Telecom service provider VEON revealed its revenue, Capex, Opex, EBITDA and profit for the third quarter of 2018.
VEON has posted revenue of $2.317 billion (–5.7 percent), service revenue of $2.151 (–8.8 percent), EBITDA of $84 million (–18.7 percent) with EBITA margin of 36.6 percent and Capex of $319 million (–21.4 percent) in Q3 2018.
VEON Group said the 5.7 percent drop in revenue to $2.3 billion was largely due to currency headwinds amounting to $289 million in Russia, Pakistan and Uzbekistan.
Revenue rose by 2.9 percent organically, driven by revenue growth in Russia, Pakistan, Ukraine and Uzbekistan, which was partially offset by continued pressure on revenue in Algeria and Bangladesh.
VEON Group generated revenue of $1,172 million (–4.7 percent) from Russia, $395 million (+1.1 percent) from Pakistan, $207 million (–13.1 percent) from Algeria, $131 million (–9 percent) from Bangladesh, $180 million (+8.1 percent) from Ukraine and $83 million (–36.2 percent) from Uzbekistan.
VEON has lost 2.6 million mobile phone customers in Russia and 0.4 million in Uzbekistan.
VEON has added 3 million mobile phone customers in Pakistan, 0.4 million in Algeria, 0.9 million in Bangladesh and 2.7 million in Ukraine.
Capex excluding licenses decreased to $311 million, due to an equal quarterly distribution of expenditures compared to last year.
Russia Capex excluding licenses increased by 12.9 percent mainly as a result of accelerated network roll-out and the integration of Euroset stores. Beeline invested in network development to ensure best quality infrastructure. The Capex excluding licenses to revenue ratio was 16.8 percent.
Pakistan Capex excluding licenses decreased to PKR 4 billion due to a more balanced quarterly distribution in 2018 and lower year on year 3G and 4G/LTE roll-out activity. The Capex excluding licenses to revenue ratio was 14.3 percent.
Jazz 3G was offered in more than 368 cities while Jazz 4G was offered in 149 cities of Pakistan. Population coverage of Jazz’s 3G and 4G/LTE networks was 52 percent and 33 percent respectively.
Algeria 4G services reached 28 wilayas and more than 25.4 percent of Algeria’s population. Its 3G network covered all 48 wilayas and more than 75.9 percent of Algeria’s population. Capex excluding licenses was DZD 1.9 billion, representing a decrease due to lower 4G/LTE roll-out activity. Capex excluding licenses to revenue ratio was 11.3 percent
Bangladesh Capex excluding licenses significantly decreased to BDT 0.8 billion due to a more balanced quarterly distribution. 3G network coverage was approximately 72 percent. 4G coverage reached approximately 17 percent of population. Capex excluding licenses to revenue ratio was 25 percent.
Ukraine Capex excluding licenses was UAH 737 million with a Capex excluding licenses to revenue ratio of 16 percent. Kyivstar focussed on the roll-out of high speed data networks and built 4G/LTE network, covering 50 percent of the population.
Uzbekistan Capex excluding licenses was UZS 70.6 billion in Q3 2018 and Capex excluding licenses to revenue ratio was 15.7 percent. The company invested in its data networks, improving the 4G / LTE coverage to 24.5 percent and increasing the number of nationwide 3G sites by 11 percent.