VEON said its Capex intensity will decline from 22-24 percent to below 20 percent by 2024, contributing to an improvement in equity free cash flow (EFCF).
VEON is also aiming for a 10-14 percent CAGR local currency revenue and EBITDA growth over the next three years.
VEON aims to achieve a 3 percentage point EBITDA margin expansion over the period, supported by its group-wide cost efficiency program, that is anticipated to bring annual run rate savings of USD250 million by the end of 2024.
VEON aims to reduce USD-denominated debt to below 40 percent of net debt while increasing the local currency funding and extending the tenor of its debt to 4 years.
“By transitioning our businesses to a digital operator model, VEON is entering into an exciting growth phase that realises the benefits of our recent investments in 4G networks and digital services,” Kaan Terzioglu, VEON’s CEO, said.
Russia, where Beeline is improving its network quality and Net Promotor Score, while implementing inflationary pricing and growing its subscriber base. The local currency revenue growth ambition for 2022-2024 is accelerating towards double-digit alongside a decline in capex intensity.
Pakistan, where the success of digital products like JazzCash and Tamasha, is expected to drive a four-fold increase in monthly active users of Jazz’s digital users by 2024. The ambition is more than doubling digital revenues over the same period, supporting double-digit local currency growth in revenue between 2022-2024. Pakistan expects to complete the sale of its tower assets by the end of 2022.
Ukraine, where Kyivstar’s ambition is to reach 8 million users of its digital services by 2024, supporting a double-digit local currency revenue CAGR between 2022-2024. Plans are to complete the sale of its tower asset during 2023.
Bangladesh, where Banglalink is embarking on a nationwide 4G rollout that is contributing to an ambition of double-digit local currency revenue growth by 2024, which is underpinned by a 30 percent local currency CAGR in data revenue between 2022-2024. Bangladesh expects to complete the sale of its tower assets during 2022 / 2023.
Kazakhstan, where Beeline continues to gain market share in subscribers and revenue as the business moves along the path on its digital operator transformation. This is expected to support ambitions of strong double digit local currency growth in revenue and EBITDA between 2022-2024.