Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| In full year 2023, VEON experienced a 20% year-on-year increase in local currency normalized EBITDA, with our normalized EBITDA margin improving by 0.8 percentage points to 46.2% |
| Total revenue in local currency increased by 18% year-on-year, with service revenue also rising by 18% year-on-year |
| We continued delivering strong results in Q4 2023 |
| Normalized revenues were up 18% year-on-year, and normalized EBITDA grew even faster at 25% year-on-year |
| It is EBITDA positive, cashflow positive, and growing almost at 82% year-on-year with a very healthy unit economic cost |
| But HQ has contributed a lot to this year's margin expansion and we have completed this successful transformation last year |
| And therefore also our filing will be late, but the auditor has started, so it's positive news |
| We believe that as we execute our digital operator strategy and improve our 4G penetration in [all the] (ph) markets, this momentum will enable us to achieve these results |
| In the majority of our markets, we have the highest net promoter scores, fastest broadband networks, and we are not only gaining market share, but also gaining wallet share |
| We have successfully restructured our debt to extend major maturities to 2025, providing the company with greater financial flexibility |
| In other words, our continued operations are profitably growing |
| These elements have been pivotal in creating a fundamentally higher margin profile for VEON consistently over the last year |
| Once these one-time factors are accounted for, the fourth quarter of 2023 reveals strong cost management and the positive impact of operating leverage |
| On a quarterly basis, VEON's local currency normalized EBITDA increased [25%] (ph) year-on-year, complemented by a notable rise in our EBITDA margin of 2.5 percentage points to 44.4% |
| For the recent quarter, we have achieved substantial year-on-year growth in local currency revenues across our six markets, with total revenue growing 80% year-on-year, culminating in reported revenue of $953 million |
| The driving forces behind our revenue growth include gains in market share and the expansion of our digital platforms across all operations, coupled with the implementation of disciplined inflationary pricing strategies |
| Pillar number one, achieving double-digit growth |
| Through diligent efforts and establishing a new growth baseline, we have demonstrated our capability and commitment to sustain double digit growth trends |
| We might be more compact in terms of balance sheet, half the size, but today we are a much faster growing company with a very healthy balance sheet |
| This year marked yet another period of double-digit year-on-year growth in local currency revenues across all six of our markets |
| Our growth trajectory will facilitate margin expansion given operational leverage and enhance cost management |
| I'm also extremely happy to see on our FinTech environment, our year-on-year gross transaction values increase 11% to reach $24 billion |
| Banglalink's strong focus on cost control and inflationary pricing helped deliver this impressive results, even when electricity and fuel costs continued to rise in multiple times |
| Growing market share and ongoing investment in the Banglalink network draw EBITDA up 18% year-on-year, expanding the margin |
| Driven by the uptake of digital services, the Multiplay customer base grew 9% year-on-year, supporting a 60% increase in Multiplay revenues, reaching 34% of total revenue generation potential |
| Beeline Kazakhstan's strong performance to be driven by higher output with consistent growth in the 4G user base, converged fixed mobile offers, specialized family packages and consumption of data and digital services |
| EBITDA increased 30% year-on-year as higher ARPU, a growing customer base and rising consumption of data and digital services supported a solid top line growth |
| Service revenues grew 21% year-on-year, driven by growth in mobile business as well as other digital offerings and fixed line offerings |
| Beeline Kazakhstan remains Pakistan's leading operator in terms of net promoter score and it continues to gain market share |
| Total financial revenues grew almost 82% driven by a 39% increase in gross transaction value up to INR5.8 trillion |
| Statement |
|---|
| Despite these strong growth figures, our reported service revenue in dollar terms showed a slight decrease of 1% year-on-year on a reported basis |
| I'm very happy to see that with regard to this type of a turbulence, despite the fact that we had significant devaluations, our US dollar reported numbers were only down 2%, actually 1.5% |
| So as that actually disappears, we do expect our normal path, which we started as you know about three years ago from 22% and now we are down to 19%, 18%, last year was actually a 1 percentage point less than what we wanted to do in terms of investments |
| This proactive measure has led to a significant decrease in our report that shows their figures |
| Where will this extra investment be focused and why the shift in approach? Kaan Terzioglu Last year we actually were 1 percentage point below where we wanted to be and this was due to the basically import controls that Pakistan has put in place |
| I cannot see a better value proposition than making our customers successful |
| This was largely due to local currency depreciation in several of our key markets, especially in Pakistan, Bangladesh, Uzbekistan and Ukraine |
| Certain factors may cause actual results to differ materially from those in the forward-looking statements, including the risk detailed in the company's annual report on the Form 20-F and other recent public filings made by the company with the SEC |
| The second factor is early redemptions |
| And, if I look back also in the last two years, one of the biggest, I think, impact that emerging markets have experienced was increase of the interest rates from almost 0 to 5.25% |
| VEON is tough, which takes me to Kyivstar in Ukraine |
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