VEON (VEON) 31 Aug 212021 Q2 Earnings call transcript

Good morning and good afternoon, ladies and gentlemen and welcome to VEON second quarter results presentation. I’m Nik Kershaw, VEON’s Group Director of Investor Relations. I’m pleased to join today by Kaan Terzioglu, our group CEO along with our group CFO, Serkan Okandan who will take you through the results presentation. And also in the room with us is at Alex Bolis, Head of Corporate Strategy, Communications and Investor Relations. Today's presentation will begin with an operational overview of our second quarter results from Kaan followed by the financial review from Serkan. back of to the to for our hand balance the year. then to discuss Kaan outlook We’ll We're also joined individual country on the call from of today all our operations. heads by the

for will there's ask we you for presentation. of this very save But ever, As that ample time we your ensure would end the the questions.

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

Through consideration EBITDA up to performance experience numbers robust our QX up have local year and and to our year-on-year results cost strong reported these from impact visible in in This guidance currency EBITDA high revenues It currency second that to revenue and grew in increasing strong single to we in single In business. revenue ongoing digits dollars. for On high basis not as revenue our just morning bringing on to - results. QX mid-to-high control. was to XX% XX.X% these guidance been year. and Good for would to XG Nick. excluding X.X% reported single welcome year mid digit significant on single currency results customer X.X% has local US focus used digit control to our double been up the quality, first the half digits like-for-like have from This digit a mid on growth XX.X% grew of of growth way you, the single digit are for local important cost note EBITDA focus is US digit full grew growth most and basis well and COVID the X.X% are EBITDA where year increased dollars local to penetration in by on X.X%. network the equitable first mid-single but to year currency quarter Thank unprecedented the era increase, in currency. in X.X% our half. to the up presentation in mid would XXXX from due On a all our group been

Moving on to slide X.

that X% in we the which QX performance, across markets. operational currency is growth of all Here country-by-country you underway. in revenue Russia, In our confidence of our a well underscores give shows detail the our growth local underlying revenue turnaround recorded

both growth and see and in the Pakistan, Ukraine at level. EBITDA to continue double-digit strong Kazakhstan We revenue

are progress. our All Let's move showing business group to the results next overall three that solid models slide. constitutes

crystallization with We are well the advanced our tower assets XX,XXX of across markets. value nine

XX% are year-on-year. XX year-on-year, XG up base million, Our XXX to million subscribers grown subscriber these has X.X% up of

of our percentage improvement growth XX.X% that point currency. XX data Our an year-over-year with subscribers supporting XG reached revenue penetration among now rate in XX% local

penetration the XG and our a increase medium levels. products to for opportunity term model our over normalizing XX% growing investment digital and Our providing target operating for to is

the the growth our These low using of and customers. group year-on-year risk for applications comparison financial Increases On churn customers services mobile front, total a services customer recorded growth in days. and XX% digital level XX% customers in in music digital streaming to the loyalty, multiply TV at X/Xth

will We we you Day the strategy our more November talk soon. at the about and and details in about inform Investor logistical ambitions will

growth Slide the a X X.X%. with total recorded million. take quarter month-over-month individual is largest $XX.X month Russia. the X.X% revenues we full And now Beeline in improvement this a the during returned service rising me to performances quarter you of of revenues saw another eighth our to row of is This Let our growth now at markets in about quarter. is also subscriber which quarter seen we have base year-on-year.

XXXX a over with base the and which our higher priority XX Our from net year-over-year to promoter churn. nice in and XX% in higher growing penetration application customers a accounts acceleration to million XXXX, XG period a for user remains now of million of QX than XX.X half in QX of be more key Russia, scores, self-care of in XXXX drives to million lower ARPU promoters, total XX.X Beeline increase. QX

businesses with We X.X% of rates and fixed to market and gain share growth continue line in X.X% respectively. BXB

supporting Adtech acquisition also markets. be key will in our of in growth enhanced further the other be OTM with which opportunities will XXX% Our

by Ukraine. performances our customer an base in about our in QX continues operating our by growth now to grew Revenues talk driven which in deliver subscribers. one comprises of of XG impressive Kyivstar XX% strongest group. year-on-year XX% Let's total the

year-on-year XX% The and XG of increased million last ARPU from increase to customers line year contributed an slide delivered during this an million XX% double penetration to that their rollout. of Fixed subscriber ensures customers and up of digital Pakistan, deployed serve year-on-year. revenues XX% of growth this Have able X%. supported serving to very the ARPU experiences time revenue during grew now future. XX% XX our by with system As quarter in with our $XX share look revenue shown business multi-play best ongoing are fiber for growth the support account we QX the on a just by customers and new

Our applications our percentage subscriber our by customer of XG subscriber XX% year-on-year of XX a points digital our XX% of XX% who and active revenues. ago. least which now year XX% of our the such one recap produce digital is XG Customers user represent XX.X%. our ongoing business Kazakhstan; revenue be achieved Jazz's reaching grew growth base in growing as market. of JazzCash at other from a voice driven the of total EBITDA JazzCash XX% XG top XX% Including The data base base and penetration customer to QX base of assets, use and Kazakhstan up fastest XX% on in continues grew growth A investments year-over-year. of

Our XX%. data an with growth was impressive ARPU growth XX% of an

up win in year, fixed revenues business XX%. line converged services during now were XX% market share out We fixed one of four up where the to continue the line customers enjoys

slide X.X% of longest partnership bring XX,XXX has hit awarded the XX% country. months on Banglalink in by in mobile network in year-on-year countries COVID successive joint lockdowns, Kazakhtelecom Bangladesh people and with revenues. the in growth six the growth data XXXX. areas is rural customer base Ookla as across internet to connected fastest managed This to of hardest Our Operating deliver third About with settlements and one periods expansion still the XX. XXX first to Speedtest XX% XG the Banglalink the

of quarter. well. us exist services Use our for love are we customers application are by be as digital we will where Our today. increasing where the [ph] XX% rose not Banglalink during we and there Engagement year-on-year rates Southgear

platform, the ones of customers X non-Banglalink data, X.X they who XX% Our are our quarter. Toffee X.X consume X.X higher during average customer. times million monthly entertainment X.X The less more now of active users, times the an churn has million have times customers. last ARPU users are and than Toffee’s increase

our to which transaction ranging July, Finally, X% enhance the at in to are summarized growth value. turn XX% market increased now commitment XX% Growth to in in to to from significantly revenue smaller announced of let XX%. we option here This markets, had slide sustain our portfolio XX. underscores stake is a customer fair we base from underway our our on early data In regulatory markets has process to that on focus XG shareholder and exercised these this place. the our our value Algeria long-term businesses and our take put streamline Djezzy sell should environments to which in determine viable me

platform, XXX,XXX Banglalink’s with million time increased its of end the fresh also in having the at quarter-over-quarter by users has into Ukraine average as reached TV Toffee XX,XXX fintech XX,XXX yesterday. to products watch and customers Smart XX% an JazzCash user serving oven base base Kyivstar space, and X launched has users. Recently, and XX.X reached user Kazakhstan demonstrated entertainment now merchants XX% In our the minutes from XX X.X its million entertainment in And of out increased almost perspective some Let's of place. in active TV Money XX% year-over-year users. zoom simply growth June of digital grown Beeline XXX,XXX times. a leading active of year-on-year

growing Ukraine. times a Our Russia to times over AdTech in XX% in making business our in revenue also and strong X growth is Kazakhstan contribution X

more of Microsoft which important picking by also including The ESG on improvements in This governance developing operating Next we from and of our XX, in sustainable Visa, a group's are progress to recent ESG single group. and driven in Alpha continue markets, digital see partners our Bank we to us. class privacy have please. BBB in MSCI and I never tangible pleased all that they material Pioneer assessment to business by we their in VEON, peer A. As rating the principles our data been upgrade strategy, security was first is MasterCard, am recognized upgraded outperformed our while slide

side This was in of versus a carbon secured XX% unit XXXX, XXXX. data per in group's transmitted. by the On down emissions environmental the reduction we number

companies local side, a social entrepreneurship inclusion with and operating On literacy. of initiatives and skills improved range digital social to the designed digital improve foster wide our

come. engagement and to months continue our strategy evolve stakeholders will ESG with our We other the in shareholders through to

the Let me pause to in second call Serkan? our Serkan, results our to CFO detail. over there quarter and financial more discuss hand

afternoon Good the second Thanks, morning and quarter more to financial on results good will for the our Kaan. elaborate participants. In slides, coming all detail. in I

for the momentum the a quarter businesses QX. of as overview, to in slide from XXXX that group half our gained was XX, last the continue second Moving you recovery started and operationally as in Kaan’s heard strong QX

revenue quarter by than Revenue We X.X% rebounded at XXXX have results peak. recovery its second in and of expectations. depressed driven their in Bangladesh which for this terms, and improvement a as in an EBITDA on in currency trends the higher acceleration Kazakhstan when was of of as Group delivered rose Russia lockdown's Ukraine, local Revenue X.X%. year-over-year of in and by reported levels hard from growth local and growth are impact currency a worked well basis XX.X% the Pakistan, strongly further

base service even more with expansion on growth growing basis, data Continued basis contributed reported was of service XX.X% of underlying growth customer local revenue revenue X.X% strong a to by a XG growth data respectively. solid underpinned of On and X.X% by revenues currency XX.X%. impressive groups our and

with our Our costs X.X% supported margin the XX.X% XX.X% reported by EBITDA growing a continued on on for currency terms. EBITDA and by in local focus quarter basis at

intensity XG year-on-year our the in On basis on XX.X%. the CapEx X.X% $XXX invest or the decrease to CapEx currency month X.X% quarter, reflected local for is operational Reported was the This of reported expansion XX.X% the throughout income to our of quarter, for a terms. in in plan, networks of continue back the rise a ratio XX we group. which million in equates net rolling

amounting $XX is Although reflects to gains in QX this recorded we last the of primarily million year. non-operating impact

equity of slide, quarter on the Finally quarter of for last in minus free the million to group the compares million which $XX year. favorably flow $XX this reported generated the cash second

double Kazakhstan at on in of posting group Pakistan, rates. performance slide impressive detail currency in main to Ukraine XX contributed more our local very digits revenue each Looking the and revenue reporting growth positively with segments all quarter

described which basis revenue ARPU operational to theme positive Importantly group's the The our also service turn in the dominant financial Kaan now driving our is XG indication back is important base ongoing growing data success which yielding turnaround. and in growth on is benefits an the Russia performance which is in earlier. customer growth a of

range this invest we our group trend available. networks XX of additional continue we XG a and growing services as of to quarters in On coming stability. customers expect the We further the attract look take in to at closer Slide a digital

of Optimum introduce You will during the program earnings remember continuous group. to new Project mindset efficiency cultivate last call cost improvements that which the our we aims our across

our cost by simply lower tailor we and of that two growth overall project this the to times complacency and some the group presence in same of fully achieve of aim base a no of have quarter are the to senior the our embedded into or cost markets. by its there ambition targets markets lives sense percentage time improvement optimum throughout be plans cultural to been cost Although ensure managers to growing will improve end by here market intensity all diluting one on likely profitability, or the results ensure base naturally reducing the our ratio At group achieve will expands. markets more variance group point our quarter rather because We without operate in our difficult discipline faster operating of while XXXX. the incentive cascaded cost and develops than base to that optimizing -- our tolerance supported cost that they the the during

the are of targets in business continuous will cost improvement embedding This is cultivating long-term We be project that essence cost also our cultural structures. planning optimum as costs, optimization the vital to process well.

we of CapEx cash at flow the quarter, our throughout now three on in population of investing markets. our maintained networks operational now our operating focus on over slide XG quarters XX, which Looking the reach and second

the corresponds quarter million rolling consequence million, the year. XX.X% operational first this million. compares the around markets the Once quarter, of amounted to the a globe, all in of was in primary increased As each cash CapEx at XX% showed of our level US the positive this for improvement reported the month flow we during our a to intensity Russia group the deliver investment basis. CapEx This $XXX CapEx. with $XXX which XX of on again accounting to quarter focus operational Across which we operational to EBITDA enabled core second $XXX

net in group the Turning XX. against was slide at on now appreciation the slightly debt which to US the quarter. reflects equity free QX than cash dollar primarily higher debt flow net At billion and $X.X the ruble during level, the

in comfort, level lower to and telecom kind with times increase remains months Pakistan borrowings facility at tenure. around the year-on-year and maturity debt in and of X.X around level tenure, last of XX are year. EBITDA provided the flat quarter. we in which the as proud total depth with that various XX remains ratio to leverage of our and ever syndicated five to in of in refinancing’s a our line out strong local period reduce our the internal successful at securing group tenure strategy cost Pakistan with you also cash in very recent increase with credit in in largest Given facilities was points currencies over improved metric increase quarters the $XXX line basis the X.X end longest ended amounting have our extend million our the business value by credit I point $X.X of the have a the same we reflects its average the to than to sector year cost would at liquidity and unutilized also the the Group and billion years. of quarter undertaken also in average This committed that

cash quarter $XX first This payments in the debt. quarter the for year. million cash with expectations. has million brings reduction to slide. which fall as equity our right on year of of half well us in flow which secured million led financial consideration and in group and the positive last to of license minus as group significant with strong the Despite rebound that flow EBITDA this $XX free flow reflects financial costs lower the equity for Turning line outlook recorded cash This to levels and chart financing equity group free XXXX. the in $XX our of compares cost cumulative hand the and our for free the our XX QX improvements now is In operational exceeded slide CapEx year the of for summarized of elevated which a the

full we high-single-digit growth to guidance revenues to mid in that are to for inform mid-single-digit We and to group EBITDA currency are year-over-year the pleased mid-single-digit in you year our raising from from on growth high-single-digit currency. on now local group local

second As the our intensity have group CapEx to group expectations what this unchanged. constant upgraded we we are terms keeping we In currency year. in and shall have absolute measured basis, invested first brought be our revenues EBITDA on CapEx half a half of guidance equivalent

for the Kaan questions. turn Let me to over pass back to your remarks we closing now before call

Serkan. you Thank

Let our progress our presentation close for reminder to-date. our with of priorities me a XXXX and

progressing and to of year-on-year, on are the to the now we we with well an our subscriber XX%. is increase next path over reach increase penetration XX our percentage are XG points years three First, XX% at target

to returning this we has ahead as the top our priority Second, months important market maintaining Russia strengthen achievement, in an been growth position.

funding exercise costs we of our at borrowing, efficiency currency strategies matching to on remain optimum the remain level cost country at the business. for group's project Six, the our the for to option Kazakhstan priorities as and operators managing Pakistan and Fourth, both the markets lowering maturities sale our their and Ukraine, shown our being cycles strategy of is Third, in Algeria on continue ARPU and ambitious maintain Effective we extended our impacting XG all evolve. by investment us. double-digit headquarters. in digital increased local improve hedging and continue discipline through of cost services levels portfolio way. number in penetration our growth positive executed Fifth, the churn put digital through recent deliver as an

portfolio. to tower remain separate to and your established strategic that, crystallize over progressing considerable the Ukraine Pakistan Operator? committed alternatives value are have of questions. the infrastructure call with entities value. to I realizing turn attention we and already and your their you our to for With like operator thank we for Russia, would Finally, the

Sachs. from the your question comes from And Degtyarev Instructions] Goldman first of [Operator Vyacheslav line

Your open. line question. is Please your ask

Yes. Thank much couple very questions. you A presentation. for of the

Thank in of the that all in peak monetize in leaders? currently in mentioned desired recovery desired path NPS intention journey you XX% the beginning level the year. where And you But the you qualitatively markets firstly of assess progressed recovery same levels the you already in investments terms in your Russia to or terms in in the sharing at towers Have half How market the improvement across power markets of country. network let's view? up say investments. are more network the NPS relative level catch journey the is think terms terms for to and heavy announced passed of maybe Russia. which XX% in the the are Russia the way secondly you the order is on currently you. the to of So that of And NPS of CapEx the would on with obviously ready to market you in question

Thank you, Slav.

plan we reliable So with the late also regard in as NPS With actually prioritized with to we in regard cities gap and the we significant improvements on With continued our which of with level our to we XXXX churn, XX% with statistically the portability that that priority prioritized before, a with in mentioned we happy as continue new are about cities regard us, level we progress also our NPS for we had will terms also mobile move penetration question the is of in are and NPS again starting one certain that levels. showing to the we this We XXXX number have until and and network continue appreciating service results XG improvements, but of investments, I significant are in to numbers. investments to terms reductions both pace. are This lower our the in customers we between seeing seeing will your and models are satisfied continue. PAT – relative now. XXXX, are and statistically – network seen is that of NPS we Russia the comfortable the continue reach investments the

priority towers, crystallization Pakistan, we are order In terms looking are of and level monetization you every and and country every Ukraine opportunities operate. Bangladesh, is perspective and Thank players. the we to the depending all that market we country in most active From been a be What has are you. exploring active progress, and we that we Russia, independent of tell in remains in attractive. of dynamics progressed different are in type and fully tower not very of markets potential that company on I tapped can in that

much. very you thank Okay

line next And is of Capital Kim ask question from open line the comes from Ivan from Xtellus your please your question.

the for you Thank opportunity. Hi.

would firstly was given So about June the cash the equity year. $XX half first next resumption so dividends think free about the that flow you the How on million. over visibility

the mobile what growth revenue And consumer that you mostly consumer Is Russia. in August. trend BXB. Secondly saying stalling what this Thank of revenue in in service in sort because on driven much. mobile are you happens Russia very business then by was lastly the it July

for me answer service the and BXC I the question So leave questions dividend to Serkan. the on the and will mobile let

expansion on solid impossible seen revenues X.X%. of services a way. to dynamics the showing our as clear driven these services converge important that overall network progress Petersburg are well. domains. subscriber of with Will the further increase What mobile Will as happy our three apart and St. of from sustained Russia the It course. mentioned happen? progress this by of dynamics BXC I terms differentiate in am all is Yes. it is row further a XG BXB a dynamics quarter and I in be we But and Russia in FMC of is is have growth we sometimes eighth across our In quarter traction

dividend BXC the have this the quarter in for seen So territory. we numbers Serkan, the that’s last we on quarter what I I it going of And is would to positive last like full March, quarter, territory. seen positive month side. have tell. think And

Yeah.

For bit the long that all me dividend, the bit if it's a aspects. – so about I a see can allow can little we

of all policy. dividend our First

We payment. have cash free change is policy. policy, XX% dividend which dividend the flows same the of minimum the of is the There in no license

dividend the policy still So place. is in

as minus We Second, in flow improving. $XX QX million. generated is cash plus free time million and we QX equity our said we in generated last $XX

So guidances cumulatively have $XX said arithmetically free our the the second similar as And flow we to now the EBITDA first half same year market while revenues we have million the in and you cash positive raised in half. saying actually CapEx will of the that are level of depending half flow auctions, the cash certain of year. on of this happening spectrum perspective we'd better on half be from months. the first the Depending the spectrum we of free which in of year couple the second results equity be would those auctions, in year next than expecting we

an from as flow So expecting equity well, we free are perspective improvement. cash

same the dividend that, have said we policy. having So

improving free cash flow. are We

have we well. unknowns if However, as

some certain example, For lockdowns, restrictions from see coming COVID. in markets still some we

I it dividend the think time. point conclude in on So at this is early to

EBITDA, the We coming that, flow, increasing Having in have investments, monitor we are focusing our the on cash our said structure. the we on to months. in capital are developments focusing meantime revenues,

improving business on to aspects. are improve in are We focused we – all our

of end a more more conclusion result. believe the we clarity vendors more when that the towards year see I as clarity have So about

recommendation, indications in I on all our as dividend. direction. based But they the the believe Our correct decision the as far that result see will will and can board a are make about I moving the final assess

– in for very not? comment Thank you Serkan can July/August this, and Thank Kaan. Russia or Can you. you service you on much growth just mobile

so our that for that. We will haven't release in disclosed I press stay

Okay.

short a have will You for… time

Yeah.

line question the And from comes Stanley. of from Henrik Herbst next your Morgan

line your ask open. question. Please Your is

how the your so obviously But revenue that think guess should whilst we trends Russia, So Russia. line, you improvement on some revenue Yeah. some i.e. Thanks data double And that? in much one think players. with it's think did and line some year guess service base the I is and I I your of grow as in in ability perhaps or happy in the How And same improvement in quite had competitors, with XXXX. of you service should cannot and there's secondly maintenance we to the on on margins? you net just to check then, couple margin Encouraging just a costs much. what of growth run EBITDA point And and service improve, your do, the revenue, close to when confirm Thank of with just drive very talking line about in how were by from in-house, brought positive do for your your we that about certainly gap see about and to you the growth XXXX basis? starts and two service network the dropping can of comps or in guess you basically revenue it I percentage growth improved follow-up ability see get impact mobile improve, improvement I cost you then intensity double to to the congratulations. larger market XXXX? sort grow more that's do could Can revenue group. to improvement are margin an sort about out your of the as you your your think more it's

as move very can you as in not in Russia first around. Russia success much. Russia definition But delivered the from to need our providing customers, asked half imagine on multiply get can to that but ultimate is of further reduce is on It the satisfactory Alexander thank line who not your there. these penetration We Torbakhov also question not XG about specifically. comments is and And to Henrik to ARPU, turn our comments our you not churn. just imagine in specific so to XG comment We growth lifestyle customers further well Henrik, about I and our just penetration my that. our to after can our is real back objective. did on was to promise to improve as Russia, us also a you of we application for type stay we are

just So the seen Russia. are progress we the to beginning. the beginnings that I we in results. this result. It growth journey. on But is this am that have end our I able happy commitments deliver back on are you to not happy of is with with the going fact am the

for Alexander... And the

Okay.

Sorry.

Okay.

So I number think that's one.

is cycle and will previously in see improvements Project as mentioned on. maybe in we Russia X%, cycle And have that the we will further in leave clarify and we we it that. QX second is Optimum a about through and I of issue I in The gross can also through are move EBITDA that you question going QX net your go last QX from X% Serkan will question exactly

things maybe want two to mention. Again I

what cost we make First costs intensity. by of removing formal veteran handset quarters and of cost cost in adjustments the intensity. so should the handset calculate a mean are [Technical just revenues consider we certain do when cost all the look at what coming we explain Maybe we calculating intensity we Difficulty] same we to adjust to to intensity in operational

is impact Having as the the intensity you know in broadly thing one to distorted year see one all So relatively that because reasons the start XXXX are mention. not of is first margin be improvement this the whatever as by and obvious QX because so in full should XXXX. the we one. improve the you EBITDA the impact. broadly the I can that But understand this base improve impact whatever ambition that we to and we in And want of partial we'll have QX impact so this year base our of but in timing year why to reflected in But the the this on full that's post numbers XXXX. will I to That's is XXXX XXXX. think XXXX impact minimal should said be end

two we years So use say a let's have perspective.

number. about – about you So also ask absolute

billion have $X.X we Assuming revenues. let's that say to $X billion

X% you So million $XX $XX million say if US take we dollar. to can

number. two just take multiplied If so a the X% absolute can range you be by about that

the Thank you question. Henrik for

so Thanks it. Got you. Thank much.

[ph] from Cesar America. of line Bank the from of comes question next your And

is Your please ask line open, question. your

Yes. the have Hi. I actually. three opportunity questions. to ask Thanks for giving

what Russia to a again. acceleration you in the to spend would please second increase growth Do XG of question need The the increase revenue first in helpful? happen service be relates needs relates further more? And Russia? to base Can get you view subscriber your you penetration Do numbers? that Do need to to to you one explain need Russia. existing then the have to also

view be as your willing and mobile wanted out potentially needs for to FinTech on put well Are allow margins third to valuation Pakistan. you. have there. probably stabilize would the metrics this disclose check some And what in for to happen from on increase business you which on the us to to Just business? any would Thank

in lifting that St. I a quite revenues major the looking across especially Moscow we the as as are terms the think reaching heavy mentioned enhancing for network Russian of XX our In we Petersburg you business, are have further oblast service the well we be XX. completed and as cities, acceleration slowly Moscow next should you, of footprint XG I

XG to higher we’re that potential. higher As we going a higher MPS, less and penetration, see churn, ARPU do

So, as last From in an very to additional course as our will the in we're base to we And offerings, part that major a development, savings more a base monthly we to will we seeing are is already this expecting. in also be going our next major shared progress. over and come our Russia. core feedback of progressing be business on this applications business and drivers our and the mentioned our two your as this the importantly, did XX% yourselves internal will bundles KPIs our But to have further churn and in one of network we new digital indicators are a on expanding further operator to stabilization and market will outside take merchant are with impact that process, serious be we support as vendor active XX% and an have Optimum our built network our gone growth digital the being board of our ARPU of and the Russia of as grown and we Pakistan, completing is think nicely acquisition the as I that to activities Serkan be from also mentioned and about of And sources. more to internalization of catalyst have a important think we has catalyst. well, I quarters management through further strong with quarter I be well these business fintech cost achieved importantly, also contributor and we a we XX.X healthy, of Project very further will XX,XXX metrics million.

comes question next Alexander of from the line Capital. Vengranovich Renaissance your And from

ask your open. line Your is Please question.

Yes. you. Thank

– good have So, afternoon. My of a questions. I couple

listing strategy get options at that I was an regarding remember your the we time. discussed different market thinking can first optimal you haven't update we last the since structure? year So saying and that issue were and that on I like think investigating available management capital

whether any that new just potential I'm sort JazzCash. thoughts interesting. doing So on on second on then Moscow? questions be you What a And question will or leasing the So venues to kind trying are update get direction. in an that are two of like your of work London

there despite I've really of quarter-over-quarter. noticed number was the yeah of the year-over-year, users users active the some So of decline of growth that a sort the solid

behind anything or structure quarter private for Can it of publicly might JazzCash. seasonality was way else the in So quarter. what whatever a be placement it's there volatility your some it which remind or legal it’s to you is the and entity, a you either that organizational of capital monetized in reasons the potentially Can million is question $XX.X million And regarding was this kind or explain second the us potential the $XX.X it? you fully now partner. markets shares a in like of separated whether

thoughts whether you. potential any that monetization? is really ready on Thank for So entity the

Thank let the you with about start And much. listing. question me very

investors need this results road, supporting better parts management process. relations through are clearly see we of steps getting the are evolution accelerate can all and And our natural to the the easily portfolio accessible different affecting from are robust decisions more we taking are program, to a we them. As investor this to we and take we stock our

ready – been back ready. facilitate considering in that when are you tell to it for but patient we the come our the best now for that. investors and us to will us you not is to we allow us to are on you when I'm optimize we that Please very clear all have order know access stock, with So to options. I

JazzCash. monthly active mind that an an era. of we volatility terms related of over our in In of keep queries Please our users of months XX went just unprecedented

with of the any due this During in of to activity be the different type country, a era, specific applications. flavor there especially crisis day the campaigns might or digital of levels

is credit see growth in has of at you volatility accelerated to campaigns users. by country the overall the certain with Pakistan, our result So that in of direct active monthly year-on-year of do and we a XX% points progress the have

of want on we I terms not In happy terms with please business is there. market there of that to any penetration to [indiscernible] come when are time of our the back to we yet, in revenue please with operations but would levels. allow right of progress in again terms our the us the front comments make

from comes [indiscernible] the question next Alexander of line Capital. And

question. ask Your your line open. Please is

Good already had about Moscow, but Actually afternoon, I gentlemen. had a leasing you answered. in question

So you. thank

very Okay. Alexander. much, Thank you

from And the comes question line Bank. Alfa your next from of Anna [indiscernible]

ask open. Please is your line question. Your

your like much. the to ask very upcoming afternoon. Thank sale tower Good infrastructure. would question you I of a regarding

structure like So to you transaction. a or sales of in respect would you prefer such how

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Thanks Thank question. asking for you, Anna. the

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this for to everyone no If there further are like afternoon. thank questions, dialing in just

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participating. And this call. concludes today's conference for Thank you

disconnect. may You now