VEON's Strong Growth in FY24: Digital Services Boost Profits

VEON's Transformation and Growth in FY24

VEON Ltd. has showcased remarkable progress in its financial performance for the full year, revealing a trajectory driven by digital services. This digital operator, which serves nearly 160 million customers across six countries, has positioned itself at the forefront of the tech landscape, achieving total revenue growth of 8.3% year-on-year, reaching USD 4,004 million. The underlying local currency saw even more encouraging growth, recording a 14.6% increase.

Financial Highlights of 2024

One of the most notable achievements from VEON in FY24 is the extraordinary growth in direct digital revenue, which soared by 63.0% year-on-year to USD 460 million. This segment now constitutes 11.5% of the company's total revenue, indicating a significant shift towards digital offerings that cater to the demands of a modern consumer base.

Robust EBITDA Growth

The company's EBITDA for the year was reported at USD 1,691 million, reflecting a 4.9% rise from the previous year. This growth is particularly impressive when accounting for various external factors, demonstrating VEON's resilience amid challenges.

Impact of Operational Changes

VEON's strategic approach, which includes addressing operational challenges such as the cyberattack in Ukraine and political unrest in Bangladesh, allowed for solid financial footing despite external pressures. The company’s local currency growth notably surpassed an inflation rate of 9.3%, proving its pricing strategy's effectiveness.

Fourth Quarter Achievements

During 4Q24, VEON maintained its growth momentum with total revenue climbing by 4.7% to USD 998 million. The EBITDA for this quarter saw a healthy increase of 11.3%, reaching USD 408 million. Direct digital revenues also showed robust expansion, increasing by 42.4% and encapsulating 12.6% of total quarterly revenues.

Outlook for 2025

Looking ahead, VEON is optimistic, predicting an underlying local currency revenue growth of 12% to 14% and EBITDA growth of 13% to 15% for FY25. The company also plans to initiate the second phase of its share buyback program, amounting to up to USD 35 million, signaling confidence in its financial health and future growth potential.

CEO Comments on Future Vision

Kaan Terzioglu, VEON's CEO, expressed pride in the company’s achievements, noting how the share price more than doubled in the last year. He highlighted their strategic relocations, such as moving the headquarters to Dubai, and forming dynamic partnerships that enhance their service offerings, especially the collaboration with Starlink in expanding connectivity.

Strategies to Enhance Market Position

VEON’s efforts in venturing into digital realms and developing innovative services are crucial. As they invest further into growth areas, they aim to maintain a leading position in an increasingly competitive market. The company recognizes the need for agility in adapting to market dynamics while ensuring reliable service delivery to its vast customer base.

Frequently Asked Questions

What was VEON's total revenue growth in FY24?

VEON achieved total revenue growth of 8.3% year-on-year, totaling USD 4,004 million.

How much did VEON's EBITDA grow in FY24?

VEON's EBITDA grew by 4.9% year-on-year, reaching USD 1,691 million.

What percentage of revenue did direct digital services contribute in FY24?

Direct digital revenue contributed 11.5% of VEON's total revenues in FY24.

What is VEON's expected revenue growth for FY25?

VEON forecasts an underlying local currency revenue growth of 12% to 14% for FY25.

What significant strategic moves has VEON made recently?

VEON has relocated its headquarters to Dubai and initiated a share buyback program while forming strategic partnerships to enhance service offerings.

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