In a remarkable display of market resilience, VEON Ltd (AS:VON). (NASDAQ: VEON (NASDAQ:VEON)), a leading global provider of connectivity and internet services, has reached a new 52-week high, with its stock price peaking at $38.11. The company's impressive gross profit margin of 87.6% and GREAT Financial Health Score, as reported by InvestingPro, underscore its operational efficiency. This milestone underscores a period of significant growth for the company, which has seen its stock value surge by an impressive 88.42% over the past year. Investors have shown increased confidence in VEON's strategic initiatives and market position, propelling the stock to levels not seen in the previous year and reflecting a strong bullish sentiment in the telecommunications sector. According to InvestingPro analysis, VEON appears undervalued at current levels, with analyst targets suggesting further upside potential. The company's robust performance, including a strong revenue growth of 7.36% and its ability to achieve such a high within a year, frames the narrative of a potential turnaround story that is capturing the attention of the market. InvestingPro subscribers have access to 12 additional key insights about VEON's financial health and market position.
In other recent news, VEON Ltd. has reported a series of significant developments. The company disclosed a robust Q3 2024 earnings report, noting a 9.8% increase in revenue year-over-year in USD and a 14.1% increase in local currency terms. Despite challenges such as the Bangladesh Revolution, VEON managed to end the quarter with $1 billion in cash and reduced its gross debt by 8%.
VEON also announced the initiation of a $30 million share buyback program, the first phase of a larger $100 million plan. The buyback aims to optimize shareholder value, reflecting confidence in the company's growth and commitment to long-term shareholder value. The specifics of the buyback will depend on market conditions, liquidity, legal requirements, and other relevant factors.
Furthermore, VEON has decided to cease trading on Euronext (EPA:ENX) Amsterdam and move its listing exclusively to NASDAQ as part of its transition to becoming a US-based frontier market company. The company has revised its 2024 revenue growth outlook to 8%-10% in USD and 12%-14% in local currency. Despite a decrease in EBITDA by 1.5% in USD, it increased by 3.5% in local currency, with the company's EBITDA margin declining to 42.2%.
Lastly, VEON is shifting its focus towards digital services, which now constitute 11% of total revenues, and has seen strong performances in regions like Ukraine, Pakistan, Kazakhstan, and Uzbekistan. These are recent developments in the company's performance and strategic direction.
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