Kyivstar boosts profit outlook as confidence rises in Ukraine

By Gianluca Lo Nostro and Leo Marchandon

May 13 (Reuters) - Kyivstar KYIV.O on Wednesday raised its full-year outlook after improved energy stability and what its chief executive described as rising geopolitical optimism lifted confidence in Ukraine.

The telecom operator now expects revenue growth in U.S. dollar terms of 11% to 14%, up from a March forecast of 8% to 11%, while earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of core profit, are seen rising 7% to 10% versus an earlier 5% to 8%.

First-quarter EBITDA rose 23.5% from a year earlier to $173 million on revenue of $323 million, up 26.6%.

"We see a certain kind of optimism in the eyes of the people and key geopolitical stakeholders," CEO Oleksandr Komarov said. "We are still, by nature, conservative, taking into account how volatile the external environment is. But at the end we are probably less conservative than we used to be in March."

The upgrade points to steady consumer demand in Ukraine, where operators have kept networks running despite repeated disruption since Russia's invasion .

Kyivstar is also pushing beyond its core mobile business.

Komarov said artificial intelligence products were nearing commercial use, with a first model due at the start of autumn and a larger model for Ukrainian institutions and the government app Diia expected in early 2027. He also said 5G pilot zones would expand to Odesa after trials in Lviv, Kharkiv and Kyiv.

A nationwide rollout is, however, unlikely until at least months after the war due to military constraints, Komarov said.

Ukraine joining the European Union single roaming area in January was probably one of the best examples demonstrating Kyiv's efforts to join the EU, he added, as millions of Ukrainians now use Kyivstar SIM cards from within the bloc.

Kyivstar has expanded beyond telecoms through acquisitions following its 2025 spin-off U.S. listing and now owns ride-hailing, streaming and healthcare businesses in Ukraine.

(1 euro = $1.1733)