VEON 2Q24 Trading Update: Double-Digit USD
Growth, Robust Operational Execution, Confirming Full Year
Guidance
Amsterdam, 8 August 2024 07:00AM CEST
VEON Q2 2024 Highlights
- Q2 revenue of USD 1,026 million, +12.1% YoY (+15.1% YoY in
local currency) and EBITDA of USD 459 million, +10.6% YoY (+13.9%
YoY in local currency)
- Q2 direct digital revenue of USD 108 million, +83.3% YoY
(+81.4% YoY in local currency)
- Q2 capex of USD 181 million, +5.8% YoY, with LTM capex
intensity of 18.0%
- Total cash and cash equivalents of USD 722 million, with USD
375 million at HQ; and gross debt at USD 4.0 billion (decreased by
USD 1.2 billion YoY), with net debt excluding lease liabilities at
USD 2.2 billion; VEON repaid its Revolving Credit Facility
- Maintaining FY 2024 revenue growth guidance in local currency
of 16-18%, EBITDA growth guidance in local currency of 18-20%, and
capex intensity of 18-19%
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 second quarter and six months ended 30 June 2024.
In 2Q24, VEON continued to report growth in revenues in reported
currency terms with double-digit local and reported currency
top-line growth. Total revenues reached USD 1,026 million, an
increase of 12.1% YoY in reported currency (+15.1% YoY in local
currency). Service revenues amounted to USD 987 million, an
increase of 11.3% YoY in reported currency (+14.5% YoY in local
currency), and EBITDA of USD 459 million represented a 10.6% YoY
increase in reported currency terms (+13.9% YoY in local currency).
Capex in 2Q24 was USD 181 million, an increase of 5.8% YoY, and
reported capex intensity for the last twelve months was 18.0%
(-1.6p.p. YoY). Total cash and cash equivalents as of 30 June 2024
amounted to USD 722 million (excluding USD 140 million in cash
related to banking operations in Pakistan) with USD 375 million
held at the headquarters (“HQ”) level.
VEON maintains its FY 2024 guidance for revenue growth of
16%-18%, EBITDA growth of 18%-20%, both in local currency terms,
and group capex intensity of 18-19%, supported by execution of its
digital operator strategy.
Commenting on the results, Kaan Terzioğlu said:
“With 12.1% growth in topline and 10.9% growth in EBITDA in US
dollars, I am delighted to be back with a billion-dollar quarter.
Robust organic performance across our markets is driven by 10
million additional 4G customers, 111 million digital service users,
showcasing our capability to build new businesses in financial,
entertainment, healthcare, education, and enterprise services.
I am also happy to report for the first time the direct digital
revenues generated through our digital financial services,
entertainment services, healthcare services, advertising services
and Super apps. This quarter, our direct digital revenues exceeded
10% of our total revenues growing 77% year on year.
Our digital services are not only driving more consumption,
helping with retention, improving ARPU of our digital operators but
they now also directly contribute to our topline growth through
interest income, advertising revenues, subscription services,
platform commissions, and pay-per-view revenues.
Looking ahead, I am thrilled about our continued growth
trajectory as we enhance customer engagement with superior digital
experiences, further bolstered by cutting-edge technologies such as
artificial intelligence.”
Additional information
View the full 2Q24 trading update View 2Q24
trading update presentationView 2Q24 factbook
2Q24 results conference call
VEON will also host a results conference call with senior
management at 14:00 CEST (13:00 BST, 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-q2-2024-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.
Headquartered in Amsterdam, 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; 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 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 2022 filed with the U.S.
Securities and Exchange Commission (the “SEC”) on 24 July 2023 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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