Vodafone Ukraine increases Q3 2025 net profit by 20.6% as revenue rises 9.9%

Telecom operator PJSC VF Ukraine (Vodafone Ukraine, Kyiv) increased its unconsolidated net profit in the third quarter of this year by 20.6% compared to the same period last year, to UAH 1.373 billion, according to the company’s financial statements.

Revenue grew 9.9% to UAH 6.454 billion, gross profit rose 9.6% to UAH 3.863 billion, and operating profit increased 2.3% to UAH 2.069 billion.

Overall, for the first nine months of the year, the company’s net profit increased 10.7% to UAH 3.447 billion, with revenue up 13.3% to UAH 19.03 billion.

"The results of the first nine months of 2025 confirm Vodafone Ukraine’s resilience and strategic potential. Despite the ongoing war and a new wave of attacks on energy infrastructure, the Group continued to demonstrate growth in key indicators: revenue increased 13.5% to UAH 20.5 billion, while operating profit rose 10% to UAH 6.5 billion," said Supervisory Board Chairman Vasyl Latsanych, as quoted in the report.

According to the document, Vodafone Ukraine’s consolidated net profit in the third quarter of this year increased 23.9% to UAH 1.194 billion as consolidated revenue rose 9.9% to UAH 6.971 billion.

For the first nine months of the year, consolidated profit totaled UAH 2.899 billion, which is 0.9% less than in the same period of 2024.

"The main growth drivers remain the development of the fixed-line business, increased usage of data services and the number of internet users, and, accordingly, higher revenues from mobile and fixed-line services," the report states.

As of the end of Q3 2025, Vodafone Ukraine served 15.4 million subscribers, including 10.4 million 4G customers, with the operator’s market share at about 33%.

In the third quarter, the average subscriber consumed 330 voice minutes and 10.3 GB of data traffic, 4% more than in the previous quarter, while ARPU rose to UAH 136. The company’s GPON network, the second largest in the country, covers more than 1.3 million households across 14 regions.

"Overall fixed-line coverage across all technologies exceeds 1.9 million households. Vodafone is actively building new zones in Kyiv, Odesa, Dnipro, Kharkiv, Lviv, Zaporizhia, Mykolaiv, Ivano-Frankivsk, Poltava, Chernihiv, Zhytomyr, Lutsk, Rivne, and Ternopil," the company said.

The subscriber base has remained stable over the past three and a half years, but in the third quarter the operator managed to increase its overall customer base and continue growing its number of contract subscribers in both private and corporate segments.

In Q3 2025, the company’s capital expenditures on construction, expansion, or improvement of fixed assets totaled UAH 1.556 billion, versus UAH 3.196 billion in the first half of the year. More than 50% of Q3 investments were directed toward energy independence.

"No major investments beyond the company’s regular operational activities and its approved strategy are planned in the near future," the document states.

"We face a difficult winter ahead, with blackouts expected to last up to 20 hours a day. But we are ready: our future-focused investments, the Kardesa project, integration into the EU roaming zone, and preparation for 5G form the foundation for sustainable development and market leadership in the post-crisis landscape," CEO Olha Ustinova concluded.

Key developments in Q3 included the signing of a strategic memorandum with Nokia and Finnish export credit agency Finnvera for EUR 30 million at the Ukraine Recovery Conference in Rome on July 14; the announcement of the "most ambitious geopolitical project" – the EUR 100+ million Kardesa submarine cable connecting Ukraine with Europe and Asia, with Vodafone’s own EUR 50 million investment; and surpassing 100,000 GPON subscribers, a 14-fold increase.

In the third quarter, the company employed 2,570 people, while payroll expenses rose 11.4% year-on-year to UAH 657.34 million.

The company recalled that in 2024 it began negotiations to restructure its $400 million debt due in February 2025. The negotiations concluded in February 2025, resulting in the following restructuring terms: the maturity date was extended to February 11, 2027; the coupon rate was raised to 9.625% annually from February 11, 2025 (from 6.20% previously); the Group committed to repaying $99.88 million in February 2025; and amendments to covenants were agreed, including a requirement to maintain $150 million in liquidity, increasing to $200 million starting August 11, 2025.

Between June and August 2025, VF Ukraine announced three tenders to repurchase its Eurobonds. As of September 30, 2025, the outstanding amount totals $292.5 million.

To service and repurchase the eurobonds, the company is receiving loans from related parties. In February, parent company Telco Investments B.V. provided $49.59 million for partial debt repayment. In June, Telco Investments extended a dollar-denominated credit line equivalent to UAH 660 million at 10% interest, maturing in 2028.

Finally, in July 2025, Vodafone Ukraine entered into a loan agreement with Dutch-based Cemin B.V. for $10 million at 10% interest, repayable no later than the end of 2027 but not before the eurobonds are redeemed. The funds are disbursed in tranches to the company’s account at a foreign bank and must be used for bond repurchases, which Vodafone Ukraine is carrying out in connection with the resumption of dividend payments this year.