Veon expects growth in digital services to soften Russia exit
Adds quotes CEO and CFO interview, detail
By Olivier Sorgho and Vittorio Maresca di Serracapriola
March 16 (Reuters) - Telecomscompany Veon VON.AS, which operates Ukraine's largest mobile network Kyivstar, said on Thursday its digital portfolio which includes discount roaming services for Ukrainian refugees was partially making up for the loss of its Russia business.
Veon forecastlocal-currency revenue growth in line with or below last year's level, while it carries on with the sale of its Russian business, expected to close by June 1.
Including currency exchange effects, its total revenue declined by 2.4% to $3.76 billion in 2022. The numbers do not include the Russian operations which Veon labels as discontinued.
Asked by Reuters about Veon's strategy after leaving Russia, its top market, CEO Kaan Terzioğlu pointed to a plan initiated in 2020 to diversify digital services to include finance, entertainment, education and healthcare.
He provided the example of growth in its streaming services in Pakistan and Bangladesh.
Veon's Ukrainian subsidiary Kyivstar last year acquired Helsi, a digital healthcare provider, while its "roam like home" service allows Ukraine's refugees to call relatives and access health and education services online at a discount.
"The volume of this service is consumed maybe 50, 60 times higher," Terzioğlu said.
He added the partnership with satellites firm OneWeb will also boost responses in disaster-hit places like Pakistan, adding that when terrestrial networks are damaged, satellites can compensate.
Veon said the Ukraine war andsanctions "may significantly impact" its results and Russian and Ukrainian operations also this year, adding business in other countries could also be affected.
Kyivstar saw its fourth-quarter sales drop 20.7% in reported currency, as damage to Ukraine's power infrastructure hit network availability, Veon said. It added the network had had to perform 144,000 emergency and repair works since Russia's invasion.
Last year, the EU sanctioned one of Veon's board members, billionaire Mikhail Fridman, leading to his resignation, while business partner Petr Aven resigned from the board of LetterOne, Veon's largest shareholder.
Reporting by Olivier Sorgho and Vittorio Maresca di Serracapriola in Gdansk; Editing by Milla Nissi and Kim Coghill
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
