VEON’s Q3 sales down 5.7% on currency effects; organic growth reported at 2.9%

8 Nov 2018

The VEON group reported 2.9% year-on-year ‘organic’ revenue growth for Q3 2018 – excluding effects of foreign currency movements and other factors such as mergers, acquisitions, disposals and business liquidations – led by solid performances from Russia (Beeline), Pakistan (Jazz) and Ukraine (Kyivstar). Foreign exchange movements impacted total reported revenue, however, with consolidated Q3 sales decreasing by 5.7% y-o-y to USD2.317 billion, largely due to currency headwinds of USD289 million. The group highlighted strong underlying data revenue growth across emerging markets: data revenue (local currency terms) grew by 28.5% y-o-y in the quarter ended September 2018, led by Ukraine (82.1%), Pakistan (79.3%) and Algeria (Djezzy, 71.8%) following high investment in 4G LTE mobile networks. Reported EBITDA decreased by 18.7% to USD848 million in 3Q18, impacted by currency headwinds of USD122 million.

Consolidated mobile customers across the VEON group remained stable (up 0.1% y-o-y) at 211 million at end-September 2018, whilst fixed broadband customers climbed from 3.5 million in 3Q17 to 3.7 million twelve months later.

Netherlands, Russia, VEON