Core Points - VEON Ltd. has filed its Annual Report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The filing indicates progress in transparency, operational discipline, and long-term value creation, as stated by the Group CEO Kaan Terzioglu [2] - The 2024 20-F report is available on the company's website, and shareholders can request a hard copy free of charge [3] Company Overview - VEON is a Nasdaq-listed digital operator providing connectivity and digital services to nearly 160 million customers across six countries [4] - The company operates in regions that account for over 7% of the world's population, focusing on technology-driven services that empower individuals and drive economic growth [4]

Core Insights - VEON Ltd. published its 2024 Integrated Annual Report, highlighting strong operational and financial performance along with a commitment to social impact [1][2][3] Financial Performance - Group revenues for FY24 increased by 8.3% year-on-year, while Group EBITDA grew by 4.9% year-on-year in reported currency [13] - Direct revenues from digital services accounted for 11.5% of total revenues, growing at a rate of 63% year-on-year in reported currency [13] Digital Transformation and AI Initiatives - VEON served 122 million total monthly active users across its digital services portfolio by the end of 2024, providing access to financial services, digital information, entertainment, healthcare, and learning opportunities [4] - The company launched AI-based solutions, including Kaz-LLM, a large language model in Kazakhstan, as part of its AI1440 ambition to augment human capabilities [5] Commitment to Ukraine - VEON and Kyivstar committed USD 1 billion in investments from 2023 to 2027 to rebuild Ukraine's digital infrastructure and expand essential digital services [6] - Key milestones included partnerships for satellite-based services and enhancing energy resilience [6] Energy Efficiency and Sustainability - The number of Base Transceiver Stations (BTS) using power-saving technology increased from approximately 63,000 in 2023 to 70,000 in 2024 [7] - The number of base stations powered by renewable energy rose from 993 in 2023 to 1,085 in 2024, while overall energy consumption in offices decreased by nearly 28% [7] Governance and Corporate Structure - VEON streamlined its governance by consolidating trading in its shares to the Nasdaq Stock Market and relocating its headquarters to the Dubai International Financial Center [9][10] Investment in Human Capital - The company invested USD 4.4 million in employee training and development in 2024, up from USD 2.6 million in 2023 [11] - Initiatives to support women's inclusion in the workforce were launched, with significant increases in women's representation in leadership roles across various countries [12]

Financial Data and Key Metrics Changes - Revenue for FY 2023-2024 was INR 35,634 million, an increase of 7% compared to the previous year [14] - EBITDA for the same period was INR 6,756 million, also reflecting a 7% increase year-over-year [14] - Profit before tax decreased by 77% to INR 232 million, while profit after tax saw a significant decline of 93% to INR 49 million [14] Business Line Data and Key Metrics Changes - Revenue from data center colocation services grew by 9% year-over-year [12] - Revenue from digital services decreased by 1% compared to the previous year [12] - Revenue from network-centric services increased by 10% over the last year [12] - The revenue split among business lines was 31% from data center colocation, 28% from digital services, and 41% from network services [12] Market Data and Key Metrics Changes - As of March 31, 2024, the company operated 1,033 fiber nodes, a 16% increase from the same quarter last year [13] - The company has deployed 7,835 contracted LDR and service points across the country [13] Company Strategy and Development Direction - The company is focused on expanding its data center presence and increasing capacity at existing facilities to meet demand [15] - There is a commitment to fortifying network infrastructure and cloud interconnectivity [15] - The company aims to enhance its workforce capabilities and competencies to drive innovation and efficiency [16] Management's Comments on Operating Environment and Future Outlook - The management highlighted the positive business environment in India, which is attracting international investments and partnerships [9] - The outlook for digital services is optimistic, with deeper customer engagements expected to yield results in the near future [25] - The company believes that AI and ML activities are significant demand drivers, independent of regulatory changes like the data privacy law [29] Other Important Information - The company has invested a cumulative total of $7.22 million in startups in Silicon Valley as part of its corporate venture capital initiative [13] - The cash balance at the end of the fiscal year was INR 5,835 million [16] Q&A Session Summary Question: Rationale behind the proposed rights offering - The rights offering aims to finance data center expansion and invest in digital services growth, engaging existing shareholders in the next growth phase [19] Question: Projected CapEx for the coming fiscal year - Projected CapEx will be similar to the last two years, averaging around INR 1,400 crores [20] Question: Data center roadmap and new facilities - Two greenfield projects are set to go live in Fiscal 2025, one in Noida and another in Chennai, with additional capacity planned for Mumbai [21][22] Question: Current operational status of Tower 5 in Mumbai - The Tower 5 facility has a total capacity of 38 megawatts, with nearly two-thirds expected to be occupied by the end of March 2025 [23] Question: Performance of network services in the last quarter - The network business showed organic growth, with continued investments planned for expanding network infrastructure [24] Question: Factors driving the decline in digital services - The decline was attributed to lower integration service projects, while cloud and network managed services continue to scale [26] Question: Status of the data privacy law - The data privacy law has been announced but is not yet effective; rules are expected to be issued after the new government is formed [28] Question: Impact of the data privacy law on business - The company believes that data center and network growth are driven more by AI and ML activities than by regulatory changes [29]