Economy 2022-07-15T07:57:43+03:00
Ukrainian news
ESU To Challenge Court's Ruling On Termination Of Contract On Purchase Of Ukrtelecom

ESU To Challenge Court's Ruling On Termination Of Contract On Purchase Of Ukrtelecom

court, SPF, ESU, Ukrtelecom

The ESU company, which owns the 92.79-percent stake in the Ukrtelecom telecommunication company, intends to challenge the ruling of the Economic Court of Kyiv on termination of privatization agreement signed between the State Property Fund (SPF) and ESU on acquisition of the Ukrtelecom telecommunication company.

ESU has said this in a statement, Ukrainian News Agency reports.

The company notes that the ruling of the court of the first instance will not affect current operating activity of Ukrtelecom and modernization with the assistance of China Development Bank will continue despite any legal proceedings.

In compliance with respective court's statement, on October 19, the Ukrtelecom's stake was returned to the state with relevant court's ruling.

The court in full satisfied lawsuit of the SPF and terminated the contract on acquisition of the stake No. КПП-582 dated March 11, 2011

The court obliged Kyiv-based Ukrainian Export-Import Bank (Ukreximbank) to write off Ukrtelecom's shares from account of ESU and fine ESU UAH 2,171.169 million for improper implementation of the purchase and sale agreement.

As Ukrainian News Agency earlier reported, ESU considers unfounded demands of the SPF as to fulfillment of some privatization requirements regarding Ukrtelecom.

In the first half of 2017, the Ukrtelecom telecommunications provider company (Kyiv) increased net profit by 99.2% or UAH 176.901 million to UAH 355.267 million, having decreased net revenue by 1.49% or UAH 47.607 million to UAH 3,154.298 million compared to the same period last year.

By the results of the second quarter of 2017, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) amounted to UAH 503 million, while EBITDA margin - 30.7%.

The company completed the second quarter with a profit of UAH 232 million.

In April-June, Ukrtelecom started providing BBA services in 32 more settlements.

At the same time, compared to the previous year, revenues from fixed telephony decreased in the mass segment by 7%, in the corporate segment - by almost 3%.

This is due, among other things, to a decrease in the subscriber base for the year by almost 15%.

Today the active base of Ukrtelecom is more than 5 million telephone lines.

The main reasons for the reduction of the base are systematic theft of the copper cable (11,200 cases in six months) and outflows related to the use of mobile telephony.

Compared to the previous year, Ukrtelecom's investments in the development of telecommunications infrastructure increased: their volume reached UAH 313 million.

In the second quarter of 2017, Ukrtelecom paid about UAH 460 million of taxes to budgets of all levels.

Ukrtelecom intends to invest USD 2 million in the development of the 3Mob network.

In the first quarter, Ukrtelecom reduced EBITDA by 28.9% to UAH 388 million and retained its income at UAH 1.7 billion.

According to unaudited data, Ukrtelecom finished 2016 with a net profit of UAH 244 million.

In January-September 2016, the company reduced its net profit by 49% or UAH 244 million to UAH 249 million hryvnia.

At the same time, the income of Ukrtelecom in January-September amounted to UAH 4.98 billion, which is by 0.5% or UAH 24 million less compared to the same period of 2015.

In October 2013, System Capital Management company (Donetsk) completed the acquisition of 92.79% stake in Ukrtelecom from EPIC (Austria).

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