Kcell JSC Reports Financial Results for Q4 and Full Year 2024

Almaty, 15 April 2025 - Kcell Joint Stock Company (hereinafter referred to as "Kcell" or the "Company") (KASE: KCEL), one of the leading telecommunications service providers in Kazakhstan, discloses its financial results for the fourth quarter and twelve months of 2024.

Confident growth, new technologies, and large-scale infrastructure projects marked Kcell's transition into 2025, reinforcing its industry leadership and setting the direction for the telecom market's development. The Company increased its revenue by 6% to KZT 241.3 billion, expanded 5G coverage, and implemented major initiatives, including the launch of mobile services in the Almaty metro system. Kcell presented its operational and financial results at the Kazakhstan Stock Exchange (KASE) Issuer's Day, where it shared its achievements and strategic priorities for the future.

The past year saw steady growth and significant investment for the Company. Total revenue reached KZT 241.3 billion, while net profit amounted to KZT 10.1 billion. The subscriber base saw an increase to 7.9 million customers - one of the key indicators of user trust and sustained demand for the Company's services. The share of users with 5G-enabled devices also continues to grow steadily, reaching 27.4%, underscoring the readiness of Kazakhstan's population to shift to next-generation mobile internet.

Kcell continues to allocate record-high investments toward infrastructure development. Over the past two years alone, the Company has invested approximately KZT 255 billion in its network, including KZT 78 billion paid to the state budget for 5G spectrum. By comparison, annual investments in 2020-2022 ranged between KZT 25-40 billion. This significant increase firmly positions Kcell as the industry leader in terms of capital investment.

"We are not just investing in technology - we are investing in Kazakhstan's future. Connectivity is no longer merely a service; it has become crucial infrastructure for the economy, healthcare, education, and everyday life. We are a company that is systematically and consistently building this infrastructure. In 2024, capital investments in infrastructure amounted to as much as KZT 80 billion. In 2025, the Company intends to sustain a comparable level of capital expenditure, despite rising costs of imported equipment due to currency fluctuations and the increased cost of borrowing due to higher market interest rates. The main share of the funds will be allocated for further deployment of the 5G network, upgrading equipment, and improving service quality nationwide," said Sabigat Rakhmetov, Kcell's Chief Financial Officer.

In 2024, we saw a 22% increase in data consumption, reaching 246.2 PB. The average volume per user rose by 14.7% year-on-year, amounting to 16.4 GB. Data consumption continues to grow at a remarkable pace: since 2020, traffic volumes across the Kcell/activ networks have increased by 88%. This rapid growth places significant load on the network. To maintain high service quality and stay ahead of rising demand, the Company continues to make substantial investments in infrastructure development.

The increase in data traffic reflects not just general trends but also Kcell's targeted projects to enhance connectivity in urban areas. One such initiative was the launch of a 5G network in the Almaty metro: the first time fifth-generation connectivity became available underground in Kazakhstan. Today, stable 5G coverage is available across nine stations, enabling passengers to enjoy uninterrupted internet access. The project was delivered in record time and forms part of a complex program aimed at the digital transformation of urban infrastructure.

Kcell continued to expand its network coverage across the country. In the last quarter alone, 171 new 5G base stations were launched, bringing the total number to over 1,600. Today, fifth-generation connectivity is available to more than one million people across 23 cities in Kazakhstan.

At the same time, the Company is actively enhancing connectivity in rural areas. In 2024, 433 new 4G base stations were installed in villages and additional 52 settlements were covered in the first two months of 2025 - reaching nearly 100,000 people. This strong focus on regional development and social accessibility is reflected not only in network expansion but also in Kcell's tariff policy.

"Connectivity in rural areas isn't just about having coverage on a map - it's about giving people access to opportunities. Internet in rural communities should be just as stable and fast as it is in cities, and we are consistently working to make that a reality. At the same time, every customer - whether a schoolchild, student, or large family - deserves a personalized approach. Last year, we took into account the lifestyles and needs of different groups and developed tailored tariffs to meet them," said Kazbek Shaimov, Chief Commercial Officer of Kcell JSC.

For young people, the "Imba" and "Student" tariffs have been introduced, offering larger data allowances and access to educational services. For large families, a new range of bundled offerings was introduced, allowing them to share data and minutes across multiple lines. The "Social" tariff for subscribers with special needs has been further enhanced: it now offers 10 GB of data and 100 minutes for KZT 1,790, available for activation at any Kcell outlet across the country.

The financial outlook for 2025 confirms the continuation of stable positive dynamics of the company's development. Revenue growth is projected to sustain its current pace, with the EBITDA margin remaining stable at 37-37.5%, reflecting Kcell's operational efficiency.

Enquiries:

investor_relations@kcell.kz

About Kcell

Kcell is a Kazakh provider of digital telecommunications services: mobile communications and converged services of fixed communications (FMC), data transmission and Internet access, financial services, digital services and mobile applications, IT solutions in the field of system integration, the Internet of things, machine-to-machine connectivity, big data collection and processing and cloud computing. Kcell is also a leading mobile operator in Kazakhstan providing the 'smartphone + tariff' service.

Kcell has become the largest digital ecosystem in Kazakhstan with competitive advantages through its value-added services such as mobile financial services, mobile TV, online movies, music, books and magazines, as well as unique solutions for business customers. The company holds leading positions in the B2B market thanks to its strategy of vertical infrastructure solutions and development and implementation of the cutting-edge technologies. Kcell's 5​G network covers 45.78% of the country's population and provides high quality services. The company operates under its two brands - Kcell and activ, that are widely recognized in our highly competitive telecom market due to the high quality of customer service. Thanks to its clear multi-brand architecture, Kcell increases its business efficiency in the B2C segment through optimal pricing for bundled offerings, customer base profitability management and network quality.