Kyivstar Raises 2026 Revenue Forecast as Digital Business Grows 69%
Ukraine’s largest telecommunications operator, Kyivstar, has raised its 2026 revenue and earnings forecasts after reporting strong third-quarter growth, supported by higher mobile data demand and the expansion of its digital services business.
The Nasdaq-listed company now expects revenue growth of 15% to 17% in US dollar terms for 2026, compared with its previous forecast of 14% to 16%. It also increased its EBITDA growth outlook to 10% to 12%, from the earlier range of 9% to 12%.
The revised guidance follows a 17.5% year-on-year increase in third-quarter revenue to US$349 million. EBITDA rose 10.3% to US$189 million, according to the company’s results released on 6 November.
Digital services were a major contributor to the performance, with revenue from the segment increasing 68.9% to US$76 million. The business accounted for 21.7% of group revenue during the quarter, highlighting Kyivstar’s growing dependence on services beyond traditional mobile connectivity.
Digital services become a larger revenue contributor
Kyivstar’s digital business is expanding across several areas, including mobility, healthcare, digital platforms and enterprise services.
Digital revenue increased 68.9% year on year in the third quarter, compared with 8.4% growth in telecommunications and infrastructure revenue. The digital segment generated US$31 million in EBITDA, up 74.2%, and reported an EBITDA margin of 40.7%.
The results indicate that digital services are becoming an increasingly important part of the company’s revenue and earnings base.
One of the businesses contributing to this expansion is Uklon, Kyivstar’s ride-hailing subsidiary. Uklon is extending its services beyond ride-hailing into delivery and travel, while also expanding its geographic presence.
The company said investment in its modern mobility operations, including Uklon’s expansion, had slightly reduced the digital segment’s EBITDA margin.
Kyivstar is also expanding its enterprise cloud capabilities through an announced agreement to acquire Ukrainian cloud services provider GigaCloud. The proposed acquisition is intended to strengthen its position in enterprise digital infrastructure and cloud services.
Mobile data demand supports core telecom growth
Despite the rapid expansion of its digital operations, telecommunications and infrastructure remain Kyivstar’s largest revenue contributor.
The segment generated US$273 million in third-quarter revenue, representing approximately 78% of group revenue. Revenue increased 8.4% year on year, supported by higher average revenue per user (ARPU) and increased mobile data consumption.
Mobile ARPU rose 8.6% to US$4.0, while mobile data usage increased 20%. The company’s 4G penetration reached 71.5%, an increase of 4.9 percentage points from the previous year.
Kyivstar also reported an 11.3% increase in broadband customers to 1.3 million.
The company has been transitioning customers away from its legacy 3G network. Chief Executive Oleksandr Komarov told Reuters that the shutdown process took almost three years, with more than 70% of data customers now using newer network technology.
The transition is part of the operator’s wider effort to modernise its network and accommodate growing demand for mobile data services.
Network operations continue despite attacks
Kyivstar’s financial performance comes against the backdrop of continuing military conflict in Ukraine, which has placed pressure on telecommunications infrastructure and network operations.
Komarov told Reuters that the company’s infrastructure had been directly hit during recent Russian attacks. However, emergency and mitigation measures prevented disruptions to customer services.
Network resilience remains an important operational priority for the company, given the role of telecommunications infrastructure in maintaining connectivity for consumers, businesses and public services during the conflict.
Komarov also said Kyivstar had not factored an end to the war into its 2027 planning assumptions. The company has not yet published its financial outlook for next year.
He added that Kyivstar did not expect the conflict to end in the near future and described the company’s forecasting approach as conservative.
Cash generation improves as capital spending declines
Kyivstar reported stronger cash generation during the third quarter, with free cash flow reaching US$83 million, compared with US$34 million in the same period last year.
Free cash flow for the first nine months of 2026 increased 56.8% year on year to US$274 million.
Capital expenditure declined 25.6% to US$66 million in the third quarter. The company’s last-twelve-month capital expenditure intensity fell to 24%, compared with 29% previously.
Cash and cash equivalents stood at US$436 million at the end of September, while net liquidity excluding lease liabilities was US$350 million.
The combination of stronger operating cash generation and lower quarterly capital expenditure provides additional financial capacity for Kyivstar’s network and digital business investments.
However, the company continues to maintain a full-year capital expenditure intensity forecast of 21% to 24%.
Revised 2026 financial outlook
Kyivstar’s updated guidance reflects its stronger operating performance and expectations for continued growth across its telecommunications and digital businesses.
The company now expects revenue growth of 15% to 17% in US dollar terms and 22% to 24% in Ukrainian hryvnia terms for 2026.
Its revised EBITDA growth forecast is 10% to 12% in US dollars and 18% to 20% in hryvnia. The capital expenditure intensity forecast remains unchanged at 21% to 24%.
The company had previously expected revenue growth of 14% to 16% in US dollars and EBITDA growth of 9% to 12%.
| Financial metric | Previous outlook | Revised outlook |
|---|---|---|
| Revenue growth (USD) | 14%–16% | 15%–17% |
| Revenue growth (UAH) | 21%–23% | 22%–24% |
| EBITDA growth (USD) | 9%–12% | 10%–12% |
| EBITDA growth (UAH) | 17%–19% | 18%–20% |
| Capital expenditure intensity | 21%–24% | 21%–24% |
The company has not yet issued its 2027 financial guidance.
Nasdaq listing and investor focus
Kyivstar marked its first year on Nasdaq in August 2026, becoming the first Ukrainian company to list on a US stock exchange.
Komarov described the company’s first year on the exchange as successful, while acknowledging that its share valuation was influenced by investor risk appetite as well as operating performance.
The listing has provided Kyivstar with access to international capital markets and increased its visibility among global investors.
The company’s next phase of growth will depend on its ability to expand digital services, maintain mobile network performance, increase customer adoption of newer technologies and manage investment requirements in a challenging operating environment.
The latest results suggest that Kyivstar is gradually evolving from a traditional telecommunications operator into a broader digital services business. Its ability to sustain digital growth while maintaining network resilience will be central to its financial performance in the coming quarters.
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