VEON reports 4.8% organic EBITDA rise

2 Aug 2018

Amsterdam-headquartered, Russian-backed group VEON’s total reported revenue decreased by 6.1% year-on-year to USD2.270 billion in Q2 2018, mainly due to currency movements, with reported EBITDA decreasing 8.0% to USD857 million, primarily caused by significant devaluation of the Uzbek, Russian and Pakistani currencies, as well as integration costs for the Euroset Russian handset retail chain. VEON added that in organic terms its revenue grew by 3.0%, driven by Russia, Pakistan, Ukraine and Uzbekistan, partially offset by continued pressure in Algeria and Bangladesh, with organic EBITDA rising by 4.8%, driven by good operational performance in Russia, Pakistan and Ukraine, partially offset by declining EBITDA in Algeria and Bangladesh. Organic change is a non-IFRS measure excluding the effect of foreign currency movements and other factors such as businesses under liquidation, disposals, mergers and acquisitions.

At VEON’s largest division in Russia, revenues were up 6% in local currency in Q2, despite the mobile customer base shrinking by 6.2% year-on-year to 56.4 million at 30 June 2018; Russian fixed broadband subscribers grew 4.2% to 2.3 million.

Netherlands, Russia, Beeline (Russia), VEON