GuruFocus - Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- VEON Ltd (AS:VON) (NASDAQ:VEON) reported a strong revenue growth of 9.8% year over year in US dollars and 14.1% in local currency terms.
- The company achieved a significant reduction in the weighted average blended inflation rate across its markets, from 16.5% in Q3 2023 to 8.2% in Q3 2024.
- VEON Ltd (NASDAQ:VEON) saw a substantial increase in direct digital revenues, which grew 35.1% year on year in US dollars.
- The company added 8 million additional 4G customers year on year, with 4G penetration rising to 65%.
- VEON Ltd (NASDAQ:VEON) maintained a healthy liquidity position with a cash reserve of $1 billion, demonstrating effective cash management.
- VEON Ltd (NASDAQ:VEON) experienced a negative 1.5% growth in EBITDA in US dollars, impacted by identified items such as restructuring costs and charitable donations.
- Revenues in Bangladesh declined by 8.4% due to the revolution and new tax on revenues, affecting overall performance.
- The company faced higher energy tariffs and increased network expansion costs in Uzbekistan, impacting EBITDA growth.
- Capital expenditures increased significantly by 51.2% year on year, reflecting challenges in importing equipment to Pakistan.
- VEON Ltd (NASDAQ:VEON) revised its prior local currency guidance, lowering expected growth rates for total revenue and EBITDA for 2024.
A: VEON feels comfortable about servicing the 2025 maturities through operational cash proceeds and the sale of TNS Plus. A portion of the sale proceeds has already been collected, with the rest expected in the coming weeks. (Respondent: Unidentified_3)
Q: With the headquarters moving to Dubai, will there be any changes in the corporate structure or issuance entity for bonds?
A: Decisions regarding the issuance entity will be explored over time. As old bonds are paid back, new bonds will likely be issued from a new entity. (Respondent: Unidentified_3)
Q: Can you discuss the feasibility of achieving Shaw Capital's target of a $160 share price by 2026 and the strategies to reach it?
A: VEON is committed to executing strategies aligned with Shaw Capital's targets. The company is focused on delivering on the issues raised by Shaw Capital, despite external challenges like wars and revolutions. (Respondent: Unidentified_3)
Q: What tax savings does VEON expect from moving its headquarters to Dubai in 2025, and will there be any savings for 2024?
A: The move to Dubai is not expected to impact VEON's effective tax rate, as there is no significant tax differentiation between the Netherlands and the UAE. The focus is on improving the effective tax rate through local operations. (Respondent: Unidentified_3)
Q: How is VEON managing its cash position and debt profile, and what are the expectations for future financial stability?
A: VEON maintains a healthy liquidity position with a cash reserve of $1 billion. The company expects to manage its debt profile effectively, with no material maturities in 2024 and the nearest maturity in April 2025. (Respondent: Unidentified_4)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.