VEON (VEON) Q4 2024 earnings summary

Executive summary

• Achieved 8.3% USD revenue growth and 4.9% USD EBITDA growth in 2024, with local currency revenue up 14.6% and EBITDA up 12%.

• Direct digital revenues surged 63% to $460 million, now 12.6% of Q4 revenues, with digital MAUs up 27.2% to 121.6 million.

• Asset-light strategy advanced with major tower deals, sale of TNS Plus, and share price more than doubled in 2024.

• Kyivstar to be listed on Nasdaq; HQ relocated to Dubai for market proximity.

• Notable events included a cyberattack in Ukraine, political unrest in Bangladesh, and HQ restructuring costs.

Financial highlights

• FY24 total revenue: $4,004 million (+8.3% YoY); telecom and infrastructure contributed $3.6 billion.

• FY24 EBITDA: $1,691 million (+4.9% YoY); EBITDA margin at 42.2%, down 1.3pp due to digital mix.

• Equity-free cash flow declined 2.2% to $403 million, impacted by higher CapEx in Ukraine.

• CapEx increased 26.9% YoY to $826 million; capex intensity at 20.6%.

• Cash reserves rose to $1.7 billion, including $481 million at HQ.

Outlook and guidance

• FY25 guidance: local currency revenue growth of 12%-14%, EBITDA growth of 13%-15%, CapEx intensity 17%-19%.

• Guidance factors in 8.2% blended inflation; CapEx expected to trend lower post-2025.

• Second phase of share buyback up to $35 million to commence.

• Key growth drivers: digital services, financial services, and strong performance in Ukraine, Pakistan, Kazakhstan, and Uzbekistan.