VEON 3Q24 Trading Update: Another Billion Dollar Revenue Quarter, Digital Drives Growth
VEON reported strong Q3 2024 results with total revenue reaching USD 1,038 million, up 9.8% YoY (14.1% in local currency). Direct digital revenue grew 35.1% YoY to USD 121 million, while telecom revenue reached USD 916 million. EBITDA was USD 438 million, showing a slight decrease of 1.5% YoY in reported currency. The company maintains strong liquidity with USD 1,019 million in total cash and cash equivalents. Despite challenges in Bangladesh and asset sales in Kazakhstan, VEON expects full-year revenue growth of 8-10% YoY and EBITDA growth of 4-6% YoY in USD terms.
VEON ha riportato risultati solidi per il Q3 2024, con un fatturato totale che ha raggiunto 1.038 milioni di USD, in aumento del 9,8% su base annua (14,1% in valuta locale). I ricavi digitali diretti sono cresciuti del 35,1% su base annua, arrivando a 121 milioni di USD, mentre i ricavi da telecomunicazioni hanno raggiunto 916 milioni di USD. L'EBITDA è stato di 438 milioni di USD, mostrando una lieve diminuzione dell'1,5% su base annua in valuta riportata. L'azienda mantiene una forte liquidità con 1.019 milioni di USD in totale tra liquidità e equivalenti. Nonostante le sfide in Bangladesh e le vendite di attivi in Kazakhstan, VEON prevede una crescita del fatturato per l'intero anno compresa tra l'8% e il 10% su base annua e una crescita dell'EBITDA tra il 4% e il 6% su base annua in termini di USD.
VEON reportó resultados sólidos para el Q3 2024, con ingresos totales que alcanzaron 1,038 millones de USD, un aumento del 9.8% interanual (14.1% en moneda local). Los ingresos digitales directos crecieron un 35.1% interanual, alcanzando 121 millones de USD, mientras que los ingresos de telecomunicaciones llegaron a 916 millones de USD. El EBITDA fue de 438 millones de USD, mostrando una ligera disminución del 1.5% interanual en moneda reportada. La empresa mantiene una sólida liquidez con 1,019 millones de USD en total de efectivo y equivalentes. A pesar de los desafíos en Bangladesh y las ventas de activos en Kazajistán, VEON espera un crecimiento de ingresos del 8% al 10% interanual y un crecimiento del EBITDA del 4% al 6% interanual en términos de USD.
VEON은 2024년 3분기에 강력한 실적을 발표하였으며, 총 수익이 10억 3800만 달러에 도달하여 전년 대비 9.8% 증가하였고 (현지 통화 기준 14.1% 증가). 직접 디지털 수익은 전년 대비 35.1% 증가하여 1억 2100만 달러에 달했으며, 통신 수익은 9억 1600만 달러에 달했습니다. EBITDA는 4억 3800만 달러로 보고된 통화에서 전년 대비 1.5% 감소한 수치를 보여주었습니다. 회사는 총 현금 및 현금성 자산이 10억 1900만 달러에 달하는 강력한 유동성을 유지하고 있습니다. 방글라데시에서의 도전과 카자흐스탄에서 자산 매각에도 불구하고, VEON은 연간 수익이 전년 대비 8-10% 증가하고 EBITDA가 4-6% 증가할 것으로 예상하고 있습니다.
VEON a annoncé de solides résultats pour le T3 2024, avec un chiffre d'affaires total atteignant 1 038 millions USD, en hausse de 9,8 % par rapport à l'année précédente (14,1 % en monnaie locale). Les revenus numériques directs ont augmenté de 35,1 % d'une année sur l'autre pour atteindre 121 millions USD, tandis que les revenus des télécommunications ont atteint 916 millions USD. L'EBITDA s'est établi à 438 millions USD, affichant une légère baisse de 1,5 % d'une année sur l'autre dans la devise rapportée. L'entreprise maintient une forte liquidité avec 1 019 millions USD en trésorerie et équivalents de trésorerie. Malgré les défis au Bangladesh et la vente d'actifs au Kazakhstan, VEON prévoit une croissance des revenus de 8-10 % d'une année sur l'autre et une croissance de l'EBITDA de 4-6 % d'une année sur l'autre en termes USD.
VEON hat starke Ergebnisse für das 3. Quartal 2024 gemeldet, mit einem Gesamterlös von 1.038 Millionen USD, was einem Anstieg von 9,8% im Vergleich zum Vorjahr entspricht (14,1% in lokaler Währung). Die direkten digitalen Einnahmen stiegen um 35,1% im Vergleich zum Vorjahr auf 121 Millionen USD, während die Telefonie-Einnahmen 916 Millionen USD erreichten. Das EBITDA lag bei 438 Millionen USD und zeigte einen leichten Rückgang von 1,5% im Vergleich zum Vorjahr in berichteter Währung. Das Unternehmen bleibt mit 1.019 Millionen USD an liquiden Mitteln und liquiden Mitteln stark liquide. Trotz der Herausforderungen in Bangladesch und des Verkaufs von Vermögenswerten in Kasachstan erwartet VEON für das Gesamtjahr ein Wachstum des Umsatzes von 8-10% im Vergleich zum Vorjahr und ein EBITDA-Wachstum von 4-6% im Vergleich zum Vorjahr in USD.
- Revenue growth of 9.8% YoY to USD 1,038 million
- Direct digital revenue increased 35.1% YoY to USD 121 million
- Strong liquidity position with USD 1,019 million in cash and equivalents
- Gross debt decreased by USD 335 million YoY
- LTM Equity Free Cash Flow up 22.2% YoY to USD 421 million
- EBITDA declined 1.5% YoY to USD 438 million
- Capex intensity increased by 1.5 percentage points YoY to 19.2%
- Downward revision of local currency guidance for revenue and EBITDA growth
- Operational pressures in Bangladesh affecting performance
Insights
VEON's Q3 results showcase resilient growth with
However, the revised guidance for local currency growth (revenue
The digital transformation metrics are compelling, with 103 million digital service users and 8 million new 4G subscribers. The
The diversification of revenue streams through platform commissions, subscription services and advertising shows a maturing digital ecosystem. This multi-faceted approach to digital services is particularly important for sustainable growth in emerging markets where traditional telecom services face pricing pressures.
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 increased16.3% 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
Capex in 3Q24 was USD 198 million, an increase of
Blended weighted average inflation rates in the countries we operate in declined from
For the full year we expect total revenue growth of
Underlying growth in local currency, excluding identified items, is expected to be
Commenting on the results, Kaan Terzioğlu said:
“I am pleased to report a
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
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
Looking forward, I am enthusiastic about the future as we continue to drive growth and enrich
customer experiences through advanced digital offerings and cutting-edge technologies like
augmented 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 presentation
View 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
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
VEON
Investor Relations
Faisal Ghori
ir@veon.com
FAQ
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