VEON FY24 and 4Q24 Trading Update: Strong Delivery in 2024, Digital Services Driving Growth

Core Insights - VEON reported a strong financial performance for FY24, achieving an 8.3% year-on-year revenue growth and a 4.9% YoY growth in EBITDA, meeting expectations set in Q3 2024 [3][5] - The underlying revenue growth in local currency terms was 14.6% YoY, surpassing the average inflation rate of 9.3% in its operating countries, indicating effective pricing strategies [4] - Direct digital revenue saw significant growth, increasing by 63.0% YoY in reported currency, contributing to 11.5% of total revenues for the year [5][9] Financial Performance - Total revenue for FY24 reached USD 4,004 million, with EBITDA amounting to USD 1,691 million [9] - Capex increased by 26.9% YoY, with a capex intensity of 20.6%, although excluding Ukraine, it aligned with expectations of 18%-19% [6] - Cash and cash equivalents totaled USD 1,691 million, with net debt to EBITDA ratio improving to 1.34x from 1.52x [6] Quarterly Highlights - In Q4 2024, total revenue grew by 4.7% YoY to USD 998 million, with EBITDA increasing by 11.3% YoY to USD 408 million [10] - Direct digital revenue for Q4 2024 rose by 42.4% to USD 126 million, representing 12.6% of total revenues for the quarter [10] Future Outlook - For FY25, VEON anticipates underlying local currency revenue growth of 12%-14% and EBITDA growth of 13%-15% [11] - The company plans to initiate a second phase of its share buyback program, amounting to up to USD 35 million [11] Strategic Developments - 2024 was marked as a transformative year for VEON, with a significant increase in share price, strategic partnerships, and a shift of headquarters to Dubai [13][14] - The company aims to maintain its position in the digital revolution and continue executing its strategic priorities in 2025 [14]