VF Ukraine

Vodafone Ukraine (VFU), Ukraine’s second largest mobile operator, reported 2023 revenue of $591m (-3.5% y-o-y), EBITDA of $347m (-0.4%), and net income of $139m (+4.1x), for EBITDA and net margins of 58.7% (+1.8pp y-o-y) and 23.5% (+17.9pp). Full-year CAPEX jumped by 40% y-o-y to $155m. VFU booked a 2023 ARPU of UAH 107.2 ($2.8), up 18% y-o-y in UAH and up 4.7% y-o-y in USD terms. Its customer base rose by 3.2% y-o-y to 15.9 million subscribers.

The rating agency S&P on Mar. 20 lowered its long-term issuer credit rating on Vodafone Ukraine (VFU) by one notch, from CCC+ to CCC. The downgrade reflected S&P’s view that, despite VFU’s resilient operating performance and both financial capacity and willingness to repay its $400m Eurobond due in February 2025, the company could initiate a debt restructuring due to the prevailing NBU F/X restrictions leaving the company unable to repay its foreign debt using its local liquidity.