VEON publishes 2Q23 trading update
03/08/2023
VEON publishes 2Q23 trading update Strong results, full-year revenue guidance raisedAmsterdam, 3 August 2023 07:00 CEST - 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 2023, excluding the results of the Russian operations, as they are classified as held for sale' and discontinued operations' as of 24 November 2022.
In 2Q23, VEON's local currency growth continued to accelerate. Total revenues reached USD 916 million - a decrease of 4.3% YoY in reported currency, while the local currency performance rose by 19.6% YoY. Service revenues were USD 882 million, -4.0% YoY in reported currency ( 19.6% in local currency), and EBITDA was USD 415 million, -10.6% YoY in reported currency ( 13.6% YoY in local currency). Capex in 2Q23 was USD 171 million, a decline of 16.6% YoY, with capex intensity for the last twelve months at 19.6%,and 18.7% in the quarter. Total cash and cash equivalents as of 30 June 2023 amounted to USD 2.4 billion, excluding banking operations in Pakistan, with USD 2.0 billion held at the headquarters ( HQ ) level.
Commenting on the results, Kaan Terzio lu said: In 2Q23, VEON continues to accelerate its revenue growth, which reached 19.6% YoY in local currency, fueled by market share gains and digital expansion across all our operations.
With our Digital Operator strategy and a solid track record of execution, VEON's operating companies have consistently expanded their value proposition, delivering digital experiences in adjacent verticals: digital financial services, digital entertainment, digital learning, digital healthcare and many more. As of the end of the quarter, customers who benefit from our digital services as well 4G voice and data, account for 22% of our base and 40% of our subscriber revenues. We also serve the broader mobile users in our markets with our all-access digital services.
Completing the sale of our Russia operations and financial discipline remain our top priorities. We have closed the quarter with a strong liquidity position, with Group holding cash and cash equivalents totaling USD 2.4 billion, nearly 2.0 billion of which was held at headquarters level as of June 30th.
Q2 2023 highlights
Revenue of USD 916 million, -4.3% YoY ( 19.6% YoY in local currency)
Service revenue of USD 882 million, -4.0% YoY ( 19.6% YoY in local currency)
Multiplay and doubleplay 4G revenues of USD 453 million, 8.6% YoY ( 31.1% YoY in local currency)
EBITDA of USD 415 million, -10.6% YoY ( 13.6% YoY in local currency)
Capex of USD 171 million, -16.6% YoY, with 2Q23 capex intensity of 18.7%
Total cash and cash equivalents of USD 2.4 billion, 5.8% YoY, with USD 2.0 billion at Headquarters
156 million mobile customers, -0.6% YoY
88 million 4G users, up 15.9% YoY, with 56.8% penetration of customer base
VEON accelerates its double digit growth in local currency revenues and EBITDA in 2Q23, driven by further execution of Digital Operator strategy. Group liquidity position remains strong with Group cash and cash equivalents at USD 2.4 billion.
Group revenues decreased by 4.3% YoY during 2Q23 in reported currency due to the adverse impact of FX rates, while increasing by 19.6% YoY in local currency terms.
2Q23 YoY performance Reported Local currency
Total revenue (4.3%) 19.6%
Ukraine (6.5%)
16.8%
Pakistan (16.6%)
22.2%
Kazakhstan 17.8%
19.4%
Bangladesh (3.0%)
17.1%
Uzbekistan 17.5%
20.9%
Kyrgyzstan 14.0%
22.2%
Three operating companies reported local currency revenue growth above 20% YoY, with the local currency revenue growth at the other three operating companies, including Ukraine, rising well above 15% YoY. We continued to expand market share across all our countries of operation. Service revenues decreased by 4.0% YoY in reported currency and rose by 19.6% YoY in local currency.
In 2Q23, Group EBITDA decreased by 10.6% YoY in reported currency terms ( 13.6% in local currency), with Group EBITDA margin of 45.3% (-3.2 p.p. YoY). Strong local currency EBITDA growth was achieved even as energy costs increased across the Group by c.54% YoY.
The Group's YoY EBITDA performance was also affected by extraordinary non-recurring items in Kazakhstan in 2Q22 (c.USD 4.3 million), in Uzbekistan in 2Q22 and 2Q23 (c.USD 20.4 million and USD 0.7 million respectively), and in Kyrgyzstan in 2Q22 (c.USD 1.6 million) as described in the Country Performance section. Excluding these one-off items, Group EBITDA increased by 20.3% YoY in local currency terms.
In 2Q23, we reported 155.8 million mobile subscribers, flat YoY. The Group 4G user base grew by 15.9% YoY, reaching 88.5 million, with 12.1 million 4G users added over the past 12 months. 4G users now account for 56.8% of our total subscriber base, up 8.1 p.p. from a year earlier, supporting further conversion of subscribers into multiplay users who use at least one of our digital services in addition to 4G data and voice.
Our operating companies continued to focus on the execution of VEON's Digital Operator strategy ( DO1440 ). We aim to deliver digital experiences for every minute of the day through services powered by our 4G network across our key adjacent markets, including financial services, healthcare, education and entertainment.
Our multiplay B2C customers, those who make use of at least one of our digital services on top of our voice and data services, increased by 28.5% YoY to 28.1 million, representing 22.2% of the user base and accounting for 40.2% of VEON's B2C revenues.
Multiplay B2C customer ARPU is 3.7 times higher, and churn is 1.7 times lower, than for voice-only B2C customers. With a higher share of multiplay customers, ARPU levels in e
LINK: | https://www.veon.com/newsroom/press-releases/veon-publishes-2q23-tradi... |
See more stories from vimpel |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
30/05/2024
When to Upgrade Software or Firmware
When to Upgrade Software or Firmware This post is from our blog and news archive. The information may be out of date. Please contact us for further information ...
30/05/2024
The City of San Jose Chooses Utah ScientificAgain!
The City of San Jose Chooses Utah Scientific Again! This post is from our blog and news archive. The information may be out of date. Please contact us for furth...
30/05/2024
Empowering Media Leaders: Transformative Insights from the Executive Learning Series
Navigating Strategy, Ethics, and Innovation in the evolving European media lands...
30/05/2024
Give Me the Backstory: Get to Know Thea Hvistendahl, the Filmmaker Behind Handling the Undead
By Bailey Pennick One of the most exciting things about the Sundance Film Festi...
30/05/2024
CHOOSE CHICAGO, CITY OF CHICAGO ANNOUNCE PROGRAMMING DETAILS OF SUNDANCE INSTITUTE X CHICAGO 2024 (June 28 - 30)
Tickets are now available for the first-of-its-kind event in the United States f...
30/05/2024
UNICEF and Spotify's Award-Winning Mental Health Hub, Our Minds Matter, Comes to Latin America
Mental health and well-being are fundamental components of a child's healthy...
30/05/2024
After 64 days, the winner of Alone Australia has been revealed
After 64 days, the winner of Alone Australia has been revealed 29 May, 2024 Media releases *Contains Spoilers* After 64 days alone in the extreme and wild...
30/05/2024
Alone Australia finale delivers strongly as SBS confirms it will join VOZ streaming
Alone Australia finale delivers strongly as SBS confirms it will join VOZ stream...
30/05/2024
Alone Australia finale delivers strongly for national broadcaster SBS with 4.2m tuning in across the season
Alone Australia finale delivers strongly for national broadcaster SBS with 4.2m ...
30/05/2024
Lockheed Martin Canada Awards L3Harris the Integrated Communications System Contract
Photo credit: BAE...
30/05/2024
The New Standard for Unmanned Ground Vehicle ISR
L3Harris' WESCAM MX -10 RSTA provides advanced ISR and targeting capabilities for land-based platforms including Unmanned Ground Vehicles....
30/05/2024
AccuWeather Inks Deal With Comcast Technology Solutions For Channel Origination
DENVER AccuWeather has selected Comcast Technology Solutions' (CTS') Managed Channel Origination (MCO) to create, manage and distribute linear TV, on-de...
30/05/2024
Samsung, LG Adopt IAB Software Kit
NEW YORK The global body that sets technical standards for digital advertising has expanded the reach of its measurement software development kit to include Sam...
30/05/2024
Amazon Celebrates 10th Anniversary of Fire TV Devices with an AI Upgrade
As Amazon celebrates the 10th anniversary of the launch of the first Fire TV devices in 2014, the company has unveiled new AI-powered search capabilities for th...
30/05/2024
Finding the sustainability balance with personalised video streaming
As the expansion of personalised video streaming continues apace, JUMPs CEO and co-founder, Jer nimo Macan s and Fran ois Polarczyk, sustainability director at ...
30/05/2024
EditShare boosts sales direction with alumnus Grant Carro...
EditShare, the technology leader that enables storytellers to create and manage collaborative workflows at every stage from storyboard to screening, has appoint...
30/05/2024
COW Featured Resume: Paula Zimmerman - Video Editor - Motion Designer
COW Featured Resume: Paula Zimmerman - Video Editor - Motion Designer Brie Clayton May 30, 2024 0 Comments Paula Zimmerman Looking for work? Sign up...
30/05/2024
Palme d'Or Winner Anatomy of a Fall Finished with DaVinci Resolve Studio
Palme d'Or Winner Anatomy of a Fall Finished with DaVinci Resolve Studio Brie Clayton May 30, 2024 0 Comments Winner of the Palme d'Or at the ...
30/05/2024
Real-Time Workflow Masterclass
Real-Time Workflow Masterclass Michael Cioni May 30, 2024 0 Comments Would you rather have your workflow move at the same speed it always has, or woul...
30/05/2024
Ending a Loop Expression in After Effects
Ending a Loop Expression in After Effects Graham Quince May 30, 2024 0 Comments This question comes up quite a bit on forums and it seems to trip peop...
30/05/2024
Parks: Prime Video Has Lowest Churn Rate
DALLAS Consumers who subscribe to streaming services are the least likely to cancel Prime Video among all major providers, according to Parks Associates' St...
30/05/2024
SMPTE/RIS-OSVP tests model for circle of confusion'
According to Camera and Lens Metadata committee, modern digital cinema cameras are not accurately representing the usable depth of field achieved with various l...
30/05/2024
Meet the vice president of product management
Dave MacKinnon, vice president of product management at Clear-Com, explains the value of collaboration and networking in building a media career By Matthew Cor...
30/05/2024
That Station Launches New App, Website, Filled with Features, Music, Interviews and More
That Station's app and website just got a major upgrade. The station crew co...
30/05/2024
SWR Deploys Rohde & Schwarz Pixel Power Software Playout Solution
MUNICH, Germany Regional German broadcaster S dwestrundfunk (SWR) has deployed the Rohde & Schwarz Pixel Power graphics and playout solution....
30/05/2024
Hollyland Technology Unveils Pyro Wireless Video Transmission Series
IRVINE, Calif. Hollyland Technology has launched Pyro, a wireless video transmission system designed for the multi-person, mobile transmission and monitoring re...
30/05/2024
AIMS Opens Call for Presentations for Media-Over-IP Pavilion at AES New York
AIMS has announced it will once again collaborate with the Audio Engineering Society (AES) to bring the popular Media-Over-IP Pavilion to the AES New York show,...
30/05/2024
FCC Announces Opportunity for LPTV Stations to Change Channels
WASHINGTON, D.C. The Federal Communications Commission (FCC) Media Bureau has announced that beginning on August 20, 2024, Class A television, Low Power Televis...
30/05/2024
Comcast's StreamSaver Streaming Bundle Goes Live
Comcast has officially launched its discounted $15-a-month StreamSaver streaming bundle of Netflix, Peacock and Apple TV+ services. The previously announced bun...
30/05/2024
AMG Launches TV Stations, Local Now FAST Channels on Amazon's Fire TV Channels
LOS ANGELES Allen Media Group (AMG) is launching three of its streaming brands o...
30/05/2024
Viant Integrates with Google Cloud's BigQuery Data Clean Rooms
IRVINE, Calif. The ad tech company Viant Technology Inc. has announced a new integration with Google Cloud's BigQuery data clean rooms that enables the seam...
30/05/2024
Marshall Brings Selection of New and Proven AV Solutions...
Marshall Electronics will highlight several of its newest product offerings at InfoComm 2024 (Booth C8982), including the CV612 auto-tracking PTZ camera and the...
30/05/2024
Triveni Digital Streamlines TV Operations at the 2024 ATS...
Triveni Digital today announced that the company will showcase its end-to-end ATSC 3.0 offering at the 2024 ATSC NEXTGEN Broadcast Conference, June 12-14 in Was...
30/05/2024
Riedel Bolero Empowers Student Production Excellence at O...
Riedel Communications today announced that Orange County School of the Arts (OCSA) has successfully integrated the Bolero wireless intercom system into their st...
30/05/2024
SWR moves to software playout with integrated Pixel Power...
Rohde & Schwarz has implemented its Pixel Power graphics and playout solution at S dwestrundfunk (SWR), the regional German broadcaster based in Baden-Baden. SW...
30/05/2024
Media Asset Management vs Inventory Management
From their inception, media asset management (MAM) systems have been a crucial component of the media supply chain. Traditionally MAM systems service customers ...
30/05/2024
Disguise launches new generation of EX media servers to p...
Disguise has announced the next evolution of its hardware solutions with the launch of the new generation of EX media servers, following the recently launched R...
30/05/2024
PlayBox Neo Highlights Smart Media Playout Innovations at...
PlayBox Neo, a globally active producer of broadcast media playout and channel branding solutions, sustained its industry event visibility at three events durin...
30/05/2024
EMG Gravity Media Announces Martyn Edwards as General Man...
EMG / Gravity Media, the leading force in production and content, media services and facilities, is pleased to announce the appointment of Martyn Edwards as the...
30/05/2024
Screen Australia, Australians in Film and VicScreen announce FUTURE VISION
30 05 2024 - Media release Screen Australia, Australians in Film and VicScreen announce FUTURE VISION Lee Sung Jin and Joanna Calo Australians in Film, Scree...
30/05/2024
AI Benefits Come at a Cost
AI Benefits Come at a Cost Brie Clayton May 29, 2024 0 Comments After this, there is no turning back. You take the blue pill the story ends, you wa...
30/05/2024
Morgan Spurlock, Super Size Me' Director, Has Died
Morgan Spurlock, director of Super Size Me, died May 24 in New York. He was 53 and had been battling cancer....
30/05/2024
Departing Longtime Local Anchors Share Their Lessons Learned
A pair of beloved local anchors with extraordinary runs at their stations are finally stepping down. Tom Wills signs off at WJXT Jacksonville May 31, 49 years a...
30/05/2024
Inscape Founder Zeev Neumeier Launches GraySwan To Optimize CTV Ads
Zeev Neumeier, who founded Inscape and was a pioneer in automatic content recognition, is beta-testing his new venture, GraySwan....
30/05/2024
Robert De Niro To Get Service to America Award From NABLF
Robert De Niro will get the 2024 Service to America Leadership Award from the National Association of Broadcasters Leadership Foundation. The award is presented...
30/05/2024
AGT' is Back, With More Golden Buzzers and Youngest Contestant Ever
Season 19 of America's Got Talent is on NBC starting May 28. The new season features more Golden Buzzers, which send a standout act directly to the live sho...
30/05/2024
The Quiz With Balls', Game Show That Pits Brains Against Boldness, Starts on Fox
Jay Pharoah hosts The Quiz with Balls, a game show that Fox says pits brains ag...
30/05/2024
Netflix's Bridgerton' Keeps Top Spot in TVision Power Score Rankings
Netflix's Bridgerton (season three) repeated as the top show in TVision's Power Score ranking of programs on connected TV for the week of May 20....