VEON publishes preliminary 4Q22 and FY22 results

16/03/2023

Amsterdam, 16 March 2022 07:00 CET: 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 2022, excluding the results of the Russian operations, as they were classified as held for sale' and discontinued operations' in 4Q22:

In Q4 2022, VEON's local currency performance accelerated sharply with total revenues of USD 940 million, -4.9% YoY in reported currency ( 18.6% YoY in local currency), service revenues were USD 901 million, -4.4% YoY in reported currency ( 19.2% in local currency), and EBITDA was USD 453 million, 1.2% YoY in reported currency ( 30.1% YoY in local currency).

For FY 2022, VEON's total revenues amounted to USD 3,755 million, -2.4% YoY in reported currency ( 14.0% YoY local currency), service revenues were USD 3,600 million, -2.4% YoY in reported currency ( 13.9% YoY in local currency), and EBITDA was USD 1,743 million, -5.3% YoY in reported currency ( 12.6% YoY local currency). Full-year capex of USD 832 million was 2.9% higher than in 2021, with capex intensity up 1.1 p.p. as the company invested in 4G network expansion. Total cash and cash equivalents were USD 3.1 billion, with USD 2.5 billion held at the HQ level.

Commenting on the results, Kaan Terzio lu said: In the final quarter of 2022, we added further operational momentum and recorded double-digit local currency revenue growth in five of our countries, doubling the growth rate from a year ago. With our Russian operations now classified as held for sale' and discontinued operations' and not contributing to Group revenues, VEON's topline growth in local currency for the full year 2022 was 14.0%. Furthermore, the sale of Russia will result in the significant deleveraging of the Group balance sheet. While we are smaller in size, we are now a faster growing company, serving emerging markets with strong potential demand for the services that VEON's Digital Operator 1440 model offers.

In 2022, each of our operations achieved significant growth, both in terms of financial performance and the operational metrics that underpin our business. Our local operating companies collectively added 14 million 4G customers, bringing 4G-powered digital multiplay' users to 22% of our subscriber base while growing ARPU and customer engagement by providing more relevant connected services for our core telecom users. This strong operational performance has continued and YTD February 2023 local currency revenues are up by 15.2% YoY and local currency EBITDA up by 11.8% YoY. With continued focus on operational performance as well as financial discipline and liquidity management, including our strong liquidity position at year-end, we are well positioned to deliver growth while significantly deleveraging VEON's balance sheet and enhancing VEON's credit profile in 2023.

Q4 2022 highlights

Revenue of USD 940 million, -4.9% YoY ( 18.6% YoY in local currency)

Service revenue of USD 901 million, -4.4% YoY ( 19.2% YoY in local currency)

Data and digital revenues of USD 474 million, -7.5% YoY ( 15.8% YoY in local currency)

EBITDA of USD 453 million, 1.2% YoY ( 30.1% YoY in local currency)

Capex of USD 263 million, -5.1% YoY, with capex intensity of 22.1%

Total cash and cash equivalents of USD 3.1 billion, 37.9% YoY, with USD 2.5 billion at Headquarters

157 million mobile subscribers, up 2.7% YoY

85 million 4G users, up 19.4% YoY, with 53.9% penetration of customer base

FY 2022 highlights

Revenue of USD 3,755 million, -2.4% YoY ( 14.0% YoY in local currency)

Service revenue of USD 3,600 million, -2.4% YoY ( 13.9% YoY in local currency)

Data and digital revenues of USD 1,937 million, -0.7% YoY ( 16.5% YoY in local currency)

EBITDA of USD 453 million, -5.3% YoY ( 12.6% YoY in local currency)

Capex of USD 832 million, 2.9% YoY, with capex intensity of 22.1%

Total cash and cash equivalents of USD 3.1 billion, 37.9% YoY, with USD 2.5 billion at Headquarters

157 million mobile subscribers, up 2.7% YoY

85 million 4G users, up 19.4% YoY, with 53.9% penetration of customer base

In 4Q22, VEON accelerated local currency revenue & EBITDA growth and continued to gain market share in each of its markets. The Group maintained strong liquidity, with Group cash and cash equivalents of USD 3.1 billion as of 31 December 2022.

Total Group revenues decreased by 4.9% YoY during 4Q22 in reported currency and increased by 18.6% in local currency terms, with Ukraine revenues growing 8.7% YoY in local currency and all other countries reporting double-digit local currency revenue growth for the period. Service revenues decreased by 4.4% YoY in reported currency and rose by 19.2% YoY in local currency.

In 4Q22, Group EBITDA increased by 1.2% YoY in reported currency terms ( 30.1% in local currency), with Group EBITDA margin of 48.2% ( 2.9 p.p. YoY). Energy costs increased across the Group c.30% YoY negatively impacting Group EBITDA margin. We remain focused on implementing planned cost-efficiency measures across the Group and on applying inflationary pricing across our operations. Project Optimum delivered c.USD 95 million of savings in 2022 with cost intensity improving by 2.5 p.p. YoY in local currency.

The Group's YoY revenues and EBITDA performance was impacted by several extraordinary non-recurring items in 4Q22 and in 4Q21, as noted in the Country Performance section. Excluding these one-off items, Group total revenue increased by 15.4% YoY, service revenue increased by 15.8% YoY and EBITDA increased by 7.4% YoY in local currency.

In 4Q22, we reported subscriber base growth of 2.7% YoY. The Group continued to focus on overall customer experience, seeing improving Net Promoter Score ( NPS ) across mo

LINK:	https://www.veon.com/media/media-releases/2023/veon-publishes-prelimin...
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VEON publishes preliminary 4Q22 and FY22 results

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