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01/11 16:19
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with substantial revenue and EBITDA growth, an ongoing share buyback program, and strategic initiatives like the Kyivstar listing. Despite some concerns in Kazakhstan and cybersecurity impacts, optimistic guidance and a strong cash position are positive indicators. The market cap suggests moderate volatility, so the stock is likely to see a positive movement of 2% to 8%.
Revenue $1 billion, an 8.9% increase year-over-year; underlying local currency growth was 12.9% after adjusting for the impact of the cyberattack in Ukraine and the deconsolidation of TNS+.
EBITDA $439 million, a 13.7% increase year-over-year; underlying EBITDA growth was 10.4% after adjusting for one-off impacts in the prior year.
Direct Digital Revenues $147 million, a 50.2% increase year-over-year; now comprise 14.3% of total revenues, up from 10.4% last year.
EBITDA Margin 42.8%, an increase of 1.8 percentage points year-over-year; reflects strong top-line growth, disciplined cost control, and increased operating leverage.
Net Debt $1.8 billion, a decrease; improved net debt-to-EBITDA ratio to 1.2x.
Cash Position $1.8 billion, a 5% increase quarter-on-quarter; includes $662 million at headquarters level.
CapEx Intensity 13.1% for the quarter; last 12-month CapEx intensity is at 20.4%, but excluding Ukraine, it stands at 17.9%.
Equity Free Cash Flow $387 million for the last 12 months; expected to improve over the coming quarters.
Direct Digital Revenues Growth: Direct digital revenues grew by 50.2% year-on-year to $147 million, now representing 14.3% of total revenues.
Digital Services Portfolio Expansion: VEON is accelerating its evolution into a services company, integrating AI-powered features in digital applications.
Super App Launch: Beeline Uzbekistan launched the Hambi super app, which has 4.3 million monthly active users.
Revenue Growth in Pakistan: Revenue growth at 20.3% and EBITDA growing at 13.2%.
Revenue Growth in Ukraine: Total revenues in Ukraine grew 49.5% year-on-year, with direct digital revenues growing by 141%.
Revenue Growth in Kazakhstan: Telecom and infrastructure revenues grew 9.4% year-on-year.
Revenue Growth in Uzbekistan: Revenues rose 13.1% year-on-year, supported by a targeted shift toward higher-value subscribers.
Share Buyback Program: The second phase of the share buyback program commenced on March 25, with $23 million of shares bought back.
Debt Repayment: Repayment of $472 million of bonds in April 2025.
Cash Position: As of March 31, VEON holds $1.8 billion in cash.
Strategic Partnership in Pakistan: Partnership with Engro Corporation to pool infrastructure assets, unlocking $563 million in value.
NASDAQ Listing Progress: Progressing on Kyivstar’s listing on NASDAQ, expected to enhance visibility and profile.
Regulatory Issues: EBITDA in Kazakhstan was impacted by the absence of regulatory tax benefits for the quarter, which is expected to return in future quarters.
Economic Factors: The company is navigating a macroeconomic backdrop with inflation rates trending lower, which presents both opportunities and challenges.
Competitive Pressures: The competitive landscape in Kazakhstan is highlighted by the performance of Beeline against its 5G competitors, indicating ongoing competitive pressures.
Cybersecurity Risks: The previous cyberattack in Ukraine has had lasting impacts on revenue growth, necessitating adjustments in performance metrics.
Supply Chain Challenges: The strategic partnership with Engro Corporation in Pakistan aims to unlock infrastructure assets, indicating ongoing supply chain challenges.
Revenue Growth: Achieved 8.9% growth in reported U.S. dollar terms, with a 12.9% increase in underlying local currency.
Digital Services Expansion: Direct digital revenues grew by 50.2%, now representing 14.3% of total revenues.
Infrastructure Partnership: Strategic partnership with Engro Corporation in Pakistan expected to unlock USD 563 million in value.
Share Buyback Program: Second phase of share buyback program commenced, with $23 million of shares repurchased.
Debt Management: Repayment of $472 million of bonds in April 2025, with no additional maturities until 2027.
Kyivstar Listing: Progressing on Kyivstar’s NASDAQ listing, valued at USD 2.3 billion.
Revenue Guidance: Expecting 12% to 14% underlying local currency revenue growth for the full year.
EBITDA Guidance: Expecting underlying EBITDA growth of 13% to 15%.
CapEx Guidance: CapEx intensity projected in the range of 17% to 19% for the year.
Inflation Rate: Projected weighted average inflation rate of 8.2% for the year.
Share Buyback Program: The second phase of the share buyback program commenced on 25th of March, and we have bought back $23 million of shares, which represent around 2/3 of the total allotment of USD 35 million.
The earnings call summary presents a mixed but generally positive outlook. Despite a Q3 EPS loss due to noncash charges, the company shows strong revenue growth, improved leverage, and significant digital revenue expansion. The Q&A section highlights strategic asset management and growth plans, particularly in fintech and digital services. Positive market reaction is likely due to increased guidance, strong cash flow, and strategic expansions, offsetting the EPS loss. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction of 2% to 8%.
The earnings call highlights strong revenue growth, strategic partnerships, and a robust digital expansion plan. The Q&A session revealed positive analyst sentiment towards 4G and AI strategies, despite some uncertainties in valuation strategies. The company's solid financial metrics, optimistic guidance, and shareholder return plans, along with strategic partnerships, are likely to positively influence the stock price. Given the market cap, a positive reaction is expected within the 2% to 8% range over the next two weeks.
The earnings call indicates strong financial performance with substantial revenue and EBITDA growth, an ongoing share buyback program, and strategic initiatives like the Kyivstar listing. Despite some concerns in Kazakhstan and cybersecurity impacts, optimistic guidance and a strong cash position are positive indicators. The market cap suggests moderate volatility, so the stock is likely to see a positive movement of 2% to 8%.
The earnings call summary shows strong financial performance with revenue and EBITDA growth, an increased EBITDA margin, and a strong cash position. The strategic partnership in Pakistan and the ongoing share buyback program add positive momentum. Despite regulatory and supply chain risks, optimistic guidance and digital revenue growth are favorable. The market cap suggests moderate sensitivity to these factors, leading to a predicted positive stock price movement in the next two weeks.
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