Q1 2023 VEON Ltd. Earnings Call
Speaker 1: Over a two-year period, we have seen now local currency revenues increasing 30% and local currency EBITDA is up 19.8%.
Speaker 1: Vion maintains its healthy liquidity position and the group reporters cash and cash equivalence totaling 3 billion with 2.5 billion of that at the headquarters level at the end of March.
Speaker 1: Looking into our revenue performance greater detail here, I have, we have delivered and five consecutive quarters of double digit local currency revenue growth. Accelerating our pace to about 15% in the last two quarters.
Speaker 1: KSR continues to be a growth company despite all the odds while continuing to serve Ukraine with remarkable dedication.
Speaker 1: Powered by our digital operator strategy, our other operations shown in the green line, have not just delivered double-digit growth, but have significantly and consistently increased the pace of local currency revenue growth to reach 19%.
Speaker 1: We have also seen a strong start to the second quarter and in April local currency revenues were up 20.1% year on year and ABPA was up 25.8%.
Speaker 1: I think it is also important to note that the change in our footprint has made the seasonality more noticeable, particularly around religious holidays in our Muslim countries.
Speaker 1: Our operational execution goes hand in hand with disciplined financial management and on this slide I want to go over recent key achievements on our liquidity management prompts.
Speaker 1: We are pleased that all necessary licenses for this scheme were received and V-ON's 2023 notes have been amended.
Speaker 1: Maturity dates for the February and April 23 notes have been amended to October 23 and December 23 respectively.
Speaker 1: Already, a significant number of our bond holders have exercised the put option, and this process is also now successfully completed with the finalization of the payments.
Speaker 1: The successful implementation of the scheme of arrangement of our 23 notes has enabled Vion to reduce the risk of double payments on these notes by extending the maturities beyond the intended closing date of the Russia transaction.
Speaker 1: As Bloomberg and Reuters reported today, this is also why I'm not worried about the June 1 date for closing and we have ample amount of time to close this deal.
Speaker 1: Let's move to the next slide.
Speaker 1: I will go over some group level operational highlights before getting into more detail in the country by country review.
Speaker 1: In Quarter 1, Vion accelerated the execution of our digital strategy, which translated into positive trends across several key operating metrics.
Speaker 1: Our total subscriber base reached 158 million, while 40 users increased 18% year on year to reach 88 million.
Speaker 1: 4G users now account for 56% of our subscriber base.
Speaker 1: We have added nearly 50 million 4G users since quarter one of 2020 when we announced our focus on 4G for all.
Speaker 1: During this period, we have more than doubled our 4G penetration from 27% to 56% on a healthy path to our 70% targets.
Speaker 1: Along with high quality 4G connectivity, our customers also increasingly choose to take advantage of our digital products. Multi-play customers who use both 4G connectivity and digital products spend more time with us, they choose us over the competition and drive higher revenue generation. This trend helped to drive mobile R2 growth ranging from 7.6%
Speaker 1: to 18.3% year on year in local currency across our markets.
Speaker 1: Our data and digital revenues rose 25.5% excluding Ukraine and were up by 18% year-on-year for the whole group in local currency.
Speaker 1: Let's move to slide 10. Here we have an overview of the performance of Veeons operating companies.
Speaker 1: In Ukraine, Kiev's start continued to deliver local currency growth despite the very difficult operating conditions.
Speaker 1: across our five central and South Asian markets. We on once again delivered double digit local currency growth with four of the five markets also recording double digit local currency increase in the RTA as well as in revenues.
Speaker 1: Looking at the month of April , we have seen double digit local currency revenue growth across all our markets including Ukraine, with local currency group EBITDA up about 20% year on year.
Speaker 1: We will now discuss the specific performance in each of our markets.
Speaker 1: discuss the specific performance in each of our markets. He is our first.
Speaker 1: As Ukraine's number one mobile operator, KF-STAR continues to lead the resilience of the mobile industry in the face of the ongoing conflict. KF-STAR continued to keep nearly 91% of radio area network operational at the end of the March, serving millions of users with high quality connectivity services in and outside of Ukraine.
Speaker 1: CAPEX in Ukraine rose 18.4% as KyivStar continued to support essential connectivity in Ukraine and maintain business resilience.
Speaker 1: Given the continuous challenges faced with power infrastructure and energy rationing, the Care Star team has accelerated investment aiming to provide base stations with the modern power solutions for storage and generation to sustain network availability during power outages. The
Speaker 1: On top of maintaining existing infrastructure, TFSTAR has successfully increased 4G penetration via its 4G Everywhere program, connecting more than 81 new settlements to the 4G network.
Speaker 1: of 4G users to 13.3 million in the first quarter, which represents 55% of the F-stars user base.
Speaker 1: In quarter one, 1.2 million kids are customers outside of Ukraine, used wrong-life home offer, keeping them connected with their families in and outside of the country.
Speaker 1: With this operational performance, KS start has delivered another quarter of revenue growth up 6% a year, while AVTA rose 1%.
Speaker 1: This was despite the 34% year-on-year increase in electricity prices and 52% year-on-year in fuel prices.
Speaker 1: KFSTAR continues its support for charitable causes and employee and customer support, allocating 1.8 billion Ukrainian chyrinhas since the start of the conflict.
Speaker 1: Let me talk a little bit about our largest digital healthcare platform in Ukraine, HealthSeed.
Speaker 1: KSAR continues to serve its customers by making vital services accessible on digital platforms. Halsey KSAR's digital healthcare platform serves 25 million users with reliable medical advice and access to 33,000 doctors.
Speaker 1: and specialists across 1500 healthcare institutions.
Speaker 1: In the first quarter of 23, Helsing user's book, and attended 1.8 million appointments digitally. This is up from 1.6 million in the fourth quarter of 22.
Speaker 1: Let's multiply this stuff.
Speaker 1: Jess, our operating company in Pakistan, recorded a strong set of numbers with both revenue and ABTA rising at a double digit pace up 16 and 12 percent year on year.
Speaker 1: In Pakistan, all operators face challenges on investments due to the macroeconomic challenges and the associated restrictions introduced by the central bank limiting the importation of goods into the country.
Speaker 1: While jazzed's capex declined by 75% year-on-year, the expansion and upgrading of the network continued, with almost 1,100 new 4G sites year-on-year.
Speaker 1: Just continue to gain market share in the first quarter of 2023 with 4G penetration rising to 58% of the user base and totaling 43.1 million 4G users.
Speaker 1: 4G user growth combined with Jazz's digital operator offerings translated to a 27.5% year-on-year rise in multiplayer users who accounted for 23% of the user base and 46% of subscriber revenues.
Speaker 1: With rising, rising 4G and multiplayer users, data and digital revenues were up by 21% year-on-year. Jazz's portfolio of digital services recorded also strong growth.
Speaker 1: The service revenue for our Tintek offerings, Mobiling Bank and Jazz Cash rose 71% and 65% year on year respectively.
Speaker 1: Let me share some additional details on JAScash, which is an import driver of financial inclusion in Pakistan.
Speaker 1: Just cash has over 14.6 million monthly active users and the network of 179,000 merchants.
Speaker 1: 1.4 million active users of JazzCash are frequent consumers of micro-lounds, a 39% year-on-year-in-peace with an almost doubling in average loan size to 3000 rupees.
Speaker 1: Over the last 12 months, Jazz Cash has processed 2 billion transactions with a total value of 4.5 trillion rupees and increase of 30 percent year-on-year. We have processed more than 5 million transactions every single day in the quarter and the total value of transactions processed over the last 12 months.
Speaker 1: corresponded to approximately 6.7% of Pakistan gross domestic products. Tamasha Pakistan's leading entertainment platform.
Speaker 1: During the month of Ramadan, Tamasha introduced the very first Tamasha Original, an eight-episode long TV series titled Family Business.
Speaker 1: of Ramadan, Tamasha introduced the very first Tamasha original, an eight-episode long TV series titled Family Business, generating over two million views.
Speaker 1: This contributed to the accelerated growth of Tammasha's multi-active user base up 5 fold year on year to 5.6 million and daily watch time of active users rose to 30 minutes up to 2.4 times year on year.
Speaker 1: Tamasha users, who are also just connectivity customers, had R-Pul levels that are 2.5 times higher than the average R-Pul.
Speaker 1: users who are also just connectivity customers had R2 levels that are 2.5 times higher than the average R2. Let's move to Kazakhstan.
Speaker 1: V-Line Kazakhstan is approaching three consecutive years of market share gains, and quarter one marks its second full year of about 20% top-line revenue growth.
Speaker 1: Total revenues grew 23% year on year with service revenues up by 24.6%.
Speaker 1: Adjusting for a one-off related to a charitable donation in quarter-one last year, B-line Kazakhstan-EbTA grew by 29.4% year-on-year.
Speaker 1: The quarter one performance was driven largely by data and digital revenues, which were up by 29.1%, thanks to the higher use of digital applications and increasing numbers of multiple users.
Speaker 1: 39% of our monthly active users in Kazakhstan are multiplayer users using both our connectivity and digital services. It accounts for 54% of subscriber revenue.
Speaker 1: B-Line Kazakhstan has the highest 4G penetration level in Vion Group, with 69% of users accessing high-speed mobile internet.
Speaker 1: This puts Kazakhstan on the verge of approaching our group target of 70% penetration.
Speaker 1: On the next few slides, I will share some further insights into our digital products in Kazakhstan.
Speaker 1: Simply is Kazakhstan's only branchless neo-bank.
Speaker 1: Simply, the first neobank in Kazakhstan was launched in June 2021.
Speaker 1: has 234,000 monthly active users in the first quarter, up by 90% year on year.
Speaker 1: It processed 33 million transactions with a gross transaction value of 224 billion Tengiz over the last 12 months. Furthermore, Simply has an agreement with Visa to issue fully digital Visa Platinum cards, one of the unique global cases among TALCOs.
Speaker 1: The service is available for both bee liners and competitors subscribers B-line Kazakhstan's financial services includes nano landing purchases in Google Play and Apple store pay directly from the B-line mobile account through direct consumer billing and Online payments for public and popular services including urban city transport
Speaker 1: Nila in Kazakhstan has been supporting tennis for 15 years by sponsoring the National Tennis Federation.
Speaker 1: In quarter one, users of BTV could enjoy live streaming of matches from the ITF Women's World Tennis Tournament hosted in Astana with 3.8 million online views of the matches.
Speaker 1: Daily watch time per user on the mobile platform rose 11% year on year.
Speaker 1: to 145 minutes, including small and large screen mobile devices and smart TV applications. Let's talk also about Kazakhstan's first digital-only operator, Easy. Today, there are 362,000 users of Easy app and of these.
Speaker 1: 173,000 have also chosen to make easy SIM cards allowing access to mobile voice and data services.
Speaker 1: Easy offers not only mobile voice and data services, but is a leading entertainment application where users can listen to radio, play games, watch movies, even if they don't have an easy thing yet. The easier users increase 4.7 volts.
Speaker 1: adding 286,000 monthly active users in the last 12 months.
Speaker 1: Moving on to Bangladesh. Bangladesh reported its fourth consecutive quarter of double digit year-on-year revenue growth accelerating to 17.7% in quarter-one as we continue to gain market share.
Speaker 1: EBITDA in the first quarter also returned to growth, rising 11.7% year on year.
Speaker 1: This was the result of higher revenues and strong focus on cost discipline despite the negative impact of higher electricity and fuel costs.
Speaker 1: Bungling increases subscriber base by 7.7% year-old year in the first quarter with 38.7 million customers at the end of March. The network investment has enabled Bungling to increase 4G subscriber penetration with 17.4 million 4G users representing.
Speaker 1: 45% penetration in Q1, up from 35% a year ago this time. Bangalore Link's growth was further supported by the success of its digital products.
Speaker 1: On the next slide, I will elaborate on Trophy, the country's leading entertainment platforms. Trophy is the largest mobile entertainment platform in Bangladesh.
Speaker 1: Toffee reported record user numbers in the fourth quarter of 2022 when we were streaming World Cup games live for customers in Bangladesh. In Quarter 1, the solid performance continued with 11.7 million monthly active users and 2 million daily active users, up by 84.
Speaker 1: and 96% year on year respectively. With a wide variety of streaming content available, the daily average watch time per user was 11 minutes in quarter one, and we continue to unlock value to new premium offerings to Toffee users.
Speaker 1: B-Line Uzbekistan delivered 24% year-on-year top-line growth with 5th consecutive quarter above 20% performance.
Speaker 1: EBTA rose 9.7% year-on-year, which is solid performance as B-Line as Pakistan continued to invest in future expansion. B-Line as Pakistan continued to invest in future expansion.
Speaker 1: CPEX was up 54% year on year at 87 billion as big as tiny sums in the first quarter, as we continue to invest into 4G network and contribute to further development of countries' digital infrastructure.
Speaker 1: Our 4G rollout is delivering results, with 4G subscribers rising to 5.7 million and reaching 68% penetration in Beeline Uzbekistan's total subscriber base.
Speaker 1: In line with our digital operator strategy, multiply customers increased to 36% of total subscriber base and accounted for 57% of subscriber revenues in quarter one. Our data and digital revenues were up by 27.3%.
Speaker 1: Before wrapping up with those backstab, I would like to highlight that in April , the incorporated an abstract company, Leonabtech, with cutting edge targeting advertising technology with its headquarters in touchgames.
Speaker 1: We should work with VION's digital operators and support the VION group in providing highly targeted digital marketing services. VION at Tech will be providing and contributing to IT export potential of Svekistan in the high tech park.
Speaker 1: Let's go over our self-care platforms across the group. Here we see a growing number of monthly active users of our self-care platforms across our countries.
Speaker 1: It is encouraging to note that RPU for self-care users are higher, typically 1.5 times the RPU of an average user.
Speaker 1: In addition to other benefits, these applications provide as gateway to our services, top-up mechanisms, and increasingly important customer care channel.
Speaker 1: Let me pause here and hand the call over to Joep to discuss our quarter one financial results in more detail. Joep. Thanks, Cam. Good morning and good afternoon to all participants.
Speaker 2: On the following slides, I will elaborate on the financial highlights for our first quarter results in more detail.
Speaker 2: place in the fourth quarter of 2022.
Speaker 2: reduces the groups report revenue and EBDA in absolute terms.
Speaker 2: This means that Veeam is now a very different company. A quarter one marks yet another quarter of double digits local currency growth in both revenues, which were up 50.3% year on year.
Speaker 2: and EBDA rose 11.2% year on year. As you move towards completion of the sale of the recent business,
Speaker 2: We continue to maintain a very strong liquidity position at the end of March 2023. The $3 billion of cash and cash payments go wide, for which $2.5 billion be held at the headquarter level.
Speaker 2: I want to first cover revenues on slide 26. We delivered balanced growth across our countries as we executed on inflationary pricing while growing our base for 4G and multiplayer customers.
Speaker 2: Kazakhstan, Uzbekistan, Kyrgyzstan, Bangladesh and Pakistan all delivered another quarter of double digit growth as they successfully execute on their digital operator strategies.
Speaker 2: In Ukraine, we once again want to express our respect and admiration for the team at Kivstar, who delivered 6% year-on-year growth in quarter one, despite the challenging operating environment.
Speaker 2: Kazakhstan and Uzbekistan both reported year-on-year revenue growth above 20% as higher 4G user penetration and digital operator offerings led to growing mobile data usage.
Speaker 2: In Pakistan, revenues were up by 16% year-on-year.
Speaker 2: driven by a combination of invasive pricing and successful execution of our digital function enable operated presentation.
Speaker 2: Quarter 1 revenue performance was further strengthened by our financial service offering.
Speaker 2: Service revenues from just cash rose 65.3% year-on-year, while more linked microfinance bank delivered a 71% year-on-year increase.
Speaker 2: We also saw good momentum across most of our markets in terms of underlying EVDA. We shall cover this on the next slide.
Speaker 2: Dio's local currency, EBITDA, rose by 11.2% year on year in the first quarter.
Speaker 2: We achieved this result despite the impact of a 41% year on year rise in energy costs for the group.
Speaker 2: Including the one of impacted Kazakhstan, the Kana's red carpet intersection, the underlying performance was still strong with local currency EBITDA set by 10.1% year on year. We remain focused on implementing post-sustaining measures across the group.
Speaker 2: increase in group debt levels because of the reclassification of $1.6 billion of young bonds forming their repurchase by DTSC-PIMPOCOM-ERICA to intercompany debt.
Speaker 2: This is reflected in the significant decreases in leverage ratios, both including and excluding leases, which you can see are now at 1.6 times and 1.3 times respectively.
Speaker 2: Gross depth and net depth also declined by 23.6% and 47.7% respectively.
Speaker 2: Croix depth and net depth also declined by 23.6% and 47.7% respectively versus year end to 2022.
Speaker 2: As mentioned earlier, our liquidity position remains strong.
Speaker 2: As mentioned earlier, our equity position remains strong. The cash and cash equipment is totaling $3 billion.
Speaker 2: of its 2.5 billion doors held at H2 level. At the local company level, field operations are largely self-sufficient.
Speaker 2: 2.5 billion dollars held at H2 level. At the local company level, PIANO operations are largely self-sufficient. You also outlined the scheme of operations earlier.
Speaker 2: This has now been implemented, extending the shortlist on October and April 2023 notes October and December 2023 respectively.
Speaker 2: At the same time, the 2023 note holders were able to exercise a good option at 102% of the principal amount.
Speaker 2: Holders of $459 million.
Speaker 2: The principal amount of two thousand critically-known exercise to the option results in a cash outflow of four and seventy million dollars, including a crude interest. Moving now to $5.29, I will talk about our debt and equity positions in more detail.
Speaker 2: Across that, including leases, stands at $5.7 billion, with a total cash position of $3.3 million, as mentioned earlier.
Speaker 2: For this 3 billion, as Ray mentioned, 2.5 billion is held at headquarters level. Net debt currently totals $149 billion, excluding leases.
Speaker 2: Was 8: one million interpr needs.
Speaker 2: So a 30-per-five is a snapshot of the depth and liquidity profile of our health or sale Russian operations. At the end of the quarter, growth depth stood at $4.4 billion, the net depth totaling $2.5 billion.
Speaker 2: We have been informed that DDSC people come at independent acquired 1.6 billion dollars of fee-on-holings notes as of March 31, 2023.
Speaker 2: and that the company funded this purchase primarily by issuing new, ruble denominated notes that are longer matured.
Speaker 2: As previously noted, the share of Russia is expected to be included at an enterprise zone of around 5 billion dollars.
Speaker 2: Starting over to Golf 3-1, which outlines ALLümüz viewers, that protrude schedule. First, let again NOTE are targeted towards a Suposition on the far left over the slide. Earlier though, not as insufficient as the flight has in place in the corner of the Le
Speaker 2: As the chart illustrates, we have taken steps to create a more favorable test maturity schedule, including through the scheme of arrangement and the ongoing sale of our recent business, which are discussed in the previous slides.
Speaker 2: FUNA is a little over $1 billion of debt procuring in the next 12 months. In addition to this, there's $1.1 billion outstanding under the RCF.
Speaker 2: which can be rolled over until final maturities in 2024 and 2025. As mentioned earlier in April 2023, dollars of 459 million dollars of 2023 notes exercised the put resulting in total cash outflow of $400,000. I also note that we continue to meet all our legal obligations.
Speaker 2: including higher interest rates, specifically affecting our Pakistani Ruby debt, as well as the reclassification of film holding phones purchased by Filmcom in Russia as intercompany debt.
Speaker 2: The ongoing process of selling Aboriginal assets and the classification of these assets as held for sale has led to a lower average depitude. This now stands at 2.9, excluding the ICF.
Speaker 2: I will now hand back over to Cam for 223 guidance and closing remarks.
Speaker 1: Thank you, Joffe. Let me begin by reiterating our guidance for 2026.
Speaker 1: Our 2023 outlook remains in line with the guidance issued in our last results announcement. Local currency guidance for both Revenue and AbTA is 10-14%, which are guidance for group-couplex intensity, also remaining in the 18-20% range.
Speaker 1: I have already shared with you the run rate momentum of EBITDA in April 23, CIRCA 20%.
Speaker 1: Let me caution you that in Q2 you will see a low single digit growth in a big day due to the impact of one off in 2022 Q2 results.
Speaker 1: This still does not change our reiteration of the guidance. And to conclude, our presentation, let me provide an overview of our key ambitions for to Section 23.
Speaker 1: First of all, finalizing the sale of our Russian asset is priority number one, and the team is working diligently to achieve this.
Speaker 1: 2. The scheme of arrangement for February and April 2023 notes has already been implemented and we have also seen a marked reduction in group leverage.
Speaker 1: We will continue to focus on optimizing our capital structure, effective cash management and regaining access to the best capital markets over time.
Speaker 1: Three, we are focused on executing our 4G for all and digital operator strategy, expanding our 4G network and portfolio of digital services and providing best in class customer experience.
Speaker 1: Implementing this strategy will help us accelerate growth by increasing our multiplayer users who use more data,
Speaker 1: The churn rates are lower and they generate higher average revenue per user. The work on monetizing our existing infrastructure assets, specifically our tower assets, is also progressing. There are recent huge loss golf chains and golf movies.
Speaker 1: This will allow us to further strengthen our balance sheets and unlock capital to focus on our vision of providing besting class online services across our six markets as an asset light operator. Finally, we are committed to unlocking shareholder value. This will include our plans for listing of our entities locally.
Speaker 1: once again. And thank you Sircam for all the contributions you have made to Vio.
Speaker 1: And I wish you all the best in your new capacity as a consultant to me and to LTO. With that, I would like to thank you for your attention. I will hand over to Nick so that we can move on to Q&A session.
Speaker 3: Thanks very much, Khan. Good afternoon everyone again. I think we've got a few questions that have already come through on the zoom link. Khan, actually the first question for you. Could you please update us on the timing of the closing of the ratio sale?
Speaker 1: Thank you, Nick. In line with our previous communications, the company anticipates that the transaction will be completed in accordance with terms of the shared purchase agreements. As I mentioned earlier, we have completed the scheme amendments. That gives us actually ample time to close this deal in accordance with the rules and regulations that are set forward.
Speaker 1: and we will do that as early as possible over the next couple of months. Thanks very much, Con. You have a couple of questions for you. Fisty, how has the RSSL impacting on the own financials? Exactly. As we have previously disclosed, the transaction is being concluded as an enterprise eligible for an $1 billion.
Speaker 2: As of the end of March 23, we already saw significant reduction in the growth of the growth from 7.5 billion dollars. As of the end of 2022.
Speaker 2: to 5.7 billion, and the Q1 to down 33.
Speaker 2: We also reported group gearing of 1.6 times, down from 2.6 times at gear end.
Speaker 2: So as you can see, concludes the balance of the projection. This will have a further positive impact on both depth and gearing levels.
Speaker 3: Thanks, Jie. Actually, another question for you. Could you comment a little bit on the ongoing cost saving initiatives that we have at the group?
Speaker 2: We remain focused on effective management both at headquarters and in our opening companies.
Speaker 2: The standard in the past year we faced a number of tax-only costs at the actual level, but these are expected to reduce both in this year and in 2024.
Speaker 2: The SSE No. 95 emerging participants have a return of Emma which has in store on eggs. us. The SSE No. 95 emerging participants are in store on eggs.
Speaker 2: including 2021 as a base, we expect to deliver under $75 million in savings by the end of 2024
Speaker 2: I will also mention we are cognizant of the smaller size of the UVM.
Speaker 2: and we are in a digging and right sizing for my course.
Speaker 3: Thanks, you have. Can't could you maybe comment on it? There was a recent shareholder led to the percentage of the on board that was made public as well.
Speaker 1: So first of all, I would like to thank Shaq Capacol for increasing their holding in our company about 5% and a company to that disclosure, they also share their letters, clearly reiterating their expectations. I value and welcome all these comments and I think for me that we will be looking for creating shareholder value considering all possible opportunities.
Speaker 1: including the ones that he has suggested when the right climate arrives. Thanks, Con.
Speaker 1: Again, this is an update on the status of our tower transactions. Let me take that as well. We are committed to being an asset light company. I believe that no telephone operator in the world can afford the luxury of having exclusive infrastructure. Therefore, we are looking for not only tower asset sales, but also sharing of the infrastructure in all the operations that we are engaged in.
Speaker 2: filing of our financials please. Yeah at this point in time man they can based on the current circumstances our best estimate is to file our audited financial statements with the AFM and provide this to our lenders before the end of June 2023.
Speaker 2: And our US filings, that's our annual report in the form 20F, interlined with the SEC. Both real limited and real holdings are obligated to submit all the financial statements to lenders on both of those within 180 days of the year-end.
Speaker 2: which is June 29. We have collectively informed the AFM and EuroNEXT office and are working closely with PwC on the execution of the audit procedures.
Speaker 2: You will keep data in the form of any significant changes in your expected timelines. And you will form the SSE or the expected delay, or probably in our 12-bit-35 filing with the SSE on May the 2nd of this year. Thanks, Yup.
Speaker 3: also still with you could you update us on our capital structure plans for the medium gym? Yes, this was previously a reason priority has been to ensure the group has strongly created the position.
Speaker 2: It has seen our guest balances at headquarters at an amount of 2.5 billion, which I already mentioned, at quarter end, and approximately 2 billion dollars today, following the conclusion of the group option in April . We are currently actively evaluating various options around the appropriate capital structure for the group, both the conclusion of the relationship.
Speaker 1: Thank you. Kon, maybe just could you give some comments on the current operating environment in Pakistan? Pakistan is an amazing market. We are extremely proud to be serving to the Pakistani community as the number one operator in the country.
Speaker 1: Pakistan has also gone through some difficult times this year. As you know, the country was heavily hit by the floods, which has never been experienced in the recorded history, and it is also severely impacted by macroeconomic crisis and current account deficit. We believe Pakistan will overcome these issues, but in the short term, it will not.
Speaker 1: The impact of import limitations is of course a hangover on the entire industry in terms of slowing down investments. I am happy to see that we continue to gain market share in the country. We are progressing very strongly in the adjacent markets especially on the...
Speaker 1: we are doing our best to make sure that we continue serving our customers in the best way possible.
Speaker 3: Thanks, Khan. This is Khan, still with you. There was a story on Interfax earlier this week about the sale of Kazakhstan.
Speaker 1: I can't keep on with the status to stay. Look, maybe I can use this opportunity to clearly state that all our operating companies, Kazakhstan, Uzbekistan and Kudizistan, are directly owned by Vion Holdings in Holland. And there are no end time developments of these subsidiaries into our Russian health for sale operation.
Speaker 1: Right, I think we've got time for one last question, maybe in appropriate question. Conkey just sort of comment again on the gardens, particularly given the strong stock we've already seen to this year. Yeah, the first quarter actually was slightly about the guidance that we have provided. We set 10 to 14% with the level to 15 and actually the actual results are also very encouraging.
Speaker 1: but time has taught me to be prudent so we are keeping our guidance for 23 as we have expressed before.
Speaker 3: Great, thanks very much. Thank you very much everyone for attending. I know there's a few more questions that have come to on Zoom. I'll respond to those individually. So thank you very much for that. And if you have any additional questions, please just reach out to me at RAP. Thanks very much everyone. Thank you. Bye, Jiu.