Veon raises dividend as H1 results track ahead of FY growth outlook

News Wireless Global 1 AUG 2019
Veon raises dividend as H1 results track ahead of FY growth outlook

Veon reported second-quarter results ahead of its full-year outlook. Organic revenues rose 7.5 percent, and adjusted EBITDA was up 11.1 percent, compared to a forecast for low single-digit growth in revenue and low to mid single-digit growth in EBITDA. The growth was supported mainly by the operations in Pakistan and Ukraine, offsetting flat results in Russia and declines in Algeria and Uzbekistan. 

On a reported basis, Veon's revenues fell 0.4 percent to USD 2.261 billion due to negative currency effects. Service revenue fell 2.6 percent, while mobile data revenue was up 14.2 percent to USD 590 million. 

EBITDA still increased 16.1 percent to USD 99 million, helping the margin grow to 44.0 percent. The profit for the period was USD 75 million compared to a loss of USD 144 million a year ago. The company also received a USD 38 million in Kazakhstan from the unwinding of its network sharing venture there with Kcell. 

Equity free cash flow benefitted from the USD 175 million payment from Ericsson and rose to USD 338 million from USD 206 million a year ago. For the full year, Veon still expects a figure around USD 1 billion, after USD 630 million in H1. 

Veon said it had a strong performance in the first half, despite challenging market conditions. While the results are trending ahead of its full-year outlook, the company noted the second-half comparison is more difficult. "Directionally there is upside to revenue and EBITDA," it noted. 

The company proposed an interim dividend of USD 0.13 per share, up from USD 0.12 a year ago. 

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