Amsterdam and Dubai, 14 November 2024
07:00AM CET
VEON Q3 2024 Highlights
- Q3 Total revenue of USD 1,038 million, +9.8% YoY; revenue
growth in local currency +14.1% YoY (+16.0% YoY underlying revenue
growth in local currency)
- Q3 Direct digital revenue of USD 121 million, +35.1% YoY
(+32.6% YoY in local currency)
- Q3 Telecom and infrastructure revenue USD 916 million, +7.2%
YoY (+12.2% YoY in local currency)
- Q3 EBITDA of USD 438 million, -1.5% YoY, +3.5% YoY growth in
local currency (+9.8% YoY underlying growth in local currency)
- Total cash and cash equivalents of USD 1,019 million, with USD
453 million at headquarters (“HQ”); and gross debt at USD 4.0
billion (decreased by USD 335 million YoY), with net debt excluding
lease liabilities at USD 2.1 billion
- LTM Equity Free Cash Flow of USD 421million, +22.2% YoY; LTM
Capex increased 16.3% YoY
VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON), a global
digital operator that provides converged connectivity and online
services, announces selected financial and operating results for
the third quarter ended 30 September 2024.
In 3Q24 VEON demonstrated robust growth, reporting an increase
in revenues both in reported and local currencies. Total revenues
reached USD 1,038 million, an increase of 9.8% YoY in reported
currency (+14.1% YoY in local currency). EBITDA reached USD 438
million and represented a 1.5% YoY decrease in reported currency
terms (+3.5% YoY in local currency). This quarter's EBITDA was
primarily impacted by identified items, including operational
pressures in Bangladesh and restructuring costs.
Capex in 3Q24 was USD 198 million, an increase of 51.2% YoY. LTM
capex increased 16.3% YoY, with LTM capex intensity of 19.2%
(+1.5p.p. YoY). Total cash and cash equivalents as of 30 September
2024 amounted to USD 1,019 million (including USD 143 million
related to banking operations in Pakistan and excluding USD 211
million in Ukrainian sovereign bonds that are classified as
investments) with USD 453 million held at the HQ level.
Blended weighted average inflation rates in the countries we
operate in declined from 16.5% in Q3 2023, to 8.2% in Q3 2024, a
reduction of 830 basis points. We are encouraged to see revenue
growth exceeding average inflation levels in our markets.
For the full year we expect total revenue growth of 8%-10% YoY
and EBITDA growth of 4%-6% YoY in USD terms, assuming current FX
rates. We are revising our prior local currency guidance, given the
above considerations, to 12%-14% YoY growth for total revenue, and
9%-11% YoY growth for EBITDA, each in local currency terms.
Underlying growth in local currency, excluding identified items,
is expected to be 15%-16% YoY growth in revenue, and 10-11% YoY
growth in EBITDA. This marks a change from our previous guidance of
16-18% growth for revenue, and 18-20% growth in EBITDA for 2024 in
local currency terms which was normalised for the Ukrainian
cyberattack. In addition to deceleration in blended inflation rates
across VEON’s operating markets, our new local currency guidance
also reflects the business impact of civil unrest in Bangladesh and
the sale of the TNS+ infrastructure asset in Kazakhstan.
Commenting on the results, Kaan Terzioğlu said:
“I am pleased to report a 14% YoY increase in revenue in local
currency terms, exceeding the 8%blended inflation across our
markets. Despite the impact of the civil unrest in Bangladesh, the
sale of the TNS+ infrastructure asset in Kazakhstan, and with
current currency levels in mind, we expect to finish the year with
solid revenue growth of 8 to 10% in USD terms.
This achievement highlights our rapid expansion and innovation,
supported by 8 million new 4G subscribers and 103 million digital
service users. Direct digital revenues, now comprising 12% of our
total revenue for the quarter, grew by 35% year-over-year. These
gains, stemming from digital financial services, entertainment,
healthcare, advertising, and super-apps, are not only enhancing
user engagement and retention but also significantly boosting our
ARPU and contributing directly to our top-line growth through
diverse streams like interest income, advertising revenues,
subscription services, platform commissions, and pay-per-view
revenues.
Looking forward, I am enthusiastic about the future as we
continue to drive growth and enrichcustomer experiences through
advanced digital offerings and cutting-edge technologies
likeaugmented intelligence. This approach not only cements our
position at the forefront of the digital revolution but also
ensures sustained growth and success in rapidly evolving frontier
markets.”
Additional information
View the full 3Q24 trading update View 3Q24
trading update presentationView 3Q24 factbook
3Q24 results conference
call
VEON will also host a results conference call with senior
management at 14:00 CET (13:00 GMT, 8:00 EST) today.
To register and access the event, please click here or copy and
paste this link to the address bar of your
browser: https://veon-Q3-2024-trading-update.open-exchange.net/.
Once registered, you will receive registration confirmation on
the email address mentioned during registration with the link to
access the webcast and dial-in details to listen to the conference
call over the phone.
We strongly encourage you to watch the event through the webcast
link, but if you prefer to dial in, then please use the dial-in
details.
Q&A If you want to participate in the
Q&A session, we ask that you select the ‘Yes' option on the
‘Will you be asking questions live on the call?’ dropdown. That
will bring you to a page where you can join the Q&A room by
clicking 'Connect to meeting’.
You will be brought into a zoom webinar where you can listen to
the presentation and once Q&A begins, if you have a question,
please use the ‘raise hand button’ on the bottom of your zoom
screen. When it is your turn to speak, the moderator will announce
your name as well as sending a message to your screen asking you to
confirm you want to talk. Once accepted, please unmute your mic and
ask your question.
You can also submit your questions prior the webcast event to
VEON Investor Relations at ir@veon.com.
About VEON
VEON is a digital operator that provides converged connectivity
and digital services to nearly 160 million customers. Operating
across six countries that are home to more than 7% of the world’s
population, VEON is transforming lives through technology-driven
services that empower individuals and drive economic growth. VEON
is listed on NASDAQ and Euronext. For more information,
visit: https://www.veon.com.
Notice to readers: financial information
presented
VEON's results and other financial information presented in this
document are, unless otherwise stated, prepared in accordance with
International Financial Reporting Standards ("IFRS") based on
internal management reporting, are the responsibility of
management, and have not been externally audited, reviewed, or
verified. As such, you should not place undue reliance on this
information. This information may not be indicative of the actual
results for any future period.
Notice to readers: impact of the war in
Ukraine
The ongoing war in Ukraine, and the resulting sanctions adopted
by the United States, member states of the European Union, the
European Union itself, the United Kingdom, Ukraine and certain
other nations, countersanctions and other legal and regulatory
responses, as well as responses by our service providers, partners,
suppliers and other counterparties, and the other indirect and
direct consequences of the war have impacted and, if the war, such
responses and other consequences continue or escalate, may
significantly impact our results and aspects of our operations in
Ukraine, and may significantly affect our results and aspects of
our operations in the other countries in which we operate. We are
closely monitoring events in Ukraine, as well as the possibility of
the imposition of further legal and regulatory restrictions in
connection with the ongoing war in Ukraine and any potential impact
the war may have on our results, whether directly or
indirectly.
Our operations in Ukraine continue to be affected by the war. We
are doing everything we can to protect the safety of our employees,
while continuing to ensure the uninterrupted operation of our
communications, financial and digital services.
Disclaimer
VEON's results and other financial information presented in this
document are, unless otherwise stated, prepared in accordance with
International Financial Reporting Standards ("IFRS") and have not
been externally reviewed and audited. The financial information
included in this document is preliminary and is based on a number
of assumptions that are subject to inherent uncertainties and
subject to change. The financial information presented herein is
based on internal management accounts, is the responsibility of
management and is subject to financial closing procedures which
have not yet been completed and has not been audited, reviewed or
verified. Certain amounts and percentages that appear in this
document have been subject to rounding adjustments. As a result,
certain numerical figures shown as totals, including those in the
tables, may not be an exact arithmetic aggregation of the figures
that precede or follow them. Although we believe the information to
be reasonable, actual results may vary from the information
contained above and such variations could be material. As such, you
should not place undue reliance on this information. This
information may not be indicative of the actual results for the
current period or any future period.
This document 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. These forward-looking statements may be
identified by words such as “may,” “might,” “will,” “could,”
“would,” “should,” “expect,” “plan,” “anticipate,” “intend,”
“seek,” “believe,” “estimate,” “predict,” “potential,” “continue,”
“contemplate,” “possible” and other similar words. Forward-looking
statements include statements relating to, among other things,
VEON’s plans to implement its strategic priorities, including
operating model and development plans; anticipated performance,
including VEON’s growth trajectory and ability to generate
sufficient cash flow; VEON’s intended expansion of its digital
experience including through technologies such as artificial
intelligence; VEON’s assessment of the impact of the war in
Ukraine, including related sanctions and counter-sanctions, on its
current and future operations and financial condition; VEON’s
assessment of the impact of the political conflict in Bangladesh;
future market developments and trends; operational and network
development and network investment, including expectations
regarding the roll-out and benefits of 3G/4G/LTE networks, as
applicable; spectrum acquisitions and renewals; the effect of the
acquisition of additional spectrum on customer experience; VEON’s
intended delisting from Euronext Amsterdam; VEON’s planned HQ
relocation to the Dubai International Financial Centre in the
United Arab Emirates; VEON’s ability to realize the acquisition and
disposition of any of its businesses and assets and to execute its
strategic transactions in the timeframes anticipated, or at all;
VEON’s ability to realize financial improvements, including an
expected reduction of net pro-forma leverage ratio following the
successful completion of certain dispositions and acquisitions; its
dividends; and VEON’s ability to realize its targets and commercial
initiatives in its various countries of operation.
The forward-looking statements included in this document are
based on management’s best assessment of VEON’s strategic and
financial position and of future market conditions, trends and
other potential developments. These discussions involve risks and
uncertainties. The actual outcome may differ materially from these
statements as a result of, among other things: further escalation
in the war in Ukraine, including further sanctions and
counter-sanctions and any related involuntary deconsolidation of
our Ukrainian operations; demand for and market acceptance of
VEON’s products and services; our plans regarding our dividend
payments and policies, as well as our ability to receive dividends,
distributions, loans, transfers or other payments or guarantees
from our subsidiaries; continued volatility in the economies in
VEON’s markets; governmental regulation of the telecommunications
industries; general political uncertainties in VEON’s markets;
government investigations or other regulatory actions; litigation
or disputes with third parties or regulatory authorities or other
negative developments regarding such parties; the impact of export
controls and laws affecting trade and investment on our and
important third-party suppliers' ability to procure goods, software
or technology necessary for the services we provide to our
customers; risks associated with our material weakness in internal
control over financial reporting; risks associated with data
protection or cyber security, other risks beyond the parties’
control or a failure to meet expectations regarding various
strategic priorities, the effect of foreign currency fluctuations,
increased competition in the markets in which VEON operates and the
effect of consumer taxes on the purchasing activities of consumers
of VEON’s services.
Certain other factors that could cause actual results to differ
materially from those discussed in any forward-looking statements
include the risk factors described in VEON’s Annual Report on Form
20-F for the year ended 31 December 2023 filed with the U.S.
Securities and Exchange Commission (the “SEC”) on 17 October 2024
and other public filings made from time to time by VEON with the
SEC. Other unknown or unpredictable factors also could harm our
future results. New risk factors and uncertainties emerge from time
to time and it is not possible for our management to predict all
risk factors and uncertainties, nor can we assess the impact of all
factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
Under no circumstances should the inclusion of such forward-looking
statements in this document be regarded as a representation or
warranty by us or any other person with respect to the achievement
of results set out in such statements or that the underlying
assumptions used will in fact be the case. Therefore, you are
cautioned not to place undue reliance on these forward-looking
statements. The forward-looking statements speak only as of the
date hereof. We cannot assure you that any projected results or
events will be achieved. Except to the extent required by law, we
disclaim any obligation to update or revise any of these
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made, or to reflect the occurrence of unanticipated events.
Furthermore, elements of this document contain or may contain,
“inside information” as defined under the Market Abuse Regulation
(EU) No. 596/2014.
Contact Information
VEONInvestor RelationsFaisal Ghoriir@veon.com
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