VEON 1Q24 Trading Update: Accelerating USD Growth, Strong Operational Execution

16 May 2024

VEON 1Q24 Trading Update: Accelerating USD Growth, Strong Operational Execution Amsterdam, 16 May 2024 07:00AM CEST -

VEON Q1 2024 Highlights

Q1 revenue of USD 942 million, 6.6% YoY ( 11.6% YoY in local currency) and EBITDA of USD 386 million, 0.2% YoY ( 5.1% YoY in local currency)

Q1 capex of USD 125 million, 38.6% YoY, with LTM capex intensity of 18.3%

Total cash and cash equivalents of USD 632 million, with USD 261 million at HQ; and gross debt at USD 3.7 billion (decreased by USD 2.0 billion YoY), with net debt excluding lease liabilities at USD 2.0 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 management increases share ownership; announces its 2024 Annual General Meeting and Capital Markets Day

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 first quarter ended 31 March 2024.

In 1Q24, VEON continued to report growth in revenues in reported currency terms with double digit local currency top-line growth. Total revenues reached USD 942 million, an increase of 6.6% YoY in reported currency ( 11.6% YoY in local currency). Service revenues amounted to USD 903 million, an increase of 5.5% YoY in reported currency ( 10.4% YoY in local currency), and EBITDA of USD 386 million represented a 0.2% YoY increase in reported currency terms ( 5.1% YoY in local currency). Capex in 1Q24 was USD 125 million, an increase of 38.6% YoY, and reported capex intensity for the last twelve months was 18.3% (-2.0p.p. YoY). Total cash and cash equivalents as of 31 March 2024 amounted to USD 632 million with USD 261 million held at the headquarters ( HQ ) level.

For FY 2024, VEON maintains its full-year guidance for revenue of 16%-18% and EBITDA of 18%-20% growth in local currency supported by execution of its digital operator strategy, and for Group capex intensity of 18%-19%.

Commenting on the results, Kaan Terzio lu said:

I am pleased to see balanced organic performance in all our markets, reflecting our ability to serve our customers in both consumer and business segments with digital solutions in finance, entertainment, healthcare, education and enterprise services.

Our operating companies successfully leverage our customer acquisition and engagement capabilities as well as our distribution power to meet the growing demand for digitalization in our markets, where we served a total of 111 million monthly active users across our digital services in March 2024.

I am excited to see the continuation of our growth trend as we deepen our customer engagement through high-quality digital experiences, which are now being strengthened with new technologies including artificial intelligence. We look forward to updating our investors on our upcoming Capital Markets Day on June 6th, 2024.

Additional information

View the full 1Q24 trading update

View 1Q24 trading update presentation

View 1Q24 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

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, 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

VEONs 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

LINK:	https://www.veon.com/newsroom/press-releases/veon-1q24-trading-update-...
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