Q1 2022 VEON Ltd Earnings Call
To trading updates for the period ended 31 March 2022.
Nik Kershaw group director of Investor Relations I'm pleased to be joined in the room today, Bob constant they'll do a good CFO .
Sort of sick and often done group CFO and Alex photos head of corporate strategy of communications and Investor Relations.
Today's presentation will begin with an overview from corn, followed by a financial review from Silicon and Cardinal and come back and close before we move to the Q&A.
All participants will be in listen only mode and a question answer session. Today, we will be facilitated through the Q&A function.
If you could share any questions you have in the Q&A function in zoom.
We have already received a number of increasing questions from investors in the Q&A session. We will repeat the details of the question and the name of the institution.
We will look to answer as many of the cases as we can in the time allotted.
And in the interest of time, we make group together some of the questions that are related.
Before getting started I would like to remind you that we may make forward looking statements during today's presentation.
Which involve certain risks and uncertainties.
These statements relate in part to the.
The company's anticipated performance in operational guidance.
Future market developments and trends.
Operational and network developments and network investments.
And the company's ability to realize its targets and commercial and strategic initiatives, including current and future transactions.
Certain factors may cause actual results to differ materially from those in the forward looking statements, including the risks detailed in the company's annual report on form 20-F.
And other recent public filings made by the company with the ACC.
The trading update in the presentation each of which includes reconciliations of non <unk> financial measures today can be downloaded from our website with that let me hand over to Carl.
Thank you Nick Good morning, all and welcome to the presentation of our first quarter trading update.
Before we start going through the numbers I would like to say that this has been a challenging and character building time for our group.
At the same time.
All of our teams have shown exceptional focus while staying the course and delivering positive results.
In particular I want to thank our colleagues in Ukraine.
Who in unbelievably difficult circumstances have kept the key upstart network functioning.
Now undertaken extra ordinary humanitarian actions to support gives our customers and communities.
Now, let me start with some key figures for the quarter.
Group revenues grew by nine 8% year on year on a local currency basis in line with the growth in the second powerful 2021.
Local currency EBITDA for the quarter was up five 7%.
Adjusted for exceptional exceptional charitable donations and employee support costs during the quarters normalized EBITDA was up seven 3%.
Capex was $306 million to $7 million down six 2% year on year given.
Given the current operating environment Capex for the full year will be lower than we previously anticipated.
Importantly, all of our operations are generally self funding for their requirements.
In addition to this we have $1 3 billion in cash held at the headquarters level.
Let me give you more detail on our performance in March which better reflects the current operating environment.
Alright.
First and foremost, we prioritized protecting our people very well and whenever needed in during these times.
In March we faced the full impact of the current conflicts on our operations.
Despite this.
Our <unk> subscribers were up 24, 3% year on year, passing the 100 million Mark.
In March revenues were up eight 6% in local currency.
Ported currencies revenues were down 11, 9% impacted by currency volatility.
Our decentralized governance model empowers local management teams to drive their country operations effectively.
At the group level, we continued with our financial Derisking reinforced through debt management and prioritizing liquidity.
The financial performance of Ukraine remained strong and our operations were kept up and running throughout the month.
I'll cover this in more detail in coming slides.
On the next slides, you'll see that we owned as a global company operating in nine countries and providing service to 220 million subscribers.
Which is an essential humanitarian service.
We are committed to our industry's mission of improving lives through telecommunication services and access to mobile Internet.
As the sector via enabling billions of people around the world to connect to their loved ones to widen opportunities and fair information.
Yes.
An important driver of our strategy and Q1 results is our progress in implementing our digital operator strategy.
Enabled by our <unk> investments over the last two years.
Over the past year, our <unk> users increased by 2024, 3%.
Improving revenues as we continued building our digital platform.
I am proud that we have now exceeded $100 million toward your user milestone actually including Algeria are for new users are at $108 3 million.
Over the last two years, our <unk> penetration grew from 29, 2% to 48, 8%.
And we are consistently progressing towards the 70% penetration Mark that we have previously indicated.
Our data and digital revenues were up 15, 8% year on year in local currency terms.
On slide seven we provide further granularity into the progress of our digital operator strategy and customer base transformation.
Our multi play subscribers, who are the users of at least one of our digital services on top of our <unk> data and voice services have increased 28% year on year and reached $29 7 million.
Multiple customers typically demonstrates to materially higher engagement levels.
In the first quarter multiply RP.
Average revenue per user was three eight times more than a single play voice user.
While the churn is only 40% of that often single play voice user.
We have achieved well balanced growth across all our operations due to a higher subscriber base with higher <unk> penetration with increased consumption of digital application and disciplined installation of the pricing.
We also saw strong momentum across markets in terms of EBITDA.
<unk> and Kazakhstan, you will notice the normalized EBITDA as well as reported.
This shows the adjustments for charitable donations and extraordinary employee support during the quarter for the events that have unfolded in Kazakhstan in January and later new Crane.
Let me now take you through the individual performances of our large markets, including those <unk> described.
I will start with Ukraine.
We have lost one of our engineers and good job.
Thanks to him and hundreds of gifts. Our engineers, we are working tirelessly and we kept our networks functioning.
The vertical for our team in Ukraine has been extraordinary as of today.
92% of our network sites remain operational.
And we continue to rollout new sites.
National roaming has been strengthened through network sharing amongst the domestic operators.
We continue to support the safety and security of our people, we are helping our 3900 employees through economic support on temporary accommodation.
Our communities through charitable donations in nursing homes, our customers by waiving top up in internet fees and offering free education services.
We have seen millions of refugees fled the country.
We continue to support these customers with services such as roam like home.
I would like to commend, our fellow domestic and international Telecom operators industrial associations and vendor communities for their exemplary partnership at this difficult time.
In these exceptional circumstances.
He had start has delivered another quarter of impressive results.
With double digit revenue growth.
Up 15, 1% and the normalized EBITDA growth of nine 3%.
The strength and resilience of our operations as shown by our March numbers with both total and service revenues up by 16, 7%.
This was the seventh consecutive quarter of double digit revenue growth for <unk>.
Whose growth in Q1 is consistent with the increases reported over the past two years despite unprecedented challenges.
We do acknowledge the uncertainties the prolongation of the conflicts will bring with regards to our operational performance, but I would like to take this opportunity to thank the team once again for their dedication to keeping our customers connected.
Yeah.
Let's turn to Russia.
<unk> extensive <unk> rollout over the previous three years has proven of fundamental importance on our ongoing operations.
We have $25 3 million for users up nine 2% year on year.
They now account for 56% of Beeline retro total customers.
<unk> recorded year on year growth in terms of both revenue and EBITDA total revenue grew by five 6% with service revenue growth of four 1%.
In March total revenues grew three 6% and service revenues grew three 7%.
Handset availability remains a challenge for the whole market.
We note the impact of the unprecedented currency volatility.
With the March average exchange rates used for consolidation being honored for one global port impact.
Impacting reported revenue numbers, which declined 25, 9% year on year.
Let's take a look at our performance in Pakistan, while we continued to gain market share.
It is encouraging to see just growing revenues by nine 1% year on year.
This was delivered despite the 5% increase in withholding tax from 10% to 15% and the 30% reduction in mobile termination rates.
Today, 49% of our customers enjoy our <unk> services.
17% of our subscribers are multi place customers consuming at least one of our digital services like jazz cash or tamasha accounting for 35% of our subscriber revenues.
<unk> cash continued to grow in Q1 2022 with monthly active users up 12, 2% year on year to $15 7 million.
The average revenue per users of Jeff's cache, among just subscribers are 40% higher than the average just average revenues per user.
We recently applied for a digital retail banking license to support our financial services offering and take it to the next level.
We strongly believe <unk> presents a real value opportunity for our company and for our shareholders.
Marcia.
The active users increased 35% year on year to $1 million and total watch time increased an impressive seven fold year on year.
So much of our user.
Is two four times higher than the average <unk> user group.
We have secured a 15 year extension of our spectrum license in nine hundreds and <unk>.
Hundred megahertz bands for.
For a total of $486 2 million.
We have made an initial payment of $44 5 billion rupees equivalent to $243 1 million U S dollars.
This payment was funded through a local banking facility, which matures in 2031.
The balance payable in equal installments over five years.
Turning to Kazakhstan.
Following the difficult start to 2022 services are rapidly restored to full operation.
The address in January was quickly addressed by the government.
Despite the loss of services in some areas for up to 10 days Beeline Kazakhstan's reported its fourth consecutive quarter of growth above 20%.
Two or three subscribers in Kazakhstan are <unk> customers driving the exceptional performance in revenue and EBITDA.
The growth of our data and digital revenue was up 39, 5% driven by the higher use of our digital applications.
Our financial services offerings simply.
Has reached 125000 users.
Users of our second brand easy a fully digital operator now exceeds 100000.
Due to the success of these and other digital services, our average revenue per user in Kazakhstan is up 21, 1% year on year.
Slide 16 is about Bangladesh growth in Bangladesh has accelerated in light in line with our decision to invest in our nationwide coverage via.
We recorded revenue growth of eight 6% year on year and the quarters gaining market share in Q1 with a full quarter revenue acceleration in the month of April to above 10%.
Our <unk> subscriber base was up 40% to $12 5 million and data revenues increased by 22%.
Over the past two years, our <unk> penetration in Bangladesh has more than doubled from 16% to 35%.
Driven by coffee, our video platform, 9% of our subscribers accounted for more than 18% of our subscriber revenues demonstrating the impact of digital applications and multi play subscriber base.
In March bundling launched the country's first digital health platform health hub.
With the goal of making healthcare affordable and accessible to millions of bangle issues.
We concluded the acquisition of a further 40 megahertz spectrum in 2300 band.
And again through our local banking syndicates.
This doubles, our spectrum holding in Bangladesh and ensures we retain the leading position in spectrum per subscriber.
We are progressing well with our rollout plans for 2022.
In Bangladesh our deals.
7400 strong tower portfolio has been ring fence and talks with potential buyers are progressing.
As Vicki Stern for a first time featuring alone.
A remarkable turnaround story for the group.
Our revenues grew 22, 6% and EBITDA grew 24, 5% and we are back to being number one in customer market share.
<unk> economy is opening up to international investors and this is encouraging us and encouraging us in our outlook for the country.
We will continue to facilitate the digital transformation of the countries for.
<unk> subscribers reached $4 7 million with a <unk> penetration of 62% and 12 percentage point increase year on year, one percentage point every single month.
This is in turn supported the 31, 5% increase in data revenues, which is a key driver of our overall performance.
Let me also give you a slight update on the other markets, Georgia reported <unk> subscriber growth of 16, 4% year on year.
Presenting a <unk> penetration of 71, 3%.
Revenues grew by 13, 7% and EBITDA up 22, 7%.
<unk> reported subscriber growth of 21, 5% year on year penetration of 63, 5% multiple customers more than doubled over the year.
Revenues grew nine 7% with EBITDA up 26 five.
Let me also mention Algeria.
We have not consolidated since Q3 2021, since we exercised our option.
<unk> remains one of the strongest brands in the country a role model enterprise and continues to perform strongly reaching high single digit growth in Q1.
Devaluation of the put option has been finalized and it is set at $682 million for our states and the operator.
We remain committed to ensuring a smooth transition as jersey is well placed to lead Algeria is digital transformation.
Let me focus some of our digital products.
The Fintech sites <unk> cash has increased its user base by 12, 2% year on year, serving $15 7 million customers and now also serving 145000 merchants a growth rate of 61% last year.
The total number of transactions processed by jazz cash reached $518 million up 43% year on year.
Gross transaction value for the last 12 months was close to <unk> five trillion Pakistani rupees.
<unk> 20 billion U S dollar equivalents.
This amounts to approximately six 5% of gross domestic product of Pakistan.
Looking at Entertainment services bundling choppy is the number one entertainment platform in the country and grew 87% year on year to $6 3 million users.
Over 75% of this user base or non bank lending customers.
With an average watch session of 20 minutes.
The entertainment platform Tamasha replaced just TV last October .
And has now more than 1 million monthly active users up 35% year on year with increasing levels of customer engagements rebranding of just DVS. The Marsha is a demonstration of our efforts to provide all access entertainment services.
Let me pause there and hand, the call over to silicon to discuss our first quarter financial results in more detail second.
Thanks, Paul good morning, or good afternoon to everyone in.
In the coming slides I will elaborate on the financial highlights in this Q1 trading update.
We have already stated in the notice to readers on slide three of this trading update the numbers presented today had been combined according to our interest standards.
And then reviewed by the management, but have not been externally reviewed or audited.
Moving first dollar revenues in Q1 'twenty two so strong performance across all of our markets with Kazakhstan, Ukraine, Georgia, and as Vic as Tom all delivering double digit growth.
Russia reported revenue growth of five 6% and Pakistan recorded growth of nine 1%.
This strong growth in Pakistan comes despite the changes to taxation legislation.
And the reduction in mobile termination rates, which impacted our revenues negatively.
Adjusting for these two developments underlying revenue growth in Pakistan would be double digit as well.
In Kazakhstan, the 20% growth revenue growth was delivered despite the headwinds from the <unk>.
On the risk in January .
The overall revenue performance for the quarter was supported by strong towards the adoption and the continued increase in data usage.
I would also like to highlight that reported revenues were impacted by high ethics volatility, especially in Russia, and particularly during the month of March.
<unk> mentioned the average ruble exchange rate used in our U S solar financial in March was $104 one.
Moving on to slide 22, which outlines our EBITA performance in greater detail.
Local currency EBITDA was up by five 7%. Although this was impacted by extraordinary charitable donations and employee support expenses in Kazakhstan and Ukraine.
Adjusting for these expenditures normalized EBITDA would be up by seven 3% year over year.
Very solid results.
Photo our operating countries, Pakistan, Georgia, as Vic said on Kroger's system witnessed double digit EBITA growth wind in Russia, EBITDA increased by two 8% year over year.
Marking four consecutive quarter of growth.
I must also note that the share of energy costs.
Opex is approximately 12% for the group and we have seen a notable increase in energy costs across our markets.
The overall effect on the group has been an increase of approximately 25% in energy costs, which is a significant increase for this expense line over.
Over at the time as we do for inflation in general, but even address the specific cost increase through appropriate pricing across our operations.
Yes.
Turning now to slide 23, I'll expand a little only be honest balance sheets.
Our total cash position stands at $1 9 billion, you're a seller.
One 3 billion U S dollar at the headquarter level.
This position is held in both U S dollars and Euro and highlights the group's continued strong liquidity position.
We have also made good progress on Algeria production. This evaluation process completed at $682 million of seller for other stake in GSE.
Our leverage ratio improved slightly versus year end 'twenty, one and it was two four times at the end of the first quarter.
At the group level gross debt decreased quarter over quarter, primarily because of the weakening ruble as well as the repayment of the bonds mature in March.
We are actively address our exposure to function banks.
Early settles to bilateral loan from <unk> in March and the group has no further position outstanding to the Pbms.
We are also winding down our exposure to suburban and Alpha Bank food innovation of 90 billion rubles by natural depth to our subsidiary in Russia.
I would also like to highlight that net debt excluding lease liabilities decreased to $5 4 billion.
Bringing our leverage ratio excluding leases to one eight times.
H good net debt also fell to three 7 billion.
Following the novation of the loss ruble denominated debt from suburban panel format.
Moving to slide 24, we show our debt and liquidity positions in detail.
Our gross debt, excluding leases reduced to seven 1 billion.
With a total cash position of $1 9 billion.
As I previous dimensions $1 $3 billion of this cash is at the <unk> level.
Our net debt currently stands at $5 2 billion, excluding leases and at seven $8 billion, including leases.
Looking at the currency breakdown, 45% of net debt is denominated in rubles Vista.
<unk> covered transaction completed in December last year, supporting our move towards a more balanced currency mix across our debt profile.
Turning now to slide 25, we have some details on the impact of the recently concluded 90 billion ruble debt duration to Russia.
Excluding Russia net debt at the group level stands at $4 9 billion.
With net debt at the Russian level totaling $2 $8 billion.
Moving to slide 26, we outline the group's debt maturity schedule.
As you can see from the chart, we have a favorable maturity schedule for the near term. There is no further material repayment at the HP level for the remainder of 2022.
Our next upcoming obligation is.
$529 million bond maturing in Q1 'twenty three.
Following by a $700 million bump in second quarter 2003.
It is also important to note that we have and continue to meet all our legal obligations for all interest and capital payments due on.
One of our depth in a timely fashion.
Turning to slide 27, we detailed changes in our cost of debt and average debt maturity.
In recent years, we have worked to increase local currency funding focusing to align our depth with revenues. While this is a positive development from a fixed perspective, it does come with a higher cost of debt.
Higher funding costs in some operating countries, particularly in Russia, and Pakistan after increases in Central Bank benchmark interest rates have also impacted our average cost of debt, which now stands at seven 7%.
Meanwhile, our average debt maturity remains stable at three three years now.
Now I would like to hand over to Carl for his closing remarks.
Thank you Sir.
We close our presentation.
With a summary of our priorities ongoing.
It will continue to be our number one priority is to protect our people.
And their families.
They are our major assets in terms of providing these services to the countries that we service.
Number two service continuity.
Is our priority when it comes to providing essential humanitarian services, reaching to our customers in nine countries.
And business continuity will be following the service continuity as we ensured the services are available and through the business continued to properly monetize in that order.
Three we will continue protecting in all circumstances, the good standing of our company, providing appropriate liquidity and capital structure.
Four.
All our businesses will continue to deliver growth.
And five.
Our active portfolio management.
<unk> focus on monetization opportunities as we execute our asset light strategy.
With these priorities in mind I would like to thank you for your attention to all the to 124 people who are online currently and I will turn over to Mick Silicon we can move.
Thank you.
Hi.
Afternoon, everyone again.
Just that thanks.
Thanks, So much for we've had now replaces coming already I think we're going to start off firstly with a question that's coming from Shah capital and rally.
Firstly that comments on the <unk> work, that's been done by key of stock.
First question in the Yukon is.
Why is there not listing jazz and Bangor linked on the restricted stock exchanges in a reasonable timeframe to unlock the the big value opportunity, which will also further improve our relationships with the governments.
Marcelo. Thank you very much for the question and thank you for your comments about the efforts and the spectacular work by especially Baidu premium team appreciate that of.
Of course, when it comes to financial results and decisions of the management more than efforts results count.
I would like to highlight that you have exactly pinpointed the right area of creating value. When we look at the sum of the parts valuation of our company.
It is no surprise that as the aggregator of multiple operators beyond name might be following to investors, but our assets, especially in Bangladesh with bundling brands and Jess in Pakistan, Our crown jewels of those economies are very much known by all the investor base.
It comes to local markets.
As the markets evolve and Mark capital markets develop in these countries.
We will be looking forward to looking how we leverage this from the best perspective of our shareholder base.
And we can proudly say that we.
Congratulate you for pointing the opportunity and it will be on our radar.
The next question in a similar vein is wise beyond lots listing jazz cash.
And potentially even selling a stake that fintech players unlock some of the hidden value in jest cash are looking value whether on public platforms or private platforms is clearly a high agenda item for us with regard to Jeff's geis, we have been implementing our strategy step by step and recently <unk>.
Implementing in applying for the digital banking license is an important milestone as we progress we will explore both public and private opportunities as we create value for the company.
<unk>.
The next question is coming from extra capital in London.
And maybe if you can comment on how the conflicts in Ukraine has impacted the performance both in Russia, and Ukraine with respect to the operations potential network investments in demand.
So thank you very much material that Darius and thanks, a lot for your continued support of our company and confidence I'm very glad to see shareholders like yourself and taking attention on our company's operations and investments.
Clearly the conflict is impacted on our operations in both countries and especially when it comes to our <unk> operations. The humanitarian disaster has been observed on a day to day basis by our people on the ground themselves under the impact as well.
The nature of the business in these difficult times as people increase their mobility and almost 70% of the people, including our employees have been moving from their homes alternative locations was visible.
Our offices are open those shelters not only to our people and their families. But also people on the road.
Most of our employees are working from different locations today about 10% out of the country.
In the last two years call. It has taught US a lot in terms of how to keep a company up and running from remote locations.
Whether our people are outside of the country in the country in different cities or in shelters, we manage the continued work and support.
Customers in the best way weekend and that showed actually its impact in terms of our network.
Operations, only 8% as of yesterday of our base stations are not operational.
We will be looking forwards to reconstruct the network and repair to a 100% levels as soon as the conflict stops.
And as you can imagine it's currently the investment plans that we have created for trading in Russia is not going to be continuing as the plans work and.
And the demand continues to be at the same levels. Despite the fact that it is coming from maybe different revenue lines.
Not necessarily from consumer business, but from roaming from international.
Activities and so forth.
And we expect actually this level of operation to be supported by us and continuing to see even in the month of April double digit growth in Ukraine and despite the difficulties.
And the next question to use there Ken.
Also from.
What is the magnitude of Capex delay to preserve liquidity and over what timeframe do you expect to catch up on our initial capital investment banks.
Thank you rich.
First of all I should say that we have made sizable investments, especially in forging networks. During the last couple of years across our footprint.
And as a result of this our capex investments.
Natural is slowing down.
Because of the sizable investments in the next in this in the previous couple of years.
So.
Having said that our spectrum acquisitions and local companies and the Capex plans in all of course are fully funded locally.
So our HP cash is immune from the Capex rollout unabsorbed investments in acquisitions and licenses are immune.
So.
As a result, we expect our capex in 'twenty two in absolute numbers to be lower than the capex investments that we did in 'twenty one.
And thank you.
And then last question for <unk>.
A achieve corn could you maybe provide an update on potential nonoperating source of cash over the next couple of years tower sales of urea puts or any other options cycle financing et cetera.
Thank you and then as you have.
Heard from US we are executing and we continue to execute on our asset light strategy and this started with the sale of our towers last year and Russia, we've generated almost $1 billion of cash and it will continue with our execution in Pakistan, Bangladesh, Pakistan and Ukraine.
All our tower assets are ready to be crystallized in terms of value. We truly believe that no. Operator today can afford to run its own towers network sharing and independent tower operators are effects of our new reality and will drive the de layering of the telecom industry and Jim will be pioneering that chain.
Yeah.
In addition to tower transactions, we also believe that private and public placement of our digital assets, whether it be entertainment platforms like Turkey or financial services platforms. Like just cash are also important value creation opportunities.
You should also not forget that local markets are getting stronger and our brands are ripe for local investors in certain countries, which will also consider when the rights climates approaches.
I would like to also highlight Algeria.
We have been working with the Algerian government and the sovereign fund of Algeria in a very cooperative manner over the last year and finally, our final valuation of our stake has been agreed as we have indicated in our press news at $682 million.
We do expect continuation of our share purchase agreements as plans and that will be over the next couple of quarters.
I think that summarizes the noncash opportunities that we have in front of us.
The next question comes from Goldman Show New York.
This is to use <unk> for Kazakhstan, which has helped them to the Russian business, while we're able to separate the shops in Canada and provide additional credit support for the bonds.
Thank you Nick first of all it is true that our we are holding our breath.
Patients via a impact in Russia.
Historically there.
However in the last couple of years, we have restructure of our group.
Shareholder structure, and we have moved our investment in <unk>.
Romania is Vicki Stern resetting Cougars system from Vimpelcom umbrella to re arm holdings umbrella.
And we are working a similar transaction for Kazakhstan as well.
With other cost of operations as well. So we are working on it and we will we will decide that executes.
The best interest of our shareholders and all the stakeholders in the coming months.
And then on the other real base sits at the Holdco debt funding for the interest they come from Holdco from the rest of the subsidiaries.
The issue has been holding steady.
The depth of services with <unk> holdings.
Great.
But quite a number of questions. So I'm going to just group a few of them together I think will first jump onto some liquidity questions and.
Maybe you can follow the immunological sequence.
And can you just update us on the current liquidity and cash seats from our headquarters perspective.
Okay.
As we discussed in the presentation that we have $1 $9 billion cash at the group lowest end of March.
Also of which $1 3 billion as at HQ.
Until end of the year to date and also added debt repayment obligations.
At this point is in February next year.
<unk> of the innovation of the ruble debt to ratio.
<unk> costs staying at the HP level for distributors around $245 million or so.
And could you give us an update on the revolving credit facility.
Yes.
As again as you know.
<unk> utilized $430 million from our chef back in February and we use that amount to retailer the bond maturing beginning on March.
Currently we have 692 million U S dollar.
Committed undrawn facility that amount is after the cancellation of the committed lines from <unk> and <unk> in Russia.
As a result of new legislation in Russia, they had to cancel their commitments.
Our CFS it too so <unk> Alpha bank in Rockford in Russia are not still in the Rss.
And then <unk> can offer innovation of the ruble Davis is Russia still have intercompany gets to headquarters.
Yes, they do.
Sure.
After the <unk> innovation 90 billion.
Above that we have cancels.
Same amount of intercompany loans and also we have released the on holding stevia from from its current position, but after this transaction, we still have around 50 to 70 million ruble intercompany debt and Google plus we have 125 million U S dollar debt.
As well.
From winter come towards the end of holders.
Great.
And then could you comment on how much cash Russia upstream to the group.
Currently there is no possibility of any upstream because there are certain capital controls put in place in Russia.
Unless vimpelcom has certain licenses from the Ministry of finance.
So cost share counts.
<unk> has applied to the Ministry of finance for a license and it is still waiting for the approval of the Ministry.
However, having said that we are not planning.
Upstream material up streaming of dividend from Russia. This year, so there won't be any significant impact of our plans for this year.
Great. Thanks, Colin it's another Christa could you can you update us on the cash requirements from our operating entities.
So about two years ago, we started the decentralization of our company and that really also touch the governance structure as well as the way we decided on capital allocations, we have completed that decentralization to the level that all our operating companies can stand on their feet and they do not necessarily acquired cash inject.
<unk> from us.
And even when we do major renewables of licenses or spectrum acquisitions, we have a mechanism in place and availability of the credits from local facilities. So that we can fund them locally so that has been out.
Ultimate objective and glad to see that over the next 12 months, we do not see any need for injecting cash to any of our operations.
Positive con or are we going to be providing any updated revenue and profitability guidance on a group level for this year.
Although we see our monthly operations and the impact I think it would be unfair for us to provide any guidance for 2022, So I will refrain from that.
Moving now to a couple of questions on Ukraine.
And also to use corn, what challenges are you facing in keeping the network running in Ukraine.
So first of all the team has done a great job really on the availability of our base stations have so.
Different from 800 to 1200 over these days as we continuously fixed.
The base stations provided gasoline for the generators as well as build over 200 new ones.
I expect this efforts to continue and.
Currently we are at 92% availability on our radio area network and 100% availability on our core services.
Great. Thanks, and how is the conflict impacted the operational performance in Ukraine.
As I mentioned.
Operational performance is of course has two important components service continuity and business continuity I think we did a great job on both fronts there.
There has been instances of courseware, we hedged.
Specific outages regionally and they have been all address at the right time I wanted to think specifically for enabling the national roaming I think it was.
Historical moment when the two operators decided to do national enrollment so that our network are two functions as one being redundancy factors.
And secondly, I also would like to thank to support our.
Customers, who are outside of the country in refugee status.
Seven operators from Europe . They all participated in lowering the cost of interconnection and roaming services and <unk>.
Thanks to them as well.
Thanks, and then a couple of questions on Russia.
Can you describe the impacts of the Russian economic conditions on aegis event become and while the current environment.
<unk> impacted but it's deployed network across Russia.
I'm sure you are well aware of the impacts of the sanctions, but specifically.
There are two issues in terms of the volatility of the currencies, which we have seen resulting in our operations and our reported results as you have noticed during the month of March our average rubles currency, if youll look to weighted average day to day basis was $104 one.
So that of course has a major impact, but more importantly, I think we should be focusing on export controls clearly there are different lenders that are supporting us and they have different ways of addressing these issues clearly we have all.
All the means to continue our investments as far as the compliance is required but I can see that as we move on.
Thankful that we have completed most of our infrastructure investments in the past and that will give us the quality of the service that we provide from any mandatory perspective in Russia.
Great.
And then to use again, what does the current environment mean for our Capex guidance for 2022.
Due to the ongoing developments of uncertainty, which is difficult to give a guidance for capex. However, what we can say at this moment in time, you should expect and lower Capex.
Number compared to <unk> 21, this year as we look to preserve liquidity across the group.
And <unk> status of the Algerian put option.
Prices and how that strength.
I tried to explain is doing my summary, but it's been a very collaborative and positive dialogue with the national settlement forefront of Algeria that was predefined process and the predefined process required a third evaluation. We are done with that so the next step is follow the rules explained.
Our shareholders' agreements, which is again is going to be done according to the plants.
Great.
Thanks, very much gentlemen, and thank you very much for everyone to solve in another a number of individual questions defeat that we didn't cover I'll make sure we come back to each each question individually. We will also be coming back to all of you both John and C. C. Our lasers from corn as well as on our next quarterly results. So thank you very much everyone. If you have any additional questions. Please reach outs and our.
Architectural thank you so much. Thank you. Thank you all.
Okay.
Yeah.
Yeah.