This was driven by increased penetration of the 4G standard

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In Q3 2022, total revenue decreased 6.1% year-on-year, driven by a 58.5% decline in hardware revenue. Service revenue increased 2.2% year-on-year, with mobile service revenue increasing 2.1% year-on-year.

among subscribers, as well netherlands cell phone number list as increased data usage per user and the continued implementation of our strategy.

EBITDA increased by 7.3% compared to the same period last year. The growth is due to the implementation of the declared strategy of developing a customer-centric model, which, among other things, involves a consistent reduction in expenses on the development of ineffective sales channels and a focus on high-quality customer service. In Q3, EBITDA margin was 42.8%, which is 5.4 percentage points higher than last year.

Mobile data volumes grew by 21.1% year-on-year as Beeline continues to support subscriber communications needs. B2B revenues grew by 4.4% year-on-year, driven by the introduction of digital solutions, with AdTech and Big Data revenues up 13.3% year-on-year.

Fixed-line revenue growth was 2.3% compared to last year, driven by a 4.9% growth in the broadband segment compared to the same period last year and further expansion of Beeline Russia's broadband customer base (+1.3% compared to last year).

At the end of the quarter, Beeline Russia's total mobile subscriber base was 46.0 million, down 9.1% year-on-year, as Beeline Russia continues to focus on improving the quality of its subscriber base and its engagement. At the same time, the core active subscriber base remains stable and shows growth. The strategic 4G user segment grew by 1.4% year-on-year, bringing the 4G user base to 25.7 million. Beeline Russia's 4G penetration rate grew by 6.8 percentage points year-on-year to 60.0%. Thanks to the increase in the number of 4G users and higher engagement of the 4G user base, the number of digital product users reached 27.9% of the consumer segment, which, together with new value propositions, contributed to further growth in average revenue per mobile subscriber, which increased by 10.5% year-on-year.

Capital expenditures in Q3 2022 amounted to 12.9 billion rubles, down 24.2% year-on-year. This is due to the fact that Beeline carried out large-scale network construction in 2020-2021. In addition, the company mostly managed to purchase the main necessary equipment for 2022 in advance. At the same time, during the reporting period, it was possible to significantly improve the quality of communication in Smolensk, the Leningrad and Yaroslavl regions, the Udmurt Republic, Primorye and a number of other regions. The intensity of capital expenditures decreased by 7.5 percentage points year-on-year and amounted to 21.6%. Despite the ongoing supply chain issues following the introduction of sanctions and export control restrictions, Beeline Russia continues to pay special attention to network quality and coverage, while the number of 4G sites increased by 6.9% year-on-year.

As of September 30, 2022, Beeline's gross debt excluding capitalized leases was RUB 141 billion (approx. USD 2.5 billion), including RUB 50.6 billion of intragroup debt (approx. USD 0.9 billion). Beeline Russia's cash and cash equivalents amounted to RUB 14.7 billion (approx. USD 0.3 billion). Net debt amounted to RUB 126.4 billion (approx. USD 2.2 billion), and additionally capitalized leases amounted to RUB 133.7 billion (approx. USD 2.3 billion). The financial leverage ratio excluding leases was 1.50x, and this indicator after IFRS 16 is 2.27x.