Strong YoY growth in underlying Group net
profit and resilient cash flow generation
AMSTERDAM, June 28,
2022 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON)
(EuronextAmsterdam: VEON), a global digital operator that provides
mobile connectivity and services, today discloses the unaudited
interim condensed consolidated financial statements for its 1Q22
Group results.
Following the release of our
1Q22 trading update on 28 April 2022,
and given the unprecedented challenges and market volatility that
VEON has been facing, we have now
completed our 1Q22 financial
statements, which further support the resilient performance
we reported with our trading update.
VEON ended 1Q22 with revenue of USD 1,823
million, +9.8% YoY in local currency (-0.4% YoY in reported
currency) and EBITDA of USD 771
million, +5.3% YoY in local currency (-4.5% YoY in reported
currency). VEON posted a 1Q22 net loss of USD 97 million, while the Group's net profit
before impairments rose 168% YoY to USD 375
million, versus USD 140
million in 1Q21. In 1Q22 Group capex was USD 377 million (-3.8% YoY), with capex intensity
of 23.3%, -2.1 p.p. YoY. Group net debt/EBITDA was 2.4x as of
31 March 2022.
Commenting on results, Kaan Terzioğlu said:
"The 1Q22 financial statements
published today further reinforce VEON Group's strong underlying
performance driven by the successful implementation of our digital
operator strategy across all our geographies, where we continue to
deliver vital connectivity and digital services. Net profit before
impairments rose by 168% YoY, while cash from operating activities
of USD 565 million demonstrates the
high resilience of our business even in difficult times. Our 1Q22
results, together with our strong performance in April and May,
show VEON's ongoing and effective operational and financial
discipline, as well as the progress we continue to make delivering
on our strategy."
1Q22 Financial Statements
Following the 1Q22 trading update on 28
April 2022, VEON today reports the unaudited interim
condensed consolidated financial statements for 1Q22. VEON posted a
1Q22 net loss of USD 97 million,
while the Group's net profit before impairments rose 168% YoY to
USD 375 million. Cash from
operating activities in 1Q22 was USD 565
million, versus USD 596
million in 1Q21, highlighting continued strong cashflow
generation across the operations.
In 1Q22 we recorded a non-cash
goodwill impairment of USD 449
million against Beeline in Russia. This is primarily caused by a higher
discount factor to be used for future cashflows related to
our Russian operations, in
accordance with IFRS. In 1Q22, Ukraine showed resilient strong operational
performance, which was also previously disclosed in our 1Q22 trading update. We did, however, record a fixed asset
impairment of USD 20 million in 1Q22
related to property, plant and equipment of Kyivstar as a result of
the physical damage to sites caused by the ongoing conflict.
Including the impact of the impairments, VEON reported a 1Q22 net
loss of USD 97 million with
shareholder equity of USD 227 million
as of 31 March 2022.
Since reporting the strong 1Q22 results, operational momentum
has continued across the Group, driven by successful implementation
of our digital operator
strategy, as noted in our CEO
letter published on 10 June 2022.
Our double and multiplay 4G
subscribers have reached 35% of the Group's monthly active customer
base. This supported continued high single-digit local currency
year-on-year growth in the Group's service revenues, both in April
and May. We continue to make market
share gains across a number of markets including Ukraine, Pakistan, Kazakhstan, Bangladesh and Uzbekistan.
The 1Q22 trading update, the CEO Letter and the 1Q22 unaudited
interim condensed consolidated financial statements are available
on the VEON Group website at
https://www.veon.com/investors/reports-results/reports-results/ and
https://www.veon.com/media/media-releases/2022/from-veon-ceo-key-developments-update-for-investors-and-partners/.
About VEON
VEON is a NASDAQ and Euronext Amsterdam-listed global provider
of connectivity and digital services, headquartered in Amsterdam. Our vision is to empower customer
ambitions through technology, acting as a digital concierge to
guide their choices and connect them with resources that match
their needs.
For more information visit: https://www.veon.com.
Disclaimer
This press release contains "forward-looking statements", as the
phrase is defined in Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended. Forward-looking statements are not
historical facts, and include statements relating to, among other
things, expectations regarding management plans and the ability to
successfully execute operating model, governance and development
plans. Forward-looking statements are inherently subject to risks
and uncertainties, many of which VEON cannot predict with accuracy
and some of which VEON might not even anticipate. The
forward-looking statements contained in this release speak only as
of the date of this release. VEON does not undertake to publicly
update, except as required by U.S. federal securities laws, any
forward-looking statement to reflect events or circumstances after
such date or to reflect the occurrence of unanticipated events.
Furthermore, elements of this release contain or may contain,
"inside information" as defined under the Market Abuse Regulation
(EU) No. 596/2014.
Notice to reader
VEON's results presented in this press release are, unless
otherwise stated, based on IFRS, using internal management
accounts, are the responsibility of management and have not been
externally audited, reviewed or verified. This information may not
be indicative of the actual results for any future period.
Contact Information
Investor Relations
Nik Kershaw
ir@veon.com
+31 20 79 77 200
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SOURCE VEON Ltd