VEON raises FY guidance, returns to USD revenue growth

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 and nine months ended 30 September 2023.

In 3Q23, total revenues reached USD 945 million, an increase of 6.1% YoY in reported currency, (+19.3% YoY in local currency). Service revenues amounted to USD 913 million, an increase of 6.9% YoY in reported currency (+19.8% in local currency), while EBITDA of USD 444 million represented a 17.0% YoY increase in reported currency terms (+30.6% YoY in local currency). Capex in 3Q23 was USD 131 million, a decline of 29.8% YoY, and reported capex intensity for the last twelve months was 17.8% (13.9% in the third quarter of 2023). Total cash and cash equivalents as of 30 September 2023 amounted to USD 2.2 billion with USD 1.8 billion held at the headquarters (“HQ”) level at the end of the quarter. VEON has raised its full-year local currency revenue growth guidance from 16-19% to 18-20%, its local currency EBITDA growth guidance from 10-14% to 18-20%, and its LTM Capex intensity guidance from 18-20% to 16-18%.

Commenting on the results, Kaan Terzioğlu said: “In 3Q23, VEON delivered very strong organic growth as well as solid reported currency growth in both revenue and EBITDA, with our digital operator strategy helping to drive market share and wallet share gains across all our operations.

VEON’s digital operators are expanding their value propositions by providing digital experiences in financial services, entertainment, education and healthcare. At the end of the third quarter, multiplay customers who benefit from our digital services as well as 4G voice and data accounted for nearly 24% of our subscriber base and 42% of our subscribers revenues in the B2C segment. Beyond our connectivity base, we served nearly 30 million digital-only users with our digital applications.

Following the completion of the sale of Russia operations, financial discipline remains our top priority. We have closed the quarter with a healthy balance sheet position. Net debt excluding leases has reduced from USD 5.1 billion in 3Q22 to USD 1.3 billion in 3Q23, while our net debt excluding leases to EBITDA ratio has declined from 3.3x in 3Q22 to 0.86x in 3Q23. Going forward, we will continue to focus on further optimising our cost structure and capital structure.”

VEON also discloses unaudited interim condensed consolidated financial statements as of and for the three-month period ended 30 September 2023 and the nine-month period ended 30 September 2023 for VEON Ltd. and its wholly-owned subsidiary, VEON Holdings B.V. (the “Financial Statements”).

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