OREANDA-NEWS. February 17, 2011. In 4Q10 Ukrtelecom net revenues remained flat at UAH 1,675mn, whilst EBITDA slumped to UAH 158mn (-52.7% qoq) on the back of rising COGS and SG&A expenses. Quarterly net loss came out at UAH 196mn (plus76.6% qoq), which translates into a loss of UAH 259mn in FY10.

Millennium Capital deems the news as NEGATIVE for Ukrtelecom. Although the company’s net loss shrank to UAH 259mn (vs UAH 470mn in 2009), it widened on a quarterly basis (UAH 196mn in 4Q10 vs MFKe UAH 12mn and UAH 111mn in 3Q10) signaling a significant deterioration in performance. Ultimately, EBITDA margin contracted by 10.5pp qoq to 9.5% in 4Q10, whereas net margin deteriorated into negative low teens (-11.7% in 4Q10 vs -3.8% in 3Q10).