VEON 1Q19 organic EBITDA improves by 10.3%

2 May 2019

Amsterdam-headquartered multinational telecoms group VEON reported Q1 2019 consolidated revenue of USD2.124 billion, down by 5.6% year-on-year, whilst quarterly EBITDA in reported currency grew 52.0% to USD1.298 billion (if excluding effects of new IFRS 16 accounting standards EBITDA rose 37.3%). VEON noted underlying ‘organic’ Q1 revenue growth in local currencies of 7.4% and organic EBITDA growth of 10.3%, attributed mainly to operational strength in Pakistan (Jazz) and Ukraine (Kyivstar), with organic EBITDA margin improvement of 1.0 percentage points attributable to lower costs. Group net profit for January-March 2019 was USD530 million, compared to USD564 million in 1Q18. Total mobile customers across the group grew 0.3% y-o-y to 211 million, with fixed broadband subscribers up 8.3% to 3.9 million. Largest division, Russia (Beeline) posted local currency revenue growth of 4.4% y-o-y to RUB69.25 billion (USD1.05 billion) in 1Q19, whilst the Pakistan division (VEON’s second largest earning unit) raised its local currency turnover by 23.6% to PKR50.60 billion (USD362 million).

Pakistan, Russia, Beeline (Russia), Jazz (formerly Mobilink/Warid), VEON