Why is this important
The quarterly 2.4 times increase in digital revenue is the result of the development of digital services (fintech, entertainment, cloud services), diversification from traditional communication.
Financial results
3rd quarter:
- Revenue: 967.9 billion (+9.3% in sums, +10.6% in dollars to $77 million);
- EBITDA: 333.9 billion (+5.7%, $27 million);
- EBITDA margin: 34.5% — decrease due to investments in the network, digital services.
9 months:
- Revenue: 2.864 trillion (+12%);
- EBITDA: 1.053 trillion (+14.6%) — faster than revenue, operational efficiency.
Digital revenue — growth driver
- 3rd quarter: 115.5 billion (+242.6%, 2.4 times), share of total revenue 11.9%.
- 9 months: increase by 2.2 times (+222.1%).
- What are these: fintech (mobile payments, transfers), entertainment (streaming, games), cloud services, IoT.
- Why growth: digitalization of the economy, demand for fintech, entertainment, diversification from traditional communication.
Telecom and infrastructure
- 3rd quarter: 852.35 billion (+0.1%) — stagnation due to market saturation and competition.
- 9 months: 2.558 trillion (+3.7%) — slow growth.
Subscriber base
- Mobile communication: 7.7 million (-5.5%) — reduction due to the transition to a high-quality base, withdrawal of low-margin customers.
- 4G: 5.8 million (-4.3%), penetration 75.2% — an increase in the share of 4G with a decrease in the overall base.
- Multiplay: 3.7 million (+14.4%), 51.3% share of active audience — packages (internet + TV + communication) increase engagement and loyalty.
- MAU of digital services: 7.9 million (+7.6%) — growth in fintech and entertainment users.
ARPU
- Average revenue per user has increased — a key factor in revenue growth while reducing the base. Specific figures were not disclosed.
CAPEX
- 3rd quarter: 138.87 billion (+5.7%), intensity 14.3% — investments in network modernization (5G, 4G expansion), digital services.
Quality strategy
Beeline is moving from a mass base to a high-quality one — high ARPU, engagement. The decrease in subscribers (-5.5%) is compensated by revenue growth (+12%) through digital services and Multiplay packages.
Context
- VEON: An international group owned by Beeline in Uzbekistan, Russia, Kazakhstan, and Pakistan.
- Digital transformation: Beeline is diversifying from traditional communication to fintech, entertainment, cloud services — a trend of global telecoms (fighting the drop in revenue from voice services, SMS).
- Competition: Ucell, UMS (Humans) — Beeline leads in digital services.
- Base reduction: conscious strategy — seeding off low-margin customers (SIM cards for SMS, rare calls), focusing on high-income ones (internet, digital services, Multiplay).
- EBITDA +14.6% faster than revenue: operational efficiency, scalability of digital services (low marginal costs).
