The cyberattack on Kyivstar, Ukraine’s largest telecom provider, is expected to result in a financial setback of approximately $100 million for its parent company, Veon. This projection is based on the anticipated impact on consolidated revenue results for 2024, attributed to revenue loss resulting from customer loyalty measures implemented by Kyivstar. Following the December attack, which officials have deemed one of the most significant disruptive cyberattacks since the onset of the war, Kyivstar introduced measures such as waiving subscription fees for a month to compensate for the inconveniences caused.
Veon clarified that the revenue impact of these customer loyalty offers is estimated to be around $95 million. The hack, orchestrated by the Russian state-controlled hacker group Sandworm, disrupted services for 24 million Kyivstar subscribers, leaving them without voice and data connectivity for two days. While the technical response to the incident incurred expenses, including restoring services and replacing equipment, Veon stated that these costs would not have a “material financial impact” on the company’s 2023 results. Kyivstar plans to continue remediation and compensation efforts in the coming months.
