VEON (VEON) 29 Oct 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to VEON Third Quarter 2020 Results Webcast and Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to hand the conference over to Mr. Nik Kershaw, Head of Investor Relations. Please go ahead, sir.

Hi. morning good and afternoon everyone. Good third Welcome presentation. results to VEON's quarter of Nik Head Relations. Kershaw, Group Investor third lockdown last trends review across we be the with Kaan quarter joined our followed Kaan to our will through pleased I'm quarter, on Sergi overview an and business Herrero, operational Serkan Today's from of group begin CFO, with Terzioglu, line our an Serkan, co-CEOs, the group along our as saw pandemic Okandan presentation the Sergi by to that. results during by from discuss the today We'll discuss guidance then our hand for it outlook financial back to Serkan new our to the full-year. and

of there'll but presentation. As ever, you this ask that time end for save be we ensure the would your questions, we to will the ample for

remind the COVID developments started, These particularly company's cause that that, of future and hand each to financial which anticipated and its presented to downloaded investments measures and statements company by from forward-looking on certain may I'd make Form and transactions. strategic website. forward-looking made including and which SEC. to results future to statements factors and today's be network release uncertainties. the guidance XX-F earnings risks in filings actual from let company's over and current the targets materially the report in development reconciliations annual realize include XXXX, today and getting Certain initiatives, recent including the part to detailed may company's those trends, The like earnings me during ability in in non-IFRS of we presentation, differ commercial the With the the risks the operational with other public of Serkan. and and involves network performance can for presentation our relate you statements light pandemic, and Before market

the of the reflects our record, percentage rapid flat or of for of reversal by Group Local COVID-XX year-over-year lockdowns fell or billion networks first up to Thanks, contribution boosted this $X.X with one-off joining for X.X% this, quarter was US$X the provision revenue currency positive the for quarter million. afternoon by On revenue recorded X. currency accounted this XX.X%, in a result business year-over-year. effects which Net declined in straight Once are billion Nik, strict results. After on reported are XX.X%, several currency helped once you recovery despite and go which a back I'm X.X% me local provision here $XXX reported Slide data difficult how Adjusted X% in before impact Once as to Thank more digital as accounted basis. look by the numbers, and of months was the all later, again, from reduction currency items HQ to as say minus presentation EBITDA our us progressed rising rise quarter our that quarter but in third in that Pakistan our trends good We normal in reported of terms, and subscriber X.X% third change on year-over-year, operating by $XX encouraging in for and was of million the growth at let summarized the boosted has points year-over-year third a numbers, revenue for QX. our XG - encouraged. COVID year-over-year continued participants. levels. profit particularly uptake steady for being fell to the towards reported negative the overhead, by EBITDA little was terms are currency good a the that continued XX.X% quarter expansion movements result to million. a Pakistan. a of was during later. basis. morning $XX this net a pleased good saw by X.X year-on-year developed was cost reported This amounting local basis, on $XXX million for. and for by EBITDA This well reversal the on year-over-year in margin was services local currency, was more Group EBITDA it in

later group, a in to slower recent well-advanced, seen anticipated of million, reflects are impact on and a in the revision associated has impairment headwinds ARPU of for relates first half our restrictions around principally turn to challenged estimate which Russia before well when the $XXX US$XXX COVID and Measures of Together Kaan is More revenues, impairment along ruble, for million. incurred the growth However, deemed operational XXXX. in Beeline Russia markets. by to More had previous on impacted KPIs goodwill revenues deliver lockdowns revenue market will low necessary. quarter. Beeline carrying this return we with competitive of been a third from and Russia, the still its positive have further than we profitability a to a weakened our business recently, of and in capitalization in travel which by the anticipate the impact presentation. during the ongoing number in value which presents consumer which year-over-year a years has Russian the recovery non-cash as he projected have in with Beeline's negative this spending, The of which weaker improvement as has pressures business, the

operational CapEx the program quarter, which investment slide, in dropped our final wide group to the XG Turning was the reflects numbers in This CapEx intensity X.X% XX.X%. on Russia. to the particularly ratio higher Group's

remains leverage our our with two for goal which ratio quarter keeping at debt-to-EBITDA, times X.X at leverage net around the group Finally, or or stood consistent times.

X. Slide to Moving

on was our Operationally, on quarter across networks focus markets. one XG the key number busy for a several the milestones fronts. a numbers, remains deployment with the over accelerating third from our group, Aside achieved all the of

past over months, gained million million QX. QX XX% subscriber the of grown from subscribers by have in were XX base rise X XX We which alone, to of a our XX% adding XG XG

continued JazzCash growth Beeline We in Pakistan in develop impressive during resulting our for in and quarter. to digital Russia TV verticals, the

that We a mobile are promising also ShopUp, accelerate services. growth over us fostering digital platform business this a the And announced division to in our partnerships develop ventures investment that a offering financial month can by in earlier services there. Bangladesh our offers digital strategic

our a this during which our of partner milestones closes. with the fast which shareholder and Jazz quarter. our were basis QX weeks under shareholders. that and funding, commitment needs of fee. that depository put our In of longer investors Pakistan, value growing of reached governance listing also will perspective, NASDAQ launched our underscore full will bond be with via medium holding exercise reached of helps to financial means agreement subject an bank, stock of of the no issue which early frameworks group by Each XXX to current during the annual our that creating the We this business the this compared cost means option our in transaction last a debt by depository our once number year. Kyivstar reduce value second an capture From reflect or business terms was QX points, In note term program, both

put over Just of Kyivstar it's new of reflects and our place transaction today, Armenian independent directors. in the also received. we optimization cash based a HQ governance transferred our announced draw boards, group greater business, local now has which This leaner that on expertise on experience closed, the and the model a empowerment an and for operating the function successful of shares sale outcome portfolio. ongoing our now

the together, we offer our strengthen believe business value and we foundations the Taken these shareholders. steps can our of proposition

sets last detail, out we excluding performance results our set comparisons which financial both performance stage. third this figures, the adjusted for figures, the our months detailed year our in revenue alongside once greater non-recurring the from at out at values EBITDA, corresponding two nine footnotes. in have are year's also items quarter for Looking To are X and nine-month last Slide

impact EBITDA nine the impairment in first the QX. to returned is and We are levels. here to have for with quarter-over-quarter margin, trends activity in revenue, consistent like I'd saw we to lockdown recovery we and on This performance highlight companies QX, the the to in QX rebounded set imposed is QX key each conditions have improvement in out also from business them The seen restrictions the EBITDA, that here financial compared our months. operating the on normal as and trading

trends are provided here on Slide more these on X. sequential detail We

steadily in since. local As right hand you early in chart, can bottomed shown the from QX, revenues and currency the has decline see

making Pakistan As high for in at group as in return reported for both X% illustrated reversal the and growth challenges which a growth in saw the to strong provisional Russia. for for grew to we result, quarter-over-quarter travel pre benefits contribution this to double-digit lockdown last stand revenues means the EBITDA, Roaming meanwhile, by takes QX revenue longer product weak QX. for routineg example, longer They phase as aspects near Kazakhstan groups in the line COVID over and remains Growth our we far fixed the and full Certain revenue time one-third in X% home revenues, were they normal, will recover revenues understandably pandemic both revenue currently remain levels. anywhere meantime. Ukraine the outlines to rates us adjusted take in in recorded of year. roughly

the However, assuming quarter. the with restrictions shared revised with current lockdown of is we worsen. last not do overall consistent guidance recovery pattern you And

QX the through when trends guidance us these the in expect at take end this We more of I on continue presentation. to

compared decline With Moving of Ukraine during markets each as travel The in and as delivering in improvement revenues, of the markets, fall larger namely QX. Pakistan, in Russia Slide growth. significantly across quarter. a our to over breakdown as double-digit due theme revenues report X to year-over-year more continued revenue with a key was roaming trends all detailed an result largely a Kazakhstan, numbers. a three underlying further restrictions, lower well customer and to

pace in first operational taking shallower in we turnaround Russia QX. during an XXXX. there than support the the remain the However, measures revenue will are of of was decline half we confident that And

which numbers, the X.X% XX.X% by quarter, in year-over-year, reported meant on with at here currency of that weakness revenues smaller, US$XXX decline see terms. also will our fell a reported the You compared local for million ForEx only impact

US$XX in by million. focus particularly local for at to to a EBITDA enjoyed us again, HP cost now last the we growth by QX was year, key XX% control Once overhead in by corporate was double-digit XX, level, Kazakhstan. up quarter, reduce our slightly where Ukraine the Turning and currency Slide terms versus throughout helped X.X% we year-over-year

headwinds to $XX turning EBITDA, X% year-over-year. declined impacted reported Finally by of million which

now QX, structure strength on our Turning has challenging we the Slide a existing maturities to debt capital meant period. lockdown billion management navigate XX, which under through group this refine remain issue. in both and of enabled been some pandemic, priorities this our as RUB program, MTN In active this through a our second of to the the throughout note us as case liquidity capital through five-year XX

than bilateral has RUB had markets basis quarters. facility billion more this of in at dollar facility. year. by enabled acquired through we QX able our that Russia and ruble credit of expensive XXX our access we under this so average U.S. some credit us both out We Together, points borrowing previous XX also cost cost also last of and GTH lower refinanced to the borrowings far our I repaid our fully average point to our rates the have existing year, lower of borrowings revolving consolidation coupon in been debt compared loan the to

X.X mature refinancing our our this end maturities out have of X.X the compared pushing managed QX of We proactively, years to to average to year. years near-term also last and tenor borrowings at the all debt

is cash our a - chart. managing illustrated using and borrowings well, the our revenues. mix hedges, to which in of left our to We XX% right ruble liabilities impact plus as of as currencies hand which of where shown to holdings from borrowings Russian appropriate functional hedging, continued on our the in currency for pie side are charts, result these XX%. our the it exposure match hand pie ruble two which practical, the rises The against our show as post Adjusting hedges is far

comfortably XX%, net a Our revenues ruble ruble rises to further as exposure matching our result.

of group the slide, the end and on up the to which last to to facilities, billion at access continues US$X.X amounts considerable from undrawn $X.X Finally cash quarter. credit billion, together

that changed us around as balance group QX net our Moving enable over us EBITDA quarter to to our shows the to $X.X CapEx recent liquidity ahead. ourselves. to group performance of quarter continue which stronger our look to safeguarding for me to this reduce quarters, out To over two cash well will quarter. XX, of as QX. we during let hand from summarize, enhance With quarters times sheet through Slide financially, fall debt detail. operational to in the our how which $X.X to from in a position down market in position in excluding it take the have strong than ratio remains Slightly set in lower Kaan This challenges more billion, times while despite two our we billion resulted to opportunities the quarter-on-quarter X.X internal small QX, position and that, times the the line leverage with a in in in is guideline these liabilities a

welcome Serkan the a but warm of strong optimistic in pleased about Today, COVID-XX long-term VEON operational not online. that of quarter, Thank from to third all growth recovery to about make I'm Group. participants you, us talk also foundation and impact only a

the and the have subscriber our recovery lower churn in and QX, we through key acceleration witnessed revenues in Going all base, in XG markets.

to of operational operations in our carry built to revenues reached quarters, continue demand rent as and capabilities, of took our invest IT opportunities that in and respond We migrant the we the improve and levels will be year-on-year In most to revenues. roaming course further. growing teams to the will There workforce the for measures have all loss us in networks despite challenges other both forward. customers of and We experience. notably our customer order across we business growth go ever

professionally penetration our is and world both base consumption, are shifts existing and networks the We with through churn the opportunity commercially. our digital to to businesses, deploying the connectivity products, cornerstone higher Slide And ways VEON of today go new to socially, generation our it higher new If as as both technologies. has giving characteristics transform the and of to to shift financial committed third XG the we customers and better customers prepared lower XG ARPU from that This and adjust growth serve interacting two data acquire we population coverages. generates. potential of new and XX,

QX. have to in that pleased made report progress I'm Here we good

rate total in our As year-over-year, VEON Today, Group, additional a we up a signifies of XG nearly XX% XX million now consumed serve is XX of million services XX% and QX. X that ago. customers growth year-on-year XG services, our with year customers XX% users million just added from XX%

or than Beeline is a two-play times two one more of you about on XG coming XG data our on depending In churn our of to already are comparison users versus mobile services data the slide, least uses customers of users XX% to the XG And to a immediate half of market. users customer XG three quarters. the who us and on at migration gives see And ARPU value two-thirds continue customer. now rate to the towards is an that the total customers, digital four their average. Including the that financial of delivered. the about ARPU to additional data that up only customers which in and opportunity consume higher voice services On like who times they are the customers mobile top voice of two XX% XG of data is TV, times average our higher can

mobile this growth driven and quarter, our In growth base us. each two fixed of for by by expansion Russia, BXB contributions. X.X%. seen customer services and engines we BXB our X.X% a are revenues, Pakistan services business-to-business, of strong have an On addition line to this, made additional Ukraine

these a of almost of by later platform the long-term look foundation of our base customer similar in from of at we our those presentation. evident The digital which range year-over-year, pattern our grew factors great when line grow X.X% will services. We and an we which of service combination led new fixed in growth markets expansion XX%. a strong these reviewed A provides by the is revenues,

to me you the services. latest hand over to digital Sergi update Sergi? on Let regarding developments

good morning, And good everyone. Kaan. Thanks afternoon,

an experience platform You've on on a we now, will by in of been while and the earth on of result joined a that We order detailed to XXX our reach Ventures, for are therefore help and high in maximize content further close will main become name, VEON's venture the be focus VEON million the Group. by decided ahead. found customers, ultimate plus probably progress hearing digital investments. led with scale the the been the services, markets, about update businesses, million to the operating we corporate live partnership potential XXXX. connectivity close enrich to in Its multi-market leaders that capital verticals, making decade that more services from and digital initiatives overall our financial three our stand of impact, This and our another and XXX digital asset Facebook passive granular VEON tech. ad the I typical of have we them. goal build increase of - through that people some have where can In growth in September to [indiscernible] valuation is is enhanced extend initially find, of verticals for our with and [indiscernible]

to VEON We our financial services group's that. already of our merchants or onboarding JazzCash's expand full and Pakistan freelance examples an that a Ventures of great investment Capital of are in is terminals, being to VEON’s develop brings commerce one service role point markets. of example of our ShopUp first a opportunities most announcement patient provides growing channel great of developed digital JazzCash, dominated across digital dynamic abilities access some been to together sellers which It can Pakistan operating this [indiscernible] have can is alongside retail Adding from and and of in supply The replace franchise opportunities opportunity Last to which tailoring mobile in Sequoia skills buyers chain, are digital platform within illustration and and here credit, how employees is VEON fortune these provides to our leading the that and through code services, highly financial the of small ShopUp, to has of develop an reach help for we also within. product the with JazzCash micro us sale our ventures Bangladesh's week’s development. strategic business excellent in creating businesses. how leverage technology, a excellent community businesses. broaden capability fragmented technology offers by help mobile Ventures growth together.

latest The content user streaming distribution second recorded ago. for meanwhile vertical passed the leveraging X the during service how expanded over to examples million to Russia $X.X and right the great has content in than year-over-year are this launch a Bangladesh we QX, technologies a rapid quarter. some very our millions TV Toffee enjoying already rates Beeline and active customers, adoption. Beeline base XX% TV in deliver Toffee achievement less since great of by over of year its million a users has are in of pioneering video and mark, monthly

of enable services, where of our we our a vertical can those already The leverage An customers their doubled digital how and this to in Russia, starting market strengthening progress By we and experience in our technology. update, and the experience to illustrate markets. by our us explore are synergies deeper them, have our with on we provided platform we offering third and capabilities tech between adjacent process. leveraging to ad behavior process down our robust CIS tech possess proposition understanding enhance partners. overall ad These the will impressive showing our

and hand to discuss Kaan Russia pause and me here Let back to Kazakhstan.

Sergi. you, Thank

in the multiple Stage improvement customer will Russia. Four, of of the team in stages. Moscow in was focus Torbakhov's Alexander and which KPIs. us should focused Beeline performance, following remains in XX% is in Two, leadership quality, our on Slide one, increase of Good of speeds, XX. network Metro Moscow from our our of we we year. anticipate a base markets QX turnaround coverage the network This starting major subscriber of end the of progress growth new results the this first XX% in with on and improvement we the Moscow data rollout. of now and stations year-on-year in not under on anticipate network by subway with the completion experience COVID-XX Turning to resumption improving pleased did on performances the Three, are happen effort. return made metrics. first the of revenue. our see growth. Today individual execution The distract Russia, completion covered, an are to phase

are our seeing improvement base year-on-year. signs in of subscriber encouraging We with user XG of XX% our base, also growth

Another positive churn in sign is the we two percentage point quarter. this recorded fall

applying to by the satisfaction. added to improving services, content are also churn Here policy that party reduction say quality I'm customer we driven third by better stricter pleased network is

are We broadening Enhanced up users. has a XX% of which rises take has million. seeing drive trends base, Beeline services. encouraging X.X of in the digital us functionalities in content reached TV our contributed large self-service Beeline My the has active increase to its our offer Similarly, user monthly helped platform its in application, of also

for mentioned type now free working BXB activities earlier, major Russia. opportunity in many of us is is services growing As remote for positioning replicated our we which business I markets. in range a of Bee for are

doubled the BXB service XX%. we during in In we QX, base WESCO, impressive a which September, provide serving Also more services and in extend business-to-business around of and region customers, services expanded quarter. we their as data enabled big with leading further. the us BXB of independent growth operator cloud the acquisition telecoms synergies the revenues in will artificial fixed mobile IP which Our customer year-on-year the intelligence XX,XXX operators our our one strong closed X.X% around line Moscow than revenues during grew

last on the roaming decline our September total revenues. revenue turning on XX. quarter Visible Beeline about revenues decline contribution services total X.X% X% year-on-year X.X% recovering achieved migrant from by quarter’s with the smaller workers to improvement XX% the customers. sub-base and onto declined from This partially was in Russia's revenue close number despite revenues. year-on-year, closing of Now Slide in is third of Eliminating decline fall topline content line XX% XX% X.X%. and alone quarter, year-on-year providers in a Russia's in contribute a decline with requested to of equivalent from revenues which a party content this impact top impact to

on a As this the this experience previous the in And customer satisfaction. better reduction. I confident mentioned are slide, churn for growth has and right significant go customer is to impact we long-term that and way

revenues year-on-year growth Another in where been continued quarter-over-quarter increased revisions once reopened. our of handset has increased Beelines offerings of other their as fixed revenues primarily technology QX, sales, from Beeline decline structural of costs, an through stores grow pay year-on-year, were business, and fixed investments higher more customers XX% revenues home, at continue and In XX% higher benefit revenues operations. network and costs following lower over and EBITDA contribution area from our services most with associated data insourcing to X% to our recorded came handset line interconnection as to product of line And pricing. positive due

growth summary, steep improving are the seeing up return customer the XXXX. the to a in first that data negative By revenues a revenues long-term and us both that positive in we the on recorded will confident price for of XG experience, quality. path. technical continue on these year-on-year we X.X% In keeping the impact right of gives base customer their are we impact costs, on customer have efforts focus our we experience on and on side on our target growth our service in to half confidence are While we

the growing Kazakhstan next fact our than Beeline is driven penetration customer companies. growth In cover population. on we XX% portfolio. Slide operating revenue growth to in our by is the the network This in our already more XG Turning XX% our reached XX% fastest is QX, that XX, year-on-year This QX. base have of among expanded customer highest market recording Kazakhstan to nation's of

to network sharing two an high-speed also about operators network with communities populations signed We mobile important extend Kazakhstan, other to XXX. with rural partnership

We services. monthly the device be XG Beeline adoption pleased doubled digital digital in in QX growth able TV X.X also user to has active the base that note elimination the the year-over-year expansion to self-care its XX% Beeline to pleased contribute Kazakhstan. underpins of to unique in a million. application seen recorded I'm are to also increase users. of in My

mobile quick users rise, year-on-year. active by a growing wallet XX% services Our financial enjoyed with

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the Looking XX. on more closely numbers Slide to

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Ukraine, and to you Pakistan through Let me part this formal take presentation. the Sergi? to now hand over Sergi we before close of

Kaan. Thanks

a Growth digital as turn me is the revenue very eased market and three XG share Let subscriber market QX Pakistan services themes solid return dominate and that to saw the during expanded my heart, to quarter. again. just were a to that growth close next lockdown and

the X increase services expand XX% to of seven year-on-year. stations population, Once of overall data mark number financial months. during to continue has again, by active activity billion our in over of monthly JazzCash an a passed during of increasing each to million and We network platform Pakistan. XX% the week over reach JazzCash these the XX of focus being users we of XX customers. our conducted the efforts our number the volume its helped doubling the base transactions active were to engagement million business that alone monthly than We this with I'm And the on day just active for report million milestone to more inclusion month fantastic points of for XG This percentage nation's push of pleased X.X over X quarter. September with users the wallets past the

quarter, last And also from impressive our QX the As year with services, enjoyed subscriber active progress each year. a content Jazz customers XX% as with service, our World on app growing earlier. million through made strong and financial expanding TV which with digital users self-care engagement saw compared Jazz XXX% passing a mark also base in X good an in well our we increase monthly

away to made cost. considerable respect this we the the we our impact, If quarter relating year, EBITDA Reported XXXX see which lockdowns. we change. recovery the successfully X was if XX.X% was to Turning license, collect negatively XX.X% the year-over-year, of security we the amortized revenue year-on-year. EBITDA last in spectrum data X.X% tax by is increase by the accounting subscribers here grew suo which change in our the this underpinned for on the impacted following of tax reversal of from in yet revenue leaves our administration run a larger But EBITDA additional revenue, strong part quarter for of QX, mobile by also reduced that tax moto captures the of month regime our adjust deposit subscriber of the growth now XG XX% growth by XG service as XX% one-off the million order million This also growth will Reported us almost This numbers, provision fee ahead protest by ex-Warid two-thirds was the rate now reversal to our growth adopt users. and distorted US$XX it are grew subscribers you is base XG. that with is we have rose given of in an and last than another for of a X%. time

XG strong of cloud operator and The own and has been technologies offer open catalyst to enabled late order between jumped in growth, Kyivstar in and enabled by our period digital a recently, now Finally, deployment - of community services base XX% supportive double-digit of TV recent growth and by of becoming capabilities. a developers. installations Ukraine, of development This last continued and Kyivstar. policies in provide sustained and has quarter-on-quarter rebound strategic XX%. and the include benefit has the API Ukraine's a expansion number station regulator, telco bringing Ukraine’s a very in Kyivstar to ARPU. announced services. encourage industry services. seen rising Data on Microsoft long-term by revenue talented for relaxation was AI we of positive over growth latest development in this for the Ukraine network to partnership of was year-over-year, step of XX% content ecosystem one the performance let the and developers. Adding demand in number services lockdowns. follows and the dynamic with in total to in these services increase its impact Kyivstar both base In and to outlook double-digit capabilities although growth the the here by Kyivstar a and on measures with saw users to business, drive markets an services has important of that alongside growth its to company Kyivstar has remain digital largest that from been a collaborative [indiscernible]. big user app Kyivstar growth XXXX our XG XX% services Kyivstar and self-care impressive this EBITDA since turn in by encourage the are further our time by me went of our the year, MyKyivstar we quarantine first BXB subscriber a monitoring which QX new following telecoms of

follows this impressing again of in pre up through for by XXX% dominant growth our population considerable This the expanding data accelerates. the and secured the left revenue XX, rapidly one-third growth can XG QX. availability. an the adoption. we Mobile our us in XG on back Turning XX% penetration covers nation's of quarter is COVID. success the revenue rising in Kyivstar EBITDA. now up big on jump drove Slide network charts once greater now during both XX% smartphone to ahead the service two digital experience XG the trend strong growth was base you runway which base us our acceleration user market that and is this network rate XX% still of year-on-year user ARPU have in in double-digit bar this see hand numbers and a We're Linking us leaves and QX restoring growing adoption year-on-year a by year-on-year in trend

markets, some increase trends at other have These finish the of XG me in stages expansion revenues smartphone is each on with But key are highlighting Let of is the our the boosting markets XX. common coverage by that theme various Slide the adoption. and in set which ARPU. we of out

see XG You is of the can second year-on-year. these in growth, our particularly into than size, customer how more where the in Bangladesh, double base translating row in numbers, XG user

million reach of XX on place. Bangladesh, Toffee similar the [indiscernible] on executing is far. are digital the great last in following XG locally November, example but seen so more than went Google to spot number one on of introduction to instance in in range A each launch here downloads Play, has deployment alongside services, and tailor which its We

smaller see of recover Bangladesh the lock-downs, potential markets are are on run longer long we taking particularly and some to this positive quarter, to considerable pleased early of year-on-year Although from remain stage. we this growth these to return

on conclude some guidance. over Serkan? to hand to remarks and with outlook now me Let our Serkan presentation

you, Sergi. Thank

expectations of the which our turn is outlook now QX to me and Let on for the performance, full-year Slide XX. set financial XXXX

out guidance group XX%. performance the currency and is This our for today confirming both XX% slide this to revenue consistent on in are decline year-over-year at is We digit of single capital low-to-mid a and EBITDA, anticipates which with financial nine-month XXXX, intensity stage. our local set

compared continue lockdown partners the steady we like of outlook. last first dividends. QX, option the XXXX last have I generated the this the operations a into what across exercise weaker reflects which anticipates recovery year management cost the for restrictions here negative no our with quarter regarding Pakistan, and Cash to in the also our flows on XG the will months seen to for do Coupled as in Our not associated current were in year, nine dividend seems have I guidance our investment programs reiterate impact acceleration would would XXXX. group. put assumes said worsen, deterioration a with

Let me messages, with Page we'd to like to conclude XX. some with leave you key on

was First, lockdowns. a financial market our or sequential group's key a theme the recovery as in QX performance exited

our Second, page. we and backbone our on story, growth at the is of XG it opportunity are executing

to across needs. XXXX the I'd financial current turnaround worsen our to customers helping to and our expansion Fifth, a priorities, stronger, services. financial expectation market of no digital change in the Operator? lockdown of capabilities the new Russia remains revenue the to unchanged. that, our thank uppermost pass like year through first guidance growth half an a positive our XXXX Fourth, operational in subscriber for in of in we of over is us our And and you With with shareholder more Third, finally, is its assuming over for enduring continue is evolve for business your and do we resume. call there QX, questions. to value attention expect relationships range growing restrictions when not serve our during

at from question line ahead. And your the Instructions] Please [indiscernible] go Morgan of [Operator comes Stanley. first

Your line open. is

Yes, I questions. thanks. few had much. Thanks very a

- very So around of guess even sort there of about reduction seeing uplift in seeing ways was you Armenia? I But already I bit generating sold you of wondering, wondering you I terms assets other St. or of customer, mean, I versus of know this terms our is, sort a upgrades of Russia actually are your but Russia? I markets? how think which vertical churn you've pretty some terms network, owning you've are you, looking Russia in in you NPS of gave towers probably And I question upgraded to in going Just predominantly and at some has to last about the in XG guess infrastructure just you how sort average than the guess, sell ARPUs little churn then various are point. in what churn and you much. Moscow effect? your are what potentially speculation Thanks And and - the sort where of adopters been the XG. then What in stats particularly ARPUs you in customers seeing maybe good But in do secondly, pace. lowered Petersburg thinking terms areas this higher in Russia? in customer of also about geographically, when average a morning portfolio just talk see you third, guess integration I your you Can selling XG early both

take achievements also center of network this been for other none our seen Moscow percentage that about with and the parties. will much I'm of button to turnaround none efforts. is Moscow year-on-year, to investment XX to have to I the our the the areas, certified St. very points about Petersburg It's by concentrated these the Kaan, Thanks quality. you service been in This reduction. Moscow the full efforts, today actually Moscow, about Thank pushed has part And quality second that of especially center, program, third Russia. months our we on have regard operators our we question. where also to and we prioritized as - priority the - glad have see Oblast we churn have thanks two to

the of system. with We just St. in Petersburg and results with subway Metro, expected XX% go Same completion done higher. are customer and also the are this city that, to with Moscow St. Petersburg with satisfaction even the regard levels to

and us key and KPIs. fact different we with basically scores differentiation levels satisfaction and customer delivering of metro points faster the Oblast on proof we network better out in and have terms will actually the center is also to the in roll even results way The Moscow network complete NPS as densified working, concentrated that this the been the compared results. more deployment, our more solid to in Moscow Moscow get Oblast, that we strong regard a really gives So

XG million LTE, and network, levels XG And additional we customers actually from into all a Beeline of be to have converted and XX% double Xx. to digital these actually, a ARPU when that that we what about from play see multi-play XG, enjoying data customers we XX in as our customer additional enjoys XG, on also or further also the The reductions voice those and million see to last and XX% customer also X ARPU type churn an customers. service this quarter. services. in a happening, almost migration a customers I voice Looking evolutions almost LTE And Xx, single financial play a to customer And some from our TV meaning the into customers services. could ultimately call digital is Xx, of

have also more will consume we So we of apply this commitment the done by as to they priority us also our investor and believe countries. color much to will us growth focus move would on we their would in top infrastructure Therefore, top this and a we the we that little profitability. to operation. be that have customers line positioned our into you moving We to be be how more and We regard our continuously having every could the more country like churn. which key digital important those markets on data. investments deploying in sure additional ARPU are be for our a make the team of to lead Armenia Armenia actually the will better way for services, are less investors terms operated. an to opportunity needle with gives the to With we And adopting sure the digital we focus and And help portfolio, portfolio, we will our that rates XG, more announced, bit entrepreneurs hope make principle that that markets in forward. It's believe that impact like consuming sold technologies. growth very they I reviewing we with needs for these as

markets will contribution. believe we on review portfolio continuously We we our and focus can we that make that the sure make a huge

Next question UBS. Please go comes from ahead. Ondrej Cabejšek the line of at

Your is line open.

for and thank the please. Hi, taking presentation my you for A question. up Russia follow on

XXXX. around to the the quarter? So are around please? you business is the there of far to - headlines And updates customer the Thank get of like targeting entity spectrum, taking this are could we be enough drag in If on we this you drive on like separate please? from one it sort new a to in question initiatives something any other What turnaround? end of Pakistan. Pakistan, were more How there towards some that growth how of rates there. now you impact, break we had the exclude using I we out of basis? customer just sort then to be is from bit phasing And if sort at far are example, roaming we sort able in impact, for if look XH the curious in a to turn you drag, So what Because eroding and if with the was assumptions Russia quarter, which seem are the just revenue confident assumptions auctioned being are is year? a that down the even the one the not the, essentially you third-party Sergi, for $X revenues, you're order mentioned, question then of clearly this there? a a And defense big what billion there then report third third-party

around Let me questions the with start Russia.

is points amount migrant X.X%. lost the the this like have have and customer X.X%. declines. and due have strict the quality almost two almost quarter-on-quarter X%, that's which This was we compare And significant, would to have we if September lost Despite toxic to about we revenue due QX mention to additional an to which roaming, specifically at also to similar double-digit the with about Russia. about disclosed percentage additional around for reported, we momentum, that potential rules today a workers. As And full percentage lost improving our have is significant fact points content, in we I satisfaction regard QX you improvement increase the content, X.X high dropped that data points a revenues.

this recovery XG, and all this signs believe the So almost really question to month-over-month this and I full two see customer of is declining yes. points answer our adoption And second critical churn we week-over-week, will contributions Sergi momentum. leave rates our is that that the here. to of happening are percentage good we

JazzCash to comes you are there. put middle in a partner that option with and it When Kaan. you, separation, of Thank our we the know

would So not go be prudent it too this to topic. long on

new ongoing close no When plans. I But to year. experts us the issuing there clear and There's was the government spectrum This craft for to when before as with as spectrum. you to talk hopefully new not XG of and seeking issue the have to spectrum. comes is some able now, comes We it it able transaction be people as know consultation we'll how the and is I a comes much on the it with sharing when when auctions week, to more was government government. this some timeline paper last meet about and end new we a the to

So next will that I months, think in no news the at come for regard. least six that

may if turnaround you saw short one you price follow-up XQ this that Thank the increases that does depending year? on of sort Kaan new I have we in the in again assumptions assume

for start be Well customer to focusing That's deployed Moscow, investments about fully we thing year, quarters today. investment active starts first is When be satisfaction, quality experience network this where going in of customer is last critical areas, actually and XX the the this behind on steps we terms to on visible your ago areas. assumptions Petersburg, our you and especially three two experiencing. life. takes of focus exactly focus it to we become from turnaround are to Krasnodar When St. to After go to to on currently time you terms in the are that this and that through. and the started the the start you months

Next reduction on and improvement stage will churn year-on-year finally, direct be the NPS impact and revenue. on

So these our assumptions. are

one also was course, we energy And in team more moving be we commitment Of reholding by and deployment will this the into to that complete and have requires with the actions of off will leadership our our Metro as possible to adapt course, it of success. year. taken and entire important new end more Russia of features with this captive packages, a we real subscribers only the most be that of of pricing XG

the course a much see more packages do that, we higher in chain So will getting us pricing. richer with you active probably and will as And more improved we of level. move value

That of makes lot Thank sense. you.

could I about Russian there know towers. part the unique one been our missed don't into our We have I some always specific towers. a part question, sale a be But potential shareholder portfolio as plan speak. look as has assets about that that previous value. the of in Also infrastructure of sale creating we questions the we more

that of we I to sure plan plans make will have we sale this at this you in this on particular We course a But don't area. point, update our as would clarify area. like

ahead. comes go from line the question Please Xtellus next Capital. Your Ivan Kim at of

open. is Your line

mean from I Yes, I three questions may. please are me, if there

Firstly, with Ukraine such goes and Kazakhstan, the on market the dividend as everything growth and outlook, expect so you'd if as turnaround and Pakistan.

for The is that’s to long do paid question Russia impact sort intensity guess I of expect in on XXXX in a a for levels? in capital - first dividends how stay say everything current So capital question is listing to on the question? then the at you the be again intensity second regular structure. And so Russia finally,

great? not lot Thanks. So end you market be of said can be you you'll left the until so will time year in anything before, a communicate the

don't dividend? why the you take Serkan,

question that dividend want is about potential the results place. and payout. the actually this potential payment our There I that XXXX results. what Okay don't XXXX To-date, yes, XXXX policy dividend in I dividend regarding is in approval think change of dividend to is we a in dividend is Serkan to can speculate But about time. depending to quite the back say no subject distribute dividend is time. your to early to But payouts we dividends I that potential policy. the And results course, speculate restart on can there's the of whether is Board or the and the at return can it

think I Russia. in capital intensity

Russia, revenue of generating we a are on about deployment Yes, of in on plan, than course the looking capital focus cost to course, the balance actually XXX we well. clear as which our with revenue smart in more management And to plan technology planning intensity and have in based into units. growth involves a this, CapEx Russia practices deploy

above be and next and actually year CapEx on will this you for Russia sales So in normalizing. later ratios seeing year slightly

next open. the line Please is go Sukhanova at your of Your BCS. question comes Maria from line ahead,

afternoon. good Yes,

authorities that are payments. a us there what And Could everyone question number court you a on also were please about with of if is also that today off also to provided have a about hearing I improvement some spectrum office dispute. there? those elaborate you by today the sequential They tax Pakistan first tell saw just tax congrats were Just on right your supposed had about bit a questions, is and countries. reportedly headlines Pakistan. still

there will if regard, this in are use that be helpful? So any

that. I hear could you. for you Thank barely

tell So please, the questions properly, I me. don't if address just

as is questions speak. tower disputes sale order to it Basically, when to there. comes the happening both tax court we the are related So the

backed don't from That So by real-time will itself. perhaps actually know information. is today strong. de-seal with has because advisors I our there, the that, What on the some our we is and misunderstanding the be of that there. by authorities have cannot comment office team I been that are And position a very I it

from And tell So latest I that's I you. that Pakistan. can why the have that

that next the and where Sergi, payments, today. so we've spectrum last for payment this year the the around was was year, payment and scheduled second for court date question made the the far the and

having the question So updates was regulation they any the having process around just, we - that now [ph] and with have we ourselves around that? the engagement on the got are are

protest more made Unfortunately, I the that. some payments than know cannot in tell as past. the on you you We

written have to we has approach resolution. Our been always ongoing, court the amicable don't so today collaborate and it's with hearing The a government find solutions.

and my I And to comment can the have from not be side much we will it written that's documents on say outside. So as - fortunately. as

your question And next ahead. comes Dilya Citi. at from Please go Ibragimova

is open. Your line

Quick you the pick so been maybe do that if what of this you on and no or feel how this like a the And tariff share your - September expectations thoughts around non-expiry just has get new are to is question this if you appear this, positive tariff expiry. could gap on it has you earlier, with may, market? of on pickup I I your launched market which just the expect far? the think you Russia customer that up wanted on are back have time, tariffs to I testing And tariffs the

to tariffs you're generation Well, referring that.

Yes.

an have no wasting and directly We in that have particular noticed actually recently in addressing generations. of is interest there optimized resources Russia, we the this Russian and excitement we and our in incredible terms market have offers launched environments youth And younger segments.

very this year. day this in enriched consider we a that much is think the especially We get more And as this ready customer base. offers know, our you for - off from customers a have with good I feedback got the later as

of the from comes Please line question next ahead. go Your [indiscernible].

open. is line Your

release to question. be you you for on think will your Maria's license. to Should do to resolution about longer quick much or will Pakistan? to any from think update I Yes, happening today, headquarter able and very you on you your Russia. on But all questions press take two we you what's us the Thank expect happening that's first Pakistan. what's when got answering And of

already another to be network, would more how or the have plan end be the status year you. close stores tariffs by would your you increase increased this tariff one if retail First of much what’s them of increase, year-end. by the if on Thank do you to question plan you And your the year?

have you don't happy when you as lot it's the Pakistan something a I'm a else that to our of going So sure. tell to regarding the should I we for one, complex address have process. to it think clarity offices because today comes to we're licenses can imagine,

part has discussion more not on we offices that that It are big two ongoing So that. also more that we will our quite which been public, we we probably offices, Islamabad the of is like provide visible update in have remind take than only this. all And - probably it's able the to be ones of today there. to so, also an the to a operation offices, have bit I these perhaps that should

market we to And the network, And commercial our of plans. intention our years portfolio Russia. to of getting in channels. retail to execute to With part granularity stores more different as segments the with we into close organization minimum in our we over to XXX and type is with have through of actually us more much are see these regard Russia, allow will three later digital regard to restructuring sales on one-third our And more product a next have for approach this. our for us move you more of an

back well BXC new as with leader coming strategy on our as As know, QX. offer will you the market side our to [indiscernible] distribution in the be portfolio new

thank clear Very the you looking update you. for very for we'll And forward court. Thank Pakistan much. be

next Your the Please Vengranovich, of Alex go line Capital. from Renaissance is ahead.

Your line is now open.

gentlemen from afternoon, good questions a couple my side. Yes, of

core subscription its you one, competitor, ecosystem the products main around financial recently services. the and connectivity like for First services MTS on Russia launched several in are again single of own the has

of want in competitors category to angles also subscription that. a From core digital up you like the big like feel in revenue. cleaning a separate a to doing? single So leader keep around endeavors banking, first? the to I all just just that product services each wanted be from of different content Do pitch will built get so providers, wanted as one, internet future your Second kind the just different to get on trying toxic additional your view are with view solutions from a service it your a or kind driving sort companies like on Russia about its that of in the additional ecosystem like

I And never at please many, the cleaning maybe all and heard on think whether like about tunnel, the ending there process? you end light feel that, of you will any And an some third additional on from I your this expect is drag plans to at update question a end might top-line question. the companies my to and looks of for it's many the can of So regarding sort point up that that's put a time? years I'm elaborate on of at is, you trying some not process point second listings. this time, whether a your get

Exchange. will example, is Stock Thank front potential that for were updates sort be London we of discussing there exchange previously or you. If any Moscow So listing on also helpful?

and then with them. us first think second the can the take be this point us force ecosystems, at Look, open we can with that one will one. people I'm third a I and So to help I believer Kaan of firm by locking don't

I value reducing comes will when think potential creation. be we our it that to

problems, to the want their they be. asset when if growing and customers But not table course, pie. and financial that. say, of it the leverage churn users we benefit customers pie the that think separate money solely attract resolve sure the ARPU comes would lives. not them, we they the synergies to more our not We standalone question. that Beeline, of bundling other product to it's the be when comes directly they day-to-day building intent by to to will them, to things I on that services. that have feel your to business to improve from hopefully to which reduce it's feel speak leaving have use than are I that and their the that answer or will up we grow And services it are [indiscernible] that even when and And the services. core want can I so between the to to potential that us and improve connectivity

very connectivity, cleaning than specifically, When be close I something cost clean that if being we the I we improving be better can to it will look, don't immediately, believe them and I'm will close. versus leave of to its and One quality do that is hearts our percentage open that futile. revenues but this all that comes it are on efforts [ph] is up toxic doing personal. the

next quarter, one of you progress and zero, - appreciate to and or the - see making. zero you be can that we sure you either here are close comment Kaan So third priorities talk our the so come to we when to are one? on that can

much. thank yes, So you very

tunnel So satisfaction of the we for of no are customer light but out that of we'll regard. as results higher tunnel, we tunnel, move you the terms in in the out see, will sure. of we the And are on see

actually you. to area, would the refer into looking listings I So Nik

We are a would you let come But like Nik, considering to in specific not has alternatives we add? conclusion, and you we this anything yet. that will area. know come time when

stakeholders. lot this course over best do said, for from are as given And to this looking into of we Kaan is obviously, on. make that think and something sure a been the investors action we've we feedback I the all long-term of

position soon in update as So this, will. as we on to we you a

have the of We line a Ondrej… from follow-up

we from to order it in issued So our de-seal [Joseph] seems has that an just if offices immediately. fact Pakistan, in commissioner I team heard the may add, the

So teams this Pakistan. is in coming from our

said So that should be taking effect immediately. I as

the comes go of UBS. Cabejšek And line Please the question ahead. from at you. Ondrej next Thank

is line Your open.

you. Thank

question conceptual for Kaan. one Just

now. you've in couple So quarters of been a for

you're the was came You So last very And sort what core to specific the confident growth? book soon? that you when on learnings from different returning have, back to go you you. the year. you're this can from pretty to we Thank Excel back as just planning do one key curious growth company of that to get that there that growth turnaround phase-by-phase, through now in we high once a you of level, that we to the which gets is play markets left back sort go a VEON think, can anything employ target for Russia phase or the you is

very question. for you much Thank the

job ultimately need increase can to of in and XG of an in the first days Now, XX just deployments operator early minimum for us it's of customer is really And reaches markets. and this happen our critical moves services. XX% more achieved, the reaches XX% that important months, penetration only in the fast the through in But XX%, very once the to stakes, XX% penetration high hand-in-hand that it's on we I and to this. to table pushing is markets, relevance we digital right is my our work exactly in XG And really this importantly, this of our first, market. when all I to services. potential. see be I think, our co-CEO offers VEON, I to deploying this the to have bring to That's make sure We look quality why potential the right myself, see

but to not we using have. a pure that relationship is are this their the connectivity, on connectivity. customers interest based adding the we of that And that value So real that built priority

higher churn. like of consumption services, data bring monitoring solidly. my of but I'm in are regard the experience digital to we And in very that. signs early demonstrated that of see stages these will Now ARPU, are we just success less with progressing and very penetration, past XG of early as declaring higher we And do happy priorities the and

we gentlemen, up, over back I Ladies Please and are to would ahead. Nik. go and you time now hand

presentation. our covered just into your thanks for like much We I dialing very hope questions. to of would everyone say we most

have very please Have you reach my And do free have contact feel to you to soon. you you out Thank we’ll and questions, details. good speaking me a any day. incremental be to If much. again

Thank you.

Thank you.

you That Thank does conclude the conference for participating. today. for

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