebrate the occasion and were joined by LSE officials and the advisors who supported Kcell during its IPO and during its first five years of life as a listed company.
SIGNIFICANT EVENTS FOLLOWING THE END OF THE REPORTING PERIOD
January 2018
· Kcell undertook a bond placement (KZP01Y03F725; KZ2C00004208; KCELb1) on the Kazakhstan Stock Exchange (KASE) on 16 January 2018, in which bonds to the value of KZT 4.95 billion were placed with investors at a yield of 11.5%. This was the first placement in the programme Kcell announced on 14 December 2017, aimed at expanding and diversifying the Company's funding sources, increasing the average term of Kcell's financial liabilities and decreasing its funding costs.
ADMINISTRATIVE AND LEGAL UPDATE
In July 2017, the Kazakhstan tax authority completed its comprehensive tax audit for the period between 2012 and 2015. Following the audit, the tax authority made a total claim of KZT 9.0 billion, of which KZT 5.8 billion is for unpaid taxes and KZT 3.2 billion represents fines and penalties for late payment. The Company considers it unlikely that the full amount of the claim will become payable following the appeal process.
In the fourth quarter of 2016, a tax provision of KZT 3,962 million was made, with the additional KZT 2,673 accrual in the second quarter of 2017.
Kcell submitted an appeal to highest level of Kazakhstan's government and to the Ministry of Finance. In January 2018, Kcell filed an appeal with the Court of First Instance. The Company continues to pursue all available avenues to achieve resolution and will update investors on the progress of this situation in due course.
The January-December 2017 financial statements are being audited by the Kcell external auditors, and their report is expected to be available on the Kcell website starting from 1 March 2018.
The information was submitted for publication at 09:00 ALMT on 26 January 2018.
| Financial Information
Interim Report January-March 2018 20 April 2018
|
Questions regarding the reports: JSC Kcell Investor Relations Timiryazev str. 2g 050013 Almaty Tel. +7 727 2582755 ext.1002 Investor_relations@kcell.kz
www.investors.kcell.kz
|
| 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 and advances paid 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.
ARMB: Average revenue per MB. |
Condensed Consolidated Statements of Comprehensive Income
KZT in millions, except per share data, number of shares and changes | Oct-Dec 2017 | Oct-Dec 2016 | Chg (%) | Jan-Dec 2017 | Jan-Dec 2016 | Chg (%) |
Revenues | 38,154 | 38,223 | -0.2 | 147,229 | 147,037 | 0.1 |
Cost of sales | -22,922 | -24,476 | -6.3 | -90,107 | -91,866 | -1.9 |
Gross profit | 15,232 | 13,748 | 10.8 | 57,122 | 55,171 | 3.5 |
Selling and marketing expenses | -2,694 | -3,297 | -18.3 | -10,506 | -10,988 | -4.4 |
General and administrative expenses | -3,026 | -4,794 | -36.9 | -15,524 | -14,150 | 9.7 |
Other operating income and expenses, net | 502 | 610 | -17.7 | 410 | 1,008 | -59.4 |
Operating income | 10,015 | 6,267 | 59.8 | 31,501 | 31,041 | 1.5 |
Finance costs and other financial items, net | -2,508 | -3,380 | -25.8 | -9,419 | -8,285 | 13.7 |
Income after financial items | 7,507 | 2,887 | 160.0 | 22,082 | 22,756 | -3.0 |
Income taxes | -2,334 | -1,836 | 27.1 | -8,648 | -6,073 | 42.4 |
Net income | 5,173 | 1,051 | 392.3 | 13,434 | 16,684 | -19.5 |
Total comprehensive income attributable to owners of the parent company | 5,173 | 1,051 | 392.3 | 13,434 | 16,684 | -19.5 |
Earnings per share (KZT), basic and diluted | 25.9 | 5.3 | 392.3 | 67.2 | 83.4 | -19.5 |
Number of shares (thousands) | ||||||
Outstanding at period-end | 200,000 | 200,000 | 200,000 | 200,000 | ||
Weighted average, basic and diluted | 200,000 | 200,000 | 200,000 | 200,000 | ||
EBITDA | 16,110 | 12,397 | 30.0 | 54,648 | 55,290 | -1.2 |
EBITDA excl. non-recurring items | 16,110 | 14,485 | 11.2 | 57,321 | 57,989 | -1.2 |
Depreciation, amortization and impairment losses |
-6,095 |
-6,130 | -0.6 | -23,147 | -24,249 | -4.5 |
Operating income excl. non-recurring items | 10,015 | 8,355 | 19.9 | 34,174 | 33,740 | 1.3 |
Condensed Consolidated Statements of Financial Position
KZT in millions | 31 Dec 2017 | 31 Dec 2016 |
Assets | ||
Intangible assets | 43,061 | 42,842 |
Property, plant and equipment | 93,680 | 95,322 |
Other non-current assets | 39 | 86 |
Long-term receivables | 1,437 | 1,163 |
Total non-current assets | 138,217 | 139,413 |
Inventories | 3,425 | 3,587 |
Trade and other receivables | 25,547 | 29,554 |
Cash and cash equivalents | 12,660 | 8,477 |
Total current assets | 41,632 | 41,617 |
Total assets | 179,849 | 181,031 |
Equity and liabilities | ||
Share capital | 33,800 | 33,800 |
Retained earnings | 40,637 | 38,880 |
Total equity attributable to owners of the parent | 74,437 | 72,680 |
Long-term borrowings | 12,000 | 8,000 |
Deferred tax liabilities | 4,818 | 6,012 |
Other long-term liabilities | 1,354 | 1,285 |
Total non-current liabilities | 18,172 | 15,298 |
Short-term borrowings | 58,418 | 57,415 |
Trade payables, and other current liabilities | 28,822 | 35,638 |
Total current liabilities | 87,240 | 93,053 |
Total equity and liabilities | 179,849 | 181,031 |
Condensed Consolidated Statements of Cash Flows
KZT in millions | Oct-Dec 2017 | Oct-Dec 2016 | Jan-Dec 2017 | Jan-Dec 2016 |
Cash flow before change in working capital | 14,940 | 9,281 | 51,354 | 45,299 |
Change in working capital | -6,064 | -5,467 | -17,871 | -14,751 |
Cash flow from operating activities | 8,876 | 3,814 | 33,483 | 30,547 |
Cash CAPEX | -6,166 | -16,115 | -22,584 | -43,840 |
Free cash flow | 2,710 | -12,301 | 10,899 | -13,293 |
Cash flow from financing activities | -4,000 | - | -6,678 | -10,501 |
Cash flow for the period | -1,290 | -12,301 | 4,221 | -23,794 |
Cash and cash equivalents, opening balance | 14,073 | 20,747 | 8,477 | 31,589 |
Cash flow for the period | -1,290 | -12,301 | 4,221 | -23,794 |
Exchange rate difference | -123 | 31 | -38 | 682 |
Cash and cash equivalents, closing balance | 12,660 | 8,477 | 12,660 | 8,477 |
Condensed Consolidated Statements of Changes in Equity
Jan-Dec 2017 | Jan-Dec 2016 | |||||
KZT in millions | Share capital | Retained earnings | Total equity | Share capital | Retained earnings | Total equity |
Opening balance | 33,800 | 38,880 | 72,680 | 33,800 | 46,646 | 80,446 |
Dividends | - | -11,678 | -11,678 | - | -23,316 | -23,316 |
Retained earnings of consolidated subsidiaries | - | - | - | - | -1,134 | -1,134 |
Total comprehensive income | - | 13,434 | 13,434 | - | 16,684 | 16,684 |
Closing balance | 33,800 | 40,637 | 74,437 | 33,800 | 38,880 | 72,680 |
Basis of preparation
As the annual accounts for 2016, Kcell's consolidated financial statements as of the end of 2017, have been prepared in accordance with International Financial Reporting Standards (IFRS). The accounting policies adopted are consistent with those of the previous financial year. All amounts in this report are presented in KZT millions, unless otherwise stated. Rounding differences may occur.
Non-recurring items
KZT in millions | Oct-Dec 2017 | Oct-Dec 2016 | Jan-Dec 2017 | Jan-Dec 2016 |
Within EBITDA | ||||
Restructuring charges, synergy implementation costs, etc. | - | 2,089 | 2,673 | 2,699 |
Total | - | 2,089 | 2,673 | 2,699 |
Investments
KZT in millions | Oct-Dec 2017 | Oct-Dec 2016 | Jan-Dec 2017 | Jan-Dec 2016 |
CAPEX | ||||
Intangible assets | 3,163 | 3,304 | 5,981 | 32,923 |
Property, plant and equipment | 4,886 | 5,526 | 15,667 | 18,094 |
Total | 8,049 | 8,830 | 21,648 | 51,017 |
Related party transactions
For the year ended 31 December 2017, Kcell purchased services for KZT 3,912 million and sold services for KZT 898 million. Related parties in these transactions were mainly Telia and its group entities, Turkcell and Fintur Holding B.V.
Net debt
KZT in millions | 31 Dec 2017 | 31 Dec 2016 |
Long-term and short-term borrowings | 70,418 | 65,415 |
Less short-term investments, cash and bank | -12,660 | -8,477 |
Net debt | 57,758 | 56,938 |
Financial key ratios
31 Dec 2017 | 31 Dec 2016 | |
Return on equity (%, rolling 12 months) | 18.0 | 23.0 |
Return on capital employed (%, rolling 12 months) | 23.8 | 25.9 |
Equity/assets ratio (%) | 41.4 | 40.1 |
Net debt/equity ratio (%) | 77.6 | 78.3 |
Net debt/EBITDA rate (multiple, rolling 12 months) | 1.06 | 1.03 |
Owners' equity per share (KZT) | 372.2 | 363.4 |
Operational data
Oct-Dec 2017 | Oct-Dec 2016 | Chg (%) | Jan-Dec 2017 | Jan-Dec 2016 | Chg (%) | |
Subscribers, period-end (thousands) | 10,009 | 9,986 | 0.2 | 10,009 | 9,986 | 0.2 |
Of which prepaid | 9,100 | 9,049 | 0.6 | 9,100 | 9,049 | 0.6 |
MOU (min/month) | 222 | 235 | -5.5 | 226 | 228 | -1.1 |
ARPU (KZT) | 1,169 | 1,170 | -0.1 | 1,149 | 1,155 | -0.6 |
Churn rate (%) | 73.5 | 57.2 | 56.1 | 49.3 | ||
Employees, period-end | 1,921 | 1,821 | 1,921 | 1,821 |
Forward-looking statements
This report contains statements concerning, among other things, Kcell's financial condition and results of operations that are 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.