VEON 4Q23 trading update: Strong organic growth in revenue and
EBITDA, solid execution of VEON 2.0 strategy
VEON 4Q23 trading update: Strong organic
growth in revenue and EBITDA, solid execution of VEON 2.0
strategy
Amsterdam, 21 March 2024 07:00AM
CET –
VEON Q4 and FY 2023
Highlights
- Q4 revenue of USD 953 million, +1.4% YoY (+17.9% YoY in local
currency normalised) and EBITDA of USD 364 million, -20.4% YoY
(+24.9% YoY in local currency normalised)
- FY revenue of USD 3,698 million, -1.5% YoY (+17.9% YoY in local
currency normalised) and EBITDA of USD 1,609 million, -7.9% (+24.9%
YoY in local currency normalised)
- Q4 capex of USD 258 million, -1.8% YoY, with LTM capex
intensity of 17.6% and FY capex of USD 651 million, -21.8% YoY,
with LTM capex intensity of 17.6%
- Total cash and cash equivalents of USD 1.7 billion, with USD
1.3 billion at HQ and gross debt at USD 4.7 billion (decreased by
USD 2.8 billion YoY), with net debt excluding lease liabilities at
USD 2.0 billion (decreased by USD 1.7 billion YoY)
- Appoints PwC as 2023 auditor
- Credit ratings of BB- assigned by S&P Global and Fitch
- 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 fourth quarter and full year ended 31 December 2023.
In 4Q23, VEON continued to report growth in revenues in reported
currency terms with double digit local currency top-line growth.
Total revenues reached USD 953 million, an increase of 1.4% YoY in
reported currency (+17.9% YoY in local currency normalised for
one-offs). Service revenues amounted to USD 915 million, an
increase of 1.1% YoY in reported currency (+17.5% YoY in local
currency normalised for one-offs), while EBITDA of USD 364 million
represented a 20.4% YoY decrease in reported currency terms (+24.9%
YoY in local currency normalised for one-offs). Capex in 4Q23 was
USD 258 million, a decline of 1.8% YoY, and reported capex
intensity for the last twelve months was 17.6%. Total cash and cash
equivalents as of 31 December 2023 amounted to USD 1.7 billion with
USD 1.3 billion held at the headquarters (“HQ”) level at the end of
the quarter.
For FY 2023, total revenues amounted USD 3,698 million, a
decrease of 1.5% YoY in reported currency (+17.9% YoY in local
currency normalised for one-offs). Service revenues reached USD
3,576 million, a decrease of 1.2% YoY in reported currency (+18.1%
YoY in local currency normalised for one-offs), while EBITDA of USD
1,609 million represented a 7.9% YoY decrease in reported currency
terms (+20.0% YoY in local currency normalised for one-offs). Capex
in FY 2023 was USD 651 million, a decline of 21.8% YoY.
VEON has announced its full-year revenue guidance of 16-18%
growth in local currency, EBITDA guidance of 18%-20% growth, and
outlook for the Group’s capex intensity for 2024 year at 18%-19%.
As a result of its digital operator strategy, and expected slowdown
in inflation, the company has guided to another year of double
digit growth.
Commenting on the results, Kaan Terzioğlu said: “In 2023, we
kept our promise to our investors: we delivered on our strategic
priorities and operational goals, making VEON a faster growing
company with a healthier balance sheet. Our growth has accelerated
from mid-teens in FY22 to high-teens in FY23 with an increase of
18% year-on-year in our revenues in local currency, while our
leverage ratio improved significantly from 2.4x to 1.4x. We gained
not only market share but wallet share, turning the strength of our
digital offerings into commercial and financial outcomes.
I am excited for the growth potential in our markets, where we
are well positioned to serve unmet demand in digital verticals:
financial services, entertainment, healthcare, education. We start
2024 with nearly 100 million cumulative monthly active users of our
digital products and a growing set of digital capabilities and
services, including in AI-focused initiatives.We are pleased to
guide the market for continued strong and profitable growth in
2024, maintaining our focus on financial discipline and balance
sheet management.”
Additional information
View the full 4Q23 trading update View 4Q23
trading update presentationView 4Q23 factbook
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 between Russia and Ukraine and
the sanctions imposed by the United States, member states of the
European Union, the European Union itself, the United Kingdom,
Ukraine and certain other nations, counter-sanctions by Russia 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, sanctions and 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 Russia and Ukraine, as well as the possibility of the
imposition of further sanctions in connection with the ongoing war
between Russia and Ukraine and any resulting further rise in
tensions between Russia and the United States, the United Kingdom
and/or the European Union.
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 ability to generate sufficient cash
flow; 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; our 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.
This press release also contains ratings from
credit agencies. A rating is not a recommendation to buy, sell or
hold securities and may be subject to revision or withdrawal at any
time.
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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