Veon reports positive results for 2020 third quarter

Veon reports positive results for 2020 third quarter

Sergi Herrero and Kaan Terzioğlu - Veon.jpg

Veon’s various operations recorded ‘improved’ year-on-year (YoY) financial results for the third quarter of 2020.

The positive trend compared to the previous quarter came about as Covid-18 lockdown restrictions related eased for the period.

“The third quarter saw strong sequential improvements in the financial performance of the majority of our operating companies, as lockdown restrictions eased in most of our markets. The Group remains focused on operational execution and improving commercial momentum while driving a number of initiatives across our markets to support the significant data & digital opportunities we enjoy,” commented Kaan Terzioğlu and Sergi Herrero, Veon’s co-chief executive officers (pictured).

Reported revenue decreased by 10.4% YoY due largely to currency headwinds, while the local currency decline in revenue was limited to 1.3% YoY.

For the quarter, the Group recorded an increase in mobile customers with net additions of 3 million in Q3 2020 totalling 207 million. This follows a net decline of 6 million in customers in the second quarter of 2020.

In addition, the company saw strong growth in 4G user, which was up by 20 million YoY and by 8 million quarter on quarter (QoQ), totalling 73 million. In line with this, Veon recorded double-digit growth in mobile data revenue, up 13.1% YoY as customers switched back from fixed line as lockdowns restrictions eased.

“We are pleased to see real progress on the execution of our strategy to grow our 4G user base across all our operations and, in doing so, support the expansion in our data and digital revenues which together represent a meaningful opportunity for the Group to expand revenue in the long-term,” added Terzioğlu and Herrero.

“At the end of September, we reported 4G users of 73 million, which collectively now account for 35% of our total customer base. But even more encouraging is that due to 4G segment growth, data revenues increased by 13% in local currency on a YoY basis – momentum we will strive to continue to deliver on in the coming months.”

JazzCash Veon’s mobile payment company, ended the quarter with a monthly active user base of 9.7 million, while in the content area space Beeline TV in Russia and Toffee TV in Bangladesh recorded what the company referred to as “strong YoY trends”.

Overall, Veon third quarter 2020 net profit before impairments was $145 million.

Looking ahead at its full year 2020 predictions, the company anticipates a steady recovery in operations, provided the gradual lifting of lockdown measures continues  and a low to mid-single-digit local currency YoY decline in both group revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization, with capex Intensity of 22-24%.

Gift this article