Dutch telecom group Veon (NASDAQ: VEON), which owns Ukraine’s biggest mobile operator Kyivstar, posted higher second-quarter core earnings on Thursday thanks to strong customer gains across its services.
Core profit (EBITDA) rose 13.9% on a local currency basis to $459 million, the company said.
“Robust organic performance across our markets is driven by 10 million additional 4G customers, 111 million digital service users, showcasing our capability to build new businesses in financial, entertainment, healthcare, education, and enterprise services,” CEO Kaan Terzioğlu said in a statement.
Its total digital monthly active users grew by 47.3% to 111 million.
Since Veon’s exit from its main market Russia last year, it has been focused on expanding its telecom services in countries where it is still present, including Ukraine, Pakistan, Kazakhstan, and Bangladesh.
In Ukraine, sales grew by 9.5% and core profit increased by 9.8% despite higher energy costs, the group said.
Russian attacks on the nation’s power grid have impacted Ukrainian telecom operators like Kyivstar. Kyivstar was also hit by a massive cyberattack last year.
“Nearly 100% of our radio network is operational across all territories controlled by Ukraine at the end of the quarter,” Veon said.
In Pakistan, where Veon owns the country’s largest telecom provider Jazz, sales grew by 24.2%. In Kazakhstan, where it operates through the Beeline brand, they rose 18.8%.
Last week, the company intended to de-list from Euronext Amsterdam and be solely listed in New York. It will keep its headquarters in Amsterdam.
In addition, Veon (NASDAQ: VEON) confirmed its sales and core profit forecasts for the full year.
(Source: Reuters)
