Kyivstar Group (NASDAQ:KYIV) raised its 2026 outlook after third-quarter revenue increased 18% to $349 million, helped by growth in its digital businesses. The Ukrainian telecom and digital services company also reported a return to profit and higher free cash flow for the first nine months of the year.
President and CEO Oleksandr Komarov said the company’s telecom business was growing through higher customer spending rather than a larger mobile subscriber base, while its digital services continued to expand profitably. He cautioned that the revised outlook remains subject to significant uncertainty related to the war in Ukraine.
Third-quarter EBITDA rose 10% to $189 million. Net profit was $99 million, compared with a loss a year earlier, when the company recorded a one-time listing charge. Free cash flow was $83 million for the quarter and $274 million for the first nine months, up nearly 57% over the nine-month period.
Higher Outlook, With Fourth-Quarter Headwinds
Kyivstar now expects full-year revenue growth of 15% to 17% in U.S. dollars and EBITDA growth of 10% to 12%. In Ukrainian hryvnia, it forecasts revenue growth of 22% to 24% and EBITDA growth of 18% to 20%. Its capital expenditure guidance remains at 21% to 24% of revenue.
Komarov said the updated ranges imply slower headline growth in the fourth quarter, partly because a change to gross revenue recognition at Kyivstar TV will enter the year-earlier comparison. The company also expects seasonal effects in solar generation and year-end costs.
CFO Taner Kızıltoprak said Kyivstar anticipates a slowdown at its Uklon mobility business in Ukraine as people migrate from Kyiv following recent attacks. Investments in scooters, travel and Uzbekistan, alongside higher costs including electricity, are also expected to affect fourth-quarter profitability.
The group’s third-quarter EBITDA margin fell to 54% from 58% a year earlier. Kızıltoprak attributed the decline mainly to higher energy costs and the growing share of digital businesses, which have lower EBITDA margins than telecom. Executive Chairman Kaan Terzioğlu said digital services also require less capital investment relative to revenue and have stronger cash-generation capacity.
Digital Growth Outpaces Telecom
Telecom and infrastructure revenue increased 8% to $273 million, while digital revenue rose nearly 69% to $76 million. Digital represented 22% of total revenue, up from 15% a year earlier. The telecom and infrastructure business recorded a 58% EBITDA margin, compared with 41% for digital.
Mobile average revenue per user rose 9% to $4, even as the mobile customer base declined 3%. Komarov said the decline largely reflected customers dropping second SIM cards with minimal spending. Fixed broadband subscribers increased 11%.
An open-access agreement with Ukrtelecom expanded Kyivstar’s potential fixed broadband reach from approximately 4.6 million households to 6.7 million by allowing it to sell service over Ukrtelecom’s fiber network, Komarov said.
More than 8 million customers used voice and 4G data alongside at least one digital service, making them “multiplay” customers. Komarov said their average revenue per user was 50% higher than the mobile average and their monthly churn rate was about 40% of the mobile average. They generated 56% of consumer revenue.
At Uklon, revenue rose more than 35% to $33.5 million and EBITDA reached $10 million. Deliveries increased nearly 27%, while rides grew 2%. Komarov said ride volumes faced pressure from market maturity and wartime limits on mobility, although higher average spending supported revenue growth.
Digital health platform Helsi had more than 136,000 premium subscribers, up from 33,000 a year earlier, and reported quarterly revenue of $2.5 million. Pharmacy platform Tabletki generated $8 million in revenue at an EBITDA margin of about 75%. Kyivstar TV served 3.5 million customers, up 32%.
Cloud Acquisition and Wartime Resilience
In October, Kyivstar agreed to acquire Ukrainian cloud provider GigaCloud for an initial cash payment of $41 million and total consideration of up to $50 million. Komarov said GigaCloud had approximately $14 million in 2025 revenue and was profitable. Group Director of Investor Relations Cole Akeson noted that the figures were based on unaudited management accounts.
Komarov said Kyivstar plans to combine its existing cloud operations with GigaCloud over time and use the acquisition to support cloud and sovereign artificial intelligence services. GigaCloud is expected to retain its brand and operate as a separate business unit, with its founders continuing to lead it.
Asked about the effects of recent strikes, Komarov said Kyivstar had sustained direct hits in September but described their effects as immaterial because of redundancy and resilience measures. He also said services provided under Kyivstar’s current Starlink agreement were not affected by a reported service cut, and the company had received no customer complaints.
Kyivstar ended September with $436 million in cash and cash equivalents, $86 million in bonds and loans, and no external market debt, Kızıltoprak said. Net debt including leases was $65 million; excluding leases, the company reported a net liquidity position of $352 million.
About Kyivstar Group (NASDAQ:KYIV)
Kyivstar Group Ltd. is a telecommunications company focused primarily on providing connectivity and digital services in Ukraine. Through its Kyivstar brand, the company offers mobile voice and data services, messaging, broadband internet, television and other communications products for consumer and business customers.
The company also provides enterprise telecommunications and digital solutions, including connectivity, cloud-related services and other technology offerings designed to support organizations.
