Veon growth improves in Q2, organic revenue up 3.7%

News General Global 3 AUG 2017
Veon growth improves in Q2, organic revenue up 3.7%

Veon reported an improvement in growth rates in the second quarter, with revenue accelerating to 12.3 percent annual growth to USD 2.5 billion. Organic growth was 3.7 percent, and the company also benefited positive currency effects and the takeover of Warid in Pakistan last year. Veon said sales were up in Russia, Pakistan, Ukraine and Uzbekistan, offsetting continued weakness in Algeria.

EBITDA increased 17.1 percent to USD 931 million, while underlying EBITDA, excluding USD 46 million in restructuring charges, was USD 977 million, up 1.5 percent on an organic basis. 

Veon recorded a net loss for the quarter of USD 278 million compared to a profit of USD 122 million a year ago. This was due to an increase in financing costs and forex losses as well as a writedown of USD 110 million on its stake in Russian retail chain Euroset. 

Capital expenditure increased 84.5 percent year-on-year to USD 644 million, primarily due to the purchase of spectrum in Pakistan. Without licenses, capex increased by 17.2 percent from a year ago. Underlying equity free cash flow, excluding licenses, was up by USD 50 million from a year ago to USD 293 million, and Veon maintained its outlook for full-year cash flow. Veon's net debt increased 9.7 percent from the first quarter to USD 8.40 billion. 

The company ended the period with 208 million mobile customers, excluding its joint venture in Italy, an increase of 6.9 percent from a year earlier including Warid. Fixed broadband customers were up 4.6 percent to 3.5 million. 

 

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