VEON today revealed the telecom operators’ financial performance in main countries such as Russia, Ukraine, Pakistan, Uzbekistan, Kazakhstan, Algeria and Bangladesh during Q1 2020.
VEON reported revenue of $2.097 billion (–1.3 percent) and EBITDA of $920 million (–29.1 percent).

VEON’s total mobile subscriber base was flat at 211 million in the March quarter of 2020.

Operational Capex was $368 million. VEON recorded operational Capex ratio of 19.5 percent over the twelve months ended 31 March 2020 following 4G network investments in Pakistan, Ukraine and Bangladesh.

RUSSIA

Beeline remained focused on improving the customer experience and stabilising operating performance.

Network investment continued as Beeline increased its number of 4G base stations by 33 percent at 31 March 20201. While the network quality is improving, customer perception continues to lag.

Beeline faced challenges related to competition and the efficiency of distribution. Beeline closed more than 300 additional stores, bringing the total of stores closed in the last nine months to 500 to place a greater emphasis on online retail distribution.

Beeline reported revenue of RUB 67.5 billion (–2.6 percent) and mobile service revenue of RUB 52.5 billion (–4.4 percent). Beeline’s customer base declined 1.4 percent during the first quarter of 2020.

Beeline’s data usage per user (MBs/user) grew 60.5 percent, supported by a 4G population coverage increase to 86 percent from 77 percent in March 2019.

Capex excluding licenses decreased 30.7 percent as a result of the timing of network rollout. Beeline is investing in network development with a strong focus on Moscow and Saint-Petersburg. In Moscow, 4G population coverage reached 99.4 percent during 1Q20 alongside the start of 5G-ready deployment.

UKRAINE

Kyivstar reported 16.1 percent increase in revenue to UAH 5.9 billion and 16.1 percent rise in mobile service revenue to UAH 5.5 billion in Q1 2020.

Kyivstar closed 86 of 485 stores across the country impacting recharge volumes in Ukraine.

Kyivstar selfcare app achieved 55 percent increase in monthly active users in March 2020.

The growth in data customers and data usage supported an ARPU increase of 17.4 percent to UAH 70.

Kyivstar’s mobile customer base decreased 1.2 percent to 26 million, reflecting the reduction in multi-SIM users in Ukraine. 4G subscriber base penetration increased to 30 percent, with total 4G customers touching 7.8 million.

Kyivstar’s Capex excluding licenses increased 37.1 percent as a result of a focus on 4G network roll-out. Kyivstar’s 4G population coverage reached 77 percent.

PAKISTAN

Jazz revenue decreased 2.6 percent impacted by tax regime changes in Pakistan. Jazz data revenue increased 17.1 percent driven by 100 percent growth in 4G customer base.

Jazz closed all owned experience centres and 37 percent of third-party stores, negatively impacting both recharge and SIM sales in Pakistan.

Jazz World, its self-care app, has crossed the 5 million monthly active users level making it the largest telco App in Pakistan

Jazz’s customer base increased 6.3 percent to 62 million driven by increase in data customers on the back of 4G subscriber penetration of 28.5 percent. Jazz’s Capex excluding licenses increased to PKR 10.8 billion. The population coverage of Jazz’s data network was more than 61 percent.

UZBEKISTAN

Beeline Uzbekistan said revenue fell 2.5 percent to UZS 521.5 billion, impacted by the new excise duty methodology and IMEI registration implementation.

Mobile data traffic of Beeline Uzbekistan has more than doubled and mobile data revenue increased 26.6 percent.

Beeline Uzbekistan’s customer base declined 13.8 percent to 7.7 million, impacted by higher churn, primarily among customers with irregular mobile spending. ARPU increased 10.9 percent .

Capex excluding licenses fell to UZS 62.9 billion due to delay in network rollout caused by the COVID-19 outbreak. The company improved 4G LTE coverage to 26 percent and increased the number of 4G sites by 39 percent.

KAZAKHSTAN

Beeline Kazakhstan said revenue grew 17.7 percent to KZT 46 billion driven by both strong data revenue growth and improving fixed line service revenue. Mobile service revenue grew 17.3 percent to KZT 38.2 billion.

Mobile ARPU rose 16.6 percent while data customer base increased 8.9 percent to 6.7 million. Mobile customer base fell 1.1 percent to 9.6 million impacted by the launch of IMEI registration.

Data customers grew 8.9 percent to 6.7 million, and penetration has reached 70 percent. 4G data customers grew by 1.2 million with 41 percent growth.

Capex excluding licenses increased 149.4 percent as a result of additional investment after the termination of a network sharing deal in Kazakhstan between subsidiary KaR-Tel and Kcell due to Kazakh telecom JSC’s acquisition of 75 percent of Kcell’s shares. Beeline Kazakhstan expanded 4G population coverage to 69 percent.

Beeline Kazakhstan and Kcell entered into a spectrum sharing agreement relating to 5 MHz in the 1800 MHz band and commenced the use of this spectrum.

ALGERIA

Djezzy said its service revenue fell 2.1 percent to DZD 22.3 billion in Algeria. Djezzy’s data revenue increased 31.5 percent due to higher usage and an increase in 4G data penetration. Customer base declined 11.4 percent due to price competition in both voice and data markets in Algeria.

Djezzy said 4G services covered 38 wilayas and 41 percent of Algeria’s population. Djezzy said its 3G network covered all 48 wilayas and approximately 75 percent of Algeria’s population.

Capex excluding licenses fell 28.8 percent to DZD 1.8 billion in Algeria, due to delayed network equipment delivery as a result of new local regulations in regards shipment terms.

BANGLADESH

Banglalink said its revenue grew 3.7 percent, supported by mobile service revenue growth of 4.2 percent to BDT 11.4 billion in Bangladesh. Banglalink’s data revenue rose 18.5 percent, driven by increased smartphone penetration and data usage growth of 42.8 percent to 1,713 MB per user.

Banglalink’s customer base grew 1.9 percent while data customers increased 7.8 percent as a result of expansion of 4G network coverage.

Banglalink said Capex excluding licenses increased to BDT 4 billion as a result of network investments to support 4G expansion. Banglalink said its 3G network population coverage was approximately 73 percent, while 4G population coverage was 52 percent.