VEON (VEON) Q2 2024 earnings summary

Executive summary

• Achieved double-digit revenue and EBITDA growth in both US dollars and local currency for Q2 2024, driven by digital transformation, multiplay services, and strong performance in Pakistan and Kazakhstan.

• Direct digital revenues exceeded 10% of total, growing 83% year-on-year, with multiplay B2C customers up 22% year-on-year.

• Confirmed full-year 2024 guidance for 16–18% revenue and 18–20% EBITDA growth in local currency, with capex intensity of 18–19%.

• Demonstrated resilience in Ukraine and robust expansion in Pakistan and Kazakhstan, despite challenging environments.

• Announced $1B investment commitment to Ukraine's digital future and intention to delist from Euronext Amsterdam with up to $100M ADS buyback.

Financial highlights

• Q2 2024 total revenue: $1,026M (+12.1% YoY reported, +15.1% local currency); service revenue: $987M (+11.3% YoY reported).

• EBITDA: $459M (+10.6% YoY reported, +13.9% local currency); EBITDA margin: 44.7% (-0.6p.p. YoY).

• Direct digital revenues: $108M (+83.3% YoY); equity free cash flow: $77M (+225.4% YoY).

• Cash position at quarter-end: $722M; net debt: $2,227M (excl. leases), net debt/EBITDA: 1.59x.

• CapEx: $181M (+5.8% YoY); LTM capex intensity: 18% (-1.6p.p. YoY).

Outlook and guidance

• 2024 guidance reiterated: 16–18% revenue growth, 18–20% EBITDA growth, 18–19% CapEx intensity in local currency.

• Guidance normalized for Ukraine cyberattack impact; medium-term ambition: 16–19% revenue CAGR and 19–22% EBITDA CAGR through 2027.