Kyivstar Group Ltd (NASDAQ:KYIV) reported stronger-than-expected fourth-quarter results as the Ukrainian telecom operator continued to scale its digital ecosystem and expand its multiplay services.
The company posted earnings per share of $0.37, exceeding analyst expectations of $0.32. Quarterly revenue reached $321 million, compared with $299.3 million in the same period a year earlier.
Kyivstar said fourth-quarter revenue climbed 28.4% year over year to $321 million, equivalent to 30.1% growth in local currency to UAH 13.5 billion, driven by the continued rollout of its multiplay bundles and digital services strategy.
Digital ecosystem and multiplay drive growth
Mobile average revenue per user (ARPU) increased 18.2% year over year to $3.8, while the proportion of customers shifting to 4G data plans rose by 5.9 percentage points.
Digital services were a major growth driver, with revenue from this segment increasing more than sixfold year over year to $50 million, accounting for 15.7% of total revenue.
The company attributed this growth partly to its digital ecosystem, which includes the ride-hailing platform Uklon, contributing $34 million in revenue during the quarter.
Multiplay usage also expanded steadily. The number of customers using voice services, 4G data and at least one digital application rose 18% year over year to 7.3 million, representing 35% of monthly active mobile users.
Investment in new technologies
Kyivstar has also continued to invest in emerging technologies. The company recently expanded Starlink Direct-to-Cell connectivity to all of its 4G subscribers, with nearly five million users already testing its initial text messaging capabilities. Voice and light data services are expected to be introduced later in 2026.
In February, the company also announced the acquisition of Tabletki.ua, Ukraine’s largest online marketplace for pharmaceuticals and healthcare products.
Chief Executive Officer Oleksandr Komarov said the company’s results reflect its ability to grow while continuing to invest in digital infrastructure.
“Kyivstar’s full-year results demonstrate resilience, innovation, and strategic execution at scale,” Komarov told Investing.com.
“We are investing in Ukraine now and helping build its digital future through technologies like Direct-to-Cell satellite connectivity and the development of a sovereign Ukrainian LLM.”
VEON also reports strong quarterly performance
Parent company VEON Ltd (NASDAQ:VEON) also delivered solid results for the quarter.
Fourth-quarter revenue increased 17.4% year over year to $1.17 billion, while EBITDA rose 29.1% to $527 million, with margins expanding by 410 basis points to 45%.
VEON CEO Kaan Terzioğlu said the group continues to benefit from the expansion of digital services across its markets.
“Our digital operator model is a unique value-creation opportunity in some of the world’s most exciting markets where we deliver much needed, scalable services,” he told Investing.com.
Looking ahead, Kyivstar expects revenue growth of 8% to 11% in U.S. dollar terms and EBITDA growth of 5% to 8%, based on an assumed UAH/USD exchange rate of 44.5. At the midpoint of this guidance, full-year revenue would reach approximately $1.27 billion, exceeding the analyst consensus estimate of $1.20 billion.