Veon revenues fall in Q3 on weak Russian market, Pakistan court ruling

Nieuws Mobiel Wereld 4 NOV 2019
Veon revenues fall in Q3 on weak Russian market, Pakistan court ruling

Veon reported a drop in revenues for the third quarter, hurt by drop in customers in its largest market Russia and a negative tax ruling in Pakistan. Revenues fell 4.0 percent to USD 2.223 billion and were down 0.9 percent on an organic basis. Veon said it was still on track for its full year outlook of low single digit organic growth, after a 4.6 percent increase over the first nine months.

Quarterly EBITDA was still up 16.5 percent to USD 987 million, helped by cost reductions in Russia and Ukraine. Excluding the switch to IFRS 16, EBITDA grew 1.3 percent, and the figure was up 5.0 percent on an organic basis, in line with the full-year outlook for at least mid single-digit growth. 

Veon ended the quarter with around 211.7 million mobile customers, an increase of 1 million from a year earlier due to growth in Pakistan and Bangladesh. Mobile data revenue growth also remained strong, with an increase of 18.4 percent. This was offset by the court ruling in Pakistan, ordering an end to administrative fees on top-ups and a refund of those charged in Q2. Without the ruling, organic revenue would have increased 2.4 percent, Veon said. 

Capital expenditure rose 25 percent year-on-year to USD 397 million in the quarter, impacted by the data retention law in Russia and an end to its network sharing in Kazakhstan. Equity free cash flow (excluding licenses) still improved to USD 370 million from USD 263 million a year ago, putting the company on track for its full-year target of USD 1 billion. During the quarter, Veon also regained an investment-grade credit rating of BBB- at Fitch. 

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