Kyivstar Group Ltd reported second-quarter revenue of $339 million, marking an increase of more than 19% year-over-year, according to financial data released in a Kyivstar earnings report. Despite beating revenue expectations, the company experienced an EPS collapse to $0.33 per share, down nearly 6% year-over-year, driven by a $21 million non-cash fair value charge on listed warrants, as detailed by 247 Wall St.
Kyivstar Q2 2026 Earnings Show Strong Revenue and Surging Digital Growth
Earnings before interest, taxes, depreciation, and amortization reached $188 million, up nearly 14% compared to the previous year. Equity Free Cash Flow climbed more than 32% year-over-year to $104 million. At the end of June, cash and equivalents stood at $364 million, while gross debt excluding leases was recorded at $88 million. Capital expenditures for the quarter totaled $59 million, accounting for 17% of revenue.
Digital Revenue Expansion and Segment Performance
A primary driver of the quarter’s performance was the digital segment. Digital revenue surged 83% year-over-year to reach $74 million, representing 21.7% of total revenue. Digital EBITDA was $31 million at a 42% margin, which dipped slightly from 44% due to ongoing investments in new services.
Telecom and infrastructure revenue contributed $265 million, up nearly 9% year-over-year, supported by an EBITDA of $157 million at a 59% margin. Mobile ARPU rose more than 11% year-over-year to $3.90, while mobile subscribers stood at 21.8 million, down nearly 3%. Fixed broadband customers grew nearly 11% to 1.3 million. Multiplay customers increased by almost 24% to reach 8.1 million, generating $5.80 in monthly ARPU.
Subsidiary and Vertical Highlights
Several underlying businesses and digital verticals posted notable gains during the second quarter:
- Uklon: Revenue reached almost $33 million, up more than 50% year-over-year, with EBITDA exceeding $12 million, representing an increase of more than 35%.
- Helsi: Revenue hit $2.4 million, up almost 36% year-over-year.
- Tabletki.ua: Revenue totaled $7.8 million, with EBITDA at $6.2 million, yielding an implied margin close to 80%.
- Kyivstar TV: Revenue approached nearly $14 million, as the customer base grew almost 48% year-over-year to reach 3.6 million.
- Digital Enterprise: Revenue rose nearly 16% year-over-year to $16.9 million.
Strategic Outlook and Sovereign Infrastructure Initiatives
During the earnings call, CEO Oleksandr Komarov addressed questions concerning strategic initiatives, including the development of a national large language model known as Syayvo and a data center memorandum of understanding. Komarov stated that the company is a firm believer in sovereign AI infrastructure, anticipating that Ukraine will return to sovereignty issues following the war. Highlighting growing in-market demand with the government as a potential primary customer, he argued that the telecommunications provider is better prepared than any other entity to invest in and operate AI infrastructure.
Management also outlined expectations for digital health integration between Helsi and Tabletki.ua, noting that the combination will proceed as a gradual improvement of business metrics through joint products rather than a one-off event. The digital health vertical is expected to maintain a significant 35% to 40% growth rate in hard currency as synergies develop. Operations continue to navigate ongoing geopolitical and macroeconomic risks, including currency volatility and the operational impacts of war.
