Veon moves to loss in Q1

News General Global 11 MEI 2017
Veon moves to loss in Q1

Veon reported a mixed first quarter when looking at underlying results, with revenues falling 1 percent and the adjusted EBITDA going 0.5 percent higher. On an organic basis, revenues slid to USD 2.28 billion due to weakness in Algeria, partially offset by strong growth in Pakistan, Ukraine and Uzbekistan. On a reported basis, they rose 13 percent on the back of positive currency effects and the Warid transaction. Adjusted EBITDA lifted almost 12 percent on a reported basis (+0.5% organic) to USD 891 million. The loss from continuing operations went to USD 11 million, from a reported profit of 37 million.

The total number of Veon mobile customers rose to 207 million, excluding Italy, from the pro-forma figure of 204 million the year before. The total number of fixed customer was flat year-on-year at 3.4 million.

CEO Jean-Yves Charlier said the company generated almost USD 200 million in underlying free cash flow and was on track to reach its full year guidance. The CEO sees the positive momentum of last year continuing into this year and said the Italian joint-venture also had a positive start, with solid revenue growth and synergies on track.

Revenues in Russia fell 2.1 percent on an organic basis, mainly due to falls in fixed-line service revenues. Declines went to 15.2 percent in Algeria and 1.2 percent in Bangladesh. Djezzy in Algeria continues to face customer churn and ARPU erosion, pushed by price competition. Pressure is not expected to decline anytime soon. Sales advanced 11.6 percent in Ukraine, 9.5 percent in Uzbekistan and 5.4 percent in Pakistan. In Ukraine, the revenue rise was boosted by successful promotions and strong mobile data revenue growth (+70% organically). On a reported basis, revenues jumped 24 percent higher in Russia, 35.4 percent in Pakistan and 5.7 percent in Ukraine, while declining 16.8 percent in Algeria, 2.5 percent in Bangladesh and 7.1 percent in Uzbekistan.

Capital expenditure was increased to USD 268 million, while the operating cash flow lifted to USD 584 million from a negative 237 million year-on-year.

Veon changed its name from Vimpelcom at end March and listed its shares on Euronext Amsterdam in early April. It paid out a final 2016 dividend of 19.5 cents on 12 April. In Pakistan, the company merged Mobilink with Warid. The results of Warid were consolidated in July.

Categories:

General

Companies:

Djezzy,  Mobilink,  Warid

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Global

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Sales figures, Financial figures

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