Cyberattack on Ukraine's Kyivstar will cost parent Veon almost $100 mln in sales (updated)

VEON

18/01/2024 10:10

(Adds financial impact on VEON in paragraph 3, continuation of
remediation efforts in paragraphs 4-5, background paragraph 6)
       Jan 18 (Reuters) - Veon  VON.AS , the parent company of
Ukraine's largest mobile operator Kyivstar, will take a hit of
around 3.6 billion hryvnias ($95 million) in revenue in 2024 due
to a massive cyberattack in December, the Dutch telecoms group
estimated on Thursday. 
    The estimated lost revenue is associated with measures
Kyivstar has taken to compensate customers for inconveniences
caused by the disruptions, Veon said.
    The cyberattack was the largest since Russia launched its
war on Ukraine in February 2022, knocking out services including
mobile phone, damaging IT infrastructure in several regions, and
putting people at risk of not receiving air raid alerts. 
    VEON said it does not expect a material financial impact for
its consolidated results for the year ended Dec 31. 2023, and
instead will push the costs to the current year.
    "Kyivstar plans to continue its remediation and compensation
efforts in the coming months. The costs or loss of revenue of
any other such remediation measures is uncertain and cannot be
reasonably estimated at this time," Veon said in a statement. 

        
  

 (Reporting by Nathan Vifflin; Editing by Andrew Heavens and
Emelia Sithole-Matarise)
 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13))