Kyivstar's Capitalization Surge on Nasdaq
Following its debut on the Nasdaq stock exchange, "Kyivstar" significantly boosted its capitalization, demonstrating the resilience of the Ukrainian telecom operator amid the ongoing war and complex geopolitical circumstances.
In an interview with Mind, the company's president, Oleksandr Komarov, stated that as of October 20, the market capitalization of "Kyivstar" has reached $3.13 billion, confirming the successful listing on the exchange.
Before the full-scale invasion, the company entered an agreement with the SPAC Cohen Circle Acquisition Corp., which valued "Kyivstar" at $2.3 billion. Despite stock fluctuations, their value has exceeded initial expectations, currently trading at around $12.
Komarov noted that excluding the results from the customer loyalty program implemented after the cyberattack in December 2023, the real (organic) growth is 18% year-on-year. Profit before tax has increased by 14%, although there is a trend of declining profitability.
He mentioned that operational costs and expenses related to ensuring energy resilience have risen. When including the acquired Uklon service, revenues increased by 23%, and profit before tax rose by 17%.
When asked about the impact on stock quotes due to the partial ownership of Russian national Mikhail Fridman, Komarov stated that it does not affect their performance. All arrests were lifted in December 2024, and the company complies with high compliance standards.
The head of Kyivstar also indicated that the development strategy includes three potential avenues for inorganic growth.
The company is examining assets within telecommunications, particularly infrastructure (e.g., Ukrainian Tower Company) and fixed internet operators.
"Inorganic growth will help us transform Kyivstar from a telecom operator to a provider of digital services. We aim to expand our presence in mobility, and we're also interested in e-commerce, fintech, and digital advertising," Komarov concluded.
As we previously reported, Kyivstar is considering investing in GigaCloud, the largest Ukrainian cloud solutions provider, having submitted an application to the Antimonopoly Committee to acquire an 80% stake.
In the first half of 2025, the operator increased revenue by 36.1% compared to the previous year, reaching UAH 22.6 billion. In the second quarter, revenue hit UAH 11.9 billion, which is 25.8% higher than in the second quarter of 2024.
