Kyivstar boosts 2026 outlook after digital growth drives Q1 surge

Kyivstar (NASDAQ:KYIV) reported a robust start to fiscal year 2026, characterized by a significant acceleration in digital service adoption and strong double-digit growth across its core financial metrics.

The company’s total revenue climbed 26.6% year-over-year to $323 million in the first quarter, while EBITDA rose 23.5% to $173 million.

This performance maintained a strong EBITDA margin of 53.5%, reflecting the operator's ability to drive top-line expansion while managing operational costs effectively.

The quarterly performance was anchored by a dramatic transformation in the company’s revenue mix.

Digital revenue surged 256.6% year-over-year to reach $67 million, now accounting for more than a fifth of total turnover.

This shift was supported by a 31.6% increase in multiplay customers, which reached 8.1 million as users increasingly integrated mobile, fixed, and digital value-added services.

Bottom-line results mirrored this momentum, with net profit reaching $85 million, translating to earnings of $0.37 per share.

On the strength of these results, Kyivstar management has upgraded its financial guidance for the remainder of 2026.

The company now expects annual revenue to grow between 11% and 14% in dollar terms, with EBITDA projected to increase by 7% to 10%.

Furthermore, the firm has signaled a more efficient capital expenditure profile, lowering its expected capex intensity to between 21% and 24% of revenue.

Elsewhere, the balance sheet remains liquid, ending the period with $353 million in cash, equivalents, and deposits, bolstered by $87 million in equity free cash flow generated during the quarter.

Strategically, Kyivstar continues to diversify its ecosystem through partnerships and acquisitions.

The firm expanded its cooperation with SpaceX Starlink to bolster connectivity and finalized the consolidation of the health-tech platform Tabletki.ua.