Kcell announced earnings results for the third quarter of 2018. The company's net sales in the third quarter show an increase of 3.8%, driven primarily by contract phone sales, continued solid enterprise sales as well as improved interconnect revenue. In the third quarter, net sales better by KZT 1.4 billion, while service revenue was less by about KZT 1 billion. The contract phone sales was up by KZT 2.4 billion, driven by a number of contracts concluded and higher average price of handsets. Operating income, less than prior year by KZT 2 billion due to less service revenue, higher energy costs, bad debt expense, depreciation and nonrecurring item of final provision for a tax dispute, about KZT 800 million. Net income difference is about KZT 880 million less than on operating income line due to less interest and tax expenditure.

The company reiterated earnings guidance for the full year 2018. The company expects that its services revenue and EBITDA to show low single-digit decline, while its forecast for the CapEx-to-sales ratio remains the same in the low teens.