Veon Ltd Stock Price, News & Analysis

VEON held its Capital Markets Day 2024, revealing future goals and strategies until 2027.

Highlights include revenue growth of 16%-19% CAGR, EBITDA growth of 19%-22% CAGR, and a $900 million-$1 billion equity free cash flow target by 2027.

VEON aims to expand the EBITDA margin by 3 percentage points and increase multiplay customers to 50% by 2027.

Plans include reducing leverage, increasing local debt share, and maintaining a leverage ratio below 1.5x.

Additional targets for regional operations like Pakistan, Ukraine, and Kazakhstan were also shared, each with specific growth and revenue ambitions.

The CMD presentation will be available on VEON’s website.

On May 31, 2024, VEON held its Annual General Meeting (AGM) where shareholders approved a new seven-member Board of Directors. Key additions include former U.S. Secretary of State Michael R. Pompeo, Sir Brandon Lewis, and Duncan Perry. Incumbent directors Augie K. Fabela II, Andrei Gusev, Michiel Soeting, and VEON Group CEO Kaan Terzioglu continue to serve. Augie K. Fabela II, the company's founder, was elected as the Chairman. VEON aims to leverage its innovative spirit to deliver growth across its markets, meeting increasing demand for digital services and new technologies like AI. Approximately 97.9% of shares were represented at the AGM. Shareholders ratified PricewaterhouseCoopers Accountants N.V. for auditing the 2023 financial statements and approved changes to the Company’s Bye-laws for administrative corrections and electronic meeting facilitation.

VEON released its April YTD 2024 trading update during its AGM on May 31, 2024. The company reported total revenue of $1,278 million, an 8.6% increase YoY, and a 12.9% increase in local currency. Service revenue was $1,226 million, up by 7.5% YoY, and EBITDA reached $528 million, a 2.1% YoY increase. Five out of six countries showed revenue growth, with notable increases in Pakistan (22.3%) and Kazakhstan (21.7%). However, Ukraine's revenue and EBITDA declined by 13.5% and 22.3%, respectively. VEON cited positive FX developments and the execution of its Digital Operator strategy as key growth drivers.

VEON announced the appointment of UHY LLP as the independent registered public accounting firm for the audit of its 2023 consolidated financial statements. This move follows a delay in filing its 2023 annual report due to challenges in appointing an auditor after VEON's exit from Russia. Due to the delay, VEON received a non-compliance notice from Nasdaq. The new appointment aims to address this issue, and VEON has submitted a compliance plan to Nasdaq, aiming for full compliance by Q4 2024. UHY LLP, part of UHY International, is a leading global network of accounting firms.

VEON (NASDAQ: VEON, Euronext Amsterdam: VEON) has agreed to sell its 49% stake in Kazakh wholesale telecommunications infrastructure provider TNS Plus LLP (TNS+) to its JV partner, the DAR group. The sale is valued at USD 137.5 million and awaits regulatory approval in Kazakhstan. The divestment aligns with VEON's asset-light strategy, allowing the company to focus on its core digital services in Kazakhstan, such as its financial app Simply, entertainment platform BeeTV, and AI-driven software development via QazCode. DAR will continue to invest in telecommunications infrastructure and digital innovations in Kazakhstan.

On May 20, 2024, VEON received a notification from Nasdaq's Listing Qualifications Department indicating non-compliance with timely filing requirements due to a delay in submitting its Annual Report on Form 20-F for 2023. This delay stems from challenges in appointing a Public Company Accounting Oversight Board (PCAOB) compliant auditor following VEON's exit from Russia. Although VEON has appointed PwC for Dutch filing purposes, the PCAOB-compliant auditor is still pending. Nasdaq has provided VEON until July 19, 2024, to submit a compliance plan, with a potential extension until November 11, 2024. Despite the delay, VEON's shares will continue trading on Nasdaq, and business operations remain unaffected.

VEON announces that its Bangladeshi operator, Banglalink, has signed an MoU with Robi Axiata to explore network sharing, aimed at expanding 4G coverage and improving network performance in Bangladesh.

This collaboration promotes an 'asset-light' business model, aligning with VEON's strategy and environmental sustainability goals.

The move is expected to enhance customer experience, reduce resource duplication, and improve operational efficiency.

Banglalink has been proactive in expanding its 4G services, including a previous MoU with Teletalk and the sale of part of its towers to Summit Towers

VEON, a global digital operator, reported its Q1 2024 financial and operational results. The company achieved USD 942 million in revenue, reflecting a 6.6% year-over-year (YoY) increase in reported currency and an 11.6% increase in local currency. EBITDA stood at USD 386 million, marking a 0.2% YoY increase in reported currency and a 5.1% increase in local currency. The company recorded capital expenditures (capex) of USD 125 million, up 38.6% YoY, with a last twelve months (LTM) capex intensity of 18.3%. Total cash and cash equivalents were USD 632 million as of March 31, 2024, and VEON reduced its gross debt to USD 3.7 billion, down by USD 2.0 billion YoY. VEON maintains its full-year guidance for 2024, expecting revenue growth of 16-18% and EBITDA growth of 18-20% in local currency. The company also increased its share ownership and is set to hold its 2024 Annual General Meeting and Capital Markets Day on June 6th, 2024.

VEON has signed a Memorandum of Understanding (MoU) with Beeline Kazakhstan, GSMA, and the Barcelona Supercomputing Center (BSC) to explore AI and language technologies for under-resourced languages. The agreement, signed at M360 Eurasia in Baku, aims to develop AI systems and language models to bridge the digital divide and improve user experiences in low-resource languages like Kazakh. Beeline Kazakhstan's IT subsidiary, QazCode, has already launched a Kazakh-language AI module, Kaz-RoBERTA-conversational, for customer service. The initiative hopes to address the AI language gap and promote digital inclusion for millions of people.