Q3 2022 VEON Ltd Trading Statement Call
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Good morning, and good afternoon, ladies and gentlemen, and welcome to <unk> third quarter trading update for the period ending 30 September 2022, Omnicare, So again speak director of Investor Relations.
I'm pleased to be joined in the room today, Bob <unk>.
Yeah.
Well as chicken <unk> our group CFO .
Today's presentation will begin with an operational other useful corn, followed by financial review from sick and then Collin will come back before we move to the Q&A.
All participants will be in listen only mode and the question answer session today will be facilitated through the Q&A function in the wavelength.
If you could share any questions you have in the Q&A function, we will look to answer as many of the questions. We can in the Tommy lawsuit.
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 company's anticipated performance in operational guidance.
Your market develop and some change.
Operational network development genetic conditions, and the company's ability to realize its targets and commission 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.
And other recent public filings made by the company with the ECB.
Yes.
The trading update in the presentation.
It can be downloaded from our website with that let me hand over to Carl.
Thank you Nick once again, we started today with a song from Pakistan.
Condemn the assassination attempt to even brand com ambition quick recovery.
Good morning, and good afternoon to all and welcome to the presentation of our third quarter trading update.
The third quarter has been another quarter of solid operational execution, despite the numerous macro and geopolitical challenges.
Our teams continue to show exceptional focus and our business as a whole continues to deliver growth as we will share with you in today's presentation.
Before starting I would like to thank all of our teams, especially our colleagues who.
Who are keeping kids start with customers and the broader community is connected at home and abroad I.
I would like to also thank our shareholders and investors for their continued.
<unk> in our business.
We will do all you would also have seen our announcement from yesterday that beyond is conducting a competitive sales process in relation to its Russian operations.
This is being done in a manner that we hope will ensure that an optimal outcome is achieved for all relevant stakeholders.
Now, let's review some key figures for the third quarter.
Group revenues grew by three 6% year on year on a reported basis with service revenue growth of seven 9%.
In local currency terms revenues grew up three 4% and service revenues were higher by seven 8%.
Excluding Russia, and Ukraine are local currency revenue growth was by up by 14, 6%.
Our mobile ARPA grew in all markets supported by the implementation of inflationary pricing measures and execution of digital operator strategy.
EBITDA for the quarter was up <unk>, 7% year on year in local currency and flat on a reported basis. Please keep in mind, Georgia contributed to results last year having.
Having a negative 0.6 impact on reported year on year growth.
With more subscribers higher <unk> penetration and an expanded portfolio of digital services supporting multiple a conversion we are driving revenue growth across all countries.
This inflationary pricing and good cost management all of our operations with good top headwinds in particular, the rising energy costs changing tax regimes and natural disasters in Pakistan and ongoing humanitarian crisis Greg.
Our Capex Capex intensity was down from 25, 2% to 21, 6% at three six percentage points year on year decline with a capex of $404 million in third quarter.
We continue to prioritize maintaining a healthy cash position.
We have $3 3 billion in cash at the group level and out of this $2 6 billion at headquarters level and our operations remain largely self funding now.
Now, let's move on to our operational performance.
We delivered another quarter of balanced growth as we expanded our total customer base, adding almost one 7 million subscribers within the last 12 months, while increasing our pool across all our markets at range at rates ranging from 1% to 12% year on year.
Our <unk> users increased by 15%.
With over 400.
With over 107 million <unk> subscribers, we have expanded <unk> penetration to almost 63% and we continue to make progress towards the 70% penetration Mark that is our target for the group.
With significantly higher ARPA and lower churn for GE users remain key to our growth.
Supported by increasing penetration of <unk>, our data and digital revenues were up 14, 9% year on year in local currency terms.
This is almost double the pace of overall local currency service revenue growth.
Our continued investments in <unk> as an important enabler of this growth and our digital operator strategy, which I'll expand on the next slide.
On slide eight we will talk about our digital operator strategy execution.
Our multi play subscribers, who are users of at least one of our digital services on top of being a <unk> data and voice customer have increased 25% year on year and reached $33 million.
They account for 21% of our subscriber base, but delivered 41% of our subscriber revenues showing the highest revenue generation potential of our digital operator strategy.
In the third quarter.
<unk> of multi play customers was four three times the <unk> voice only users while their churn was only 40% of the churn of voice only users.
Let's talk about the details of some countries.
We achieved service revenue growth across all our operations supported by a higher subscriber base higher <unk> penetration increase the engagement with our digital applications and disciplined inflationary pricing.
We also saw good momentum across most of our markets in terms of underlying EBITDA, which I will cover on the oncoming slides.
Let me now take you through the individual performances of each of our larger markets I will start with Ukraine.
Our team in Ukraine continues to do extraordinarily work they are doing a tremendous job seeking keeping crane connected and rebuilding the country's infrastructure.
Around 90% of <unk> network sites are operational at the end of September .
Since February <unk> start has built around 400, new <unk> base stations upgraded around 1200 base stations to <unk> and modernized around 4800, <unk> base stations for higher throughput.
In Q3, 2020, 221 settlements were reconnected to the gift store network more than 250 damage sites were repaired and more than 11 kilometers of broken fiber optic cable where to place.
Supported by extraordinary effort, maintaining the <unk> network start continuously increases <unk> customer base, serving more customers with essential high quality mobile internet connectivity.
Outside of grade millions of premiums continued to be supported by <unk> stars roam like home services with the partnership of European operators and regulators in Ukraine in Europe .
These services were extended until the end of this year and we would like to thank all of our partners and industry associations for their continued support.
The inside and outside of Ukraine.
An unwavering focus on keeping our customers connected as well as enabling them with access to essential services, such as healthcare and education.
While protecting their privacy.
<unk> data.
In August 2020 to Kickstart announced its investments in healthy gray hair.
<unk> is the country's largest medical information system and the leading digital healthcare providers with some 698000 monthly active users on its digital lab, making more than 550000 appointments in September .
In these exceptional circumstances <unk> stock has delivered another quarter of solid results.
With revenue growth of five 2% year on year.
Given the current operating environment include including increased energy tariffs exceptional costs due to our employee support and charity programs and the change of profile of our revenue streams EBITDA in Ukraine was down 10, 7% year on year.
Let's turn to Russia.
The Beeline team continues to focus on providing essential connectivity services to its 46 million subscribers, 92% of our Russian revenues are related to provisioning of essential Telecom services.
Your line recorded year on year growth in both service revenue and EBITDA.
Total revenues were impacted by lower handset sales, which declined almost 6% year on year.
Service revenues rose by two 2% year on year, and EBITDA increased by seven 3% as margins expanded.
To date Beeline has $25 7 million <unk> users and <unk> users account for 60% of Beeline, Russia total customers.
Today, we announced that <unk> has initiated a competitive process for potential sale of its Russian operations.
While we have not committed to any particular outcome and cannot be certain yet how this process will develop.
I want to emphasize that our priorities have not changed we are committed to keeping our customers connected and satisfied and supporting the safety and wellbeing of our employees.
Let's have a look to Pakistan.
Jazz is growing at double digit pace with total revenue up 12% year on year. This is ahead of overall market growth.
This was achieved despite five percentage point increase in withholding tax and more than 40% reduction in mobile termination rates compared to last year as well as overall macro challenges that range from the economy game environments to recent floods.
In the third quarter local currency EBITDA was down six 8% year on year.
In addition to market the impact of higher withholding tax and lower termination rates year on year EBITDA performance was impacted by 25% inflation as well as a 140% increase in diesel prices and the 70 percentage points increase in electricity prices.
The higher utility prices had a drag of almost six percentage points on EBITDA margins.
Despite these challenges <unk> was able to achieve double digit growth in Q3 with continued expansion of <unk> users in its customer base and it is accelerating growth of multiple customers as jazz expense is digital operator offerings.
As of the end of the quarters, just has reached 54% <unk> penetration in their customer base.
Any percent of subscribers are multiple a customer's consuming at least one of our digital services like <unk> cash and Tamara.
This 20 play multiplayer subscriber base accounted for 42% of our subscriber revenues in Pakistan.
Focusing on growth of specific digital services, just cash expanded its monthly active user base by 20% year on year, reaching $16 $7 million.
The our pool of users of just cash among just subscribers is 40% higher than the average as our <unk>.
For Tomo, Russia monthly active users increased five four times year on year, reaching $3 3 million at the end of the quarter and at the end of October reaching $4 8 million of their broadcast of the cricket tournaments.
Total watch time increased an impressive 22 fold year on year with average daily users up four two times, reaching almost half a million.
So Marcia users <unk> is two five to four times higher than the average just ARPA.
In Q3, the growth of data and digital revenue in Pakistan was 26, 5% driven by higher use of our digital application and increase in number of multi play users.
It is great to see market share gains in Pakistan.
Let's move to Kazakhstan. This was the sixth consecutive quarter of more than 20% topline growth for beeline Kazakhstan's.
Our team continues to gain market share and maintained leadership in net promoter scores.
With 69% penetration of <unk> users in its customer base.
<unk> has nearly reached the group target of 70%.
This strong core <unk> penetration continues to contribute to exceptional performance in revenue and EBITDA growth.
Last year's third quarter.
<unk> performance was positively impacted by our government grants for radiofrequency, Texas adjusting for this beeline Kazakhstan's EBITDA grew by 17, 8% year on year.
Growth of data and digital revenue was 25, 3% for the third quarter.
Given by higher use of digital applications and an increase in the number of multiple users.
The rising penetration of Beeline, Kazakhstan's multi play base and successful monetization of <unk> as a whole has pushed higher by almost 11% year on year.
Once again, our digital operator strategy is delivering results and beeline Kazakhstan's portfolio of digital services continue to develop.
The financial services offering simply.
Has reached 159000 monthly active users since its launch in June 'twenty one.
<unk> TV now exceeds 634000 monthly active users we continue to gain market share in Kazakhstan.
<unk>.
Our decision to accelerate the network investments in Bangladesh continues to deliver results.
For the second consecutive quarters bundling recording recorded double digit growth of quarterly revenues at 11, 6% year on year.
Visits for GE focused strategy and growth rates that are twice what the overall market in Bangladesh as seen in the first nine months of the year bundling continues to gain market share and transform the market.
In the third quarter, our <unk> subscriber base up 31, 7%, reaching nearly $15 million.
Over the past two years, our <unk> penetration almost doubled from 21% to 41%.
Driven by higher revenue generation of our <unk> users data revenues increased by 21, 4%.
Within the <unk> customer base multiplied customers are also growing significantly accounting for 11% of subscribers and 23% of subscriber revenues.
Ongoing expansion in the user bases of Toffee, and my VL South care application and they are a conversion into <unk> customers will be among the key drivers of bundling future growth.
Okay.
As Vicki Stan <unk> has delivered another quarter of quarter of more than 20% revenue growth and remains the market leader in terms of subscriber market share in.
In Q3 revenues grew 22, 4%.
Both revenue and EBITDA were impacted by a number of one off items adjusted for these one offs revenues increased by 27, 7% service revenues grew by 27, 9% and EBITDA was 17, 1% higher.
<unk> subscribers cross the $5 million milestone with <unk> penetration at 64% seven percentage point increase year on year.
This in turn supported a 48% increase in data and digital revenues, which are key drivers of our overall performance.
Let's have a look to our digital products.
The Fintech side, just cash increased its active user base by 20% year on year, serving $16 7 million customers and now also serving more than 160000 merchants up by 82% over last year.
The total number of transactions processed by just cash in the third quarter reached $522 million.
Eight 7% higher versus last year gross transaction value for the last 12 months was close to $3 90.
<unk> nine trillion Pakistani rupees.
It is almost 30% year on year growth.
This transaction volume represents approximately 6% of Pakistan 2020 to GDP.
Looking at Entertainment services bundling choppy is the number one entertainment platform in the country.
It grew 11% year on year and enjoys increasing engagement rates with daily active users, increasing 55, 1% year on year to reach $3.3 million.
Football lovers.
From all across Bangladesh will be able to watch the livestream of all FIFA World Cup matches. This year on trophy from any network with any internet connection.
Similar high engagement trends are also visible in the performance of Tamara.
The largest homegrown video streaming platform in Pakistan.
Russia now has <unk> monthly active users as of Q3 end.
Five four fold increase over the year on year.
With increasing levels of customer engagement in October tamasha abroad.
Definitions and <unk> AD free streaming of the cricket World Cup to all mobile subscribers in Pakistan.
Which contributed to the further growth of its monthly active user base, reaching $4 8 million end of October .
In Kazakhstan, our simply offering has reached almost 160000 monthly active users and overall fintech business achieved more than one 5 million monthly active users. The total value of transactions grew three five fold year on year to 74 billion tengiz.
I am very happy to see the traction with our digital services and execution of our digital operator strategy.
Let me pause here and hand, the call over to <unk> to discuss our third quarter financial results in more detail.
Thanks Carl.
And with us and to all the participants.
On the following slides I will elaborate on the financial highlights for our third quarter and nine months results in more detail.
For the first nine months of 2022 reported solid local currency growth in both revenues and EBITDA.
Service revenues and EBITDA were up by four 7% and two 8% year on year in reported currency respectively.
We noted previously Capex for this year will be lower than we originally anticipated and also lower than last year.
For the first nine months Capex was one two.
2 billion U S dollar down by eight 4% year on year.
Moving now to slide 19, which covers the same metrics for the third quarter.
Similar to the nine months results, we saw strong local currency performance in revenues one group EBITA year on year performance was impacted by a number of extraordinary nonrecurring items in the third quarter. This year in the third quarter last year.
As noted in the concert performance section or the trading update.
Excluding these one off items group EBITDA increased by one 9% year on year in local currency.
On the coming slides I will discuss the quarterly performance in more detail.
Moving first to revenues on slide 20.
Third quarter saw solid service revenue performance across all of our markets.
Especially with Kazakhstan, and Uzbekistan, Kyrgyzstan, among the nations Pakistan.
All delivering double digit growth.
In Ukraine, we achieved five 2% year on year revenue growth. Despite the current operating environment.
<unk> already mentioned this is a testament to our team in Ukraine.
In Russia reported revenue was negatively impacted by lower handset sales due to supply chain issues.
Service revenues were up by two 2% year on year.
Our non telecom related revenues in Russia continued to decline and constituted seven 9% of total group reported revenues in the third quarter. This year.
Versus 10, 4% in Q3 last year.
In Pakistan revenues were up by 12% year on year.
This strong revenue growth in Pakistan comes despite the negative impacts or changes in taxation legislation and the reduction in mobile termination rates.
Overall revenue performance for the quarter was supported by strong <unk> adoption continued increase in usage of our digital services and various price initiatives.
Moving onto slide 21, which outlines our EBITDA performance in greater detail.
Local currency EBITDA was up by 0.7 percentage percent year on year. Although this was impacted by a number of one off items, which con has already covered.
The underlying performance remains balance and adjusting for these one off items normalized EBITDA would be up by one 9% year on year, which is an encouraging result, considering the headwinds we face.
As Vicki some kyrgizstan, Pakistan, Russia, all reported strong local currency EBITDA growth.
It is important to note that the EBITDA growth in Russia, now marks the sixth consecutive quarter of year on year growth.
Similar to the first and second quarters energy costs remain a challenge in multiple countries.
Energy costs rose by around 44% year on year, which is a significant increase for this expense our expense line.
However, inflationary pricing and good cost management have enabled us to withstand rising energy costs changing tax regimes natural disasters in Pakistan and the humanitarian crisis in Ukraine.
Yes.
Turning now to slide 22, I'll cover some important balance sheet metrics.
Our total cash position stands at $3 3 billion your installer with $2 $6 billion at the headquarter level.
This is held in both U S dollar and Euro and highlights the group's continued strong liquidity position.
Regarding Nigeria production with transaction was officially closed in August upon receipt of $6 83 million U S. Dollar.
Our leverage ratio was largely impacted by the quarter on quarter decrease in net debt due to cash received from the sale of Algeria.
As well as depreciation of ruble Pakistani rupee boundary shape, Tucker and euro against U S dollar during the quarter.
At the group level gross step was much attributed to the quarter over quarter depreciation of the same local currencies, resulting in lower reported currency levels or bonds bank loans and lease liabilities.
Native in these currencies.
I would point out that at the headquarters level. Our net debt is around three 3 billion U S. Dollar.
We will also have seen the announcement that we owned limited invited non function.
23 bondholders to contact we are limited in order to engage in discussions with them.
We will update the market further on this in the coming weeks.
Yeah.
Moving now to slide 23.
We chose our depth and liquidity positions in more detail.
Our gross debt, excluding leases decreased $8 3 billion with a total cash position of $3 3 billion.
As I previously mentioned $2 6 billion total cash is at the <unk> level.
While we have a railroad a negative cost implications or carrying such a large cash balance. We believe that this is a reasonable and justified considering the current we'll time situation.
Our net debt currently stands at $5 $1 billion excluding leases.
$3 $1 billion in capitalized leases.
Looking at the currency breakdown, 43% or net debt before leases and 75% of our leases are denominated in rubles.
Moving now to slide 24.
Summarizes the depth and liquidity of our accretions in Russia.
Gross debt, excluding leases with $2 5 billion.
All of which about $900 million represents intercompany debt to each group.
Leverage excluding Mrs is a one five times.
After adjusting for capital leases of $2 3 billion the leverage ratio in Russia is 2.27 times.
Moving to slide 25 here, we outline the group's debt maturity schedule.
As you can see from this chart of our maturity scheduled for the near term is manageable and we have no further material repayments at each level for the remainder of 2022.
The Rcs, which we drew down earlier this year can be rolled each period until final maturity in 'twenty four and 'twenty five.
Our next obligations of $3 9 million U S dollar bond maturing maturing in Q1 next year.
Followed by a $700 million bond in the second quarter of 'twenty three.
You can also see on the left side of the slide that our current cash position is three 3 billion U S dollars.
It is important to note that we continue to meet all of our legal obligations.
All interest and principal payments.
On our debt in a timely fashion.
Moving to slide 26, which detailed changes in our cost of debt and average debt maturity.
The increase in our cost of borrowing.
First quarter this year.
Due to increase in local currency funding, which was focused on aligning currencies over depth with revenues in respect to operations.
In the third quarter cost of debt continues to decline to six 8% impacted by the drawdown of our shelf and use pillar in the previous quarter.
However, rising interest rates globally will put further pressure on our cost of funding in local currencies.
Which have floating interest rate portions as well.
Our average debt maturity remains at around three years is our CF is rolled over until maturity.
Let me now hand over back to come for closing remarks.
Thank you second let me close our presentation with a reminder of our priorities.
As I have reiterated each quarter this year protecting our people continues to be the number one priority of our group.
We are providers of an essential humanitarian services.
Helping keeping more than 200 million customers in seven countries connected.
Throughout these challenging times, we will continue to protect the good standing of our company seeking to maintain appropriate liquidity and capital structure.
More on this will be disclosed in the coming weeks.
All of our businesses continued to deliver as we successfully transition to becoming an asset light digital operator.
Our active portfolio management has enabled us to further concentrate on markets with significant growth capacity.
We'll have a critical mass of potential customers and regulatory frameworks that will that are conducive to the digital operator model.
We maintained our focus on monetizing the tower assets and becoming an asset light operator.
In certain countries, we are already at an advanced stage of this process, having preliminary discussions with potentially interested parties on our tower portfolios.
As I already mentioned in the beginning you would also have seen our announcement from yesterday that we are conducting a competitive sales process in relation to our Russian operations.
At this moment, we would not be able to discuss the details of any.
Additional detail on this process.
With that I would like to thank you for your attention and I will hand over to Nick So that we can move to the Q&A session.
Thank you.
We have received a number of questions already three the webinar on piece. If you have any additional questions. Please submit them through and we will do our best to answer as many as we can and those will be done cover our come back to you on an individual basis.
I'm actually kind of first question for you.
Why is beyond making the debasement of rationale has been prompted by any initial government request.
Thank you and thank you for the question. The answer is a clear no. This is not being pushed for a certain type of a decision. We are taking a business and commercial decision and we basically announced a process a competitive process that has been ongoing.
It's also important to understand that we will make the best interest of company decisions for all stakeholders, including our shareholders creditors employees business partners and every person that is doing business in Russia with us.
I'm clearly excited with one test.
Over the last two years, we have built a strong successful business in Russia.
And I'm glad to see multiple partners from the spectrum of competitors to Russian businessman and also our management to be excited about this opportunity.
We will run this competitive process and we will keep the market posted.
With any other developments. Thank you. Thanks.
Thanks.
Second just a question for you.
Would you consider buying back your longer dated bonds given the current pricing.
Thank you Nick.
As we have also discussed in our second quarter results earnings call. Our recent priorities to keep a strong liquidity position at the group level.
For which we have further increased our cash balance at the EC level to $2 6 billion Youre a seller at the end of the third quarter.
In the meantime, we are also currently evaluating various options around our overall capital structure.
Thanks.
Coming back to you and could you maybe give us an update on the status of the tower transactions.
About a year ago, we sold our towers in Russia, and since that disposition, we still have almost 36000 towers in our portfolio, mostly concentrated in Bangladesh, Pakistan, Kazakhstan, and Uzbekistan, and Ukraine now clearly we have been.
On these tower potential.
Monetization process voting to various parties and as I mentioned before some of these especially in Pakistan and Kazakhstan have come through quite a long process to coming to.
And then we.
We'll continue sticking to our strategy of being an asset light operator, I strongly believe that towers is not an asset that needs to be owned by the telecom operators independent tower companies are much better positioned to create optimization of costs as well as multi tenancy execution on the sales side.
So we will stick to that strategy.
Thanks, and another question for you.
Comment on the ability to increase pricing I think is particularly relevant in the current environment, where we're seeing increasing traction across the globe.
Clearly the macroeconomic environment around the world is having inflationary impact all around the countries for us when we look into our market and making markets investment decisions. We look to markets with specific criteria. In addition to markets being having demographic dividends population growth low penetration of search.
Mrs Technology <unk>.
Openness to adjacent markets to us to be a player. One additional criteria is retail price controls, we will see retail price control capability and our execution capability of inflationary pricing as a must have in terms of end markets criteria. So far I am very happy with the performance on.
This inflationary pricing is not presented as you know just increasing the prices, but also moving to a more for more strategy. We provide more cricket more football more music more financial services and the access to additional volume share in the markets that we operate so.
I am happy with the execution.
Thanks, and second back to you just have you been able to make any interest payments from Russia on the intercompany debt and can maybe just update us on the contract the current.
Intercompany debt.
Thank you Nick regarding the interest payments during the second quarter of this year, we applied for a license.
So the minister of finance in Russia.
After obtaining the required licenses from the Ministry, we received an interest payment on the intercompany debt from input coming through.
For the second quarter. However, in Q3, we haven't received interest payments from Russia.
Regarding the quantum of inter company debt following an innovation of two commercial loans from HP level to input from level in the second quarter.
And also recent netting of various intercompany positions in the third quarter.
At the end of September the approximate.
Overall outstanding debt into combat depth of input <unk> HTS around 50 billion ruble on which we are charging floating in some parts of it fixed fixed interest.
And payment of interest on these intercompany loans remains subject to obtaining record approvals from the minister of finance in Russia.
Thank you.
Colin could you maybe update us on the prices around the restructuring the ownership with Kazakhstan.
Kazakhstan is a market, which is actually mimicking our strategy in an excellent way. If you looked at Kazakhstan, we have four important businesses running in parallel one on one side, we have our towers company, which has established this year owning our towers, we have our company, where we have 50% market share.
Holders the fiber business and on the other side, we have our telecom operations cartel, and our Fintech company I am happy with deferred performance of all companies in this picture, we will continue executing our strategies in terms of being an asset light company in Kazakhstan, but we have no intentions to sell Kazakhstan. It is one of our.
Blue Chip markets and we will address this issue in line with our process in Russia.
Thank you and another question for you would.
Would you consider sort of individual listing subsidiaries such as such as Pakistan.
Just in Pakistan bundling in Bangladesh. These are blue chip brands and I'm sure. The investors in these countries are dying to own part of these brands. So we will be keeping an open mind into this and we will explore if there are.
Enough interest in these markets for us to look forward local ipos again, nothing decided at this moment, but we will keep the market updates about this.
And second could you maybe just update us about why youre engaging with bondholders.
We can take 1% of the subject over the last eight months since February of this year.
We have successfully strengthened our liquidity position.
And this remains still remains a very.
Prior to for us going forward.
In addition to that.
We will leverage our local operating companies, which continued to be largely self sufficient from their financing perspective.
And in the meantime, we have also made good progress optimizing <unk> capital structure towards the longer term.
So taking into consideration these challenges that we may face in the local markets in the current environment. So this is very important for us to have a longer term perspective in this context, we would like to engage in discussions with our bondholders.
Our indirect subsidiary on Holdings TV, only 42 fin notes, which I mentioned that stable between April than February of next year.
Explore alternatives and affordable.
Thank you and what will it be proposing to bondholders.
Actually the only limited which is making the discussion with the bondholders 'twenty three bondholders.
Firstly like to intend to discuss this with the larger holders or 'twenty three bonds in a private.
Discretionary restricted basis and as soon as such discussions conclude then we expect to be in a position to update the market in the coming weeks okay.
Alright, Thanks, Rick I'm, sorry, one more question on the same topic.
Are you looking to refinance and what are you doing around this and what would happen if your concrete and agreement with the bondholders.
In the current circumstances, it would be very difficult for beyond taxes of depth and capital markets.
For various reasons.
And has the refinancing is currently not feasible from our perspective.
So therefore these discussions related to our short term 23 notes only not the longer ones, which represent approximately $1 $2 billion over total depth.
Since beyond limited discussions with the larger bondholders still ongoing at this stage.
We cannot comment in further detail, but we are confident that we can reach a mutually agreeable solution with the bondholders. Thanks very much and thank you very much everyone for your time today and for the questions. You've submitted an idea of why don't you more questions that have come through which we will get back to you individually. After this call.
I think we're out of time. So thank you very much for your time and appreciate you dialing in thank you.
Thank you.