VEON Reports Third Quarter 2024 Financial Results
Intellectia.AI
VEON Ltd., a global digital operator listed on NASDAQ and Euronext Amsterdam, announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | YoY Change |
|---|---|---|
| Total Revenue | $1,038M | +9.8% |
| EBITDA | $438M | -1.5% |
| Cash and Cash Equivalents | $1,019M | - |
| Gross Debt | $4.0B | Decreased by $335M YoY |
Interpretation of Financial Performance : VEON achieved significant revenue growth in both reported and local currencies, highlighting a robust performance despite a marginal decline in EBITDA due to pressures in Bangladesh and restructuring costs. The company maintains a strong cash position and has successfully reduced gross debt.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| Telecom and Infrastructure | $916M | +7.2% |
| Direct Digital Revenue | $121M | +35.1% |
Interpretation of Segment Performance : The direct digital revenue segment demonstrated impressive growth, contributing substantially to the overall revenue increase and reflecting VEON’s effective expansion into digital financial services, entertainment, and other digital domains.
Key Developments and Operational Highlights
- Total cash and cash equivalents were $1,019 million, with $453 million held at the headquarters.
- The Long-Term Equity Free Cash Flow rose by 22.2% year-over-year, totaling $421 million.
- Capital expenditure (Capex) for Q3 increased by 51.2% YoY.
- Significant reduction in blended inflation rates across operational markets, down by 830 basis points YoY.
Executive Commentary
Kaan Terzioğlu, VEON's CEO, expressed satisfaction with the 14% YoY revenue growth in local currency terms. He highlighted overcoming challenges such as civil unrest in Bangladesh and asset sales in Kazakhstan and emphasized the company's focus on digital innovations, enhancing user experience and engagement, which directly boosts revenue. Terzioğlu projected continued solid growth, foreseeing 8%-10% revenue increases for the full year.
Forward Guidance
VEON adjusted its full-year guidance, expecting total revenue growth of 8%-10% YoY and EBITDA growth of 4%-6% YoY in USD terms. Revised local currency guidance predicts a 12%-14% YoY increase for total revenue and a 9%-11% YoY increase for EBITDA, acknowledging economic and operational disruptions.
Stock Price Movement
Following the earnings release, VEON’s stock price experienced a modest increase of 0.87%.
Conclusion : VEON's Q3 2024 results demonstrate robust revenue growth and strategic advancements in digital services, positioning the company strongly for continued performance despite operational challenges.
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