VEON releases trading update for 1Q23

Strong start to the year with accelerated sales growth

Amsterdam, 4 May 2023 07:00 CEST – VEON Ltd. VEONVEON)), a global digital operator offering converged connectivity and online services, reports select financial and operating results for the first quarter ended 31 “discontinued operations” ended November 24, 2022.

In Q1 23, VEON’s growth in local currency continued to accelerate, with total sales reaching USD 884 million – a decrease of 8.7% yoy in reported currency, while performance in local currency increased by 15.3% yoy. Service revenues were $852 million, -7.9% yoy in reporting currency (+15.9% lc) and EBITDA was $385 million, -13.5% yoy in reporting currency (+11, 2% YoY in local currency). Capital expenditures for the first quarter 23 were USD 90 million, down 49.0% year-on-year with a capital expenditure intensity of 20.3%. Total cash and cash equivalents as of March 31, 2023 were US$3.0 billion with US$2.5 billion held at the HQ level.

Commenting on the results, Kaan Terzioğlu said: “Q1 2023 was our fifth consecutive quarter of double-digit year-over-year growth in local currency as we continued to accelerate our performance and achieved a 15.3% increase in our revenues.

Our operating companies continue to successfully execute the Digital Operator strategy, with 13.6 million additional 4G users, 34% annual growth in our multiplay base and higher ARPU levels across the board, underpinning our financial results.

We remain focused on financial discipline and have successfully amended and extended our 2023 Notes to support our liquidity management as we progress towards the completion of the sale of our Russian operations, subject to the satisfaction of all closing conditions.”

Highlights of Q1 2023

• Revenue of $884 million, -8.7% YoY (+15.3% YoY lc)
• Services revenue of $852 million, -7.9% YoY…