The following is a summary of the VEON Ltd. (VEON) Q4 2023 Earnings Call Transcript:
Financial Performance:
VEON reported an 18% revenue growth (Q4 2023) and 25% EBITDA growth YoY. This was underpinned by a 53% growth in free cash flow that amounted to $434 million, resulting in a 24% cash flow yield.
The company's balance sheet remains robust with a cash position of $1.7 billion, with $1.3 billion held at the headquarters.
The group's revenue reached $953 million in Q4, bolstered by digital platforms expansion and strategic pricing strategies.
The net leverage ratio has significantly improved, decreasing from 2.36 to 1.42 times, and the gross debt has been reduced considerably from $6.7 billion to $3.7 billion.
VEON projects a profit of $384 million and an overall equity rise by $300 million for the full year 2023.
Business Progress:
Sustainable growth seen across several markets, with Kyivstar in Ukraine achieving double-digit growth after upgrading approximately 4,000 4G base stations and establishing 1,000 new 4G sites in 2023.
Jazz's customer base in Pakistan increased to 44 million users in Q4, a YoY rise of 6%, with 62% 4G penetration rate among customer base, and JazzCash's revenues have risen substantially too.
In Kazakhstan, Beeline, the leading operator, saw a 21% increase in service revenues led by mobile and other digital offerings growth.
VEON's new strategy, 'VEON 2.0', aims at double-digit growth, margin expansion, robust balance-sheet, higher cash generation, and furthering their vision of a digital operator.
The company expects a growth of 16% to 18% in top-line and 18% to 20% growth in EBITDA forecasted for 2024.
Discussions are ongoing for a digital banking license in Bangladesh to expand the reach of their financial services.
More details: VEON Ltd IR
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