Tax
Jat
• STRONG ORGANIC GROWTH IN
REVENUE AND EBITDA
• SOLID EXECUTION OF VEON 2.0
STRATEGY
PRELIMINARY RESULTS FOR FISCAL YEAR ENDED 31 DECEMBER 2023
Preliminary Annual Results (Unaudited)
FY 2023
2
FY 2023 HIGHLIGHTS
USD
3,698
million
USD
1,823
million
REVENUE
-1.5% YoY
+17.9% YoY in local currency
normalised
MULTIPLAY AND 4G
REVENUES
+9.7% YoY
+25.8% YoY in local currency
USD
1.7
billion
USD
2.0
billion
USD
651
million
93.6
million
TOTAL CASH AND CASH
EQUIVALENTS
USD 1.3 billion at HQ
NET DEBT EXCLUDING
LEASES
USD 1.7 billion lower YoY
CAPEX
-21.8% YoY
LTM capex intensity 17.6%
4G USERS
+10.7% YoY
59.9% penetration
USD
3,576
million
USD
1,609
million
USD
4.7
billion
SERVICE REVENUE
-1.2% YoY
+18.1% YoY in local currency
normalised
EBITDA
-7.9% YoY
+20.0% YoY in local currency
normalised
GROSS DEBT
USD 2.8 billion lower YoY
1.42x
LEVERAGE
USD
434
million
95
million
Down from 2.36x in 4Q22
Net debt excl. leases to EBITDA*
EQUITY FREE CASHFLOW
+53.3% YoY
TOTAL DIGITAL MONTHLY
ACTIVE USERS
+6.4% YoY
Across all VEON digital services and
platforms
Note: Total cash and cash equivalents does not include USD 165 million relating to banking operations in Pakistan.
* denotes LTM EBITDA
Preliminary Annual Results (Unaudited)
FY 2023
3
Amsterdam, 21 March 2024 7:00AM CET – VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital
operator that provides converged connectivity and online services, announces selected financial and operating results for the
full year ended 31 December 2023.
For FY 2023, total revenues amounted USD 3,698 million, a decrease of 1.5% YoY in reported currency (+17.9% YoY in local
currency normalised for one-offs). Service revenues reached USD 3,576 million, a decrease of 1.2% YoY in reported currency
(+18.1% YoY in local currency normalised for one-offs), while EBITDA of USD 1,609 million represented a 7.9% YoY decrease in
reported currency terms (+20.0% YoY in local currency normalised for one-offs). Capex in FY 2023 was USD 651 million, a
decline of 21.8% YoY and reported capex intensity for the last twelve months was 17.6%. Total cash and cash equivalents as
of 31 December 2023 amounted to USD 1.7 billion with USD 1.3 billion held at the headquarters (“HQ”) level.
Note: Certain comparative amounts have been reclassified to conform to the current period presentation. Cash and cash equivalents do not include amounts related to
banking operations in Pakistan: USD 165 million in 2023 and USD 67 million in 2022.
VEON GroupUSD, million20232022YoYReportedYoYLCYYoY LCY, normalisedTotal revenue, of which:3,698 3,755 (1.5%) 16.4% 17.9% Total service revenue3,576 3,621 (1.2%) 16.5% 18.1% EBITDA1,609 1,747 (7.9%) 9.9% 20.0% Capex651 832 (21.8%) LTM capex intensity17.6%22.1%(4.6p.p.) Licenses payments(153) (296) 48.3% Cash and cash equivalents1,737 3,039 (42.9%) Cash and cash equivalents at HQ level1,328 2,532 (47.6%) Net debt2,955 4,461 (33.8%) Net debt, excluding leases1,971 3,657 (46.1%) Total customers (millions)158.1 158.7 (0.4%) Mobile customers (millions)156.2 156.9 (0.4%) 4G users (millions)93.6 84.6 10.7% 4G user penetration59.9%53.9%6.0p.p. Fixed-line customers (millions)1.8 1.8 2.1%
CONTENTS
KEY RECENT DEVELOPMENTS
UNAUDITED CONDENSED FINANCIAL STATEMENTS
COUNTRY PERFORMANCE
PRESENTATION OF FINANCIAL RESULTS AND NONRECURRING ITEMS
DISCLAIMER AND NOTICE TO READERS
ATTACHMENTS
5
7
12
18
19
21
Preliminary Annual Results (Unaudited)
FY 2023
5
KEY RECENT DEVELOPMENTS
IGHLIGHTS:
Credit ratings of BB- assigned by S&P Global and Fitch
On 15 March 2024, Fitch and S&P published the credit
ratings they assigned to VEON Ltd.:
•
•
Fitch has assigned a BB- (negative outlook) rating.
S&P Global has assigned a BB- (stable) rating.
VEON appoints PwC as 2023 auditors, provides
updates on reporting timelines
On 14 March 2024, VEON announced that it has now
appointed PricewaterhouseCoopers Accountants N.V. for
the audit of the Group’s consolidated financial statements
for the year ended 31 December 2023 in accordance with
International Standards on Auditing (“ISA”).
The Company also announced that it expects to be delayed
in reporting its audited consolidated financial statements
for the year ended 31 December 2023 under PCAOB
auditing standards (the “2023 PCAOB Audit”), filing its
annual report on Form 20-F with the U.S. Securities and
Exchange Commission (the “SEC”) and filing its annual
report (which includes the ISA audit) with the Dutch
Authority for the Financial Markets (“AFM”) in connection
with its Euronext listing.
As a result of these anticipated delays in its filing, the
Company expects that it will not be in compliance with its
listing requirements once the applicable deadlines are
past, and will focus on regaining compliance as soon as
practicable.
VEON also expects to be delayed in delivering the audited
consolidated financial statements of the Company and its
subsidiary, VEON Holdings BV, to the holders of the
outstanding notes of VEON Holdings BV (the “VEON
Holdings Notes”) and its revolving credit facility (the “RCF”)
creditors. The Company will seek consents from its RCF
creditors and the holders of the VEON Holdings Notes for
the delayed delivery of the audited financial statements.
MSCI upgrades VEON to 'AA' ESG Rating
On 4 March 2024, VEON announced that MSCI ESG
Research has raised in February 2024 the Company’s
Environmental, Social, and Governance (ESG) rating to 'AA'
from 'A'.
This upgrade positions VEON within the ‘Leaders’ category
amongst the 131 telecommunication services companies
evaluated by MSCI, demonstrating our commitment to
sustainable and ethical business operations.
issuance of previously
VEON announces the
authorised shares
On 1 March 2024, VEON announced that, its Board of
Directors has approved the issuance of 92,459,532 of its
authorised but unissued ordinary shares to fund its
existing and future equity incentive-based compensation
plans. As a result of the issuance, VEON will have
1,849,190,667 issued and outstanding ordinary shares.
The issuance of the ordinary shares in accordance with
bye-law 3.1 of
represents
approximately 4.99% of VEON's authorised ordinary
shares. The shares are expected to be allocated to the
company's existing and future equity incentive-based
compensation plans, which are designed to align the
interests of VEON's senior managers and employees with
those of its shareholders and to support the company's
long-term growth and performance.
the VEON bye-laws
VEON and Summit complete USD 100 million deal for
Bangladesh towers portfolio
On 31 January 2024, VEON announced that, further to the
announcement dated 15 November 2023, and the legal
transfer of towers in December 2023 following the receipt
of all regulatory approvals, its wholly owned subsidiary
Banglalink has completed the sale of part of its tower
portfolio in Bangladesh to Summit Towers Limited for a
Preliminary Annual Results (Unaudited)
FY 2023
6
consideration of approximately BDT 11 billion (c. USD 100
million).
With this transaction, Summit Towers Limited, a subsidiary
largest
of Summit Communications Group,
in
Telecommunications
Bangladesh, took ownership of 2,012 Banglalink towers.
Under the terms of the Master Tower Agreement between
the parties, Banglalink secures the provision of tower
infrastructure services for an initial period of 12 years, with
potential extensions to be considered at a later time.
the
Company
Infrastructure
order to compensate for the inconvenience caused during
the disruptions. The revenue impact of these offers is
currently estimated to be approximately UAH 2.8 billion
(approximately USD 75 million).
remediation and
to continue
Kyivstar plans
compensation efforts in the coming months. The costs or
loss of revenue of any other such remediation measures is
uncertain and cannot be reasonably estimated at this time.
its
services
restored
CYBERATTACK IN UKRAINE
Kyivstar completes preliminary assessment of the
financial impact of the cyberattack
On 18 January 2024, VEON announced its preliminary
assessment of the financial impact of the cyberattack that
its Ukrainian
affected the network and services of
subsidiary Kyivstar in December 2023.
The incident, which was caused by a widespread external
cyberattack, resulted
in a temporary disruption of
Kyivstar's network and services, interrupting the provision
of voice and data connectivity on mobile and fixed
networks,
international roaming, and SMS services,
amongst others, for Kyivstar customers in Ukraine and
abroad. Working relentlessly, and in collaboration with the
Ukrainian law enforcement agencies, the Security Service
of Ukraine and government agencies, Kyivstar restored
services in multiple stages starting with voice and data
connectivity.
On 19 December 2023, VEON announced that Kyivstar has
now
its
communication services, with mobile voice and internet,
fixed connectivity, SMS and MyKyivstar self-care application
active and available across Ukraine. As of the day of the
announcement, 99% of Kyivstar’s base stations in the
territory controlled by the Ukrainian government were
operational, recovering nearly fully from the widespread
cyberattack of 12 December.
After stabilizing
immediately
launched offers to thank its customers for their loyalty,
including one month of free services on certain types of
contracts.
VEON and Kyivstar also engaged in a financial impact
assessment, the preliminary results of which have become
available.
VEON and Kyivstar experienced financial impact on its
consolidated results for the year ended 31 December 2023
due to these service disruptions in 2023.
The Company anticipate that there will be an impact on its
consolidated revenue results for the year ending 31
December 2024 associated with the revenue loss arising
from the customer loyalty measures taken by Kyivstar in
in all categories of
the network, Kyivstar
Preliminary Annual Results (Unaudited)
FY 2023
7
UNAUDITED CONDENSED
FINANCIAL STATEMENTS
UNAUDITED INCOME STATEMENT
Note: Certain comparative amounts have been reclassified to conform to the current period presentation.
The Group’s YoY revenue and EBITDA performance was affected by extraordinary non-recurring items:
•
•
the cyberattack and customer retention measures following the cyberattack in Ukraine in FY 2023 (c.USD 22 million
EBITDA impact), and
SIM tax reversal in Pakistan in FY 2022 (c. USD 30 million revenue impact and c.USD 91 million EBITDA impact).
Group EBITDA was also impacted by:
•
•
•
Tax court dispute resolved in VEON’s favor in Uzbekistan in FY 2022 (c.USD 20 million);
c.USD 48 million in FY 2023 and c.USD 29 million in FY 2022 associated with the resizing of HQ and exit from Russia;
a provision of c.USD 36 million in FY 2023 related to value added tax in the Netherlands.
USD million20232022YoYreportedYoYLCYYoYLCY, normalisedTotal revenue3,698 3,755 (1.5%)16.4%17.9%Service revenue3,576 3,621 (1.2%)16.5%18.1%EBITDA1,609 1,747 (7.9%)9.9%20.0%EBITDA margin43.5%46.5%(3.0p.p.) Depreciation, amortization, impairments and other(682) (584) (16.8%)EBIT (Operating profit)927 1,163 (20.3%)Financial expenses(470) (551) 14.7%Net foreign exchange gain and others80 180 (55.6%)Other non operating gains / (losses)20 9 135.0%Profit before tax from continued operations557 801 (30.5%)Income tax expense(173) (69) (151.3%)Profit from continuing operations384 732 (47.6%)(Loss) / Profit from discontinued operations(2,830) (741) 281.8%(Loss) / Profit for the period (2,446) (9) 25,904% - Of which profit attributable to non-controlling interest78 153 (49.3%) - Of which (loss) / profit attributable to VEON shareholders(2,524) (162) 1,454%
Preliminary Annual Results (Unaudited)
FY 2023
8
Adjusting for extraordinary non-recurring items, that are not in the course of ordinary business, underlying or normalised YoY
local currency revenue and EBITDA growth was as follows:
(Please refer to page 25 for a detailed reconciliation of reported to normalized revenue and EBITDA).
Depreciation, amortization, impairments and other (which includes gain/loss on disposal of assets and subsidiaries) on
a yearly basis increased by 16.8% YoY for the period.
Net financial expenses declined by 14.7% YoY in 2023 due to lower debt balances.
Income tax expense in 2023 rose by 151% YoY as a result of higher local taxes in our operating markets.
Profit from continued operations for the FY 2023 period were USD 384 million.
YoY growth, LCYFY23FY23, normalisedTotal revenue16.4% 17.9% Service revenue16.5% 18.1% EBITDA9.9% 20.0%
Preliminary Annual Results (Unaudited)
FY 2023
9
UNAUDITED BALANCE SHEET
Note: Certain comparative amounts have been reclassified to conform to the current period presentation. Cash and cash equivalents exclude
amounts relating to banking operations in Pakistan: USD 165 million as at 31 Dec 2023 and USD 67 million as at 31 Dec 2022. Long-term
accounts payable relate to arrangements with vendors for financing network equipment.
Total cash and cash equivalents decreased to approximately USD 1.7 billion as at 31 December 2023, excluding USD 165
million relating to banking operations in Pakistan, mostly due to the early redemption of the VEON Holdings’ December 2023
and June 2024 notes and repayment of October 2023 notes at maturity. Of this, USD 1.3 billion in cash and cash equivalents
is held by VEON’s HQ in Amsterdam denominated in US dollars and euro, including USD 1.1 billion drawn under the Revolving
Credit Facility (“RCF”). The HQ-level cash and cash equivalents are held in bank accounts, money market funds and on-demand
deposits at a diversified group of international banks. Cash and cash equivalents declined by 42.9% YoY as a result of
redeeming certain fixed income securities.
Gross debt increased to USD 4.7 billion as at 31 December 2023. The increase in gross debt was driven by an increase in the
lease liabilities and a slight increase in the bank debt at some of our operating companies. In addition, PJSC VimpelCom
continue to hold USD 72 million of notes that prior to the sale were classified as intercompany. Gross debt decreased for the
full year by 37.1% as a result of the company’s exit from its operations in Russia.
Lease liabilities increased to USD 985 million at the end of 2023, which was primarily impacted by network expansion in
Pakistan, Ukraine, Kazakhstan and Uzbekistan and the sale of towers in Bangladesh. Similarly, for the full year, lease liabilities
increased by 21.7%.
Net debt decreased to USD 3.0 billion as at 31 December 2023 mainly as result of the above mentioned increase in gross
debt and reduction in total cash and cash equivalents. Net debt excluding leases decreased YoY to USD 2.0 billion. This
resulted in improved net debt/EBITDA and net debt excluding leases/EBITDA ratios of 1.84x and 1.42x, respectively. The
USD million31 Dec 202331 Dec 2022YoYTotal assets8,21815,083(45.5%) Cash and cash equivalents1,7373,039(42.9%) Working capital9769048.0% Fixed assets4,1784,414(5.3%) Goodwill349394(11.4%) Assets held for sale05,792(100.0%) Other assets81247371.8% Total liabilities7,14214,315(50.1%) Working Capital liabilities2,1972,341(6.1%) Debt4,7617,571(37.1%) Liabilities held for sale04,232(100.0%) Other liabilities1831716.7% Total equity, there of1,07676740.2% Equity change due to continuing operations for FY 2023341Equity change due to discontinued operations for FY 2023569CTA losses for FY 2023(600) Total liabilities and equity8,21815,083(45.5%) Gross debt, of which4,6937,479(37.3%) Bonds and loans - principal3,6316,670(45.6%) Lease liabilities - principal98580921.7% Long-term accounts payable and other77Net debt2,9554,461(33.8%) Net debt / LTM EBITDA1.84x2.55xNet debt excluding leases1,9713,657(46.1%) Net debt excluding leases / LTM EBITDA1.42x2.36x
Preliminary Annual Results (Unaudited)
FY 2023
10
company had significant reduction in net debt of 33.8%, and a reduction in net debt excluding leases of 45.9%, as a result of
its activities in redeeming its bond and exiting its operations in Russia.
Debt maturities at HQ level, USD (million) equivalent
Year
2024
2025
Beyond 2025
Note: the amounts exclude accrued interest costs.
Bonds
-
695
1,108
RCF
250
805
-
Total
250
1,500
1,108
For the USD 1,055 billion RCF, USD 250 million commitments matured in March 2024 and were repaid during February 2024.
The remaining USD 805 million could be rolled over until final maturity in March 2025.
The ability to upstream cash to HQ level to meet obligations is currently impaired by currency controls in Ukraine and other
geopolitical and FX pressures affecting emerging markets. VEON remains committed to monetizing assets to enhance liquidity
at the HQ level and is taking steps to regain access to capital markets on commercially acceptable terms. VEON is confident in
its ability to navigate these challenges and continue to provide converged connectivity and online services to its customers
globally.
Purchase of VEON Group debt
During the year ended 31 December 2023, PJSC VimpelCom independently purchased USD 2,140 million equivalent of VEON
Holdings B.V. Notes in order to satisfy certain Russian regulatory obligations. Upon such purchase by PJSC VimpelCom, these
Notes were reclassified to intercompany debt with an equivalent reduction in gross debt for VEON Group. Out of these Notes,
USD 1,576 million equivalent Notes were offset against the purchase price and any notes outstanding at closing were
transferred to a wholly owned subsidiary of VEON Holdings B.V. and USD 406 million equivalent Notes were settled at maturity,
while USD 72 million equivalent of VEON Holding B.V. Notes remain held by PJSC VimpelCom as deferred consideration pending
the receipt of an amended OFAC license. Upon receipt of such license, these remaining USD 72 million equivalent Notes will
be transferred to the wholly owned subsidiary of VEON Holdings B.V. to offset the remaining deferred purchase price for PJSC
VimpelCom.
As per 31 December 2023, USD 962 million of the Notes transferred to the wholly owned subsidiary remain outstanding.
Preliminary Annual Results (Unaudited)
FY 2023
11
UNAUDITED CASH FLOW
Note: Certain comparative amounts have been reclassified to conform to the current period presentation.
For the full year, EBITDA decreased by 7.9%. Unlevered free cash flow increased by 16.4% for the full year. Equity free cash
flow followed a similar pattern and rose for the full year by 53.4%.
Even in the face of considerable macroeconomic and geopolitical challenges, the business remains highly free cash flow
generative. Equity Free Cash Flow rose by +53% year YoY as a result. In 2023 VEON reached 73% 4G penetration in Kazakhstan
and Uzbekistan, as a result capex spend will lessen which will contribute to Equity Free Cash Flow in the years to come.
USD million20232022YoY changeEBITDA1,609 1,747 (138) Movements in Working Capital103 (116) 219 Movements in provisions145 48 97 Net tax paid(264) (284) 20 Cash capex(614) (714) 101 Gain / (loss) on disposal of non-current assets14 20 (6) Other movements in operating cash flows(125) 44 (169) Unlevered Free Cash Flow868 746 123 Net interest(435) (463) 28 Equity Free Cash Flow434 283 151 Lease liabilities payments(147) (141) (6) License payments(153) (296) 143 Equity Free Cash Flow (after lease liabilities and licenses)134 (154) 287
Preliminary Annual Results (Unaudited)
FY 2023
12
COUNTRY PERFORMANCE
KEY FIGURES BY COUNTRIES
USD millionFY23FY22YoYreportedYoY LCYYoY LCY, normalisedTotal revenue3,698 3,755 (1.5%) 16.4% 17.9% Ukraine919 971 (5.4%) 8.0% 10.4% Pakistan1,119 1,285 (12.9%) 19.9% 23.0% Kazakhstan775 636 21.8% 20.6% 20.6% Bangladesh570 576 (1.1%) 14.4% 14.4% Uzbekistan269 233 15.3% 22.6% 22.6% Kyrgyzstan56 49 13.1% 18.8% 18.8% Georgia- 17 (100.0%) (100.0%) (100.0%) HQ and eliminations(9) (13) 33.4% Service revenue3,576 3,621 (1.2%) 16.5% 18.1% Ukraine911 965 (5.6%) 7.9% 10.2% Pakistan1,041 1,190 (12.6%) 20.3% 23.7% Kazakhstan749 613 22.2% 21.1% 21.1% Bangladesh561 566 (1.0%) 14.6% 14.6% Uzbekistan268 233 15.0% 22.3% 22.3% Kyrgyzstan55 49 13.3% 18.9% 18.9% Georgia- 17 (100.0%) (100.0%) (100.0%) HQ and eliminations(9) (13) 33.3% EBITDA1,609 1,747 (7.9%) 9.9% 20.0% Ukraine541 575 (5.9%) 8.1% 7.7% Pakistan502 654 (23.3%) 4.9% 23.6% Kazakhstan421 321 31.2% 30.0% 30.0% Bangladesh214 210 1.7% 18.2% 18.2% Uzbekistan112 124 (9.8%) (3.8%) 14.8% Kyrgyzstan22 19 14.9% 20.7% 20.7% Georgia- 7 (100.0%) (100.0%) (100.0%) HQ and eliminations(203) (164) (23.7%) EBITDA margin43.5%46.5%(3.0p.p.)
Preliminary Annual Results (Unaudited)
FY 2023
13
UKRAINE
Keeping Ukraine connected and investing in its future
Kyivstar’s 4G user base reached 14.3 million (+8.8% YoY),
and now accounts for 59.7% of the total customer base (+6.7
p.p. YoY). The growth in 4G users together with new value
propositions supported 9.6% YoY growth
in data
consumption. Kyivstar’s mobile subscriber base was down
3.4% YoY as the number of Ukrainians living outside of
Ukraine continued to impact the subscriber base.
With an enhanced focus on VEON’s DO1440 strategy,
Kyivstar supported access to key services including digital
healthcare,
information and entertainment services.
Kyivstar’s multiplay customers increased by 15.1% YoY.
Helsi Ukraine, the country’s largest digital healthcare
platform, continues to power digital medicine in Ukraine,
with more than 27.4 million registered patients (+9.8% YoY)
having access to almost 1,600 active healthcare institutions
(+37.2% YoY) and more than 37,000 specialists active on the
platform (+20.0% YoY).
The media streaming service, Kyivstar TV closed the year
with more than 1.3 million MAUs, representing a 18.5% YoY
increase. In 2023, users of Kyivstar TV enjoyed its “Children’s
Profile”, a dedicated portfolio of content for children, and
benefited from educational content available on the
platform for free.
In 2023, capex was 6.8% higher YoY due to phasing of
projects with LTM capex intensity 0.3p.p. lower YoY.
In line with its “4G everywhere” strategy, Kyivstar modernized
around 4,000 4G base stations and installed nearly 1,000
new 4G sites in 2023.
Kyivstar continued to support essential connectivity in the
country and sustain business resilience and continuity by
adding new solutions such as modernized batteries and
more efficient power generators to counter possible energy
outages. Kyivstar re-connected 190 communities to its 4G
network in 2023.
Despite a significant impact on network and services due to
the cyberattack, Kyivstar progressively restored data and
voice connectivity services across its network in a short
period of time. Kyivstar maintained nearly 100% operational
uptime of its radio network across all territories controlled
by Ukraine at the end of December 2023.
Kyivstar’s revenues and EBITDA were negatively
impacted by a widespread external cyberattack,
which resulted in a temporary disruption of Kyivstar's
network and services. Working relentlessly, Kyivstar
restored services in progressive stages. The team
remains fully committed to the reconstruction and
recovery of Ukraine.
In FY23, total revenue grew by 8.0% YoY and EBITDA grew
by 8.1% YoY, despite the highly challenging operating
conditions in Ukraine. This growth was bolstered by an
uptick in 4G penetration and an increase in customers
opting for Kyivstar’s data and digital offerings.
Kyivstar continues to assist
local
communities with staff and customer support programs and
charitable donations, including de-mining and recovery
initiatives in Ukraine.
its employees and
Kyivstar’s FY23 revenues and EBITDA were affected by UAH
0.7 billion and by UAH 0.8 billion respectively due to the
cyberattack in December 2023. This impact includes the
market charity commitment of UAH 100 million as part of
customer appreciation program introduced by Kyivstar.
Excluding these one-off items, revenue grew by 10.4% YoY
and EBITDA by 7.7% YoY in FY23 respectively despite high
annual increases in utility tariffs.
UAH millionFY23FY22YoYTotal revenue33,58831,0928.0% Service revenue33,31930,8937.9% EBITDA19,77518,3018.1% EBITDA margin58.9%58.9%0.0p.p. Capex6,3645,9606.8% Capex intensity18.9%19.2%(0.3p.p.) MobileTotal operating revenue31,39729,0148.2% Service revenue31,39729,0148.2% Data revenue18,52816,83710.0% Customers (mln)23.924.8(3.4%) Data users (mln)17.717.50.9% 4G users (mln)14.313.18.8% ARPU in Q4 (UAH)102103(1.4%) MOU in Q4 (min)537563(4.5%) Data usage in Q4 (GB/user)9.99.09.6% 4G coverage95.0%93.7%1.3p.p. Fixed-lineTotal operating revenue1,9221,8792.3% Service revenue1,9221,8792.3% Broadband customers (mln)1.11.1(0.4%)
Preliminary Annual Results (Unaudited)
FY 2023
14
PAKISTAN
Double-digit revenue YoY growth, gaining market share
With the continued execution of its DO1440 strategy Jazz’s
strong portfolio of digital services continues to scale. Jazz
recorded 21.9% YoY growth in multiplay customers who
benefit from digital services such as JazzCash, the self-care
app JazzWorld and the entertainment platform Tamasha.
At the end of 2023, multiplay customers accounted for
29.2% of the monthly active consumer base.
In 2023, JazzCash was the largest domestic fintech platform
and the most popular mobile fintech application in Pakistan.
In addition to having a significant representation of women,
JazzCash’s extensive network of agents and merchants has
facilitated considerable digitalization of society and
payment/loan services, effectively transforming Pakistan’s
financial landscape. As the leader in NPS scores, JazzCash is
honoured to be the people's choice for fintech services.
JazzCash had 16.2 million MAUs and extended digital loans
to 1.6 million customers (+34.6% YoY), generating LTM Gross
Transaction Value of PKR 5.8 trillion, a 38.9% YoY increase as
well as revenue from digital lending. This was supported by
a continued expansion of its retail distribution network,
reaching more than 240,000 active merchants (+29.4% YoY)
and optimizing its agent base with more than 118,000 active
agents by the end of 2023 (-9.8% YoY).
The self-care app JazzWorld saw MAUs increase by 15.2%
YoY, reaching 14.6 million at the end of 2023. JazzWorld
continues to enrich the daily lives of its customers, fulfilling
their needs from telecom to lifestyle services. More than 6.3
million users access lifestyle features, podcasts, horoscopes,
games, financial updates and more - all in one app.
leading entertainment platform
In 2023, Pakistan’s
Tamasha reached 10.6 million MAUs (2.5x more YoY), and
average daily active users rose 69.6% YoY to 1.2 million at
the end of the year.
Capex was PKR 36.9 billion in 2023, with LTM capex intensity
of 11.8% (-8.2 p.p. YoY) being impacted by the regulator’s
currency control measures. However, Jazz continues to
expand and upgrade its 4G network, with almost 1,000 new
4G sites added in 2023.
With a robust portfolio of digital offerings and double-
digit growth in multiplay customers, Jazz delivered
another year of strong local currency revenue growth
despite a challenging macroeconomic environment.
In FY23, total revenue grew by 19.9% YoY and EBITDA grew
by 4.9% YoY. Normalised for one-off recorded in 2022, FY23
total revenue growth of 23.0% YoY and EBITDA growth of
23.6% YoY were supported by Jazz’s successful execution of
its digital operator strategy.
In FY 2022, revenues and EBITDA were positively impacted
by the reversal of a provision following a favorable decision
from the Islamabad High Court on pending litigation,
increasing recorded revenues by PKR 6.6 billion and EBITDA
by PKR 20.2 billion.
JazzCash and Mobilink Microfinance Bank saw further
EBITDA margin expansion in 2023.
In 2023, the 4G user base reached 43.9 million, a YoY
increase of 6.2%, with 4G penetration of 62.1% (+6.1 p.p.).
Jazz reported 70.6 million mobile subscribers (-4.2% YoY) as
the team continues focusing on driving top-line growth,
expanding ARPU and retaining more valuable customers.
PKR millionFY23FY22YoYTotal revenue313,574261,62119.9% Service revenue291,583242,36620.3% EBITDA140,680134,0474.9% EBITDA margin44.9%51.2%(6.4p.p.) Capex36,88052,342(29.5%) Capex intensity11.8%20.0%(8.2p.p.) MobileTotal operating revenue308,175257,33919.8% Service revenue286,183238,08420.2% Data revenue128,495105,96021.3% Customers (mln)70.673.7(4.2%) Data users (mln)53.052.80.2% 4G users (mln)43.941.36.2% ARPU in Q4 (PKR)35930019.6% MOU in Q4 (min)4434166.4% Data usage in Q4 (GB/user)6.85.818.2% 4G coverage67.0%65.1%1.9p.p.
Preliminary Annual Results (Unaudited)
FY 2023
15
KAZAKHSTAN
Revenue over 20% and EBITDA up 30% YoY, continuing to gain market share
Beeline Kazakhstan continued to expand
its digital
portfolio in line with the DO1440 strategy. Multiplay
customers who used services such as izi, Simply, My
Beeline and BeeTV reached nearly 4.0 million, up 19.6%
YoY.
The MyBeeline self-care platform increased its MAUs by
19.8% YoY, reaching 4.7 million MAUs.
The BeeTV multiplatform entertainment service reached
almost 0.9 million MAUs (+4.1% YoY), with 75.8% of
customers using the mobile version of the service. In 2023,
BeeTV acquired broadcasting rights for 125 games of UEFA
Champions League 2023/24. Moreover, 24 of them will be
aired exclusively on BeeTV. The 2023/24 UEFA Champions
League group stage began on 19 September 2023 and will
end on 1 June 2024.
Beeline Kazakhstan’s sub-brand izi continued to deliver
strong growth with MAUs of the izi increasing 16.9% YoY to
some 475,000. At the end of 2023, izi recorded more than
248,000 monthly active subscribers using izi SIM card, a
62.0% increase YoY. Total ARPU of izi platform users
increased on the back of its expanded value proposition
as the platform offers a variety of unique/new content and
actively promotes Kazakh celebrities.
Beeline Kazakhstan continued to gain market share in
2023, with over 20% YoY growth in revenues and above
30% YoY growth in EBITDA. Beeline Kazakhstan reached
11 million mobile subscribers and Multiplay customers
rose 19.6% YoY.
In FY23, total revenues rose by 20.6% YoY, while service
revenues increased by 21.1% YoY, driven by nearly 30% YoY
growth in data revenues due to growth in the mobile business
as well as from digital offerings. Higher ARPU, a growing
customer base and rising consumption of data and digital
services supported solid topline YoY growth.
Simply, Kazakhstan’s first mobile online-only neobank, saw
a 5.2x YoY increase in MAUs, which reached more than 1.3
million at the end of 2023. This growth was driven by the
initiated by Beeline
ecosystem cashback program
Kazakhstan, where Simply bonuses serve as the key
integrated pillar of ecosystem development.
EBITDA increased by 30.0% YoY in FY23, supported by solid
topline YoY growth and margin leverage.
Beeline Kazakhstan expanded its 4G user base to 8.1 million,
up 11.9% YoY at the end of 2023, and reached 73.3% 4G
penetration of the total customer base.
Capex was KZT 75.9 billion during the year, representing a
LTM capex intensity of 21.5%. Capex budgets continue to
be allocated to the 250+ project, which focuses on
expanding the 4G network and connecting remote and
connected 182
rural areas. Beeline Kazakhstan
settlements to its network and added over 500 new 4G
base stations in 2023.
KZT millionFY23FY22YoYTotal revenue353,562293,05720.6% Service revenue341,856282,39621.1% EBITDA192,067147,78930.0% EBITDA margin54.3%50.4%3.9p.p. Capex75,92757,05433.1% Capex intensity21.5%19.5%2.0p.p. MobileTotal operating revenue286,831238,58920.2% Service revenue275,226228,08420.7% Data revenue173,232134,48428.8% Customers (mln)11.110.64.2% Data users (mln)9.48.69.1% 4G users (mln)8.17.211.9% ARPU in Q4 (KZT)2,2681,86721.5% MOU in Q4 (min)230262(12.0%) Data usage in Q4 (GB/user)18.116.87.5% 4G coverage89.2%87.3%1.9p.p. Fixed-lineTotal operating revenue66,73154,46822.5% Service revenue66,63054,31222.7% Broadband customers (mln)0.70.66.6%
Preliminary Annual Results (Unaudited)
FY 2023
16
BANGLADESH
EBITDA growth over 18% YoY supported by over 20 million 4G users and digital portfolio
Banglalink’s Toffee is the country’s leading entertainment
application and OTT platform with audio and video
streaming services accessible to users of all mobile
operators in Bangladesh. In 2023, Toffee saw 8.4 million
MAUs (-60.3% YoY). For Toffee, YoY comparison in MAU is
distorted by uniquely high viewership during FIFA World Cup
in 2022. Toffee recently launched Bangladesh's first cyber
thriller movie 'Antarjal' on Toffee App.
(“MyBL”),
Banglalink's MyBanglalink
pioneering
telecommunications super app revolutionizing convenience
for customers under one unified digital umbrella, is now the
number 1 app in the lifestyle category on the Google Play
Store. The app caters to a monthly active user base of 7.8
million at the end of the year (+36.4% YoY). MyBL is
Bangladesh's premier digital health service aggregator and
provider of an extensive range of services ranging from
music, gaming and education to ticket bookings and
seamless utility bill payments; with 2.6 million users listening
to music from the library of more than 100,000 Bengali
songs, 1.5 million users using e-health services with access
to more than 12,000 doctor consultations, and more than
1.0 million MAUs benefiting from access to online courses
with over 76,800 enrollments, each for this year.
Banglalink continued its balanced growth, despite
deteriorating macro. As successful network rollout
and the continued expansion of digital services
supported this performance.
In FY23, Banglalink revenue rose 14.4% YoY supported by
higher data revenue (+25.7% YoY).
Growing topline drove EBITDA up 18.2% YoY in FY23.
Banglalink’s strong focus on cost control and inflationary
pricing helped deliver this impressive result.
Capex in 2023 was BDT 11.3 billion, capex intensity over the
past 12 months reduced to 18.3% (-15.6 p.p. YoY) as
accelerated roll-out was carried out in the preceding year.
Benefiting from its nationwide 4G network expansion,
Banglalink increased its customer base in 2023, recording
24.5% growth in its 4G user base, which reached 20.1
million. This corresponds to 49.6% 4G penetration, a 6.8 p.p.
YoY increase, and remains a key enabler of Banglalink’s
future growth plans.
4G
penetration
Higher
effective
implementation of Banglalink’s DO1440 strategy. Driven by
the uptake of digital services, the multiplay customer base
grew by 9.4% YoY.
supported
the
Banglalink has a proven track record of developing digital
services that enable digital inclusion in areas such as digital
health, education and entertainment.
Banglalink has made significant investments into its network
with its nation-wide expansion strategy, its network footprint
has doubled over the last 18 months. With over 15,000 sites
now actively providing nationwide high-speed 4G
connectivity.
In 2023, Banglalink has completed the sale of part of its
tower portfolio in Bangladesh (2,012 towers) to Summit
Towers Limited for a consideration of approximately BDT 11
billion.
Banglalink is driving forward Bangladesh’s digital future by
providing high quality 4G network, which has been
recognized internationally for speed and overall coverage
since 2020. Ookla recently announced Banglalink as the
Fastest Mobile Network in Bangladesh, based on in-depth
analysis of consumer-initiated tests taken with Speedtest
during Q3-Q4 2023. Banglalink won Ookla’s Fastest Mobile
Network award for the eighth time in a row.
BDT millionFY23FY22YoYTotal revenue61,49053,74214.4% Service revenue60,54652,81914.6% EBITDA23,11319,55418.2% EBITDA margin37.6%36.4%1.2p.p. Capex11,26818,216(38.1%) Capex intensity18.3%33.9%(15.6p.p.) MobileTotal operating revenue61,49053,74214.4% Service revenue60,54652,81914.6% Data revenue21,71317,27725.7% Customers (mln)40.437.67.5% Data users (mln)26.824.49.6% 4G users (mln)20.116.124.5% ARPU in Q4 (BDT)1271215.3% MOU in Q4 (min)186208(10.4%) Data usage in Q4 (GB/user)4.95.4(10.1%) 4G coverage86.6%81.1%5.5p.p.
Preliminary Annual Results (Unaudited)
FY 2023
17
UZBEKISTAN
Revenue grew over 22% and reached 73%+ 4G user penetration
In 2023, Beeline Uzbekistan reported a 6.1% YoY increase in
4G base stations.
With a strong focus on the execution of its DO1440 strategy,
Beeline Uzbekistan continued offering new digital bundles
and tariff plans in 2023, building on its portfolio of digital
products and services. Supported by higher 4G user
penetration and uptake of digital products, Beeline
Uzbekistan increased its multiplay customer base by
26.2% YoY. Multiplay users now account for 50.0% of the
monthly active B2C customer base.
The Beepul mobile financial services platform grew its app
MAUs by 4.5% YoY, and the average transaction value per
user increased by 6.5% YoY.
Beeline Uzbekistan is progressively transitioning to a new
optimized portfolio of digital products and services. The self-
service app My Beeline, with the rating of 4.5 on Apple
AppStore and on Google Play, recorded 3.9 million MAUs
(+32.7%) with total of 5.2 million MAUs on the platform at
the end of the year (+7.2% YoY). Entertainment platforms,
including Beeline TV and Beeline Music, accounted for
almost 1.6 million MAUs in 2023 (+2.7% YoY).
Beeline Uzbekistan’s digital-first operator OQ launched in
October 2023, reached almost 177,000 MAUs at the end of
the year. OQ provides integrated digital experiences in
entertainment and communication, serving digital natives
who use mobile internet extensively to engage with lifestyle
services.
Capex was UZS 718.0 billion in 2023, with capex intensity of
22.7%. Adjusting for the acquisition of a new office building
in 2022 with an additional payment in 2023, capex intensity
for the last twelve months increased by 1.6 p.p. YoY reaching
21.6%.
Beeline Uzbekistan delivered its second consecutive
year of 20%+ YoY topline growth, reached over 73% 4G
user penetration.
For the full year 2023, Beeline Uzbekistan achieved 22.6%
YoY revenue growth. This performance was driven by the
combination of expansion in the customer base and higher
ARPU, as well as double-digit increases in 4G users and data
usage.
The year-on-year decrease of 3.8% in EBITDA in 2023 was
impacted by an one-off factor in 2Q22. Adjusting for this,
Beeline Uzbekistan would have reported EBITDA growth of
14.8% YoY for full year 2023.
In 2023, Beeline Uzbekistan recorded 8.4 million subscribers
(-0.3% YoY). The 4G user base reached 6.2 million users
during the year, 10.9% YoY increase, and 4G users now
account for 73.1% of total customers (+7.3 p.p. YoY),
exceeding VEON’s target of 70% 4G penetration in the
customer base.
In 2023, Beeline Uzbekistan continued to expand its 4G
network coverage across the country to provide 4G for all,
successfully launching more than 1,700 base stations,
enhancing communications in 142 districts and 61 cities
across the country, with 4G coverage now reaching 85.0%.
UZS millionFY23FY22YoYTotal revenue3,158,3692,575,18422.6% Service revenue3,145,8842,571,96122.3% EBITDA1,319,3541,371,642(3.8%) EBITDA margin41.8%53.3%(11.5p.p.) Capex717,995680,5765.5% Capex intensity22.7%26.4%(3.7p.p.) MobileTotal operating revenue3,145,9922,566,21222.6% Service revenue3,144,6982,563,79322.7% Data revenue2,182,8241,762,34223.9% Customers (mln)8.48.4(0.3%) Data users (mln)7.67.25.0% 4G users (mln)6.25.510.9% ARPU in Q4 (UZS)35,01727,98225.1% MOU in Q4 (min)607655(7.4%) Data usage in Q4 (GB/user)10.88.526.5% 4G coverage85.0%78.0%7.0p.p.
Preliminary Annual Results (Unaudited)
FY 2023
18
PRESENTATION OF
FINANCIAL RESULTS
VEON’s results presented in this document are, unless otherwise stated, based on IFRS and have not been externally audited
or reviewed.
Certain amounts and percentages that appear in this document have been subject to rounding adjustments. As a result, certain
numerical figures shown as totals, including those in the tables, may not be an exact arithmetic aggregation of the figures that
precede or follow them.
The non-IFRS information disclosed in the document, including, among other things, EBITDA, EBITDA margin, net debt, capex,
capex intensity, local currency ("LCY") trends, and ARPU, is defined in Attachment A.
Preliminary Annual Results (Unaudited)
FY 2023
19
DISCLAIMER AND
NOTICE TO READERS
DISCLAIMER
VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in
accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and/or audited.
The financial information included in this document is preliminary and is based on a number of assumptions that are subject
to inherent uncertainties and subject to change. The financial information presented herein is based on internal management
accounts, is the responsibility of management and is subject to financial closing procedures which have not yet been completed
and has not been audited, reviewed or verified. Certain amounts and percentages that appear in this document have been
subject to rounding adjustments. As a result, certain numerical figures shown as totals, including those in the tables, may not
be an exact arithmetic aggregation of the figures that precede or follow them. Although we believe the information to be
reasonable, actual results may vary from the information contained above and such variations could be material. As such, you
should not place undue reliance on this information. This information may not be indicative of the actual results for the current
period or any future period.
This document contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933,
as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements may
be identified by words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,”
“believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” and other similar words. Forward-looking
statements include statements relating to, among other things, VEON’s plans to implement its strategic priorities, including
operating model and development plans; anticipated performance, including VEON’s ability to generate sufficient cash flow;
VEON’s assessment of the impact of the war in Ukraine, including related sanctions and counter-sanctions, on its current and
future operations and financial condition; future market developments and trends; operational and network development and
network investment, including expectations regarding the roll-out and benefits of 3G/4G/LTE networks, as applicable; spectrum
acquisitions and renewals; the effect of the acquisition of additional spectrum on customer experience; VEON’s ability to realize
the acquisition and disposition of any of its businesses and assets and to execute its strategic transactions in the timeframes
anticipated, or at all; VEON’s ability to realize financial improvements, including an expected reduction of net pro-forma
leverage ratio following the successful completion of certain dispositions and acquisitions; our dividends; and VEON’s ability to
realize its targets and commercial initiatives in its various countries of operation.
The forward-looking statements included in this document are based on management’s best assessment of VEON’s strategic
and financial position and of future market conditions, trends and other potential developments. These discussions involve
risks and uncertainties. The actual outcome may differ materially from these statements as a result of, among other things:
further escalation in the war in Ukraine, including further sanctions and counter-sanctions and any related involuntary
deconsolidation of our Ukrainian operations; demand for and market acceptance of VEON’s products and services; our plans
regarding our dividend payments and policies, as well as our ability to receive dividends, distributions, loans, transfers or other
payments or guarantees from our subsidiaries; continued volatility in the economies in VEON’s markets; governmental
regulation of the telecommunications industries; general political uncertainties in VEON’s markets; government investigations
or other regulatory actions; litigation or disputes with third parties or regulatory authorities or other negative developments
Preliminary Annual Results (Unaudited)
FY 2023
20
regarding such parties; the impact of export controls and laws affecting trade and investment on our and important third-party
suppliers' ability to procure goods, software or technology necessary for the services we provide to our customers; risks
associated with our material weakness in internal control over financial reporting; risks associated with data protection or cyber
security, other risks beyond the parties’ control or a failure to meet expectations regarding various strategic priorities, the
effect of foreign currency fluctuations, increased competition in the markets in which VEON operates and the effect of
consumer taxes on the purchasing activities of consumers of VEON’s services.
Certain other factors that could cause actual results to differ materially from those discussed in any forward-looking statements
include the risk factors described in VEON’s Annual Report on Form 20-F for the year ended 31 December 2022 filed with the
U.S. Securities and Exchange Commission (the “SEC”) on 24 July 2023 and other public filings made from time to time by VEON
with the SEC. Other unknown or unpredictable factors also could harm our future results. New risk factors and uncertainties
emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we
assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. Under no circumstances should the
inclusion of such forward-looking statements in this document be regarded as a representation or warranty by us or any other
person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in
fact be the case. Therefore, you are cautioned not to place undue reliance on these forward-looking statements. The forward-
looking statements speak only as of the date hereof. We cannot assure you that any projected results or events will be achieved.
Except to the extent required by law, we disclaim any obligation to update or revise any of these forward-looking statements,
whether as a result of new information, future events or otherwise, after the date on which the statements are made, or to
reflect the occurrence of unanticipated events.
This document also contains ratings from credit agencies. A rating is not a recommendation to buy, sell or hold securities and
may be subject to revision or withdrawal at any time.
Furthermore, elements of this document contain or may contain, “inside information” as defined under the Market Abuse
Regulation (EU) No. 596/2014.
NOTICE TO READERS: FINANCIAL INFORMATION PRESENTED
VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in
accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the
responsibility of management, and have not been externally audited, reviewed, or verified. As such, you should not place
undue reliance on this information. This information may not be indicative of the actual results for any future period.
NOTICE TO READERS: IMPACT OF THE WAR IN UKRAINE
The ongoing war between Russia and Ukraine and the sanctions imposed by the United States, member states of the European
Union, the European Union itself, the United Kingdom, Ukraine and certain other nations, counter-sanctions by Russia and
other legal and regulatory responses, as well as responses by our service providers, partners, suppliers and other
counterparties, and the other indirect and direct consequences of the war have impacted and, if the war, sanctions and such
responses and other consequences continue or escalate, may significantly impact our results and aspects of our operations
in Ukraine, and may significantly affect our results and aspects of our operations in the other countries in which we operate.
We are closely monitoring events in Russia and Ukraine, as well as the possibility of the imposition of further sanctions in
connection with the ongoing war between Russia and Ukraine and any resulting further rise in tensions between Russia and
the United States, the United Kingdom and/or the European Union.
Although we have completed our exit from Russia, our operations in Ukraine continue to be affected by the war. We are doing
everything we can to protect the safety of our employees, while continuing to ensure the uninterrupted operation of our
communications, financial and digital services.
Preliminary Annual Results (Unaudited)
FY 2023
21
ATTACHMENTS
CONTENT OF THE ATTACHMENTS
Attachment A
Attachment B
Definitions
Customers
Attachment C
Reconciliation tables
22
24
24
Preliminary Annual Results (Unaudited)
FY 2023
22
ATTACHMENT A: DEFINITIONS
4G users are mobile customers who have engaged in revenue-generating activity during the three months prior to the
measurement date as a result of activities over fourth-generation (4G or LTE – long term evolution) network technologies.
ARPU (average revenue per user) measures the monthly average revenue per mobile user. We generally calculate mobile
ARPU by dividing our mobile service revenue during the relevant period (including data revenue, roaming revenue, MFS and
interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service
revenue), by the average number of our mobile customers during the period and the number of months in that period.
Capital expenditures (capex) are purchases of property and equipment, new construction, upgrades, software, other long-
lived assets and related reasonable costs incurred prior to intended use of the non-current asset, accounted at the earliest
event of advance payment or delivery. Purchase of licenses and capitalized leases are not included in capital expenditures.
Capex intensity is a ratio, which is calculated as last-twelve-months (LTM) capex divided by LTM total revenue.
Digital services monthly active users (“MAUs”) is a gross total of monthly active users of all digital products and services
offered by an entity or by VEON Group and includes MAUs who are active in more than one application.
Discontinued operations under IFRS refers to a component of an entity, representing a major line of business or a
geographic area of operations, that has either been disposed of or is classified as held for sale. As presented in the document,
the results of discontinued operations that are presented separately either in the current and/or prior year income statements,
have no impact on balance sheet amounts of the prior periods. This means that neither the Algerian nor Russian operations
contribute to the base performance of VEON for both the current and prior year shown.
Doubleplay 4G customers are mobile customers who engaged in usage of our voice and data services over 4G (LTE)
technology at any time during the one month prior to such measurement date.
EBITDA is a non-IFRS financial measure and is called Adjusted EBITDA in the Form 20-F published by VEON. VEON calculates
Adjusted EBITDA as (loss)/profit before interest, tax, depreciation, amortization, impairment, gain/loss on disposals of non-
current assets, other non-operating gains/losses and share of profit/loss of joint ventures and associates. Our Adjusted EBITDA
may be helpful in evaluating our performance against other telecommunications companies that provide EBITDA. Additionally,
a limitation of EBITDA’s use as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible
and intangible assets used in generating revenue or the need to replace capital equipment over time.
EBITDA margin is calculated as EBITDA divided by total revenue, expressed as a percentage.
Equity free cash flow is a non-IFRS measure and is defined as free cash flow from operating activities less cash flow used in
investing activities excluding license payments, principal amount of lease payments, balance movements in Pakistan banking,
M&A transactions, inflow/outflow of deposits, financial assets and other one-off items.
Fixed-mobile convergence customer (FMC customer) is a customer on a one-month active broadband connection
subscribing to a converged bundle consisting of at least a fixed internet subscription and at least one mobile SIM.
Gross Debt is calculated as the sum of long-term notional debt and short-term notional debt including capitalized leases.
Local currency (“LCY”) trends (growth/decline) in revenue and EBITDA are non-IFRS financial measures that reflect
changes in Revenue and EBITDA, excluding foreign currency movements and other factors, such as businesses under
liquidation, disposals, mergers and acquisitions, including the sale of operations in Georgia and the classification of Algeria and
Russia as ‘discontinued operations’. LCY trends normalised (growth/decline) is an alternative performance measure which
is calculated as local currency trends if excluding extraordinary non-recurring items (“one-offs”) with the absolute amount of
USD 5 million or more, such as an impact of the cyberattack in Ukraine in December 2023, SIM tax reversal in Pakistan in
October 2022, restructuring of VEON Headquarters in 2022 and 2023, exit from Russia in 2022-2023, a provision related to
value added tax in the Netherlands in 2023.
Preliminary Annual Results (Unaudited)
FY 2023
23
Mobile customers are generally customers in the registered customer base at a given measurement date who engaged in a
mobile revenue generating activity at any time during the three months prior to such measurement date. Such activity includes
any outgoing calls, customer fee accruals, debits related to service, outgoing SMS and MMS, data transmission and receipt
sessions, but does not include incoming calls, SMS and MMS or abandoned calls. Our total number of mobile customers also
includes customers using mobile internet service via USB modems and fixed-mobile convergence (“FMC”).
Mobile data users are mobile customers who have engaged in revenue-generating activity during the three months prior to
the measurement date as a result of activities including USB modem Internet access using 2.5G/3G/4G/HSPA+ technologies.
Mobile financial services (MFS) or digital financial services (DFS) is a variety of innovative services, such as mobile
commerce that uses a mobile phone as the primary payment user interface and allows mobile customers to conduct money
transfers to pay for items such as goods at an online store, utility payments, fines and state fees, loan repayments, domestic
and international remittances, mobile insurance and tickets for air and rail travel, all via their mobile phone.
Multiplay customers are doubleplay 4G customers who also engaged in usage of one or more of our digital products at any
time during the one month prior to such measurement date.
Net debt is a non-IFRS financial measure and is calculated as the sum of interest-bearing long-term debt including capitalized
leases (unless specifically excluded) and short-term notional debt minus cash and cash equivalents excluding cash and cash
deposits from our banking operations in Pakistan, long-term and short-term deposits. We believe that net debt provides useful
information to investors because it shows the amount of notional debt that would be outstanding if available cash and cash
equivalents and long-term and short-term deposits were applied to repay such indebtedness. Net debt should not be
considered in isolation as an alternative to long-term debt and short-term debt, or any other measure of our financial position.
Net Promoter Score (NPS) is the methodology VEON uses to measure customer satisfaction. Relative NPS (rNPS) – advantage
or gap in NPS when comparing to competition.
Total digital monthly active users (MAU) – is a total cumulative MAU of all VEON digital platforms, services and applications.
VEON’s reportable segments are the following, which are principally based on business activities in different geographical
areas: Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan. We also present our results of operations for “Others” and
“HQ” separately, although these are not reportable segments. “Others” represents our operations in Kyrgyzstan and Georgia
(included until the sale thereof on 8 June 2022) and “HQ” represents transactions related to management activities within the
group in Amsterdam, London and Dubai.
Preliminary Annual Results (Unaudited)
FY 2023
24
ATTACHMENT B: CUSTOMERS
ATTACHMENT C: RECONCILIATION TABLES
RECONCILIATION OF CONSOLIDATED EBITDA TO PROFIT/(LOSS) FOR THE PERIOD
RECONCILIATION OF CAPEX
FY 2023FY 2022YoYFY 2023FY 2022YoYPakistan70.673.7(4.2%) Ukraine23.924.8(3.4%) 1.11.1(0.4%) Bangladesh40.437.67.5% Kazakhstan11.110.64.2% 0.70.66.6% Uzbekistan8.48.4(0.3%) Kyrgyzstan1.91.9(1.3%) Total156.2156.9(0.4%) 1.81.82.1% MobileFixed-line broadbandUSD million, unauditedFY 2023FY 2022EBITDA1,609 1,747 Depreciation(527) (557) Amortization(208) (221) Impairment (loss)/gain6 107 Gain/(loss) on disposals of non-current assets46 (1) Gain/(loss) on disposals of subsidiaries(0) 88 Operating profit927 1,163 Financial income and expenses:(470) (551) ⎼ Including finance income60 32 ⎼ Including finance expenses(531) (583) Net foreign exchange gain/(loss) and others:100 189 ⎼ Including other non-operating gains/(losses)20 9 ⎼ Including net foreign exchange gain/(loss)80 180 Profit before tax557 801 Income tax (expense)/gain(173) (69) (Loss)/profit from discontinued operations(2,830) (741) (Loss)/profit for the period(2,446) (9) ⎼ Of which profit/(loss) attributable to non-controlling interest78 153 ⎼ Of which (loss)/profit attributable to VEON shareholders(2,524) (162) USD million, unauditedFY 2023FY 2022 Capex651 832 Adding back purchase of licenses4 540 Difference in timing between accrual and payment for capital expenditures111 (362) Cash paid for capital expenditures 766 1,010
Preliminary Annual Results (Unaudited)
FY 2023
25
RECONCILIATION OF LOCAL CURRENCY NORMALISED, LOCAL CURRENCY AND REPORTED YOY GROWTH RATES
FY 2023
RECONCILIATION OF TOTAL REVENUE AND EBITDA IN REPORTED CURRENCY, IN CONSTANT CURRENCY AND IN
CONSTANT CURRENCY ADJUSTED FOR ONE-OFFS
FY 2023
LCY, normalisedOne-offsLCYFX and otherReportedUkraine 10.4% (2.4%) 8.0% (13.4%) (5.4%) Pakistan23.0% (3.1%) 19.9% (32.8%) (12.9%) Kazakhstan20.6% -20.6% 1.2% 21.8% Bangladesh14.4% - 14.4% (15.6%) (1.1%) Uzbekistan22.6% - 22.6% (7.4%) 15.3% Kyrgyzstan18.8% - 18.8% (5.6%) 13.1% Total 17.9% (1.5%) 16.4% (17.9%) (1.5%) Total RevenueLCY, normalisedOne-offsLCYFX and otherReportedUkraine 7.7% 0.4% 8.1% (14.0%) (5.9%) Pakistan23.6% (18.6%) 4.9% (28.2%) (23.3%) Kazakhstan30.0% - 30.0% 1.3% 31.2% Bangladesh18.2% - 18.2% (16.5%) 1.7% Uzbekistan14.8% (18.6%) (3.8%) (6.0%) (9.8%) Kyrgyzstan20.7% - 20.7% (5.8%) 14.9% Total 20.0% (10.0%) 9.9% (17.8%) (7.9%) EBITDAUSD, millionReportedConstant FXOne-offsConstant FX, adjusted for one-offsTotal revenueUkraine9191,049201,069Pakistan1,1191,5401,540Kazakhstan775767767Bangladesh570659659Uzbekistan269286286Kyrgyzstan565959HQ and eliminations(9)(9)(9)Total3,6984,351204,371USD, millionReportedConstant FXOne-offsConstant FX, adjusted for one-offsEBITDAUkraine54161824642Pakistan502691691Kazakhstan421417417Bangladesh214248248Uzbekistan112119119Kyrgyzstan222323HQ and eliminations(203)(203)84(119)Total1,6091,9131082,021
Preliminary Annual Results (Unaudited)
FY 2023
26
RECONCILIATION OF NET DEBT
Certain comparative amounts have been reclassified to conform to the current period presentation. Cash and cash equivalents include amounts relating to banking
operations in Pakistan: USD 165 million as of 31 December 2023, USD 62 million as of 30 September 2023, and USD 53 million as of 30 June 2023.
EBITDA RECONCILIATION ON COUNTRY LEVEL
FY23
USD million31 December 202330 September 202330 June 2023Net debt excluding banking operations in Pakistan2,955 2,134 2,753 Cash and cash equivalents1,902 2,249 2,457 Deposits in MMBL and JazzCash in Pakistan(165) (62) (53) Long - term and short-term deposits1 4 5 Gross debt4,693 4,326 5,161 Interest accrued related to financial liabilities75 105 69 Other unamortised adjustmentsto financial liabilities (fees, discounts etc.)(6) (6) (22) Derivatives not designated as hedges(0) 0 0 Derivatives designated as hedges1 1 (0) Other financial liabilities(0) (0) (0) Total financial liabilities4,762 4,426 5,208 USD millionPakistanUkraineBangladeshKazakhstanUzbekistanOtherHQ and eliminationsVEON ConsolidatedEBITDA502 541 214 421 112 22 (203) 1,609 LessDepreciation(145) (104) (149) (78) (35) (14) (2) (527) Amortization(63) (49) (61) (27) (3) (2) (3) (208) Impairment loss0 (0) (0) 10 (0) 0 (4) 6 Loss on disposals of non-current assets1 0 41 (1) 3 (0) 2 46 Gains/(losses) on sale of investments in subsidiaries(0) (0) Operating profit295 389 45 325 78 6 (210) 927
Preliminary Annual Results (Unaudited)
FY 2023
27