Yee Fu Li

Yee Fu Li asked about Kyivstar's strategy for scaling digital services beyond Uklon, including potential bolt-on acquisitions or organic development. He also inquired about the development of Ukraine's first national large language model (LLM), its construction, partnerships, and envisioned revenue uplift. Additionally, he questioned if the $162 million public listing costs would incur additional charges in future quarters and sought insights on the stabilization of the telecom base given the improved churn rate.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, reconfirmed the strategy of organic and non-organic development, focusing on current verticals like modern mobility and digital health, and interest in fintech, e-commerce, and FTEC. He described the LLM as a partnership with the Ministry of Digital Transformation, using an open model and Ukrainian datasets, with Kyivstar investing in development and computing power for future AI-incorporated products. Boris Nalshik, CFO, stated the $162 million listing loss was a one-off, with no future impacts expected beyond quarterly warrant regulation. Oleksandr Komarov added that the telco business is growing 9% year-on-year in local currency, with expectations to sustain reasonable growth despite inflation.

Yee Fu Li asked about Kyivstar's strategy for scaling other digital services like Kyivstar TV, digital enterprise, and Healthy, inquiring about potential bolt-on acquisitions or organic development. He also questioned the development of the first national large language model (LLM), its build process, potential partnerships with foundational model providers, and envisioned revenue uplift. Additionally, he sought clarification on the $162 million public listing costs, asking if further charges are expected, and inquired if the improved annual churn rate indicates a stabilization or bottoming out of the telecom base.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, reiterated the strategy of organic and non-organic development, focusing on current verticals (modern mobility, digital health) and new areas like fintech, e-commerce, and FTEC, while remaining open to other value-creating opportunities. For the LLM, he explained it's a partnership with the Ministry of Digital Transformation, using an open model and unique Ukrainian datasets, with Kyivstar investing in the development team and computing power for future AI-incorporated product rights. Boris Nalshik, CFO, confirmed the $162 million listing loss was a one-off, with no future impacts expected beyond quarterly warrant regulation. Oleksandr Komarov added that the telco business is growing 9% year-on-year in local currency, with expectations to sustain reasonable growth despite inflation, ensuring healthy top-line growth. In follow-up questions, Oleksandr Komarov outlined Uklon's growth opportunities in Ukraine's ride-hailing, delivery, mobility ecosystem, and international expansion. He also affirmed Kyivstar's ability to ensure sustainable ARPU growth, driven by the multiplay strategy and leadership in core telecom. Regarding Starlink direct-to-cell, he stated it's in a pilot phase, will be free for Kyivstar SIM card holders for the first year as a humanitarian service, with commercialization planned for 2026.