Vodafone Ukraine completed the full acquisition of fixed-line telecom operator Frinet in 2025, raising its ownership stake to 100%. To do so, on September 9 the company purchased the remaining 9.4% stake for $2 million (UAH 83 million) from minority shareholders who did not control the business. The carrying value of that stake was only UAH 27 million, meaning the actual transaction price significantly exceeded its book valuation. The move marks the final integration of Frinet into Vodafone’s structure and strengthens the company’s position in the fixed broadband and converged services segment.
The company’s annual financial results showed solid growth: revenue increased by 14% to UAH 27.8 billion, while net profit rose by 18% to UAH 4.18 billion. Mobile services remained the main source of income, with revenue up 16.4% to UAH 22.09 billion. At the same time, the fixed-line business also posted notable growth, rising 15.9% to UAH 1.09 billion, which further explains the company’s interest in gaining full control of Frinet. Revenue from traffic termination for other operators increased modestly by 1.5% to UAH 2.51 billion, roaming revenue rose 3.1% to UAH 0.78 billion, and revenue from merchandise sales edged up just 0.6% to UAH 923 million.
At the same time, costs also increased. Cost of sales rose from UAH 6.01 billion to UAH 7.02 billion, primarily due to higher electricity prices and other production expenses, which reached UAH 2.86 billion. Fees for radio frequency usage also increased to UAH 1.38 billion, while roaming expenses rose to UAH 0.41 billion. At the same time, traffic termination costs in other mobile operators’ networks declined slightly. Operating expenses also increased: marketing and advertising rose to UAH 0.51 billion, dealer commissions to UAH 0.50 billion, consulting expenses to UAH 0.69 billion, and billing and data processing costs to UAH 0.46 billion. Despite this, headcount remained unchanged at around 4,500 employees, pointing to improved efficiency without workforce expansion.
The report also gave particular attention to debt obligations and risks. The company has $281 million in eurobond liabilities maturing in February 2027. Its ability to repay those obligations depends to a large extent on the situation with foreign exchange restrictions in Ukraine, which affect the transfer of funds abroad. Much will also depend on the company’s ability to refinance the debt or renegotiate terms with creditors. Vodafone said it is considering various cash flow management options and currently expects to remain compliant with its debt agreements over the next 12 months.
The company continues to service its debt: in February 2025, it made another eurobond interest payment of $13.4 million. In addition, dividends totaling UAH 3.01 billion were declared in 2025, of which UAH 412 million remained unpaid at year-end, although a further UAH 151 million was paid in the first quarter of the following year.
To manage currency risks, Vodafone invests in domestic government bonds denominated in foreign currency. In 2025, their total volume declined to the equivalent of UAH 0.97 billion from UAH 1.33 billion a year earlier, while diversification also increased, with part of the holdings shifted into euros. The company’s free cash balance also decreased, from UAH 10.34 billion to UAH 8.09 billion, with around half held in hryvnia and the rest in US dollars. In addition, at year-end the company held a short-term deposit of UAH 0.85 billion at an annual rate of 0.4%, compared with UAH 2.02 billion in such deposits a year earlier.
Overall, the report shows that Vodafone Ukraine continues to grow and strengthen its market position, particularly through the development of its fixed-line segment, while also facing rising costs and continued uncertainty related to foreign exchange restrictions and upcoming external debt repayments.
