VEON Q4 report highlights 1.4% local currency revenue improvement

18 Feb 2021

Multinational telecoms group VEON posted an 11.3% year-on-year fall in Q4 2020 consolidated revenues to USD1.998 billion, largely due to currency exchange effects, while in local currency terms its three-month revenues climbed 1.4% y-o-y despite the continued impact of the COVID-19 pandemic. Although benefitting from the lifting of strict lockdowns in all group operating countries, selective second-wave lockdowns affected various regions and all countries continued to face travel restrictions which negatively impacted roaming revenues and caused migrant-worker customer losses, particularly in Russia. VEON said that adaptations to its business operations, including increased usage of digital customer channels, helped sustain revenues, which were bolstered by strongly rising demand for data services. Most subsidiaries saw a sequential improvement in y-o-y local currency revenue trends in 4Q20, with VEON highlighting in particular Ukraine, Kazakhstan, Pakistan and Bangladesh. Group EBITDA decreased by 11.6% y-o-y in October-December 2020 to USD826 million, although in local currency terms EBITDA increased by 0.8%. Quarterly net profit fell 27.6% to USD35 million.

Total mobile customers fell 1.6% y-o-y (but rose 0.8% quarter-on-quarter) to 209.1 million at 31 December 2020. Jazz (Pakistan) reached 66.4 million mobile users (up 9.8% y-o-y, up 3.4% q-o-q). Beeline (Russia) reported 49.9 million users (down 8.7% y-o-y, up 0.3% q-o-q). Banglalink (Bangladesh) had 33.2 million users (down 1.3% y-o-y, up 1.2% q-o-q). Kyivstar (Ukraine) reported 25.9 million users (down 1.3% y-o-y, up 0.3% q-o-q).

Bangladesh, Pakistan, Russia, Ukraine, Banglalink, Beeline (Russia), Jazz (formerly Mobilink/Warid), Kyivstar, VEON