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Kyivstar Group Reports Second Quarter 2025 Trading Update
Globenewswireยท 2025-08-07 13:23
Core Insights - Kyivstar Group reported strong financial results for Q2 2025, showcasing resilience and growth in its digital operator strategy [3][5][6] - The integration of Uklon has significantly contributed to revenue and profitability, reinforcing Kyivstar's position in the market [3][5][6] Financial Performance - Total operating revenue reached USD 284 million, a 20.9% increase year-on-year in USD and 25.9% in local currency [5][6] - Profit for the period was USD 82 million, up 13.9% year-on-year in USD and 18.6% in local currency, with a profit margin of 28.9% [5][6] - Adjusted EBITDA was USD 165 million, reflecting an 18.7% year-on-year increase in USD and 23.6% in local currency, with an adjusted EBITDA margin of 58.1% [5][6] Digital Growth - Direct digital revenue now accounts for 10.3% of total operating revenue, with Uklon contributing USD 21.7 million in revenue and USD 9.3 million in adjusted EBITDA [5][6] - The Multiplay customer base increased by 23.7% year-on-year to 6.5 million, representing 31.7% of one-month active mobile customers [6] - Total digital monthly active users reached 13.4 million, a 51.2% increase from the previous year, including 3.5 million users from Uklon [6] Strategic Initiatives - The company is on track for its Nasdaq listing, which is expected to enhance its investment appeal and support Ukraine's digital transformation [3][13] - Kyivstar Group plans to invest USD 1 billion in Ukraine from 2023 to 2027, focusing on infrastructure and technological development [10]
VEON .(VEON) - 2024 Q4 - Earnings Call Transcript
2025-03-20 12:00
Financial Data and Key Metrics Changes - VEON reported an 8.3% revenue growth in 2024 in USD terms, exceeding the 8% to 10% growth expectation [8] - EBITDA grew by 4.9% in USD terms, surpassing the 4% to 6% expectation [8] - In local currency terms, revenue growth was 14.6%, exceeding the 12% to 14% expectation, while EBITDA grew by 12%, surpassing the 9% to 11% expectation [9][15] Business Line Data and Key Metrics Changes - Direct digital revenues surged by 63% for the full year, contributing 12.6% of total revenues in Q4 [10][25] - Telecom and Infrastructure segment revenues reached $3.6 billion, growing by 3.8% year on year in USD [18] - The Pakistan business showed the strongest performance with revenues growing 22.7% and EBITDA growing 15.6% in local currency terms [22] Market Data and Key Metrics Changes - Ukraine's revenues grew 13.7% and EBITDA grew 10.3% in local currency terms, recovering from a cyber attack [22][26] - Bangladesh faced significant challenges due to political unrest, but direct digital revenues increased by 66% [36] - Uzbekistan's revenues grew 9.4% in local currency terms, while EBITDA declined by 3.7% due to higher operating expenses [37] Company Strategy and Development Direction - VEON is focused on scaling digital services and has made substantial progress in executing an asset-light strategy [10][53] - The company plans to list Kyivstar on NASDAQ, enhancing visibility and profile [11][30] - VEON aims to continue delivering on its digital operator strategy and explore accretive market opportunities [54][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 revenue guidance of 12% to 14% in local currency, driven by strong growth in digital services [15][56] - The company is optimistic about the recovery of consumer confidence in Bangladesh and expects significant growth potential in the market [64] - Management acknowledged the impact of macroeconomic conditions but remains bullish about domestic growth and consumer confidence [106] Other Important Information - VEON's net debt to EBITDA ratio improved to 1.3 times, reflecting disciplined debt management [21][52] - The company completed a $100 million share buyback program, with $30 million repurchased in phase one [11][55] - Direct digital revenues are expected to continue growing, with a target of increasing their contribution to total revenues [63] Q&A Session Summary Question: Key drivers behind 2025 guidance and country contributions - Management highlighted direct digital revenues and acquisitions as key growth drivers, with expectations for strong contributions from Ukraine, Pakistan, and Kazakhstan [64] Question: Competition developments in main markets - New competitors are entering markets like Ukraine and Kazakhstan, but VEON is well-positioned as a digital operator [66] Question: Plans for tower assets - Management confirmed ongoing tower assets in various countries and a significant deal with Anglo Corporation for tower sales [68] Question: Use of proceeds from tower deals - Proceeds from tower deals will be used for deleveraging at both local and corporate levels [89] Question: Eurobond market access timeline - Management indicated no immediate plans to return to the Eurobond market but remains open to future opportunities [91] Question: Strategic rationale behind the acquisition of Ooklon - The acquisition is seen as a way to meet unmet demand in frontier markets and integrate ride-hailing services into the digital ecosystem [78] Question: Guidance assumptions regarding Ukraine's political situation - Management remains focused on customer needs and is prepared for various political scenarios in Ukraine [80]