VEON 2Q24 Trading Update: Double-Digit USD Growth, Robust Operational Execution, Confirming Full Year Guidance

08/08/2024

08 Aug 2024

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 Terzio lu 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 presentation

View 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: www.veon.com.

Notice to readers: financial information presented

VEONs 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, o

LINK:	https://www.veon.com/newsroom/press-releases/veon-2q24-trading-update-...
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VEON 2Q24 Trading Update: Double-Digit USD Growth, Robust Operational Execution, Confirming Full Year Guidance

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