The Russian cyberattack on Kyivstar in December last year will cost the company about UAH 3.6 billion in revenue. However, the operator will lose it as a result of the cancellation of monthly service fees for its customers as compensation. This was reported by Kyivstar's parent company, Veon, according to UNN.
Details
As noted, VEON does not expect a material financial impact on its 2023 results due to service disruptions and costs associated with expanding IT capabilities to restore services.
However, the company expects that the loss of revenue due to customer loyalty measures taken by Kyivstar to compensate for the inconvenience caused by the disruption will have an impact on its consolidated revenue results for the year ending December 31, 2024. The impact of these proposals on revenue is estimated at approximately UAH 3.6 billion (approximately USD 95 million)
In the coming months, Kyivstar plans to continue its restoration and compensation efforts. However, these costs are currently impossible to estimate.
Recall
On December 12, a powerful hacker attack was carried out on the network of the mobile operator Kyivstar, which caused a technical failure.
However, on December 20, the company fully restored its services after the cyberattack, including international roaming, which was the last to be restored.
