Mobile provider Veon’s Q3 revenue rises 3.6% despite geopolitical challenges

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Amsterdam-listed telecoms operator Veon on Thursday reported a 3.6 per cent year-on-year rise in third-quarter revenue, as its 4G penetration and digital operator strategy continued to deliver growth despite macroeconomic and geopolitical challenges.

Veon, which seeks to increase investments in its digital strategy in the coming years, continued to post revenue growth in the three months ending September, despite fears that the conflict between Russia and Ukraine — its most profitable markets — could pressure the group’s perfomance.

“Growth in subscribers, higher 4G penetration, and an expanded portfolio of digital services are driving solid revenue performance across our countries”, CEO Kaan Terzioglu said in a statement.

“Inflationary pricing and good cost-management have enabled us to withstand tough headwinds such as rising energy costs, changing tax regimes, natural disasters in Pakistan, and the humanitarian crisis in Ukraine.”

Veon, which said on Wednesday it was seeking to sell its Russian business, recorded revenue of $2.08 billion in the three months to Sept. 30, compared with $2.01 billion a year earlier.

It also further strengthened its liquidity position, with $3.3 billion in cash at the end of the quarter, the group said.

Russia, Veon’s largest market, reported a revenue decrease of 6.1 per cent year-on-year in local currency in the quarter, impacted by a 58.5 per cent decline in equipment revenue due to lower device sales.

The group, which also operates Ukraine’s biggest cell phone provider Kyivstar, added the team continued to keep the country connected, with around 90 per cent of its radio network operational at the end of the quarter.

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