Kyivstar Reports 26 Percent Rise in 2025 Core Profit
Kyivstar reported a 26 percent rise in core profit to 648 million dollars for 2025. Digital sales and the Uklon acquisition drove the growth in revenue.
Ukraine's leading telecommunications operator, Kyivstar Group Ltd. Common Shares, reported a 26% rise in its 2025 core profit, driven by a significant expansion in digital services. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $648 million for the year, with the company forecasting EBITDA growth of 12% to 15% in 2026.
Digital revenue surged 467% for the full year to $124 million, now accounting for 16% of total revenue. This increase was largely supported by the April 2025 acquisition of the ride-hailing platform Uklon, which contributed $80 million. In the fourth quarter, digital revenue grew more than sixfold compared to the previous year.
"We are transforming Kyivstar from a telco service provider to a digital service provider with a telco license," Chief Executive Alexander Komarov told Reuters in an interview.
Internal digital applications also saw robust growth, rising 120% year-on-year. Furthermore, the company is collaborating with Alphabet Inc. to develop the nation's first large language model. Built on the Gemma open-source framework, the first version of the AI is expected to launch in the second quarter of 2026. A public naming contest for the model is currently being held via the Diia government application.
By the end of the year, the company's digital monthly active users reached 15 million, representing a 41.6% increase. This user base spans various sectors, including ride-hailing, entertainment, and healthcare. Despite operational growth, reported net profit fell to $124 million from $283 million a year earlier, weighed down by a $162 million one-time non-cash charge related to the company's stock market listing. Adjusted net profit remained stable at $286 million.
