VEON Reports FY2024 Second Quarter Financial Results
Intellectia.AI1970-01-01
VEON Reports FY2024 Second Quarter Financial Results
VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator, has announced its financial results for the second quarter ending on June 30, 2024.
Key Financial Metrics
| Metric | 2Q24 | 2Q23 | QoQ Change | YoY Change | Consensus Estimate | Actual vs. Consensus |
|---|---|---|---|---|---|---|
| Total Revenue | $1,026M | $915M | +12.1% | +12.1% | — | — |
| EBITDA | $459M | $415M | +10.6% | +10.6% | — | — |
Interpretation: VEON demonstrated robust financial performance in 2Q24 with total revenues growing by 12.1% year-over-year. EBITDA also increased by 10.6% YoY, indicating effective operational execution and cost management.
Revenue Performance by Segment
| Segment | 2Q24 Revenue | YoY Change | Previous Guidance Compliance |
|---|---|---|---|
| Service Revenue | $987M | +11.3% | Met guidance |
| Direct Digital Revenue | $108M | +83.3% | Exceeded guidance |
Interpretation: VEON's service revenue grew by 11.3% YoY, in line with previous guidance. Additionally, the direct digital revenue saw a significant increase of 83.3%, showcasing the company’s successful expansion into digital financial services, entertainment, healthcare, and SuperApps.
Operational Data
| Metric | 2Q24 |
|---|---|
| Total Cash and Equivalents | $722M |
| Gross Debt | $4.0B |
| Net Debt (excluding leases) | $2.2B |
Comments from Company’s Officers
Kaan Terzioğlu, the CEO, commented, "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. Our robust organic performance is driven by 10 million additional 4G customers and 111 million digital service users. Our direct digital revenues now exceed 10% of total revenues, growing 77% YoY. Looking ahead, I am thrilled about our continued growth trajectory as we enhance customer engagement with superior digital experiences, bolstered by cutting-edge technologies such as artificial intelligence."
Dividends and Share Repurchase Program
There was no mention of any announced dividends or share repurchase program in the earnings release.
Forward Guidance
VEON maintains its FY 2024 guidance for revenue growth of 16%-18% and EBITDA growth of 18%-20%, both in local currency terms. The company also expects group capex intensity of 18%-19%.
Stock Price Movement
Following the earnings release, VEON's stock price experienced a decrease of approximately 0.056% (-0.0557%).
VEON's 2Q24 update reflects promising growth in both revenues and EBITDA, underpinned by strong performance in its digital segments and strategic execution. The company continues to hold a steady outlook for FY2024 despite the challenging macroeconomic environment.
Share