Digital Revenue Climbs 83.0%; Kyivstar Raises 2026 Revenue and EBITDA Outlook

Kyivstar Group Ltd. (Nasdaq: KYIV, KYIVW) (“Kyivstar” or the “Group”), Ukraine’s leading digital operator, today reported financial and operating results for the second quarter and half-year ended June 30, 2026. On the back of sustained growth, the Group is raising its full-year 2026 revenue and EBITDA outlook.

Key highlights

• Total revenue rose 19.3% YoY to USD 339 mn (UAH 14.9 bn, +27.0%).
• Digital revenue advanced 83.0% YoY to USD 73.7 mn (UAH 3.3 bn, +94.7%) to represent 21.7% of total revenue.
• EBITDA increased 13.7% YoY to USD 188 mn (UAH 8.3 bn, +21.1%), producing a 55.4% margin.
• Equity free cash flow, after leases and licenses, expanded 32.2% YoY to USD 104 mn.
• Net profit totaled USD 77 mn and EPS USD 0.33, each after a non-cash charge of USD 21.2 mn from a fair-value change on outstanding warrants.
• Capital expenditures, excluding licenses and right-of-use assets, totaled USD 59 mn, representing capex intensity of 17.3% for 2Q26 and 26.6% on a last-twelve-months basis, down 3.3 p.p. from 29.9% at 1Q26.
• Cash, cash equivalents and deposits stood at USD 364 mn (UAH 16.4 bn) as of June 30, 2026.
• Raised 2026 outlook: the Group now expects USD revenue growth of 14%–16% (prior: 11%–14%) and EBITDA growth of 9%–12% (prior: 7%–10%), with capex intensity unchanged at 21%–24% (assuming an average UAH/USD rate of 44.5).

Commenting on the results, CEO Oleksandr Komarov said:

“Kyivstar delivered another quarter of broad-based, profitable growth, and we are again raising our full-year outlook. Our telecom core continues to underpin our strong performance, and our digital ecosystem continues to scale. The two increasingly reinforce one another. Customers who adopt more of our services generate more revenue, stay with us longer, and strengthen our cash generation. Digital now contributes more than a fifth of our revenue, over seven percentage points higher than a year ago, while continued investment in network resilience and energy independence keeps us serving customers dependably through the war. We remain focused on leading Ukraine’s digital future and on delivering sustainable returns for our shareholders.”

Telecommunications & infrastructure

• Telecommunications and infrastructure revenue grew 8.8% YoY to USD 265 mn (UAH 11.7 bn, +15.8%), driven by higher mobile ARPU and data consumption, an expanding fixed broadband customer base, and newly consolidated renewable-energy infrastructure.
• Mobile ARPU climbed 11.2% YoY to USD 3.9 (UAH 172.7, +18.3%).
• Multiplay customers increased 23.6% YoY to 8.1 mn, representing 39.9% of the one-month active customer base. Multiplay revenue rose 47.4% YoY to USD 139 mn (UAH 6.2 bn, +56.9%), or 41.1% of total revenue.

Digital platform scaling profitably

• Uklon generated revenue of USD 32.8 mn, up 50.8% YoY, and EBITDA of USD 12.5 mn, up 35.5% YoY, on 43.0 mn rides and 1.4 mn deliveries.
• Tabletki, consolidated from February 2026, facilitated GMV of USD 376 mn (UAH 16.6 bn) across 44.9 mn orders and contributed revenue of USD 7.8 mn.
• Kyivstar TV grew revenue more than fivefold YoY to USD 13.9 mn (UAH 614 mn), while its customer base expanded 4.4% QoQ to 3.6 mn.
• Helsi’s premium subscription customers exceeded 109,000, up from 57,000 at end-2025.

Cash generation and balance-sheet strength

• Equity free cash flow (after leases and licenses) increased 32.2% YoY to USD 104 mn in the quarter and 32.1% YoY to USD 191 mn for the first half.
• Cash, cash equivalents and deposits stood at USD 364 mn (UAH 16.4 bn) as of June 30, 2026, supporting continued investment in network resilience and selective inorganic growth.

Other significant developments

• Starlink Direct-to-Cell is now used by more than 6 mn Kyivstar customers and has expanded beyond messaging to data with select apps (Google Maps, Viber, WhatsApp) where there is no terrestrial signal.
• The Group acquired six solar power plants in the Lviv region (105 MW combined; USD 80.8 mn), expanding its renewable portfolio nearly ninefold to approximately 30% of anticipated energy needs and strengthening energy resilience.
• Uklon advanced its multimodal mobility strategy with the launch of Uklon Store (in-app commerce), an agreement to acquire E-wings (e-scooters across 11 cities), Uklon Travel bus booking and co-branding, and Ukraine’s first live autonomous-vehicle testing.
• Kyivstar advanced Syaivo, its national LLM: the 4-billion-parameter model entered beta and topped the Ukrainian leaderboard among smaller models. The Group also signed an MoU with Ukraine’s Ministry of Economy to explore an AI-ready data center.
• Kyivstar signed an MoU with Ukraine’s National Securities and Stock Market Commission to explore enabling domestic investors to access the Group’s Nasdaq-listed shares through established brokerage channels. The initiative advances Kyivstar’s and VEON’s goal of giving Ukrainians a domestic route to invest in the Group and further participate in its growth.

Revised 2026 outlook

USD figures assume an average 2026 exchange rate of UAH 44.5 per U.S. dollar.

Additional information

Additional information, including the full earnings release and the results presentation, is available on Kyivstar’s Investor Relations website at https://investors.kyivstar.ua/