Page 15 - bne_Tech_11_2019

Telecom
November 2019 www.intellinews.com I Page 15
Russian mobile major Veon ups earnings in Russia and Ukraine, misses in Pakistan
Russian mobile major Veon (former Vimpelcom) posted revenue decline of 4% year-on-year under IFRS to $2.2bn in 3Q19, with Ebitda up by 1% to $0.9bn.
The company missed analysts’ expectations by 2%-3%, with the main negative effect coming from tax restoration in Pakistan operations.
“Key factors of EBITDA performing ahead of revenue and increasing in dollar terms were EBTDA increase in Russia and Ukraine, lower EBITDA loss on HQ level, as well as the better y/y currency performance,” BCS Global Markets commented on November 4.
Veon revenue performance in Russia was weak with mobile services down 2% in ruble terms (accelerating decline from 1% in 2Q19). But
EBITDA still grew 3.5% y/y supported by low comparison base of 3Q18. Strong performance continued in Ukraine where Veon upped revenue and EBITDA grew respective 18% and 28% in hryvnia terms – strong performance continued.
In other territories, Algeria unit’s number were weak again, while that in Bangladesh were
mixed with revenue seem to be on sustainable growth track, but EBITDA impacted by increase
in tax, BCS GM wrote, while maintaining a Hold recommendation for Veon at a target price of $2.8.
As reported by bne IntelliNews, Veon has been making high profile appointments to boost its digital development profile. The company’s main shareholder, LetterOne of Mikhail Fridman is under fire on investigation in Spain.