VEON FY24 and 4Q24 Trading Update: A Year of Strong Growth in Digital Services
VEON Ltd., a leading global digital operator, has recently announced its financial and operating results for the fourth quarter and full year ended 31 December 2024. The company reported significant growth across various key financial metrics, underscoring its strong performance in the digital services sector.
Financial Highlights
Total revenue for the year grew by 8.3% Year-over-Year (YoY) to USD 4,004 million, representing a 14.6% increase in underlying local currency terms. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 4.9% YoY to USD 1,691 million, marking a 12.0% growth in underlying local currency terms. Direct digital revenue, which represents revenue from digital services, experienced a robust growth of 63.0% YoY to USD 460 million, translating to an 11.5% share of total revenues for the full year.
Cash Position and Debt
VEON reported total cash and cash equivalents and deposits of USD 1,691 million, with USD 481 million held at headquarters. The company’s gross debt stood at USD 4.4 billion, representing a decrease of USD 311 million YoY. Net debt, excluding lease liabilities, was reported at USD 1.9 billion.
Equity Free Cash Flow and Capital Expenditures
Equity Free Cash Flow for the year amounted to USD 403 million, while capital expenditures totaled USD 826 million.
Impact on Individuals
For individuals, VEON’s strong performance in the digital services sector could lead to improved network coverage, faster internet speeds, and more competitive pricing for digital services in various markets where VEON operates. This growth may also result in job opportunities and economic benefits, particularly in the technology sector.
Impact on the World
On a global scale, VEON’s growth in digital services could contribute to the digitalization of various industries and economies, potentially leading to increased productivity, efficiency, and innovation. Additionally, this growth may help bridge the digital divide in emerging markets, providing access to essential digital services to millions of people.
Conclusion
VEON’s strong financial performance in 2024, driven by the growth of its digital services, is a testament to the company’s strategic focus and execution capabilities. The positive impact of this growth on individuals and the world at large is significant, as it can lead to improved connectivity, job opportunities, and economic development.
- VEON reports 8.3% YoY revenue growth to USD 4,004 million
- EBITDA increases by 4.9% YoY to USD 1,691 million
- Direct digital revenue grows by 63.0% YoY to USD 460 million
- Total cash and cash equivalents and deposits: USD 1,691 million
- Gross debt: USD 4.4 billion (decrease of USD 311 million YoY)
- Equity Free Cash Flow: USD 403 million
- Capital expenditures: USD 826 million
- Impact on individuals: improved network coverage, competitive pricing, job opportunities
- Impact on the world: digitalization, productivity, efficiency, innovation, economic development
