VEON (VEON) CMD 2024 summary

Strategic evolution and future ambitions

• Transitioned to a more compact, faster-growing, and deleveraged company after exiting Russia, focusing on high-growth frontier and emerging markets with a diversified digital services portfolio and digital operator model.

• Set 2027 ambitions: 16%-19% local currency revenue CAGR, 19%-22% EBITDA CAGR, $900M-$1B free cash flow, and 3 percentage points margin expansion, with half of customers using non-connectivity digital services and multiplay offerings.

• Asset-light strategy advanced through tower sales, NetCo creation, and infrastructure sharing, aiming to reduce CapEx by up to 50% and unlock value via local IPOs and investable entities in digital, enterprise, and technology segments.

• Digital operator model (DO1440) and AI1440 initiatives drive relevance by expanding into financial, entertainment, education, and healthcare services, targeting every minute of customer engagement and unlocking growth with augmented intelligence.

• Strategic focus on disciplined inflationary pricing, local currency leverage, and effective balance sheet management to mitigate frontier market risks and sustain growth.

Financial and operational ambitions through 2027

• Aims to reduce leverage, increase local currency debt, and extend average debt tenor to over 4 years, with no new debt raised and a focus on asset sales.

• Management compensation aligned with shareholders via equity-based rewards; ongoing consideration of dividends and share buybacks, with plans to upstream dividends from all operating companies as capital controls ease.

• Delivered 15.4% revenue and 14.8% EBITDA CAGR in local currency from 2021 CMD to 2023, exceeding prior targets; new ambitions set higher growth targets compared to the 2021 CMD's 10–14% revenue and EBITDA CAGR.

• Guidance assumes sustained inflation, disciplined pricing, and mid-single-digit USD revenue growth, with upside from demographic trends, digital monetization, and infrastructure efficiency.

• Emphasizes delayering business and enhancing asset accessibility for local and international investors.

Country performance highlights and operating company ambitions by 2027

• Pakistan: Delivered 29% top-line growth YTD, 55% digital services growth, and targets 19–22% revenue CAGR, 24% non-connectivity revenue, and 50% digital business revenue by 2027; JazzCash leads fintech with 55% market share.

• Ukraine: Maintained 7.7% local currency CAGR despite war, with 9M digital customers, robust recovery from cyberattacks, and targets 10–13% revenue CAGR, ~10% non-connectivity revenue, >50% non-connectivity revenue growth, and 10–15% EFCF growth by 2027.

• Kazakhstan: Achieved 46% revenue growth, doubled business since 2021, and targets 14–17% revenue CAGR, 4 p.p. capex intensity reduction, 1 p.p. EBITDA margin increase, and 100% EFCF growth by 2027.

• Bangladesh: Double-digit growth, 88% 4G coverage, 52M Toffee users, and targets 15–18% revenue CAGR, EBITDA margin >45%, 20% non-connectivity revenue, and $100 million annual EFCF by 2027.

• Uzbekistan: 12 consecutive quarters of double-digit growth, leading market share, rapid digital and fintech expansion, and targets 26–29% revenue CAGR and 28–31% data & digital revenue CAGR by 2027.

• AdTech: 101–104% revenue CAGR from 2023–2027.