VEON (VEON) 29 Apr 212021 Q1 Earnings call transcript

Good day, ladies and gentlemen and welcome to VEON First Quarter 2021 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.

good and afternoon good morning, everyone. Hi VEON's ending XX, to first quarter period the for presentation March. results Welcome I am Q&A our pleased by to join our be joined on Russia, Beeline Sergi, Okandan Alexander will COO, CEO Serkan for Kaan for the our along today. CFO, with the group us and Torbakhov, session and line today presentation year from past will of highlights the begin Today's with some an overview and Kaan.

will Kaan then a detailed the review key and Following Sergi. I'll we both Sergi a review and through will do business results. of this, you our with discuss giving markets banks on walk financial by slowly Serkan

We will outlook year. our for then discuss the hand it Kaan to their priorities to and back

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

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

joining and Hello thank to us. Thank you everyone you, Nik. for

of operational on highlights past our will group markets. on details our some And we of you move giving with then the quarter. the performance achievements more start me Let during discuss to

reporting revenues in since one growth organic started since of As in underlying started year-over-year normalized Today year, quarter financials to increase local result total significantly off. to X.X% growth. the pleased work the we quarter one growth currency. returned of day are as In a accelerated final quarters accelerated the hard less I'm six paying our first XXXX. to you we in strong the of trends growth year-on-year delivered in will dynamics. operational over on local has third considers total remember, calendar VEON period, growth. the last group quarter In about report quarters quarter of in XXXX, quarter the currency been X.X% the that has the first our These X% year-on-year When in the the EBITDA consistently Similarly, our revenue December. improvement

also but powering improved XX.X of customer of this the [ph] of million numbers CapEx a targeted XG much We our share base. increase linearity in explained XG in in have our expanded CapEx A spends change this factor a our touch our in subscriber With investments. ratio quarter. key better network is of XG quality, customer number the of users and only the not coverage, XG capable base, grown service base, handsets the $XXX

we see expect increasingly experience translating in the improvements to We impacting time, investments. glad coming our financial deployment impact quarters, In existing to and ARPU churn and see to of this the users. the customer real are of positive investment our usage, of early

Next slide.

infrastructure place in this separate developments end abundantly of you assets an we and our have entities markets Recent I during with opportunity. tower hold portfolio. tower two and would have is results. to Ukraine in that represents The that in truly of initially our give I operational Russia our clear limited our costs significant regard. tower last future today requirements progress strategic industry also confirm teams in assets priority, making assets. our across largest I our Pakistan, like year our transactions that unique with the discussed markets, expansion tower details and network legal value. Before embed made combined we can this get In into Bangladesh on as in you This which update a priority it the independent infrastructure presence are our for performance,

Russian performance our business of group is the Next and old both operational customer slide. momentum revenue to gaining companies, in Returning the metrics.

I left As the line the revenue a have When base demonstrates, revenues. year chart service over Russia elaborate positive further for entire total is Russia also and highlights adjusted one the growth slides. have for total group we day, large upcoming the takes at year trend year-on-year stance. this organic side chart in total for both growth calendar this December. hand to The trends of right the customer in the less we revenues, revenues two quarter. the on will solid performance seen since on on monthly now Similarly, February the

total started numbers June have We stabilization for seeing Beeline Russia in subscriber since XXXX.

base, base penetration in of this steady quarter, of of users has which our growth consistent a from of year seeing as are we a penetration, in end the within increase customer ago. XG resulting importantly, XG up XX% reached More our XX%

Center, The in that immediate had positive developments behavior stations recently shared country, centers St targeted and higher driven decreased quarter, less Petersburg. trends and up across progression financial city slide. which by and investing primarily different metrics also Petersburg, that our this and and been by to City results. In translate Moscow investments points customer and base year-on-year. markets led It we the St. in four X.X footprint in in important has churn are Russia this comparison note different usage stage see a to customer the Moscow are and of stages our percentage improvements, Several in XG to and you in Russia. end of customer in stage expecting financial parts to would success the that to XX% the that more the process first changes our positive of has we are Beeline churn loyalty XXXX. its end also we to urban into across country experience. by perception are today then I we the including gains in of, reporting base, are expanding geographies customer new is like has And and with network priorities. various In quarter see of heavily key to our been in users, are a quarterly four sequence Russia, improving ago, existing quarters expect network customer we by Next

where move We portability to port positive the quarter have also we mobile seen net in a trends, this number shift in additions.

usage million continue application monthly our as to improve which users self-care services. also gateway We of their March to served the our X.X digital as of

month March, first time X.X% for from improvement In three year-on-year overall Next despite year-on-year slide growth XX observed a shows the sequential financial year. in service for one down to X% have decline for the [ph]. This growth in months. of up year-on-year revenues we the trends an marked is were positive which day of slide. performance following in Service revenues X.X% calendar Quarterly of Beeline last QX less quarters, quarters Russia. revenues were

key I reach XG a As this customer acceleration previously mentioned, year XX base, in now up of driver a which from our XX% ago.

usage terms to the the have and past of quarters services changes ARPU as sharing our ARPU, customers over track have and consumer only such we also level few Indication roughly over twice of parameters data As and churn XG the inertia, of average of impact kinds of same customer. the been engagement a use. monthly behavior we and our has of in voice XG voice below different

also from when this the potential with we who voice total. an of up can top in user data double move times the indicate And times uses bundle develop we only one a user has voice a figures user. base the compare These data is multiple ratio times XG average While play goes user Churn average as reduced choose and to perspective, voice three an and and importantly, further further more on X.X and a on half solutions XG our to use usage to even of customers our as three and services digital From consumes as roughly move connectivity data choose ARPU. of our digital our use by to X/X XG services, our data and average of multiply users. our services to voice we offering. we top customer the

Next slide.

year-on-year of adoption another results and XG mobile on service data instrumental generation our a I margin and Sergi continue With is consumption. markets and e-learning supporting me to continued fix revenues on in enabler products. contributes solid Data you take high line TV to that, penetration Momentum was line in next to of supported including with Also than real key through digital digital revenues of of Kazakhstan, growing students. Pakistan, our almost pleased connectivity revenues see school XX% This of some of doubling year-on-year is XX% to reaching users here set differentiator showing network our total year-on-year, more of of XX% grew business are in lockdowns remains helped this convergent up and proving strong of level be for XG over services, while Kazakhstan, XX.X% XX% Sergi? to take revenues. line Moving self-care XX.X%. country our a highest XX%. services. focus initiatives. a our growth now was EBITDA our users up by D This let to six Ukraine, continues with hand the reporting

Thank Kaan. you,

line year-on-year. line growth one fixed through also of of direct is the been of focus BXB our It XXX,XXX. network, QX in of growth terms revenue and one solutions record data the in subscribers to has A the data has the ARPU grow quarter, growing XX% and the X.X% another and continued gained by benefit the BXB tailwind is the of both that maintain of strong and of is the population continued Let's XX% in year-on-year fixed base XX% the quarter. of in a impressive adoption through XG a now expansion markets currency Strong exceeding in to reached highest big services. number This revenues of growth users margins. double XG to accelerate data now with and in fastest is gives revenue by growth local pin our growing self-care adoption and services where digit ARPU The enabling TV revenue digital Kyivstar impressive turn and EBITDA. XX%. by it total delivering user here our Kyivstar of main XX% on grew on Ukraine, growth deliver rates and Kyivstar XG our Revenue story. XX% enabled XX% growth which their group

subscribers, XX% in rose by ambition growth active to next year-on-year, year users, market with of QX XG for these standard quarter services grew XX% grew which by total JazzCash the as active QX subscribers success than this compared another growing which group's account in leads, it in solid Pakistan. growth leads for saw by financial market. a higher the in is a high for XX% base now strong XX% new our subscriber XX.X impressive year. was year-on-year. monthly driven Pakistan quarter, and the base. local a year-on-year, gold JazzCash, our Many Turning to which were ago. which growth XX% trends its XX% This saw which reflected increase group is we had successful the the customers, data here. revenue of of nearly the and million last Revenue revenue is with remains digital XX%

among process to in nation's it X.X%. The which We few term reflected EBITDA that under are through concluded of by a for attractive, term moments performance ingredients a have middle the we growing like are the ownership They now adoption of valuable class population was Jazz the demographics is opportunity growth Slide XX, important summarized also future fifth and rapidly. ours. are And on offers Pakistan want These largest, the world's on full the company operating continue of a which age of are most thirds to two Pakistan XX. given spend is in success QX. almost is that considerations our that in grew JazzCash. the its business us, long invest perspective here I long

here also are rapid how micro trends services. these digital You can driving embrace see a of

of to services similar within achievements Pakistan needs. other digital Bangladesh is markets replicate online other areas stage While example. ShopUp to The for solve is Pakistan, open that that and our internet JazzCash unmet adult banking, with we a services services JazzCash like where have attrition in everyday of Pakistan in take of example. opportunities bank is is ambition for those these these the beneficiary together and a demographics an the its granted alongside Bangladesh substantial here in On it division. business or population that adoption of rapid like can By India The Slide problems solving me of our the our this high ventures early a our also in local success share access and for travel things see for Together is great can don't you paying are in shopping. our usage customers XX% is success markets seeing needs. offer accounts. of underscores where data two, make rising. our strong sit combining bills almost XX,

entertainment services venture tailors grow as active The monthly daily and rates active for over strongly, half stable of XX of over the million our grew financial also again, digital its investment is past in highly its where base has expectations focused. is driven times the is growth big the engagement nation's was rates. to behavior and our local we Toffee opportunity base it Digital following the Russia, Here, helping basis. engagement which fragmented sector. Beeline months, commerce, customer on our our surpassed revenues vertical metrics. size Toffee. expertise a is on of is X.X ShopUp BXB growing user us content seen being a mobile recommendation users, is is by through the the of engine, has launch as strong supply based user platform currently content In TV active last the local data us Bangladesh And harness encouraging which enjoying providing in these nation's growth in linking QX third platform and Its a five year, platform. story to the success retail with leading users is good are platform across with growth showing XX% growth is

growth opportunity our at is here markets. local on data have finally in the opportunity here, resulting these our we early pace Slide is that XX. our demand investment is network monetize gathering stage process already Looking the Bangladesh The done that digital growth user significant smaller theme A XG of through in our The meet elsewhere. key of markets deployment is XG to well This is as and across market through expansion in of base. and largest needs. this services demand advanced in

to Let the financial take QX Serkan. me it greater to group's hand Serkan performance now you over in through in detail.

group coming in The Good and many second recovering revenue afternoon our is during companies In half operating year, the resilience of this Sergi. markets. lock of built in detail. slides participants. financial Thanks, I downs experience our towards morning and results all QX our not achieved to in accelerated the will XXXX more elaborate on good EBITDA

resulted to and in certain second Although resilience digital we degree pandemic to operations, restrictions including a the and introduced greater made markets being third their resulted of adaption's use our have channels of impact. greater in

by in year-on-year led Robust local again revenue. a increased once on for growth Slide revenue, mobile by rise demand digit by year-on-year. in X.X% service enabled data XX, currency out group increased XX.X% double in X.X% set data revenue As terms, which customer

back Ukraine right the Kazakhstan and with that X.X% you together group's the will first digit all were double main to increasing performance. the and hand to in currency revenue growth, Pakistan, quarter, by side slide, contributors was growth year-on-year. revenue revenues delivered the see local On of positive Russia the

flat project Efficiency And order operating which we optimum. year-on-year to we have throughout standards. wins, across revenues. term to goals line we by focus had up the senior efficiently highest with Project our operate long next to a Its both the throughout a implement goal companies, changes for term the broad on quarter, in our slide, and been we continuous ensure enabled margin to now Turning EBITDA short with at reports Program, and our we hold Reinforcing in us the industry which X.X%, the new how term employees. introduce structural call part cultivate managing on XX%. is costs, quick see short program optimum incentive can grow result form EBITDA focus cascaded maintained our the now globe to of costs to

to addressable have XXXX we total of far, costs, worth total or $X.X of expenditures. correspond which identified billion XX% about operating So a

net rise quarter was $XXX of the on XX%. utility for Finally a income million, this, representing

Let's operational on expansion population investing the maintain operating now XX% and combined flow or which move on markets. networks Slide quarter or now million XX. to our the focus in CapEx cash in our during XG nine We reach XXX

Russia, As operational base, during our Despite in which corresponding the is rose investment, a sets this a to impact all SD right the in cash intensity the group Russia side XG elevated flow, XX% for level The which contains amounted drive year-on-year the $XXX 'XX at million last quarter. for XX the growth was up generated lion's Russia's during to the of resulting CapEx $XXX helping investment. Beeline share at further positive core additional QX CapEx customer by markets, to of million operational including of quarter. out. of to months. account [ph] graph XX.X% cumulative hand top the consequence,

international debt detail our X.X includes leverage We our on flow within and the Moving which level At have cost further credit signed net option ratio during activities extending slide. [ph] But subject and concluded transaction profile borrowing our and cash billion the years to on previous basis, an maturity the replaces new from thereafter, concerns. we extensions $X.XX the tenure three the rose level summarized under in quarter, of as key a remained group multi-currency that of quarter here the at comfort revolving XX facility plus March. one-year company financing on look XXXX was the initial reducing both completed shall facility while The lease and free the billion in liabilities IFRS RCA the debt The various Slide next with times which debt post at levels. we at XX. flat operating group the equity quarter, of to to two we during during well. XX has was a banks for $X.X

Moving now the see of can license on payments. million cash right as to equity slide, $XX side the free BFCF was flow; hand you before

of However, they the Bangladesh quarter. first million licenses installment Bangladesh. in have also licensed in of License the total first paid payments new for quarter where cost paid acquired, the $XX the XX% during in million $XXX was various they include million of which $XX a spectrum

the point capsulated important prior is that in quarters. was higher performed made other than around QX to The CapEx 'XX. here the related investments $XX payments payments million Due quarter during

year As we would with CapEx the our results, we expect noted year. full normalize payments to during

Slide Please our borrowing billion, group to were weighted lower multiple costs. that sporting with continue in liabilities. We X.X a stable exclude 'XX to at the from aiming at steps debt we this last to debt Compared these X.X%. around QX earlier. of a group's debt broadly fallen with the to first end by position And cash ratio and note years QX optimize to the lease facilities quarter. Moving presented numbers now which our year, year, summarized of years Those on X.X times. of debt has year to and last compared XX; QX of QX our of net we liabilities, end correspond cost year basis the including this has points leverage average increased closed XX currencies X.X average maturity the $X.X slide to

billion. billion our and in QX cash and $X.X of unutilized and our credit $X.X healthy $X.X amounted $X.X liabilities, billion these billion $X.X over debt liquidity facilities, remains respectively. holdings Excluding facilities underpinned committed 'XX various Alongside gross to the available billion group's at net by

decision me ahead. trends showing This guidance from for in continuation raise let resulted year year our our to the to strong Finally, for year financial outlook the has to the XXXX. the turn of improving the full last group start for year

Slide to digit mid-single revenue EBITDA on now digit here to prior out mid-single This see each. and growth to XX, guidance compares group growth in in or set As local we expect currency our low XXXX. in

return As to market, to practice would restrictions gradually ahead. before, These we across ease back guidance that the year With will our summarize like in place. ahead. and the months I are assumes to will lockdowns [ph] that, see remain in a Kaan not our seek in there that to hand to our Kaan?

much, Thank you very Serkan.

you year XXXX XXXX will looking of to next full the recognize our highlighted Just the priorities on and priorities results. with slide, we

we to still do we have have over to rest some work the that note all we seven pleased year, the priorities of While I'm across progress highlighted. shown

with points. on some close of comments me these continues. The in Let momentum XG

XX% penetration As growth working term progress. of growth base, over continued towards In continue we with subscribers delivered of we in quarter this our medium Russia, our positive subscriber will total first continue across enable we full will markets. the and XG goal of we our

ownership Pakistan to have of now our XXX% and are Jazz. We the entity, pleased we Pakistani acquisition complete

we'll an priority This tower our for in assets continued team. Finally remains make separating towers, to on our these on progress important countries.

we We be strategic that, this hope With that able me update stake September for to will the and capital time. the to holding the your be will and face-to-face hand call initiatives year operator market pause you to I over in questions. a group's you meet on let at

the Henrik Thank from Morgan comes you. [Operator of Our first Instructions] question from Herbst line Stanley.

question. your ask Please, open. is line Your

a I much. very had few thanks questions. Hello,

terms was in guidance. new your just wondering I of Firstly,

is is little anything in and Is on to now it upbeat changed Or how [ph]. separate has more revenue strategic think be your units is -- about secondly, comps you're fair I assume and change are why that about a on legal Can repeatedly happy give wanted to up anything. with So, in Would range? why Are you X% easier bit on as at a a was CapEx you're likely think of your entity assume Yes, up to bit and your talking CapEx? your looking take -- all. a local EBITDA really fair a actively you XX% it I come you view or opportunity. of growth buyer? lower maybe as getting up you guess I much tower assets it, now question doesn't the guess? your that? Just Or little so you about revenue to XX% great putting Then in for to EBITDA now as talk bring follow sort excited you to guidance so currency and control? I last in you've that done year. out, the are you throughout point it end

assumed already terms we're backwards going guidance sort that not Your in of of etcetera. lockdowns,

roaming shouldn't year? be also why of growth So, accelerate can't sure We headwinds. throughout the

is guidance still very little bit argue your Thanks conservative? much. you that a would So,

very thank Henrik, you much.

have. telephone Let Historically, you me the start their of investments. in the with have CapEx quite linearity performance companies the CapEx question poor

intensity XX.X% investments. higher improved QX, of that ultimately I monetization will linearity, shows have a which think, CapEx in lead reached to we we our which these have of

top that XX% is think to entire with for to of we the in-line still So, our outlook line. our guidance year XX%

the embryonic crystallization into the not different early we the in assets, tower value We tower In do for do our operate stages. by have we believe in because our that companies we in. creating the look other there. independent terms Independent tower of synergies markets excited entities and of endgame. We actually as companies separating just see tower we open keep with options assets are

we our it value you prudent in but with our for do top our you details share not guidance, So, in plans, guidance will that crystallization plan I more think to and place a is we will to a EBITDA. apply we With every mid-single-digit regard about progress. have line things now country, growth give as

in There Algeria, waves assessing like We lockdowns come. in are countries Bangladesh, in the still might in Pakistan. pandemic further process the be certain and to of

any expect for the our very are keeping we do activities. of that So, cautious not growth this prudent the be at that workers' come it to policy teens. the in would of any expect still a mid-level keep time, levels terms do Considering year. migrant much. not to revenues particular our we guidance I back, remainder at to we But looking Thank believe roaming you

you. Thank

Degtyarev Our the of next Sachs. Vyacheslav comes Goldman question from line from

please question. Your line is open, ask your

much presentation. thank couple the of you of Yes, A questions.

Moscow? And can on you that? on tax already, capital score consider at potential NPS least Any secondly on on drag Greece Moscow the progression in here? the And how specifically like implication that Firstly, towards and Russia, Russia you you comment views elaborate dividends effects? probably in you litigation It can to on Netherlands? the quite the looks if the Russia regard in the negative have progressed well to will deployment with repatriate any from progress can in you [ph] you the actions mitigate potential

Russia will much. to you and ask comment between Moscow. Russia have Torbakhov Serkan? Thank to Serkan the Holland? on very NPS I and in in on And scores I will tax question comment let you Alexander the actually, then

Kaan. Yes, thank you,

Regarding change between no of for Netherlands, that treaty double XXXX. first you all, Russia tax the there and should is note

financials. there will treaty two this will countries. optimize But there what year's existing structure replace see waiting tax impact to financials restructure that So by will no is year. our we effective time, again, denounced, existing chance some between our from two for But meantime, double be And no to the change for the that tax. in to impact reiterate, on are the agreement year. between in can we to next beginning this corporate If have the for be countries current this

give Thank and the specifically you, Russia us in in Serkan. Alexander, NPS can Moscow? you situation

to on exactly, of the is to positive thing as competition when this actually, And our is our glad -- I'm NPS you not overall, grow to parameter It it some efforts, Kaan. react decline. score. declare Russia's has is inertial year and Yes, that and still as started scale, already. but very is definitely started important why your a immediately NPS in know, here for been doesn't declining that there second Actually, very but it NPS reaction actually to grow very, started the NPS

us which market. that So, when pricing this and NPS, even looking became transparency the component leaders we in and between top the this the two dramatically. the this we into in some lagging of whole is huge important, those, behind gap see parameter change the year-on-year of narrowed If were we is offering, very namely

most were important Moscow Moscow, for as mentioned time, the for struggling same we us the a lot. is As At Kaan times. several

NPS So Russia, Thank grow and But inertial. to dynamics. started It lower continue overall, same has you. to it's again, the Moscow again, grow It I'm sure next is Russia's will NPS. quarters. as in it than

Thank you, Alex.

Thank very much. you

you. Thank

next the Cabejsek line from Ondrej Our of comes UBS. from question

Your your open. ask Please, question. line is

Hi, Two on you. on one questions for Russia you; EBITDA thank specifically.

of over maybe just added much you and then then sense rollout anything a costs clearly or fixed and you've to So Can growing lot when something turned over that else. of supplying in revenues can network now the should the those costs added all, give aware fixed and-a-half. in year we of i.e. when start momentum, if terms be how flowing Also a there's expect in about. around beyond costs, those we through Russia has fixed that first was -- the with past the for of us EBITDA

than Can saying general, what you Like, mean? from the the addressable in question [ph] that cost elaborate just potential on is more it Thank about had found over to cost. now percentage in-line medium-term, with $X.X this then believe exactly phased? long-term, term? previous when that? of And company medium a of expansion? And on million this substantial margin do the Second the is expect we you one that what is does point can you're cutting be Near-term, about Or you've group guidance short-term, kind bit that the EBITDA targeting you. please?

question have. will I will focus Serkan? I to the respond the Serkan EBITDA then Maybe ask And to question. second on Russia you

of this useful. Maybe minutes if can in think will I it you. explain be couple detail, I Thank to use a program

as the focusing are we said, costs, the the you long-term only short-term, As in on in well. not

we to which XXXX. want some benefit short-term has program in this approach, wins So, quick

-- in can the couple However, we the of want of in next long-term meantime, where focus benefit from structural couple long years. upside changes to in we few the the on meaning term

certain have you coming So, as can know, said in before cost dynamics. there from coming certain because we And other are done, dynamics, get your control. it's it's of what that program, from the that telecom, the market let's and costs we It's you out starting others address, address that you structure. from this our cannot

is XX% be cost in more precise, we can addressable. when we than So, portfolio, our costs half of that at look to which structure, found be the our positively

currency, out So, cost companies denominated foreign that's found look there our around in other euro on we based good overall at only we base. cost currency our look that And starting are that dynamics point. U.S. is [indiscernible] we which Again, a is XX%. costs these at, the base, or

So XX% good local denominated That's a of overall in the point also us. is currencies. cost starting for

this of is program, be the in not not is but -- HP trying it [ph] will So, here a program, in one-year by to is from only still driven which that business be the what country driven a could owners countries. level, long-term we course, derived from the target are this

we hundreds every have country. in multiple initiatives and of So, each initiatives,

are some them are them of Some short-term, long-term. of

we the coming probably can the cost as benefits low, For that we this get have in long-term, the But program quarters well. and start we management order optimistic very get to years. upside are the this to incentivize upper year, investors the coming from in all the the in

target incorporate local incentives the teams. management term coming also senior or certain from a project the short in We this

that's quarters, in will are it in the year, made It a we program. better quantify outcome early about this to this more plans give benefits for I coming program. but and the has why think the in the quite position to be positive So you about visibility we the

Serkan, can highlight it the And evolves in cost a give how also HP QX? about maybe you base,

you very that Okay. for bringing Thank well. much, as Kaan

at same Of course, only locals, running on we we as are are HP well. not running program the this also

you XXXX, more in costs we know As in reduced XX% reduction. than significantly HP

well. year, to almost the QX We this And part QX last HP on that cost we year to also continue as focus have to QX. compared

we rest well. continue cost be to XX%. the we the around on side HP precise, to of decreased will So, focus as And year,

little good give actually with And then drop why a let a about about question EBITDA, to regard Russia perspective the year-on-year achievement bit me from is perspectives. X.X% the think your of many we

of have roaming First very business. high a margin of discontinuation seen the during is all, pandemic, we which revenues,

voluntarily, Secondly, we satisfaction to scores businesses caught and all deteriorating that are receiving. content NPS potential customer improve the the we parity

the a on impact business. the see You high-margin also This scores. was NPS

day and leap actually calendar lack the an that, effect EBITDA has In migrant overall impact also workers of the on addition one of performance. day year of to the

to is the our So levels. changes, operations, are of in than why this that's better despite addition levels. acceptable all also actually we in-sourcing management doing network think And I these expected

Serkan a you, for [ph], Kaan. follow up please. Thank I ask Can

terms surrounding we've In actual extended first as Russia, may it's approach you win terms quarter a near-term a Something target? by -- is HQ that Russia [ph] but maybe in now year. or there the seen commitment give is is you the kind in HQ second evidencing you. Kaan, that commitment that the there the rate mentioned can quarter? target? the easy too, that Thank kind of for which, a Not of throughout and be revenues of And around of the then target run the we a service a

we're Sorry. stage, cost giving not specific targets either one At our on margins. on this program

we'll a how as the in go of things interim if the year, course we're maybe we period, we during see position. think I progress can and see the

something so give COVID it's bit that maybe, whatever a of think the as the early year Kaan early you we'll see may little this at impact the around some on come uncertainties the at in not I on guidance in stage, formal this case mentioned back stage. call, or is, it's and

may the for bays costs, full be one the the some between quarters, there the overall, take year. to Regarding can HQ fluctuations, but of you

thank you very much. Great,

you. Thank

Thank you.

Xtellus question of next line Capital. Kim comes from Ivan from Our the

Please, Your ask open. line your question. is

me, Three first. please. On Hi, good questions afternoon. for Russia

XX% I and on your taxed Secondly, affect share at below? share double-tax year, in does dwell or source additions mobile, now it's but won't now Russia denunciation; the clear market it that gross sorry will look of in you is If to next it be it this but at most pretty issues you will likely. year market it exceed treaty the in-line or by affect current think your

remain So, what I if this. because any don't will way I'm thinking resident, around tax -- you think there is

pay JazzCash. on potential what comment on you're to be lastly, any highly implications So, then in would going appreciated. And tax and

customer revenue term opportunity? growth now, bit So outpaces by longer the a about a revenue the For talk lot. can you growth JazzCash

your [indiscernible]. So, you accelerate the think of also you on the you. growth as to maybe Thank there platform And do customer revenue can will comment growth competitive positioning increases? closer usage you

When market it I'm comes Easy to and we are [ph]. think Serkan. to first it XX%-XX% Kaan share XX% happy Paisa market to close Sure. to pass then JazzCash and of position, versus

notice, will the inversed. you As percentages

So usual think the would [ph] the I a on the I payments Paisa having team the the revenue that focus year around. not the market parameters, ago, to majority and thanks was say are lines, Easy and to turned comes first it one we of job upside. of we consumer. that going When

and merchant onboarding. Pakistan. to And releases. accounts, We merchant type acquirer of services things XX,XXX in type monthly is extend and provide grew able collective the want credit. these which merchant our been makes has merchant And continue to the pipeline a to have us active now during to quarter on expanded we this microfinance continue to invest are merchants proposition type of and than We in is past to something are thanks to of focus payments the finally, our Now, to consumer proposition. license, of plan of escrow creating the secure seamless have these that the biggest This that and we regard. a this dramatically lending more strong product we very

payments overall, product three that and finally everything and proposition. then lines, is So consumer merchant loans

you Thanks, Sergi. want [indiscernible]? to Serkan,

For I in detail, treaty, in detail double it more me more let tax have should take maybe now. integrated to

As tax countries, then the no [ph] you all withholding there DTT there's know, currently, on interest, dividends. is this X% holding two between tax per as on

Luxembourg, know assuming and let's it withholding there Cyprus, interest Malta, we tax current same as double assume to be it be will tax what's treaty. But Russia that on that don't going tax treaties and dividends. between replace So the blank, double both XX% will the like the

from X% interest from by they flow dividends to if basis. million have a the dividends, So our in cash if Russia from we But the pass people and from impact through separately, will Russia assume are XX% annual tax case coming in operations Russia. withholding scenario of to receiving some that that will worst on increase such we because Netherlands, not we dividend assess dividends an on dividends that $XX

Moving But of which near subject to loan nil to [indiscernible] easier resolving interest, Russia, we interest, there actually. is to have loan much be if arrangement a loans, of is couple withholding those intercompany restructure now of intercompany tax it XX% within tax will a arrangements.

that restrict person So to we a think are we our withholding loans such always intercompany can subject we there's there that don't not risk system because tax.

we restrict there structure, such corporate And in about dividends our be all, know that you million. for tax the we much more believe that is tax. don't our can if no intercompany will anything all $XX on loans So even exposure withholding additional withholding

that clarity. hope more is I

very share the I first being workers. understand negatively we see dynamics migrant portability. But you healthy market of we But will ads is a But also is strong we Alexander, healthy well. side the lack judge on And specific in we see in of on of a very the churn would actually with regard of terms sets? And can on growth the trend like because we as that number rate Russia. to a market in trend edge comparisons tell impacted terms still, trend you add to anything growth market growth see what And market you imagine, there some give our additions whether and move if growth as share so in me in share gross or we about you to ask gross Alexandre add less have insights market bigger to are than asked our I whether to not. you dynamics. about additions share more. the Let or can report our the will it's a Russia question difficult to overall, subscriber in are I higher

we kind real for growth play quality sets these terms those formulated poor, this that is the Yes, which is sets clients, remember clients of And for but that ourselves of something and to the exactly. year it's in should aware actually good. fighting that want always sets. very why not of positive of were all you're is don't already is Actually, And Russia in all fact to we actually growth you is the industry. for last strange, the growth growth games, over dynamics our we

what is care about. this we So

Thank you, Alexander.

Thank you.

from Our the Research. next question comes Street line New Jones Alastair from of

is open, please ask your line Your question.

look the around OpEx I the just rising to and you the was touch base to Yes, costs. of the has and I of you just can at OpEx of rising, margins to X%. where it X% the has issues the sort regards couple which call. happening. earlier to in wanted sort just the on quarters, But the the as situation, been squeeze now been rising Russian know hi, for thank alluded

talked How the of when level? should impact. content that revenue sort give lines back year I whether second basically them. related that's wanted second services indication just can inflationary the understand of secondly, EBITDA and of the the an Russia content to you things? that into there that ease side can when that the OpEx Or growth as X% removing out know, of again, to content of be the we does potentially of get Is remaining you're but forward half. going X% further investment undertaking, of going an half Just through are you that having that along come I start come then come progresses? just pressure at network sort the to on the So about in going year is as on your sort to far to in to, an outlook And to

of finally, that next fee an content fee paid any in should are the I out Thank the XX that know to When this on obviously the got Bangladesh line? And, payments payments. had revenue services that. there expected that. then other you license come about to just fee give And don't months. I six you. just idea on quarter, Sorry license know,

progress about question The EBITDA let start Russia. primarily by first So have that content that the top the on squeeze and as regard revenues. in you the that exclusion the we that me OpEx side. well the more expecting contents of should line by explained With done moments come the be with so all, not revenues, the seen is to on have driven as roaming, we to I of your

to actually can do maybe with scheme, situation. the and have we to help ongoing second expect be licenses, these regard levels payments payment stabilizing. we So And as know, me with an with you the Pakistan

there a quarter next to think we as make have Right? payment well. I

in Yes. Apart payments from that May ongoing in May, will frequency be amounting multiple pre the have million, we countries, most paid year. license this $XX may the amount which significant Pakistan, in is

again, next come million for will one. the $XX course, number same Pakistan. So that's may year, And of

big installments. release, which we annual can an the license be in among to amount $XXX out for second it. of pay $X of we million is five as one, left, of million XX% in Bangladesh, The which will million, maybe the I acquired rest, paid you $X the say And mentioned

the XX Bangladesh well. installment as in months, we in So the see will next second

Great, thank you.

Thank you.

question comes next Our from [indiscernible]. of the line

question. Your is please your line open, ask

Yes, hi. question. Thanks for the opportunity

from questions side. my two So

tower portfolio. on First your one

key kind the four Ukraine Russia, initiatives. in presentation, market as you So the optimization and the mentioned markets on tower portfolio for Bangladesh focused the a of

around a are more the other usage question of focus So any just How it's and CapEx. outlook is you listed markets what expect? markets, on second Or on kind considering first we And CapEx on follow another should [ph] any And far actions only? sort the this are question. this this at on from portfolio there? you you And efficient the of market? or initiatives in question or we dollar the that's your stage? timing your to of still my thinking sort expect on monetization priority So a up so

year beginning you decided you that this Pakistan, CapEx the for that you use just just Or same Russian to ruble the in XX keep in guidance for revenue unchanged ratio but this and somewhat for consider the higher can Ukraine, at not year? or you that material? versus then year? expectation your your year your cataract to to expecting connection to the it changes Thank which raised in budget CapEx you revenue of So you rate this maybe and So initial us assumptions mean the fixed remind have sign, were XX. your Does you.

XX changed. sufficient be take question? because by range currency with start to we rates, Serkan me regard that have foreign actually With you to we the to is the impacted CapEx provide the guidance Let intensity not the enough can if XX

are specific Actually, current to we what assumed and I compared planning. usually -- that fixed our fixed But is the rate, than want say better in rate with I in Pakistan don't the assumptions prudent what I FX can is Ukraine our assumptions we year. FX and disclose our rates Russia in rate assumed with are in line beginning and in at of this

give that will think I some guidance. you

with Alexander question. portfolio your And tower regard to

try this explain it to way. Let me

Pakistan the of closer in and it but not on is most have operations. have that those a countries all The Russia we biggest because is nine have We of doesn't value that the we portfolio markets total our Bangladesh. portfolio. about four the of most towers our mean crystallization advanced in believe are XX,XXX two we in And are to significant and reason active of mentioned Russia we we and two of markets the in our ones,

you. Thank

from Our lineup of comes last Ondrej UBS. Cabejsek question from the

question. line your Please is open. Your ask

Hi, Pakistan. is for please. on One me, two forward questions

clearly I negative business margin JazzCash, of mean, I terms is than this in a believe on impact usually the much in But the general, So is higher services. having ramp FinTech margin. core of the

when for become according And local least, believe, Bangladesh a margin? please? couple outlook of to that, then a I creases that medium So or second kind question expect press with not the you've was there Is of to at like can for Banglalink Bangladesh, settled then a we to ago, JazzCash term sale, happening. on years in

ago. BXB and a You've opportunities mentioned and year investments some digital opportunities

around communication in your Now, quite heavily. today, at the to seems invest you're like it ready Bangladesh look if country I

from of So you in the no general forward see Bangladesh's and opportunities is terms going comment there to guess or a being you. you subscale I how Thank core just, you core know of kind you player? what

Bangladesh. with start me let So

we saw old. what presentation close think people growing XXX reflects there, to I feel the than you about that are of XX how most a them Bangladesh, economy, million more it's during years living

the that say I getting, chance stable, is to a being So place would would it's a economy fight succeed. for everybody

with So Toffee, spectrum, we and the investments in we feel testimony that for so are growth in for opportunity term. think the that I we Bangladesh, it's a good it's are ShopUp, there about clear we investments us, our talk that make that seeing in long that the digital

are exercise. JazzCash, on considering sell When it Banglalink. build comes this at we at payments, it's So frequency consumer focus your And it's because when base not the to high to BXC. that comes you beginning it of we a something user point

products that loans, towards revenue expanding are more we as also As proposition. insurance bring and I now to said will and before, the JazzCash, merchant

that see very we used the of something success other feel will is So that be the we Overall, for cases. can this XXXX company. important

these So results investments, we see of trying beginning are of to XXXX.

up follow short A spectrum if you. I on may. Thank

that's we've more and in amount general, industry in from something big And couple spectrum see to everyone is has that price next that drive you a think you, the frontier general, paid the Pakistan particular of you because Bangladesh. bills distributed, market. Bangladesh, in question do to try expect considering do because in the competitive I the that very markets was governments that you the in in directed would two that been potential especially these seen years? Do challenger spectrum in the So guess high, at over in improve of both money extract general And situation? Banglalink that and COVID the was

require governments of at the it's what I auction is to Bangladesh, What one the can other get was that two Banglalink cost I out be the that XG best these that that the if players below most markets or provider we the at of efficient; of the it's tough the four present, continue you of spectrum a say. space. cost to the three think cannot we that to say on look was comment were

COVID. Bangladesh. comes that There's think very Overall, quite teams job were we overall, successful. I the happening hit lockdown the So as these to another hard of it in speak, is markets when

both months confident what So have happens it in be But the on market I markets next if are that the right more grab successful. as from depend and we can said, overall, will we right assets proposition competitors. a share the lot few to to see in our value we

And you know auction, you I add, effective, if the the of in the spectrum can price look of if maybe the to we paid most results actually results. terms

comfortable with be where exist. and but spectrum are in Bangladesh the nationwide, operating have we we We not may we most position importantly, regionally

best are market We experience. And happy positioning have network the we the best customer and there. with why actually the that's

you. may. I In form, sorry, very Thank if short

it lockdown, a versus different operate from business of that, is ago, the a to today I've like ago? materially mean. to any, the in I a easier compared run anything year people terms in Just year noticed Like is there that second is there how place and

our and in ourselves customer. the reaching lot significantly terms lockdown experiences mobility methods improved learned of and markets, capabilities, in their a to of a sales operating forces We the of have we alternative have

much of today comfortable feel we in more terms potential effects of So lockdowns.

much. very you Thank

Please questions. further continue. No

thank just in. I to questions, for like more no dialing there's If everyone

have to or day. again Bye, everyone. do Have more out great you questions need If Thanks clarified, anything us. reach just bye. any a please

to That call. you. who's participated in for Thank Thank today. conference everyone today's conclude our does you

all now may disconnect. You