VEON (VEON) 28 Oct 212021 Q3 Earnings call transcript

Good afternoon and good morning everyone. Welcome to the VEON’s Third Quarter Results presentation for the period ending 30 September. Nik Kershaw here, VEON’s Group Director of Investor Relations. I'm pleased to be joined in the room today by Kaan Terzioglu, our Group CEO, along with our Group CFO, Serkan Okandan and Alex Bolis, Group Head of Corporate Strategy Communications Investor Relations.

Our country CEO is on the line with us today as well. with highlights begin update the will Kaan. from presentation the and key business Today's

will detailed discuss Serkan this Following the financial results.

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

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

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

with the double grew Local XX.X% Today second group the will like-for-like which This X.X. XX.X% quarter grew and nine first our started multi-play as operating and given basis QX EBITDA a including in to very Good strong We the of presentation guidance. efficiency. and Normalizing in into our consecutive digit announced tower of year-on-year. discuss up more we currency this by and Russia. JazzCash morning we revenues months the performance base local crystallization accelerated and by the the increased items scope focus of On reporting results. QX quarter, Nick. currency are Serkan sale well, digital XG detail you, visible our bringing our the by EBITDA to value growth. reported one in our in we play for infrastructure expanding assets of solid cost operators for by to was was a year-on-year, X.X% a services the all currency EBITDA quarter ongoing where transformation on and end In was of revenues Thank by at in third up XX.X% XX% strong of top X.X% reach our growth of double expanded our welcome digital companies Toffee.

anticipated we local X% currency full than revenue better and maintaining digit our growth, guidance single performance, guidance are increasing local current the this high year EBITDA at Given to currency. minimum our

was in Ukraine, one strong all EBITDA Pakistan, Pakistan year. EBITDA. revenue digit a markets underlying with Russia across up all other markets growth you slide in was the contributor to both nominal showed detail growth our one across prior to local than in currency largest was EBITDA increase. by revenue QX growth positive of on shows This our in in off with country growth trends five Moving our Pakistan, off performance. all markets a countries. our digit and of this X.X% for double of These core give growth country I where our double to X, our Adjusting group the the growth Kazakhstan want are revenue year-on-year. by revenue impacted XX.X%

Beeline Russian. quarter quarter the take performances growth largest with our start of the and through now during me with X.X% markets of rising total revenues another year-on-year. individual recorded I accelerating you Let will

second getting revenues is past of the now we this churn growing In quarters and customers This nearly of service half X.X% They with Russia, net total more consecutive promoter XX% of September years. our as over of was of lowering. than see through saw two also scores users XX.X account quarter. for growth higher, supporting up the in ARPU growth Moscow and over competitors revenue revenues in customer mobile and quarter growth. mobile have quarter XG our growing X service experience period. acceleration we the of revenues to net It up points now XX.X% scores year-over-year score where we year-over-year XX% improve X.X% same to total million, declined continued the the heavily the NPS we promoter in while good invested seen rate month year-on-year improvement close with are at in

expect are Going investing. improvements forward in we similar regions where other we actively

porting trends number reduction Again has We doubling net seen mobile year-to-date have also portability. have net been and whole we as in Russia a than in encouraging seen a of in promoters. a more XX% in Moscow there

Pakistan including years look of customer Jazz's XX% our corresponding We has in and month such now our Customer us the the will the recap XX% on base, as XG over penetration adjusting on period Revenue represent now growth top shows the mobile base XX.X%. Let a this revenue the XG networks potential has our at of by XG of reached nine QX, across over than active turn year-on-year strongly portfolio. fixed growth our who performance performance. has million Kazakhstan. supported focus main Kyivstar revenue, growth delivered for up digital our of over additional XG account to on and grew past consistent years. XX% on segment. item strategic showing and year-on-year rise double total both penetration prior past of in we on and improvement focus QX network two in and continued subscribers X.X XG applications delivered of of On of subscribers, in quarter an XG subscriber by in Revenue outstanding past and year the country. digit on after more slide XX.X% year XX% JazzCash take been offer It the growth. with our another It they and better off XX% supported Revenues for X.X base two EBITDA added was highways another subscriber XX%. EBITDA. the strong Ukraine. coverage use of to coverage equally now just grew a consistent our one This in half on revenue of slide base. million and Kazakhstan by reaching the voice accelerated delivered penetration at highest of grew is least in strong revenues. XX, one XX% by in year-on-year, XX% subscriber enabled subscriber as generation one We

our now high with by the revenues with revenue impressive growth XX% is ARPU Bangladesh XX.X. growth penetration data mobile in which an enabled XX% our contribute growth services. of share and conversion And double this X.X% gain challenges base to services and in was also continue trend XG Banglalink base to supported the digital higher, of Our customer in of Engagement Bangladesh, Revenue by year-on-year. over in and XX accelerated critical the our products using despite for continue has we mobile XX% growth turn to data the XG subscriber revenue past broadband data Fixed continue success months the and this downs XX% as revenues XG including XX, our expansions growth XX% the in slide the market. growth, grew multi-play lock market partial to full rates on subscriber delivered play during base quarter base.

X.X Toffee quarter. during the increase million X.X platform active has entertainment users, now first an Our monthly million of

to July to that XX, the which transaction ranges we corresponding to to Algeria here had data me XX% It being to due increase not XG to in operational slide. growth market in operation. announced from which Jersey, is are XX% in these our contributed data base contribute increase slide the results an to Growth let markets consolidated revenues sell in The in ranges a on exercised turn as population should coverage Finally, ranging to encouraging XX%. determine markets, usage stake subscriber growth value we XX% our and on from has discontinued at continuing. from the our other to In summarized our this in does Algeria. option place put take accounted as process X XX. to fair early for continues

the standalone We grew EBITDA manage growth in in on X.X% Jersey continue X.X% subscriber recorded base of revenues EBITDA in XG by and and basis XX%. and to a

customers. look products. increased XX% us of by its Let user base active serving into has now digital million our JazzCash XX some

past X.X the users it In is in Banglalink addition following XX,XXX service June XXX,XXX of reached are nearly average serving year. Banglalink in new launch of rate merchants million times Toffee’s using over also total over to Kazakhstan ARPU, services base who times none Toffee simply while customers users customers. consuming platform are have entertainment the Banglalink also three churn A now subscribers, XG Toffee reach XX% its XXXX. tripling and consumer quarter our data. six the a customers of users higher subscriber the

revenues customer of demonstrating countries. digital engagement. X.X network the and of X.X recording rates, are how are double-play usage AdTech X.X top our than Slide across back growth and our minutes these times, and higher shows Russia, of The the data and multi-play Ukraine data respectively XX across big on and on and year-on-year, materially in customers doubled Kazakhstan Lastly, levels times driving engagement times higher ARPU, churn XG XG summarizes use. more products

user XX% across it subscriber is for one Our XX% and base multi-play XG our our the reached revenues. month subscriber of and base active double-play accounting group of

to quarter detail. the call Serkan? third discuss in more to here and over pause me Let Serkan our financial results hand

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

key of here XX, of to on with two Before important mind. the the These appendix In bear items, are it's this to presentation note there But out one turning year. both impacting items EBITDA. there some QX deck. of number in numbers quarter impact items slide summarize, to to that were comparisons third year-over-year set year, the Last last the summarized are in

items QX to provision three a $XX recording and provision second, of million year, $XX reversal there Pakistan, a in First, million In tax note. of in are Uzbekistan. this of

frequency in First, radio we grant EBITDA on recorded Kazakhstan. government fees million of $X the above

capitalized Second, is an as resolved. uncertainty cost now is amortized reported now and above for the the export intangible our an than previously rather EBITDA accounting in This been triggered court above finally license around as by Pakistan EBITDA. asset, decision, now this has operating

in detail a accounted look Algeria given discontinued impacts explain EBITDA how should I is the process. certain at slides. operation our sales as following now Lastly, revenues for and ongoing business in we these numbers as the reported

aside, these in and revenue, driven QX acceleration local which other strong XX.X% and of last data quarter EBITDA our margin markets. setting month and earlier. networks However, XX in recorded currency currency The an is group program. reported network in growth year XG last group. strong same reported grew by currency Group Russia, local in due all rose XX.X% on around reported largely for with last and double mentioned investment Revenue versus XX $XXX CapEx year. increased included, results of by basis with XX.X% results is growth as been rose by last in was continue basis, CapEx a in for loss investment local of to in supported the XX.X%. year-over-year year-over-year net a for If our The X.X%. key CapEx another net quarter the terms, overall of X.X% million points results group. X.X% to in in we XX.X% terms, service XX.X%. was the another income in rates currency year-over-year XX a month This reported Operational intensity intensity decline I as The terms, growth provision ratio quarter would digit in revenue have EBITDA local clear corresponded Algeria reversal and Pakistan by of QX by XX.X%

$XXX quarter the by for turn in Finally flow stronger free digit double on this and was slide, million free equity EBITDA. cash revenue supported growth

and for was subscriber EBITDA of adoption a out quarter from These positive and high further customer Looking our Beeline at was momentum XX, this with detail. XX our greater markets, Kazakhstan, XG performance mirror Russia, usage. XG supported strong increasing again, performance rates sets across in particularly a by increase revenue data performance more in of in as all with our we range digital the demand are continued. growth growing Slide the services. detail on in seeing then growth Once consequence slide encouraging where growth strong

provision Pakistan's by earlier year-over-year last I impacted reversal. rate growth is As year's the EBITDA mentioned

normalized tax EBITDA large last Excluding the an in the impressive Adjusting growth this rise reflects provision Also, year-over-year. by XX.X%. EBITDA Uzbekistan XX% primarily EBITDA recorded QX Uzbekistan's would for this Pakistan's year-over-year in be year. still one of grew

greatest to to now likely In off $X seen project cost achieve To in to year-over-year a addition, to our in margin impact ratio by a would one financial we items boosted aim million, be the Kazakhstan optimum. years, one the EBITDA optimum due of percentage than remind rather this group fees. EBITDA on XXXX. improvement have intensity is quarter radio key made government XXXX our basis decline point by contribution in is mission is grant these improvement the Adjusting project being A both by point expanded for although frequency two in XX year element you here, underlying reported. this to

corporate Our positive in HQ the reduction only impressive million overhead two reducing past a year-over-year made further XX% continued $XX to profitability also success this QX, corporate XX%. the to years, been has by over contribution group our overhead in declined quarter.

XX.X%. at remains XX.X% This quarter. expenditure in CapEx cash This group operational and the reflected the flow rise slide top last month and corresponds million. ratio in for XX investment XX, priority network reported on a intensity now CapEx Looking CapEx XG report $XXX to to during is of a

focus primary investment, for this accounting Russia Although operational second is the over we on CapEx, as XX%. the proportion the ratio again same around the XX% reported of a our in was year-to-date basis, quarter.

Continued to markets. EBITDA remain our QX, and strong our the digital capabilities the and the in focus in helped to quarter grow continue investments strengthen significantly. flow digital in services key our strategic Operational us users throughout performance reflecting cash

Russia, amounted cash accounting the $XXX Pakistan XX% QX quarter of For reported around for flow significant a whole Ukraine rise dollar operational in to the with million as from a million, $XXX this. and

at the Turning which equity quarter. XX, cash free the U.S. the net than now appreciation to the debt in group X%, $X.XX at Ruble group slide QX around the dollar billion was level primarily against in and on reflects lower flow debt during

issue Our is leverage a global further internal impact was times, billion focus risks. under debt XX note basis to is Rubles for, We our program times notes, program XX average small in under year continue medium line the during issuing in lower FX the X.X which while to with of resulted rise our Algeria ratio is quarter in point our the five a of we diversifying cost than accounted in QX X.X%. our our third level in X.X debt Ruble managing down on bond and of as comfort. term made which year-over-year after is drop This

All remains group facilities, $X strong inflows billion. to cash our extended lines, be to and to Group However, debt. cash credit our liquidity tower Algeria will committed transactions and the we used credit of also average debt reduce with sale years. amounting X.X maturity total from

that months operational our for leaves equity brings million perform guidance. full working our the flow, on building we strong as guidance continued of the than Turning now the improvement the at With first equity summarized group This have has in XX quarter. result cash been ahead CapEx performance, equity This free momentum last management. then in reflects flow to free capital $XXX operational for of which and the throughout chart year free recorded lower strong right improvement $XXX million cash the of hand the to flow of is quarter slide to financial the nine cash as XXXX. well a us This our EBITDA year. slide, year and

over it As a consequence, once we to EBITDA believe financial XXXX more is guidance likelihood to appropriate revise our performance. the reflect stronger

growth. for high there a our digit local from to of are mid guidance to We currency EBITDA raising group single X% growth minimum

pass With within to let guidance dividend at questions. intensity regards to turn revenue is of over unchanged. remains times. This remain the leverage dividends, Kaan free before same we the XX% flow me your that, Our to X.X ensuring closing equity cash for call while group least after remarks CapEx unchanged. managed group and is at policy time licenses With our back Kaan?

Thank you, Serkan.

a we of reached One, have close XX XX%. our the to-date. progress our me our priorities and point Let XG With we XXXX presentation progressing reminder our penetration. with subscriber year-on-year, well on to increase increase percentage for a now are path

most on Maintaining is progress position. total the deliver priority months top with term the XX% reach to Two, our as XG. in as in on penetration. accelerate double the growth we strengthen growth. market Kazakhstan ahead over we is target growth growth, subscriber further Pakistan, medium revenue Our notably a remain to Russia continue digit focused Three, this Ukraine, delivering in we

in the offers good with base. structural Four, are multi-play also subscribers see digital the to supported customer We a relationship of being encouraged Bangladesh which trends is our growth deepening executed good our revenue through strategy by operators opportunity. a growth market

level With the products in minority are Uzbekistan improve of We to and of discipline under project and on Toffee, for crystallization We group's of our in and cost restructuring an headquarters. the at these encouraging important value Georgia of focus. ambitious costs of growth efficiency the Acquisition and rates ownership remains maintain shares both in JazzCash portfolio. managing optimum, continue in examples the our Beeline country our remain quarter.

our infrastructure. our announced to tower would the the Finally, high the level thank considerable In We financial turn to outlook Pakistan. over Operator? call capital attention your markets established and we the value for On be various options considering where Ukraine and Russian and of X, infrastructure separate With value entities for you towers in to Bangladesh, that, will sale we are we strategic hosting questions. to December realizing we of like operator remain and for our XXXX. I discuss day priorities from will portfolio. the have your our crystallize committed we

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

question. Your line is your open. ask Please

and very could thanks on on I in much congratulations I wondering Russian turnaround Great, if Russia. ask you questions… the just was

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hear you Hello? Can me?

please Henrik continue. Herbst,

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continue. Please

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the bit into XXXX, is a impressive gap EBITDA guess? slow, out XG second customers network in thank margin I revenue set first Great, growth. Russia should on should we and much you're revenue strong little better. the you slower about the how growth, very the results. and question had service the I in the congrats, It can EBITDA growth Can again closing the growth moment. progression and it's hopefully growth line around point although growth well. I on you're was we EBITDA as guess you we between I know And very service as ask up XG, much then growth And ARPU see of that around you've go if talk taking question. could picking think about was the talk seeing ARPU in investing with is as at the you seems sort OpEx of prioritized wondering just and turning in you and little investments That I like about just about Russia But top what Russia. bit if ARPU a you I guess lot a

upwards? potentially guess. that, So prices I adjusting very where terms in your Thanks much. around just are And of then thoughts we

my to I on. you. I the thoughts And as word I of will And give call top on on guess Thank share well. the the Alex, him. --

get doing team It's of First Russia growth around. EBITDA the And your the turn what EBITDA remarkable. satisfied why executing extremely been with and really question is about the our I'm all, less. is I in

you have quarters year XX% functions. that terms was And over year Friday was presentation visited for results our with I actually mentioned the As week numerous team can our saw in completed I this our almost a campus the critical of us, excellent customers. that last provide time management and this to I network technology

cost Of there's course, an impact base.

allocated expand our to almost side, to every On stations, Russia as Russia mentioned XX% single our impact as out course team construction not engineering in run is additional network that's Serkan of rollout second of rate. we base and we the is the CapEx and on have running that

see growth, will ask that justified pricing is we away un-mute have quality are for Now, us color? Can calls on situation I asked the we Until from terms is price side. July Alexander the the you General ARPU Russia we upward to make available providing in quite also NPS is stayed network and for and Alexandra? from. Torbakhov the further market in deliberately coming making Beeline. Manager of active for May late actually about adjustments the if taking which our you Alexander Torbakhov more where

of and marginality. tower in I starting margin comment bracket in is on about you in especially at While Russia have forward, Russia. long waiting revenue closure will with in to And be because the absolute look that, all, trajectory. transformed transforming model. each for Alexander the every Why next this also EBITDA cost would we from term numbers because year a top ask deal this maybe composition different EBITDA structure to of Russia suggest seeing I about of first going and I'm revenue the different

impact them will year to the so not EBITDA will margin, margins probably this next of So apple-to-apple both the comparable year. be

long suggest margins, than eye an would in the Russia. on rather specifically keep the in EBITDA terms EBITDA I margins absolute So term, for

the question. But like this have difficulty second I congratulate Alexander. a Again want customer saying Alexander of to new operation sorry, value we you looks with it logo the rebranding proposition in Beeline to successful and are un-muting Alexandra. your on let's Please, opportunity our Thank side. on take we use

you. Bank next America. Tiron from of Cesar of the from comes question line Thank your And

your Your is ask please open, line question.

taking questions. the and Yes, my call for hi, everyone. for Thanks

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out-backs. back again Russian to the Going

of layers that cart now? Is the example, more think some the different improve that business that have in still closing I stores. and on for would the there right past you did down were efficiency included, mention that to

for lot thanks the a Cesar question.

continuously optimizing distribution network. our are We

And store in We X,XXXs in into as franchising reached we look the works, of well. terms of as do almost of really channels digital definitely optimizations. But how look we how model color ways of business can have terms that, we and closures will will your note next talk works the all give ensure will these digital and I further on issues as question, call you Alexander well. I first in and quarterly the

thank unlock other I Great, guys wanted understand what ask Thanks. if I the second wanted to also of tower you so looking potential that's towers balance sheet on deal. progress much. to in this a the the you Russian you just to one okay. made monetize dramatics, countries? obviously we've team? seen on And have Are

thanks Cesar lot. a

telco numerous mentioned no times the it the the course, will luxury of a exclusive and to is in world I is towers. equation. with think Network I has start must passive the have side As of sharing there

So our across strong. commitment to slides value of our our tower is assets remained portfolio

our regulation doesn't own established Bangladesh, strategic the already In in there and in us entities the alternative different and we allow Pakistan with to well. as operators have Ukraine. We company various talks independent standalone are

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next comes of our from you. And Thank from UBS. the Cabejšek line question Ondrej

Your open. line ask is question. your Please

the Hi, thanks and good on for presentation the congratulations numbers.

XG how up XG in terms follow XG terms and though the you non can see the of of I of kind believe that's the growing and quite subscribers you Russia for fast. of kind even going the some breakdown the in forward? you're us behind of a Russia, Just in of ARPU market share leaders ratio,

bit on couple was a market what leaders your elaborate fast maybe then of you catch structure cash you questions, are -- bit and the And think a in than ratio flow, lower can terms please. can So of the how up? you free

on the terms assessment is be happy the risk or quarters? Thank proposing term? medium over at the would give Can the working list end equity outlook year considering capital maybe us to short towards you some get minimum the Pakistan one dividend? a four mentioned of to for You kind situation. in you over what what And kind of six free specifically of you. flows cash next off we the spectrum going of levels as Then

Thank Ondrej. much. you very

question And leave answer. the I will the take ARPU flow me XG to question. Let Serkan cash to free

can among months, XX percentage most the and XX tell month, is in points. last you the one late penetration with think increased it's why move we productive been we from were months, to so liked base our analyze low. First all, mean, choices subscriber I I made past, I what picking part that single so don't that the and XG every full back go I in penetration XG the we the in in XX the of has this up the to three

actually XX%. means catching on are it up So the we with accelerating

XG not being XG is one from voice either as is play a uplift, versus presentation but XG visible reduction, versus an double-play ARPU also consume a Now, this only is customers on ARPU customer they only is it look and it in move uplift or service very data customer, use. double minutes actually critical being visible being single page the because in if that impact. meaning XX, there the And you of play from in us being visible to or churn incredible even

XG more consumed, normal positive voice actually times. the to smartphones, more the has usage two impact up services a So of even

why digital So XG terms number strategy critically this. this minutes, And is XX% and number our now sure from issue, in at going we almost we are we to gigabytes into into to And why away XG the go, looking is come of of so critical other is is we Every to that And growth are bundles. are their of that number operator base in Serkan SMS, we focused digital that of the you that at able selling what making that's is cycle the flow. increase real operators the are different accelerated move part moving it of play. penetration operators on rate getting us selling really strategy stronger been and now into to life the of by Maybe on has you transition countries. digital who speeds has further the stronger in cash will done this territory tens. see we various

follow cash dividends. could you Pakistan one I three as then and up ask you then offs far like free EBITDA and As questions flow start with

to follow will sequence. same the I So try

off one last last is an are as this go below forward last license of time. the of year. the think have rights one sorry license But I renewal Pakistan line. this Pakistan, accounting boost EBITDA, the clarified mentioned offs amortization be important we EBITDA than will for than amortization both EBITDA one in the was year year's because because this more will amortization expiry going positive now of there since year of that ongoing I it in But, First this presentation, year's year and

million $X So boost that quarter. a on EBITDA will of depending the course, to $X million FX Pakistan, give per to quarterly

that, Pakistan That's this well. advantage million strong a and very Having So in million look numbers believe as despite roughly QX, going in to coming are we that going cash in that's about that generation EBITDA, that coming the I number. sorry, are QX Pakistan. flow can in investments flow in We generated lots Pakistan. when we free of And at $XX said quarters in the a benefit cash there forward that's we permanent free $XXX continue Pakistan.

forward. going The overall expectations second one was QX in EFCF and

have probably strong we in $XXX remarkably cash is $XXX million generated per more in QX, one than Of as year, QX will their projects, course, also, strong accounts of than towards close projects making EFCF, to vendor of month. the of and payments CapEx it's quarter compared QX to more year. almost not QX, live them the also are end and Historically, because as of end everybody's was increased capitalization million terms increase trying and

as not QX we won't year. So as it this QX be strong as and as EFCF, expecting weak QX are but

in be somewhere between, our will it opinion. So in

on Then the more hopefully as we with to a and of as XX% linking are QX will ratio, good to before expecting in license times. maximum we and dollar get mentioned, minimum by mentioned, end that year dividend times. Ruble need appreciation unchanged, we this X.X payments, of Kaan do trying leverage So said it keep what will EFCF help dividend EFCF this project, which as That's in results a QX was eye with of I But are we of policy we the to the to nowadays. number our strong an well. than our close X.X the [Spire] year proceeds, having with closing and after billion still is close

one. that intention proceeds deleverage use of will are project. to is closure see So to That's we And balance going because the the we second, those we to want of end the in where see leverage sheet. to we want terms the

without XX year in in long, hopefully. So long… based of even next see any having further It of we But QX, to to of the it that EFCF course, results outcome are a we was distribute quarter these of the numbers. first the QX. want generation two positive will But on the and dividends see actions we said

just Thank follow two you I up. quick if may,

the have I see you. the one any was In was that you then in in are the in forward in the short spectrum? capital markets offs offs? you of do around especially terms asking or potential you have, levels we've where stable for And going Bangladesh you the have short working of today terms Pakistan some term? kind working you changes on visibility capital. major of interested outlook, Thank Do specifically of in I think in been and of is those specifically such one as visibility the do What some about pipeline headlines what term? seeing Do the options

capital, for improve that in but capital We the So, capital in spectrum. quarters, those trajectory year. a the of our working areas not over Kaan coming management But Working capital we do missed take be longer it, one improvement I probably end QX hand I capital. further. one will we better working because it's see and are if can sentence of we to in there working can

we principal regard it are disciplined Serkan question, to a Pakistan and spectrum to probably decisions. we was with investment spectrum noticed decided when decision. making you you bid. In the to have comes Thank how not It actually

rupees mistakes investing We make making never And spectrum. of and in basically was to driving the money force. that dollars Rubles in and will

and We years Now comfortable and of for always time will will reforming the additional meet naturally markets are population there consider Bangladesh our with currency next course, Pakistan will local also that that. changes feel we in allowing down needs. in opportunity like the Pakistan But shutting population require if very some to tenders to in regulatory two and XG spectrum. bring over the environments

we looking actually are we always looking spectrum well current the share that shows our will a spectrum XX% of projections. area upside to Bangladesh, which additional the as spectrum planning potential country well. and renewal to Next With again, us. financial this be to the to We XX% in we And market our of represents the the to this hold have almost for license as now opportunities year compared acquired Bangladesh, our in regard are year. have we additional in going XX%

Ivan line next Capital. And you. from Thank of your the Kim comes Xtellus from question

Please Your ask your question. is line open.

good Yes, me. questions Two quick afternoon. for

then Any on secondly, thoughts growth Firstly leasing. that? on And Moscow further on the in XX. Russia

third the is So compared to the quarter second. recovering better definitely

sequential think it's sort expecting to we So in be going very you I'm to think growth is XX? given Thank single Do LTE wondering, ballpark mid penetration digit? be then of current roughly? it's in you. just going there what should Russia be runway improvement. So you digits the But single a high

for a Ivan So thanks lot questions. the

with start outlook. the XXXX me Let Russian

a bit quarter. revenue of on X.X% QX announcement comment special our year-on-year growth call high in this disclosure And quarterly year to time this in next month, little XX.X% My September double growth giving digit made Russia. desire in see as you last single September, what a I on in around glimpse of think digit the well. a this happened a I we and made reached overall. I for service actually

that I'm So possibility given and will inflationary we the saying you pricing ratio discipline, not increases what from this tells off more far in indicatively is that year, this penetration LTE see operation. our

on are will up have for Moscow we updated are opening we indicated, opportunities, different as Alex of currencies keep zones the informed about couple focused and met sure shareholders in of you we we'll keep our of next expectations progresses. the that trading terms In And that progress. very over you that hopefully like time of to? weeks think terms you do of and wider you of coverage the would making

yes. Absolutely Yes.

and local to appreciate from listings we are point follow from desire us where do general course of course, zones. markets that active of time we different investor more On relevant the

facilitate our to do encourage obviously can to we it's priority. whatever absolutely So

opportunity you keep geared we'll kind. mentioned, Kaan we posted, but are extremely any as to this of So

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

is open. ask line your Your Please question.

quick over months. nine Very first on clarification equity afternoon. free cash Good question the Yes. generated flow you've

of quarter, transformed cash you equity the before before roughly flow the $XX the around free Algeria I cash kind think flow deconsolidation basically, showed like which of zero last free of a show after half into of of for you first million XX. Algeria, So equity deconsolidation

equity by really just equity when whether you free operations consider be difference will eligible you. the for cash wondering the second And will flow the whether here, generated this free comes payments Algerian I'm year? Algeria? So you this Thank from this calculating question dividend cash flow

Firstly, of flow generating talk to figures, overall, EFCF the every free Algeria is ballpark positive. contribution it's if you cash In million year. roughly about $XXX

excluded So numbers. in Algeria we have our

EFCF EFCF Algeria or in from year. will we the in impressive the exclude this include performance not And question, So than received coming Algeria. part Algeria much of from QX of was better of EFCF performance half the we from the the actually is XXXX Genuinely whether first dividends QX have second results. the

So course. received from cash our the based shareholding of we on Algeria

take So, when beginning EFCF numbers reported XXX, assess distribution, year-to-date September. the of is consideration the we we which year, into the dividend will

consideration. So, we into will add QX and take that

Herbst do we up line have Thank of you. follow from question And the Henrik Morgan Stanley. from

question. your ask Please open. is line Your

much. Thanks Yes. very

absolute to that. Does EBITDA really but guess margin under clarify XX the then And EBITDA. you EBITDA wouldn't worsening you is mix change around that the wasn't guess didn't much your that sort costs EBITDA terms. of in I if can of Shouldn't or also shifting, you be just I IFRS we to a outside it in that mean disposal. that thinking positive is and are EBITDA? given But just much the you growth of when the comments do mean I be mix going I shouldn't lease tower revenue wonder if comes anything for about thought Russia expect I mean I that Sorry, what mean revenue

Kaan single that you web Is could and year line in you of talk Russia. Thank sort both? mean is much. or that So yes, you digit if just what when you high growth very maybe next clarify or about EBITDA top

be will type less more of integration start entering expect these with me might new is device Top be question which it driving nominal for of devices. to we course, will, EBITDA line. in accretive projects, would come revenue actual that including would the project, Let system will the AdTech these Serkan will that double our growth mobile think converge But both about margins areas, as in service enter markets, terms and XG, definitely digit more sales we but hosting also the other with side. each combination I revenue projects, of clarify. on I and as top into some line I

clarification make. the that's would I So

of was on a which and couple the EBITDA revenue will comment the margin, both of my Actually kind Russia developments the impact side. there's cost in

elaborate me bit more. a Let little

As we streams in revenue different Kaan mentioned, have Russia.

We have traditional revenues. core telco

business. device have We

is one. segment and we every segment growth look different the rates them each number the in from other. We and have and That's segment digital at by services,

The each for margin, is as different margin the EBITDA well. second, segment

margins, So we some which single we segment, margins. high have are segments, some which there for are example, device segments digit having

margin. revenue So this impact the will composition the of EBITDA

maybe the specific also sale after Russia second generic, closing tower is The is will this tower deal. deal, Russia that change for the second for cost Russia is structure first specific the part of thing which of the because but thing

term at long also from that So to perspective you year’s look at perspective, if look the impact time. three if will two EBITDA you margin

not see you seasonality both of a So well. stable we should consideration of as course, margin. of take combination EBITDA the this, And may top trend on into in

any was the trying in the since So growth in any don't trajectory have indication in case, stable about the give what to more in EBITDA I explain. case But and business. any margin was business we amount that obsolete will us

from Thank you. up question Ondrej have follow also line Cabejšek from the do we UBS. And of

open. Your is line ask Please your question.

thank Yes, me, please. you. follow for Two ups

bit of more on also be impacts sharing. Do like of wondering something you you topical some active to the you. more with peers your becoming whether now towers, is your And the if would this mentioned exploring all or do various the that markets closed? should terms are see in already then you after passive leverage so you for is your potential and mentioned assessments the that on the once of this whether net margin. because costs? have the kind energy of step I'm In again, this some after that what next you you is currently finalize of the exactly of could a do a deals you impact clarity rising Thank

with all, of parts the active answer the first let me sharing. Ondrej

please in In are an we of And from one agreements that And sharing mentioned than see competitors increasing mind Kazakhstan, perspective. we regard forward spectrum Serkan. of network of our Russia. as more scope options, well. passive, we in moment to inactive sharing the I certain earlier impact in always of sharing, open with me will all are and these active, activities We as we in especially to the opportunities this and Russia we will are the of markets, leverage engage. like look regions for look Russia, things doing these With already towers some already

the that around de-leverage impact In the close when slightly the balance in on the billion can X lease sheet depending fixed the level. we balance at because our it rates, course, will group at transaction. believe $XXX less the we we sheet book is EBITDA of liabilities leverage, For level, etc, have than Why million. be positive the group to we

can So net-net, leverage we by decrease the $XXX that we believe million.

with combination EBITDA have on the EBITDA? and are kind You mentioned, debt to there you, in positive two Thank impact plus, net what of effects. that the would

You mean leverage multiple you mean. It is?

Yes, exactly.

times positive. X.X X.X,

Instructions] [Operator you. Thank

your We in you No looking more much. Thank and you to time very trust our the very seeing London appreciate Capital you Thank Day. and questions. much. company in forward in upcoming Markets

much. very you Thank

much. December Thank you so X.