Vega earns over UAH 300 million in 6M 2020

Vega earns over UAH 300 million in 6M 2020


The national telecommunications operator Vega has completed H1 2020 with UAH 303.5 million revenues. The online data transmission services continue to win larger revenue share, making 32% in H1 2020, up 6% year on year. The modern FTTx and GPON fibre optic access offerings brought UAH 77 million, 15% more than in H1 2019. The active migration from copper to optics allowed to increase the income from B2B VoIP sales by 45% year on year.

The company's net revenues in the two quarters reached UAH 274.9 million, with EBITDA of UAH 65.2 million. The taxes and duties paid to the national and local budgets amounted to UAH 58.6 million.

According to Vega's press office, the company managed to keep decent gains during the lockdown months by providing the reliable networks and good equipment, promptly adapting to teleworking, and concentrating on the products in demand. That said, the company's financial performance in H1 2020 was still affected by the quarantine, which is why it is somewhat worse than last year. A slight decline in B2B revenues is due to less consumption of telecom services by offices, production and commercial premises, or even a complete suspension of operations, like with the shopping malls, for instance, since the businesses shifted towards teleworking. Another reason for income shortfall is the reduction in telephony traffic.

"Today's primary mission of a modern telecom operator is to provide people, businesses, and the government with reliable communications in any situations. Vega tackles this successfully by implementing the digital solutions. For big businesses, we continue to offer remote access to cloud servers of AWS and other global big leagues. To keep the small and medium enterprises running, we have our core services such as Virtual Office and Virtual PBX by Vega, the demand for which has increased significantly. We offer our subscribers a free test drive of our products, so they can try out our entire lineup of the efficient business functionalities and appreciate all the benefits of the modern products of Vega. Our team has done everything possible to deliver quality services to our users during the lockdown. Even with the majority of our staff teleworking, we have managed to fully sustain our services," – noted Vega's CEO Murat Cinar.

While adhering to the safety guidelines and all the measures to stop COVID-19 in Ukraine, the company continues to invest in the future and roll out a number of its planned projects for development of the high-speed communications, in particular the Gigabit by Vega. Vega's capital investment in 6M 2020 amounted to UAH 31.7 million, which was mostly allocated to the network enhancements and expansion of new Internet access areas. Today, more than 20,000 households in Kyiv, Dnipro, Odessa, and Lviv have GPON access at gigabit speeds.

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