20 Jul 2018 07:00
Kcell JSC
Interim Results for January - June 2018
Almaty, 20 July 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 - June 2018.
Second quarter
· Net sales increased by 0.6 percent to KZT 36,303 million (36,082). Service revenue decreased by 3.9 percent to KZT 32,065 million (33,356).
· EBITDA, excluding non-recurring items, declined by 11.9 percent to KZT 11,926 million (13,541). EBITDA margin decreased to 32.9 percent (37.5).
· Operating income, excluding non-recurring items, decreased by 32.9 percent to KZT 5,234 million (7,804).
· Net finance cost decreased to KZT 1,850 million (1,961).
· Net income of KZT 2,621 million (666).
· CAPEX-to-sales ratio of 13.5 percent (11.0).
· Free cash was negative KZT 1,162 million (2,456).
· During the quarter, the total number of subscriptions increased by 104 thousand to 10,062 thousand (9,958).
First half
· Net sales up 1.4 percent to KZT 72,689 million (71,713). Service revenue decreased by 2.8 percent to KZT 64,332 million (66,153).
· EBITDA, excluding non-recurring items, decreased by 5.3 percent to KZT 25,381 million (26,802). EBITDA margin was 34.9 percent (37.4).
· Operating income, excluding non-recurring items, down 19.1 percent to KZT 12,479 million (15,434).
· Net finance cost decreased by 10.3 percent to KZT 4,165 million (4,644).
· Net income up 38.1 percent to KZT 6,373 million (4,617).
· CAPEX-to-sales ratio of 10.6 percent (13.8).
· Free cash flow decreased to KZT 341 million (4,204).
· The number of subscriptions remained largely stable year-on-year at 10,062 thousand (9,992).
Financial highlights
KZT in millions, except key ratios,per share data and changes | Apr-Jun 2018 | Apr-Jun 2017 | Chg (%) | Jan-Jun 2018 | Jan-Jun 2017 | Chg (%) |
Net sales | 36,303 | 36,082 | 0.6 | 72,689 | 71,713 | 1.4 |
of which service revenue | 32,065 | 33,356 | -3.9 | 64,332 | 66,153 | -2.8 |
EBITDA excl. non-recurring items | 11,926 | 13,541 | -11.9 | 25,381 | 26,802 | -5.3 |
Margin (%) | 32.9 | 37.5 | 34.9 | 37.4 | ||
Operating income | 4,169 | 5,131 | -18.7 | 11,414 | 12,761 | -10.6 |
Operating income excl. non-recurring items | 5,234 | 7,804 | -32.9 | 12,479 | 15,434 | -19.1 |
Net income attributable to owners of the parent |
2,621 |
666 |
293.3 |
6,373 |
4,617 |
38.1 |
Earnings per share (KZT) | 13.1 | 3.3 | 293.3 | 31.9 | 23.1 | 38.1 |
CAPEX-to-sales (%) | 13.5 | 11.0 | 10.6 | 13.8 | ||
Free cash flow | -1,162 | 2,456 | 341 | 4,204 |
In this report, comparative figures are provided in parentheses following the operational and financial results and refer to the same item in the second quarter of 2017, unless otherwise stated.
Comments by Arti Ots, CEO
"In the second quarter of 2018, the underlying business performance was impacted by intensely competitive pricing of bundled offers among operators and by the implementation of regulatory changes regarding "Pay As You Go" tariffs. As a result, our service revenue and EBITDA performance fell compared with the previous year. In order to improve our performance in this segment, at the end of June we introduced unlimited access to leading social networks, including YouTube, WhatsApp and Instagram.
Contract phone sales almost doubled with the introduction of a new pricing strategy in the reporting quarter, and this offset the revenue decline.
The enterprise segment continued to bring robust growth, and an increase in B2B revenues in the second quarter was driven by continued demand for business solutions.
The rollout of our 4G/LTE services continues to make good progress. We are aiming to achieve 54 percent population coverage by the end of 2018 and we are on track to achieve this, with current coverage of 51.5 percent.
As previously announced in June, Kcell received a claim related to the alleged infringement of copyright. The claim was upheld by the First Instance Court which imposed compensation of KZT 672 million. We are confident that this claim is unsubstantiated and have appealed the decision. However, we have made a prudent provision.
In addition, in June, the Court of Appeal upheld the Kazakhstan tax authority's claim for a total of KZT 9.0 billion. Whilst this decision is binding, Kcell reserves the right to further appeal to the Supreme Court. We have made a further tax provision KZT 1.4 billion, which has been reported as a non-recurring item for the second quarter of 2018, of which KZT 0.3 billion relates to corporate income tax.
Overall it was a challenging quarter and our underlying performance was impacted by both regulatory and market factors. However, we have introduced a broader range of new products and services, with a renewed emphasis on our handsets sales strategy and the further development of our retail network, as we continue to focus on delivering value to our customers and our shareholders."
Almaty, 20 July 2018
Conference call
Kcell will host an analyst conference call on 20 July 2018 at 10:00 UK time / 15:00 Almaty / 12:00 Moscow. The conference will be held in English, audio webcast will be available at https://webcasts.eqs.com/Kcell20180720
Dial in details are as follows:
UK Toll Free: Standard International Dial-in: Russia Toll Free: Russia Local Call number: | 0800 279 7204 +44 330 336 9411 8 10 8002 8675011 +7 495 646 9190 |
USA Toll Free: | 800 458 4121 |
USA Dial-In: Conference ID | +1 323 794 2093 7133172 |
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: https://webcasts.eqs.com/Kcell20180720
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 |
Review of the second quarter 2018
Net sales
Net sales increased by 0.6 percent to KZT 36,303 million (36,082). Service revenue decreased by 3.9 percent to KZT 32,065 million (33,356).
Revenue from voice services decreased by 4.4 percent to KZT 19,258 million (20,151). Data revenue were down 3.1 percent to KZT 10,873 million (11,215). Revenue from value-added services decreased by 17.6 percent to KZT 1,916 million (2,324). Other revenue increased by 77.9 percent to KZT 4,256 million (2,392).
KZT in millions, except percentages | Apr-Jun 2018 | % of total | Apr-Jun 2017 | % of total |
Voice services | 19,258 | 53.0 | 20,151 | 55.8 |
Data services | 10,873 | 30.0 | 11,215 | 31.1 |
Value added services | 1,916 | 5.3 | 2,324 | 6.5 |
Other revenues | 4,256 | 11.7 | 2,392 | 6.6 |
Total revenues | 36,303 | 100.0 | 36,082 | 100.0 |
Voice service revenue
Revenue from voice services decreased by 4.4 percent to KZT 19,258 million (20,151). Voice traffic decreased to 5,389 million minutes (5,827). ARMU fell to KZT 2.0 (2.1).
Interconnect revenue was 2.2 percent higher and totaled KZT 5,451 million (5,331).
Data service revenue
Data revenue decreased by 3.1 percent to KZT 10,873 million (11,215). Data traffic grew by 35.9 percent to 59,538,289 GB (43,807,161). Average revenue per MB (ARMB) decreased to KZT 0.18 (0.24).
Value-added service revenue
Revenue from value-added services decreased by 17.6 percent to KZT 1,916 million (2,324).
Other revenue
Other revenue increased by 77.9 percent to KZT 4,256 million (2,392), mainly driven by higher handsets sales.
EXPENSES
Cost of sales
Cost of sales increased by 7.1 percent to KZT 23,863 million (22,274), mainly due to higher sales of devices, which, in turn, were offset by improvement in interconnect expenses.
Selling and marketing expenses
Selling and marketing expenses increased by 7.7 percent to KZT 2,624 million (2,436), primarily due to higher advertising expenses.
General and administrative expenses
General and administrative expenses decreased by 10.5 percent to KZT 5,533million (6,182). This was primarily due to the fact that comparative number for the second quarter of 2017 included the KZT 2.8 billion tax provision, while in the second quarter of 2018, the Company made a provision of KZT 1.4 billion.
EARNINGS, FINANCIAL POSITION AND CASH FLOW
EBITDA, excluding non-recurring items, declined by 11.9 percent to KZT 11,926 million (13,541). EBITDA margin decreased to 32.9 percent (37.5).
Net finance cost decreased by 5.7 percent to KZT 1,850 million (1,961), as a result of a lower interest rate.
Income tax expense reported as a positive amount of KZT 302 million (2,503), as a result of a reversal corrective adjustment related to a deferred income tax for the prior year, which was offset by current income tax expenses.
Net income attributable to owners of the parent company increased to KZT 2,621 million (666), while earnings per share grew to KZT 13.1 (3.3).
CAPEX increased to KZT 4,910 million (3,964) and CAPEX-to-sales ratio was up to 13.5 percent (11.0).
Free cash flow was negative KZT 1,162 million (2,456).
Review of the first half of 2018
Net sales
Net sales were 1.4 percent higher and amounted to KZT 72,689 million (71,713). Service revenue decreased by 2.8 percent to KZT 64,332 million (66,153).
Revenue from voice services declined by 5.0 percent to KZT 37,778 million (39,781). Data revenue was stable at KZT 22,387 million (22,328). Revenue from value-added services decreased by 12.4 percent to KZT 4,131 million (4,715). Other revenue increased by 71.7 percent to KZT 8,393 million (4,889).
KZT in millions, except percentages | Jan-Jun 2018 | % of total | Jan-Jun 2017 | % of total |
Voice services | 37,778 | 52.0 | 39,781 | 55.5 |
Data services | 22,387 | 30.8 | 22,328 | 31.1 |
Value added services | 4,131 | 5.7 | 4,715 | 6.6 |
Other revenues | 8,393 | 11.5 | 4,889 | 6.8 |
Total revenues | 72,689 | 100.0 | 71,713 | 100.0 |
Voice service revenue
Revenue from voice services declined by 5.0 percent to KZT 37,778 million (39,781). Voice traffic decreased by 7.5 percent to 10,514 million minutes (11,372). ARMU was down to KZT 2.1 (2.2).
Interconnect revenue increased by 1.7 percent to KZT 10,764 million (10,583).
Data service revenue
Data revenue was stable at KZT 22,387 million (22,328). Data traffic increased by 36.8 percent to 117,849,346 GB (86,128,006). Average revenue per MB (ARMB) decreased to KZT 0.19 (0.25).
Value-added service revenue
Revenue from value-added services decreased by 12.4 percent to KZT 4,131 million (4,715).
Other revenue
Other revenue increased by 71.7 percent to KZT 8,393 million (4,889). The increase was attributable to higher handsets sales.
EXPENSES
Cost of sales
Cost of sales rose by 4.5 percent to KZT 46,856 million (44,853), driven largely by an increase in cost of goods sold.
Selling and marketing expenses
Selling and marketing expenses were down 1.1 percent to KZT 4,988 million (5,045).
General and administrative expenses
General and administrative expenses increased by 5.2 percent to KZT 9,641million (9,167), mainly as a result of an increase in bad debt expenses related to higher contract phone sales.
EARNINGS, FINANCIAL POSITION AND CASH FLOW
EBITDA, excluding non-recurring items, decreased by 5.3 percent to KZT 25,381 million (26,802). The EBITDA margin was 34.9 percent (37.4).
Net finance cost decreased to KZT 4,165 million (4,644), as a result of a lower interest rate.
Income tax expense decreased by 75.0 percent to KZT 876 million (3,500), as a result of a reversal corrective adjustment related to a deferred income tax for the prior year, which was offset by current income tax expenses.
Net income attributable to owners of the parent company increased by 38.1 percent to KZT 6,373 million (4,617), while earnings per share increased to KZT 31.9 (23.1).
CAPEX decreased to KZT 7,670 million (9,892) and the CAPEX-to-sales ratio fell to 10.6 percent (13.8).
Free cash flow decreased to KZT 341 million (4,204).
Key Milestones 2018
January
· Kcell placed its KZT 4.95 billion bonds on the Kazakhstan Stock Exchange (KASE) at a yield of 11.5 percent. This was the first placement in the programme Kcell announced in 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.
February
· Kcell received a unilateral termination notice of a Memorandum of Understanding (MoU) dated 26 August 2012 from Sonera Holding B.V. (Sonera). According to the MoU, Sonera granted Kcell the right to buy all of Sonera's participatory interests in Rodnik Inc LLP, the controlling shareholder of KazTransCom Joint Stock Company (details are available on page 57 "Acquisition and Investments" section of the Kcell Prospectus). As provided by the MoU, such notice terminates the MoU and with it Kcell's obligation to acquire all of Sonera's participatory interests in Rodnik Inc LLP.
April
· Kcell's Board of Directors recommended an annual dividend for 2017 at the 2016 level, amounting to KZT 11,678 million, or KZT 58.39 per ordinary share. This represents 87 percent of the Company's net income for 2017, in line with Kcell's dividend policy.
May
· The AGM held on 30 May 2018, approved the proposal of Kcell Board of Directors to distribute KZT 11,678 million, representing 87 percent of the net income for 2017, as an annual dividend. The total dividend amount will equate to a gross figure of KZT 58.39 per ordinary share (each GDR representing one ordinary share). Dividends will be paid electronically directly into shareholders' bank accounts. Kcell shareholders registered at the record date of 31 May 2018 are entitled to receive the dividends. Dividends will be paid in a lump sum, starting from 1 August 2018.
· Other decisions adopted by the AGM include the approval of the Company's Separate and Consolidated Financial Statements for the year ended 31 December 2017, the Independent Auditor's Report, and the election of new member of Kcell JSC Board of Directors. Mr. Fredrik Nissen, representative of the shareholder Fintur Holdings B.V., was elected as a member of the Board of Directors of Kcell JSC to replace Mrs. Ingrid Maria Stenmark. Shareholders were also informed on the amount and structure of remuneration for the members of Board of Directors and Executive Body of the Company. In 2017, the Board of Directors received no queries from shareholders regarding the performance of the Company and its executives.
June
· 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. Under the new agreement, the facility extended until 8 June 2019. The interest rate for new loans within the facility reduced to 12.0 percent p.a. (from 14.5 percent). The commission fee for the changes made to the terms and conditions is set at 1 percent of the total amount.
ADMINISTARTIVE AND LEGAL UPDATE
Tax audit
In July 2017, the Kazakhstan tax authority completed its complex tax audit for the period 2012-2015. Following the audit, the tax authority made a total claim of KZT 9.0 billion, of which KZT 5.8 billion is tax adjustment and KZT 3.2 billion is fines and penalties.
In January 2018, Kcell disputed the Notification of the tax authority in the First Instance Court and the Kcell appeal was dismissed. Whilst Kcell further appealed this decision, in June 2018, the Court of Appeal reviewed the appeal claim and left the unfavorable ruling of the First Instance Court in force. Although the decision is binding, Kcell reserves the right to further appeal it in the Supreme Court.
In the fourth quarter of 2016 and in the second quarter of 2017, the Company made tax provisions of KZT 4.0 billion and KZT 2.8 billion, respectively. The Company has made another tax provision of KZT 1.4 billion, which has been reported as a non-recurring item in the second quarter of 2018, of which KZT 0.3 billion relates to corporate income tax.
Copyright claim
Kcell received a claim about alleged infringement of copyrights. The claim was filed by DL Construction LLP against Kcell and its partner Terraline LLP and relates to copyright permission, based on the agreement between DL Construction and Warner Music Russia, with respect to the Muzlife TV channel, which is included in one of Kcell's Mobi TV packages, broadcasting 49 clips across a period of 18 days in 2016.
On 15 May 2018, the Court of First Instance confirmed a violation of copyrights by Kcell and Terraline LLP and awarded a total of KZT 672 million in compensation. The decision is not yet binding. However, the Company has made provision for this amount.
The Company is confident that this claim of copyright infringement is unsubstantiated. Kcell will vigorously defend its position through the appeal process in order to protect the interests of its customers and shareholders. On 21 June 2018, the appellate claim was submitted to the court of higher instance.
In addition, Kcell has received notifications of two further pre-trial claims related to alleged copyright infringements from the same party for KZT 1 billion and KZT 4 billion. The Company believes these claims also have no grounds.
The external auditors are reviewing the January-June 2018 financial statements, and their report will be available on the Kcell website after 15 August 2018.
The information was submitted for publication at 09:00 ALMT on 20 July 2018.
| Financial Information Interim Report January-September 2018 19 October 2018
|
Questions regarding the reports: Kcell JSC 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 Amortisation. Equals operating income before depreciation, amortisation 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 | Apr-Jun 2018 | Apr-Jun 2017 | Chg (%) | Jan-Jun 2018 | Jan-Jun 2017 | Chg (%) |
Revenues | 36,303 | 36,082 | 0.6 | 72,689 | 71,713 | 1.4 |
Cost of sales | -23,863 | -22,274 | 7.1 | -46,856 | -44,853 | 4.5 |
Gross profit | 12,441 | 13,808 | -9.9 | 25,833 | 26,860 | -3.8 |
Selling and marketing expenses | -2,624 | -2,436 | 7.7 | -4,988 | -5,045 | 1.1 |
General and administrative expenses | -5,533 | -6,182 | -10.5 | -9,641 | -9,167 | 5.2 |
Other operating income and expenses, net | -115 | -59 | 94.9 | 210 | 113 | 85.8 |
Operating income | 4,169 | 5,131 | -18.7 | 11,414 | 12,761 | -10.6 |
Finance costs and other financial items, net | -1,850 | -1,961 | -5.7 | -4,165 | -4,644 | -10.3 |
Income after financial items | 2,319 | 3,169 | -26.8 | 7,249 | 8,117 | -10.7 |
Income taxes | 302 | -2,503 | -112.1 | -876 | -3,500 | -75.0 |
Net income | 2,621 | 666 | 293.3 | 6,373 | 4,617 | 38.1 |
Other comprehensive income | ||||||
Total comprehensive income | ||||||
Total comprehensive income attributable to owners of the parent | 2,621 | 666 | 293.3 | 6,373 | 4,617 | 38.1 |
Earnings per share (KZT), basic and diluted | 13.1 | 3.3 | 293.3 | 31.9 | 23.1 | 38.1 |
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 | 10,861 | 10,868 | -0.1 | 24,316 | 24,129 | 0.8 |
EBITDA excl. non-recurring items | 11,926 | 13,541 | -11.9 | 25,381 | 26,802 | -5.3 |
Depreciation, amortization and impairment losses | -6,692 | -5,737 | 16.6 | -12,902 | -11,368 | 13.5 |
Operating income excl. non-recurring items | 5,234 | 7,804 | -32.9 | 12,479 | 15,434 | -19.1 |
Condensed Consolidated Statements of Financial Position
KZT in millions | 30 Jun 2018 | 31 Dec 2017 |
Assets | ||
Intangible assets | 41,402 | 43,061 |
Property, plant and equipment | 90,081 | 93,680 |
Other non-current assets | 356 | 260 |
Long-term receivables | 2,488 | 1,617 |
Total non-current assets | 134,328 | 138,618 |
Inventories | 4,608 | 3,425 |
Trade and other receivables | 28,932 | 26,191 |
Cash and cash equivalents | 7,850 | 12,660 |
Total current assets | 41,390 | 42,276 |
Total assets | 175,718 | 180,894 |
Equity and liabilities | ||
Share capital | 33,800 | 33,800 |
Retained earnings | 36,527 | 41,832 |
Total equity attributable to owners of the parent | 70,327 | 75,632 |
Long-term borrowings | 40,143 | 12,000 |
Deferred tax liabilities | 2,370 | 4,667 |
Other long-term liabilities | 1,362 | 1,355 |
Total non-current liabilities | 43,875 | 18,022 |
Short-term borrowings | 25,185 | 58,418 |
Trade payables and other current liabilities | 36,331 | 28,822 |
Total current liabilities | 61,516 | 87,240 |
Total equity and liabilities | 175,718 | 180,894 |
Condensed Consolidated Statements of Cash Flows
KZT in millions | Apr-Jun 2018 | Apr-Jun 2017 | Jan-Jun 2018 | Jan-Jun 2017 |
Cash flow before change in working capital | 10,077 | 12,555 | 22,406 | 22,564 |
Change in working capital | -5,155 | -3,312 | -11,898 | -6,724 |
Cash flow from operating activities | 4,922 | 9,243 | 10,508 | 15,840 |
Cash CAPEX | -6,084 | -6,787 | -10,167 | -11,636 |
Free cash flow | -1,162 | 2,456 | 341 | 4,204 |
Cash flow from financing activities | -4,580 | 1,322 | -5,210 | 1,322 |
Cash flow for the period | -5,742 | 3,778 | -4,869 | 5,526 |
Cash and cash equivalents, opening balance | 13,430 | 10,044 | 12,660 | 8,477 |
Cash flow for the period | -5,742 | 3,778 | -4,869 | 5,526 |
Exchange rate difference | 162 | 26 | 59 | -155 |
Cash and cash equivalents, closing balance | 7,850 | 13,848 | 7,850 | 13,848 |
Condensed Consolidated Statements of Changes in Equity
Jan-Jun 2018 | Jan-Jun 2017 | |||||
KZT in millions | Share capital | Retained earnings | Total equity | Share capital | Retained earnings | Total equity |
Opening balance | 33,800 | 41,832 | 75,632 | 33,800 | 39,724 | 73,524 |
Dividends | - | -11,678 | -11,678 | - | -11,678 | -11,678 |
Total comprehensive income | - | 6,373 | 6,373 | - | 4,617 | 4,617 |
Closing balance | 33,800 | 36,527 | 70,327 | 33,800 | 32,663 | 66,463 |
Basis of preparation
Following the introduction of IFRS 15 for the purposes of the consolidated financial statements for the period ended 30 June 2018, the Company has reviewed the recognition of revenues and has changed its accounting policy. The Company applied IFRS 15 retrospectively using the practical expedient of the standard, under which the date of initial recognition is 1 January 2017. The following report presented with revised figures. All amounts in this report are presented in KZT millions, unless otherwise stated. Rounding differences may occur.
Non-recurring items
KZT in millions | Apr-Jun 2018 | Apr-Jun 2017 | Jan-Jun 2018 | Jan-Jun 2017 |
Within EBITDA | ||||
Restructuring charges, synergy implementation costs, etc. | 1,065 | 2,673 | 1,065 | 2,673 |
Total | 1,065 | 2,673 | 1,065 | 2,673 |
Investments
KZT in millions | Apr-Jun 2018 | Apr-Jun 2017 | Jan-Jun 2018 | Jan-Jun 2017 |
CAPEX | ||||
Intangible assets, including LTE license | 1,144 | 1,969 | 1,253 | 2,175 |
Property, plant and equipment | 3,766 | 1,995 | 6,417 | 7,717 |
Total | 4,910 | 3,964 | 7,670 | 9,892 |
Related party transactions
For the six months ended 30 June 2018, Kcell purchased services for KZT 1,556 million and sold services for a value of KZT 244 million. Related parties in these transactions were mainly Telia Company and its group entities, Turkcell, Fintur Holding B.V., KazTransCom and Kcell Solutions.
Net debt
KZT in millions | 30 Jun 2018 | 31 Dec 2017 |
Long-term and short-term borrowings | 65,328 | 70,418 |
Less short-term investments, cash and bank | -7,850 | -12,660 |
Net debt | 57,478 | 57,758 |
Financial key ratios
30 Jun 2018 | 31 Dec 2017 | |
Return on equity (%, rolling 12 months) | 21.3 | 18.2 |
Return on capital employed (%, rolling 12 months) | 18.9 | 23.9 |
Equity/assets ratio (%) | 40.0 | 41.8 |
Net debt/equity ratio (%) | 78.8 | 76.4 |
Net debt/EBITDA rate (multiple, rolling 12 months) | 1.04 | 1.05 |
Owners' equity per share (KZT) | 351.6 | 378.2 |
Operational data
Apr-Jun 2018 | Apr-Jun 2017 | Chg (%) | Jan-Jun 2018 | Jan-Jun 2017 | Chg (%) | |
Subscribers, period-end (thousands)* | 10,062 | 9,992 | 0.7 | 10,062 | 9,992 | 0.7 |
Of which prepaid | 9,163 | 9,054 | 1.2 | 9,163 | 9,054 | 1.2 |
MOU (min/month) | 216 | 231 | -6.5 | 211 | 226 | -6.4 |
ARPU (KZT) | 1,081 | 1,129 | -4.3 | 1,086 | 1,121 | -3.1 |
Churn rate (%) | 52.7 | 44.9 | 17.4 | 43.7 | 44.2 | -1.1 |
Employees, period-end | 1,857 | 1,842 | 0.8 | 1,857 | 1,842 | 0.8 |
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.