Q2 2023 VEON Ltd Earnings Call
Thank you for being on time, we will give two minutes for the registration process. Thank you.
Hi, good afternoon, and good morning to everyone and welcome to be on second quarter results presentation for the.
Period, ending city June 2023 omni crucial I'm pleased to be joined in the room today by conscious Ugly a group C. I along with your broken wholesale group CFO.
Today's presentation will begin with the key highlights and business updates from corn. Following this yokel discuss the detailed financial results.
He will then hand, it back to cons discuss the auto Comparatives for 2023.
As ever we will ensure that these top youll Christians, but would ask would you say these for the end of the presentation.
Before getting started I would like to remind you that we may make forward looking statements during today's presentation.
Which involves certain risks and uncertainties. These statements relate in part to the company's anticipated performance and guidance for 2023.
Future market developments and trends.
Operational and network development and network investment and the company's ability to realize its targets and commercial and strategic initiatives, including current and future transactions.
Certain factors may cause the actual results to differ materially from those in a forward looking statements.
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 earnings release, and the earnings split attention each of which include reconciliations of non <unk> measures presented today can be downloaded from our website with that let me hand, it over to corn.
Thank you Nick good morning, and good afternoon to everyone on the call. Thank you very much for joining us for our presentation of our second quarter results for 2023.
Our performance in the second quarters has again demonstrated the resilience and growth that our digital ultra operated strategy enables us to deliver and gives us the confidence to raise our full year 2023 revenue guidance based on the results of the first half year.
On the next slides I will provide an overview of our results in the second quarter and then go into some more detail on progress on our digital operator strategy and how this is powering the performance of our operating contract companies.
Thanks to World class connectivity and high quality digital services, we maintain a high growth momentum.
Before I get into the details I also want to take a moment to thank the members of the board and management team, who have helped me on navigate the exceptional challenges of the last 17 months.
Today with a smaller size board and restructured headquarters these successfully transformed our cost base to our new business model with a 55% reduction or $85 million a year savings.
I would like to again, thank our colleagues F. T F star our teaming a crane continues to do a tremendous job keeping ukrainians connected and putting employee safety first.
Now, let's turn to our key performance highlights for the second quarter.
Beyond revenue growth in local currency near 20% year on year service revenues increased at the same pace as topline growth rising 19.6% year on year on local currency terms.
Local currency EBITDA expanded at a rate of 13.6% year on year.
But excluding runoffs are underlying local currency EBITDA growth in the second quarter of 2023 reached 23%.
Capex declined by 16.6% year on year to $171 million.
And our Capex intensity for the Cortez is standing at 18, 7% in line with our full year guidance.
We have once again maintained view on strong liquidity position with.
With group holding cash and cash equivalents totaling $2.4 billion of which just under $2 billion is at headquarters as of June 13th 2023, all in U S and western banking institutions.
Looking to our revenue performance in greater detail on slide seven.
This marks our sixth consecutive quarter of double digit local currency revenue growth with good acceleration in the second quarter to 19, 6%.
This was partly thanks to revenue performance of Kim stuck, which narrowed the gap with other beyond operating companies and delivered 16.8% year on year local currency revenue growth.
This is a truly impressive result, given the challenges that gives that faces in grain.
Gives us growth is also a testament to our success at keeping with premiums connected and I have no doubt that the $600 million in investments into Costar infrastructures that we announced in late June will enable us to further enhance this performance in the years ahead.
If kids stars results are excluded for illustrative purposes to demonstrate the underlying trends of our operations under normal modus operandi.
<unk> local currency revenue growth exceeded 20% for the first time.
Even as weighted annually inflation across our operations slowed in the second quarter.
We have seen a strong start to the third quarters in July with a positive top line year on year performance in U S dollar terms.
On slide eight we have an overview of key performance numbers for beyond operating companies.
Grain gives us local currency accelerated significantly despite the ongoing challenges at gross our central and South Asian markets diesel three or five operating companies delivering year on year local currency revenue growth in excess of 20% and the other two were not far behind 17.
0.4, and $19 two percentage points.
EBITDA performance was also solid in most markets with all but one of our operating companies reporting double digit local currency underlying EBITDA growth.
And we provide greater details on the non recurring items that impacted Kazakhstan, Uzbekistan and could minister in the country performed the section of the trading update later.
Before we move onto country perform the section.
I want to start on slide nine to highlight our <unk> penetration increase and multi play subscribers, who are consumers of our digital services continued to drive our operational and financial performance.
The one subscriber base was 156 million at the end of quarter two.
For G users increased 16% to reach $88.5 million.
For users now account for 57% of our subscriber base.
Our focus on <unk> for all has yielded an increase of 27 million new forging users over the last two years.
Our four G penetration has risen from 41%.
The <unk> 57 per cent N V remain on a path to reach our group wide target of 70% for Japan inflation.
We expanded our forging network, adding more than 8004 G sites, an increase of 15, 6% year on year.
Providing robust forgery connectivity facilitates our users accessing the mobile digital services that wieland operating companies offer.
Every single day, we make progress towards being a consumer business with a telecom license.
Multiple a subscribers who use both for GE connectivity and digital products spend more time with us churn less and drive multiple revenue streams and higher revenue generation with 45.7% year on year increase.
This trend helped to drive mobile ARPA growth, which ranged from 9% to 27% year on year in local currency across our countries.
Let's look Tokyo stock gifts star is cranes largest operators and remains a symbol of the resilience.
Vonn, Costar recently announced our long term commitment to rebuilding or cranes telecom infrastructure with a pledge to invest more than $600 million over the next three years.
He is starz team have once again succeeded as providing millions of users with high quality connectivity services in and outside of grain.
The company also managed to keep around 94% of radio area network operational throughout the second quarter.
Capex in quarter two.
Increased by 35% year on year as we invested in connecting new settlements to our forging network and install and upgrade base stations and continued to provide base stations with state of the art power solutions for storage and power generation to sustain energy availability.
For our network.
These investments have helped increase the number of <unk> users to 13.1 million.
Which represents 55% of key of stars user base.
Give start delivered impressive local currency revenue and EBITDA growth in the second quarter supported by rising five four G penetration and an increase in multiple end customers, which now represents 17% of monthly active users accounting for 24% of B to C. Remy.
Yeah.
Gifts are also continues the if something is support for charitable causes employee and customer support and allocated it fared there is 92 million grimness in quarter two.
We recently signed a memorandum of understanding with Rakuten Symphony.
It is a low price of your portfolio.
In the context of the ongoing war Halsey is especially relevant and it enables ukrainians to maintain access to vital health care services in their local languages wherever they are.
It is the country's largest digital health care health care platform, leaving digitalization of health care services.
<unk>, we have 25.4 million registered patients on Halsey.
Halsey.
<unk> application downloads increased by zero point $4 million in the second quarter and reached $5.4 million.
Our customers booked over 1.8 million of appointments through the house platform in second quarter.
Let's move to Pakistan.
Yes, our operating company in Pakistan.
The accelerated this growth gaining market share despite the challenging economic environment.
Jazz is successful execution of our digital operators strategy.
Bind with discipline cost control supported local currency revenue and EBITDA expansion in excess of 20% year on year.
Four G penetration in the second quarter of 2023 notched up to 59% of user base.
Which combined with Justice digital operator offer offerings drove almost 16% year on year rise in multiple users.
One out of four customers confused at least one of our digital services in Pakistan.
Jazz is fintech offerings continues to gain momentum with modeling Microfinance bank and just cash service revenues, both almost doubling year on year in quarter too.
Jess caches rapid growth is a key driver of financial inclusion in Pakistan.
I want to share a few highlights of the company's performance on the slide something many of you have asked for the past periods.
<unk> has 14.7 million monthly active users and the network of 192000 active merchants.
Consumer and Microlending are a key part.
Just caches offering.
The platform had 1.3 million monthly active borrowers during the second quarter, which is 22% higher year on year <unk>.
<unk> is also elitist in cash free transactions.
In the last 12 months the process 2 billion transactions with a total value of 4.9 trillion Pakistani rupees, an increase of 33 per cent year on year.
The lead to financial inclusion in the country with more than 5.6 million financial transactions processed every single day and more than 55000 digital loans issued daily.
Now Kazakhstan.
<unk> continues to gain market share and leads in terms of customer satisfaction as measured by net promoter score.
In the second quarter of 2023 local currency revenues were up 19.4% normalized for one of underlying growth in revenues was up 20.8% year on year.
This continues the operators track record of delivering top line growth in excess of 12, 20% for the ninth consecutive quarters.
Local currency everyday performance was also up by an impressive 19.8% year on year.
It just as well for one of items underlying apta growth was 26.2% year on year.
<unk> continues to benefit from execution of Neons digital operator strategy.
With multiple users representing 39% of monthly active users.
These are the customers that consume both four G connectivity and digital services, such as D. T V simply easy heater.
And these customers accounted for 56% of subscribe or revenues and second quarter.
V line, Kazakhstan has the highest four G penetration level with 71% of users accessing high speed mobile Internet and it is the first operating company and beyond reaching or 70 per cent four G penetration targets.
Let's talk about easy, which is now more than just <unk> digital only operators.
And it is on the path to become a consumer super that.
In the second quarter of 2023 easy reached 405th 15000 active users, which is 4.4 times higher year on year.
Easy as an all access Sim card agnostic service.
We welcome all consumers and yes, 191000 of the monthly active customers of easy has chosen Sim cards of easy to become also they're telecom service providers.
<unk> is a Sim card users can access mobile voice and data services. The application is a leading entertainment platform that lets users listen to radio play games watch movies, even if they don't have it easy seemed yet.
This is another case that highlights the success of our digital operator 1440 strategy.
With our local operating company offerings relevant digital services to its customers to drive cross.
Users, who enjoyed the digital experience of the entertainments Super up have an offer of nearly four five times higher than the easy users of conventional telecom services.
Bundling revenue was up 17% in the second quarter.
This is the company's fifth consecutive quarter of double digit revenue growth.
Every ta rose at a double digit pays for the second consecutive quarters, increasing at 18% year on year as a result market share gains continued with the investments continuing in bungling Bedford.
This strong result was achieved despite increases in electricity and fuel costs.
<unk> total subscriber base <unk> $39 million rising seven 9% year on year.
Multiple users rose by almost 80% year on year to reach $4.8 million and multiply revenues were up by 83% year year on year.
Bunglings four G penetration continue to rise as a result of investment into expanding its network with the share of four G users up by nine percentage points for the past $18 million.
This represents 46% of our customers in bundling three.
Three years ago, we started this journey with 12 per cent of our customers enjoying four G.
Bunglings growth was further supported by the success of its digital products on the next slide I will elaborate on toffee, the country's leading entertainment platform.
The largest mobile entertainment platform in Bangladesh.
We are encouraged to see that after the World Cup Trophy continues to maintain a healthy user base.
Multi active users, reaching $9 million up 32% year on year, and while coughing is above a link digital service currently 68% of users are not bungling customers.
Again, we are open business for all consumers irregardless of which Sim cards date Carrie.
Totally customers continue to make the most of the platforms wide variety streaming content with the total number of sessions watched by users up 41% year on year to $128 million in the second quarter.
Bundling customers, who used fluffy generates 2.8 times the <unk> of a single play voice customers, which is yet another testament to the value of our strategy of offering high quality connected digital services to our customers.
Let's look to be liners, <unk> b liners breakfast done grew 20 per cent year on year in local currency driven by double digit increases in total subscribers and four G users and data consumption increases.
Four G users rose 23.6 per cent year on year, two 6 million.
They represent 69% of the total subscriber base almost reaching our target 70 per cent multi.
Multiple a customer's rose, 28% a year on year accounting for 37% of the subscriber base, creating 57% of revenues.
You have often previously ask for more details on our digital platforms and on this slides you have an overview of some of our strategic digital platforms, which we will now be providing on a regular basis.
Let me focus on some examples Thomas Shaw is Pakistan's leading entertainment platform. Following the launch of original content only available on this platform tamasha is delivering impressive growth Thomas.
Marcia got Pakistan's best online streaming platform airport at the Pakistan Digital adverts in July this year.
Simply <unk>.
Neobank in Kazakhstan was launched in June 2021, and.
And surpassed too.
250000 monthly active users an increase of 2.2 times a year on year.
In Kazakhstan, again or entertainment platform BTB is another success will pillar of our digital offerings.
The streaming service, which is both mobile and I P. T V offerings has now 750000 monthly active users up 25% year on year.
My B L. Bunglings Super up in addition to the essential self care services. It provides also offer streaming music he held.
N E learning services in addition to gaming and online shopping for bungling customers monthly.
Multi active users of my B L F increased by 63% year on year, reaching 6.9 million users.
Launched in December 2022 by just in partnership with to accept defeat.
The free communication and lifestyle from bit surpassed 850000 monthly active users at the end of the quarter on.
On August 1st <unk> launched beep service to its customers as well.
That marks the end of our country performance review and now before I ask.
You ought to come in I will update you on the latest developments around the sale of a Russian operations.
On November 24th we announced that following a competitive process. We all have entered into a <unk> agreement to sell its Russian operations to certain members of the B line, Russia management team and.
The enterprise value at that time was $5 billion.
On February 7th the Russian regulator issue, that's approval of the proposed sale with.
With the first quarter results in May for we noticed that P. J C. Vympelkom has independent of the required approximately $1.6 billion in beyond holdings bonds.
This has had a material impact on our balance sheet, reducing our leverage ratio to one point 68 as of June 30th 2023.
On may 13th we announced the submission of all necessary documentation to euro clear clear stream and registrars for cancellation of <unk> held by the subsidiary <unk> Com.
With this submission <unk> entered the final stages in the closing of the sale of his rush operations.
Beaver to finalize the sale of a Russian assets continues as a top priority.
And we continue to engage with the relevant European authorities for clarity on the ability of the registrars and <unk> to cancel and write down development the amount of bonds without need for a separate license.
We have full commitment from both parties the buyers and sellers to conclude the transaction as soon as possible.
We are also aware of the importance of concluding the transaction ahead of October 2023 bond maturities.
It remains however, very important that we comply with all legal and regulatory requirements. So please bear with us as we move to conclude the transaction.
Is it clear sight of prompting ownership change I have personally resigned from the board of Bgsu Vympelkom as of August the first.
As always our stakeholders interest remain Paramount wild cancellation of the buns via the clearing system remains the optimal solution. We are continuing to explore all options to protect our interests.
Let me pause here and had the call over to Europe to discuss our second quarter's financial performance in more detail.
<unk> good morning, good afternoon to everyone on the call today.
I will provide some financial highlights for the first half of the year elaborate on the financial for our second quarter results you're more detail.
But before I started our most recent results that'd be <unk>.
The reason developments withdraws profiling of our 222 or a good financial statements.
Or took entree to all of US finalized submitted the order the essentials.
S a C.
<unk> compliance was confirmed in terms of to come through and it'll reporting.
On July 24, <unk> announced with a smile and a report on phone 24. The year ended December food you want to upgrade to.
<unk>.
<unk> is also available on the Investor Relations section of the company's website.
As a result, what's wrong with your filing the listing fortification department of the mistakes book Margaret <unk> compliance with a mystic listing rules through your exception granted vanecek for it <unk>.
A order of fries with payments and the amount of importance of a <unk>.
Growing remark of your foster and highlighting the profitability improvement.
<unk> operations from 40, <unk> and two <unk> 237 cents to upgrade to.
The phone 20th <unk> drugs with before also contains a conviction <unk> unlimited financial statements 40 year ended December 31, two of them pretty too.
<unk> other comprehensive income cause with no impact total consolidated equity.
The area is related to the sale of the <unk> operations and it has no impact on results almost shoe <unk> operations is presented only consolidated statement and.
No impact, let me confirm <unk> statement as a whole.
Oh don't you Arrow has no impact whatsoever.
Confirm we're gonna save a financial position to confirm <unk>.
<unk> <unk> finds a preference for its financing arrangements.
We determined.
Reporting as I'm going through weakness and management is taking and will continue to take steps to remediate. This with you because of the strength and the companies controlled environment.
No more room prefers half your highlights.
If you don't record with a membership of course, the local currency financial performance in the first half of 223.
This year on year revenue and EBITDA rising double digit figures and local grocery terms.
75 per cent and 12 45 per cent respectively.
This growth is the result of information repricing measures and the continued execution of our digital operators throats.
Which is driven increases in the number four G multiple users.
<unk> is increase our market share in all markets.
Local currency fluctuations against the dollar.
<unk> once again that will lower revenue you would that performance and a reported currency and your resource.
Okay, I'm already mentioned <unk> put a put a quarter in.
July received <unk> your growth.
<unk>.
She moved towards completion of the show off the rest of your business.
Purchase or $1.6 billion of your holdings beef your bones, but <unk> <unk>.
Significantly the leverage our balance sheet.
Bringing drove the down by 58% compared to a year ago.
<unk> decreasing 72% over the same period.
<unk> <unk> <unk> <unk> <unk>.
June 30th two home <unk>.
However, I do all my financial highlights for certain Port results I'll start out with some details on revenues almost 524.
We continue to deliver balanced growth across our countries.
Execute them inflationary pricing <unk> four G multiplay customers.
The computer extra troops on the digital purchase.
Pressed upon in a previous life revenue growth.
<unk> was impacted by significant depreciation local currencies across multiple markets.
Particularly in Pakistan by 41%.
Green by 25 per cent and <unk> my 60 per cent.
Revenue grow that comes comes ultra affected by one of <unk>.
Just report is.
From here on your revenue growth.
20.8%.
<unk> take a closer look at our EBITDA EBIT margin.
<unk> <unk>, 36% year on year in the second quarter.
This result was achieved despite the group, but 54% year on year increase in energy course extra already one of <unk> <unk> and <unk>.
Adjusting for these one offs <unk> increased by 23% year on year in local currency terms.
Oh 526, we can look at some important balance sheet metrics.
The group security position remains strong total disposition of $2.4 billion a.
Scream banking operations in Pakistan.
<unk> help if it's true level.
With a local company level <unk> operations remained self sufficient.
232 home <unk>.
<unk> independently acquired 1.6 billion dollar <unk> notes.
In line because those reported in the <unk> <unk> <unk> <unk> <unk> <unk>.
It's true external grip declined to bump it seven <unk>.
Move to the next slide talk about <unk> in more detail.
Ah drove the extremely distances extensive appropriate $3 billion.
Total disposition <unk> mentioned earlier.
August two <unk> 2 billion is help for the level.
<unk> currently totals for bumper <unk> extra releases.
800 billion.
<unk> <unk> <unk>.
Now a snapshot of Georgia scheduled first let's again note a topic disposition on the far left of this line.
<unk>.
As mentioned earlier in April 23 disposition has been affected by the exercise about the food option, but holders of 459 million dollar <unk>.
With the three milks, resulting in a total of 450 <unk>.
As a chart illustrates we've taken steps to create a more favorable to schedule.
Including sort of a scheme of arrangement and <unk> of a recent business <unk> previous lines.
<unk> <unk> <unk> maturing in the next 12 months.
In addition to this <unk> <unk> <unk> <unk> <unk> <unk>.
<unk> rolled over into final maturity dates 24 20.
35.
I would also note that you'll be able to meet all of our legal obligations for interest and principal payments due on a <unk> in a timely.
<unk>.
I'm just trying to solve the changes to our cost of the <unk> the maturity.
Of course, the boring first the first quarter of two of them for the three that'd be impacted by higher interest rates floating <unk> in Pakistan <unk>.
Evidence temperature <unk> since a 2.7 years.
The the completion of a scheme of arrangement maturity dates for February and April 23 notes that'd be moved October and December two home fifty-three prospectively.
Oh, no I'm big over to come for <unk>, 23 guidance and closing remark.
Thank you you up after delivering another stunk strong quarter of local curious <unk> performance.
Raising our full year guidance for 2023.
We are increasing our local currency guidance for the revenue growth from 10% to 14% up to 16% to 19%.
We are maintaining our local currency guidance for da growth at 10% to 14% <unk>.
<unk> the impact of <unk>, we discussed today.
Material one of in Pakistan in parts of four of 2022.
Underlying local currency.
Ross for the full year is expected in the range of 15% to 17%.
And for revenues.
17 to 20 per cent.
2023 guidance for group Capex intensity sense at it's been 18 to 20 per cent.
And to conclude our presentation, let me provide an overview of our key ambitions for 2026.
First.
Although it's just taking longer that'd be hoped I will reiterate that finalizing the sale of a Russian assess the main priority number one.
I recently stepped down from the board of directors, indicating the change of the ownership process started.
The scheme of arrangement has been completed and we will continue to focus on optimizing our capital structure effective cashback, <unk> and re gaining access to <unk> capital markets over time.
Three you have seen the progress we have made on all our digital low prices strategy and we remain focused on this as we execute on four G for all.
Further expand our four G network and portfolio of digital services, and providing get best in class customer experience.
Recently announced changes to our H good management team, creating <unk> group management in line with its portfolio size, while strengthening operating company boss.
The onus developing it's distributed decision, making model further with a lean headquarters and increasingly self sufficient operating companies.
Each with a local board of directors.
Doline Group management will increase <unk> agility and decision, making at the headquarters and support groups evolution into a more compact and fast growing entity as the groups portfolio evolves.
This also follows the decision taken during <unk> recent annual general meeting, where the company's shareholders supported a smaller <unk> board of directors, reducing the board size from 11 to seven members and including myself as a board member as well.
The changes we are implementing a cross our headquarters are expected to deliver more than 78 to 5 million U S dollars in annual savings to the group.
For the work on monetizing our existing infrastructure assists, specifically our tower assets continues.
This will allow us to further strengthen our balance sheet and I'll look potential.
Finally, we.
We are committed to all looking shareholder value.
This includes what was already knows about optimizing our capital structure, concluding the sale of our rational sense monetizing our infrastructure assess as well as exploring the potential for local listings of our operating companies and to engage strategic investors for our digital services.
Let me one small express my gratitude to all be unemployed for their hard work and driving beyond forwards.
<unk> I would like to thank you for your attention and I will hand over to Nick still get so we can move at the clinic.
Mmm.
Hi, good afternoon, everyone. Thanks, so much for calling and calling <unk> I'm surprised me see to anything. Additionally, you can say around the timing of the closing of the rash itself.
Thanks, Nick it's a very fashionable question and I would like to be escalate as possible on this.
We are committed as the buyer and seller to close this transaction as soon as possible.
We are equally committed to complying with the regulations, which happened to increase over time and change and have different interpretations.
Irregardless of that we expect.
<unk> as soon as possible and we think we have ample time until the maturities of October bones.
Right.
As I mentioned earlier I think we are moving on and my resignation from the board of P. J C is on another step articulating the change of ownership status starting.
Okay, and what's the <unk> reported some pretty strong operational results can you may be coming to in some of the key drivers of this.
First of all I am, particularly happy the way our digital operators.
Strategy is delivering results and the level of operating companies are embracing and executing on this.
Without any exception all our operating companies are gaining market share, but more importantly, thanks to our digital operator strategy. They are also gaining vaulted share.
It is clear that as we engage further with entertainment financial services education, and health services through applications. The engagement levels increase data consumption increases are two levels triples and to churn pulse. This is the key results.
Why we are able to increase our prices as an inflationary manners and do not suffer from lots of customers our customers actually welcome to.
To have more services from us and also pay for it I'm very glad that we are executing on this an exceptionally well in all the fronts.
Given the recent use that from Russia do you see any risks in obtaining the final approvals.
In the today's world you.
You know not to assume any risks would be nuts, I think intelligent.
But we have completed all the work that we can do we have taken care of all our people in the best way you have served our customers in the highest quality possible and I do not expect any negative surprises but of course, we are diligent in terms of <unk>.
There may be a Christian for Ya Uhm why has it may not be more bonds repurchased during the quarter.
We have to clarify if you're almost as not party to this repurchase agreement.
During the first quarter, if you want some from the previous <unk> independently conclude the purchase or <unk>.
Notes in order to ship is fine <unk> regulatory obligations.
The ongoing process for perjury bumps are being handled independent <unk>. So we are not in a position to able to comment on this.
Thanks, you up in our system with U K, maybe just comments on how the rest of the sale is and will be impacting beyond financials.
Yes, we have previously disclosed the <unk> enterprise value of approximately 5 billion dollar.
December 31 <unk>.
June therapy, we already sort of significant reduction <unk> from silk with $5 billion as of December 22.
542 billion at the.
The end of 2023.
You can also report group gearing <unk> 68 down from two point 61 times adherent.
<unk> <unk>. This will have further force of impact about depth, and giving levels as well as including total balance sheet.
Yep Conkey, maybe just update us on the status of the task transactions. Please.
We are committed to monetize our towers in all the markets that the operator and please don't get me wrong, it's not because we need cash it's actually what our strategy is.
We are a consumer business with telephone licenses, we would like to invest in areas, where we leverage our low cost customer acquisition capabilities and excellent distribution capabilities for consumer business expansion in vertical such as financial services Entertainment education and healthcare.
We believe towers as a passive part of our network.
Is better utilized managed and serviced by independent other companies.
Why our commitment to monetize our towers continues we.
We are progressing in every single country on this aspect.
We do not hurry.
S B C. The right value for our stakeholders, that's why it may take longer but I truly believe that monetization of the towers there'll be a key driver of our next stage of growth. Thanks.
<unk> <unk> could you update us on a capital structure paints.
Yeah, because it was discussed previously one of our recent priorities has been to ensure the group has a strongly agree with your position.
<unk> balance of headquarters of the amount of $2 billion a quarter and following the conclusion of the food option in April .
You expect a on the conclusion of the <unk>, we will be a lower leverage company.
You anticipate a tower skills in particular are expected to support or <unk> as we move towards increased local grocery did their country of operations.
You're currently active you feel ready British additional options around the appropriate your prescription for the group <unk> <unk> <unk>.
Thanks, you up <unk> could you, maybe just talk a little bit about the current operating environments in Pakistan.
We are long term investors and we are committed to Pakistan in emerging markets from time to time turbulence. This can happen economically or politically.
Regardless of that's V C immense opportunities in Pakistan, where maybe other seat problems. We are progressing with our digital operators strategy growing our business about 20 per cent year on year growth.
Continue to be disciplined on financial management entering into adjacent markets like financial services Entertainment and in the future also in education and healthcare so yes.
Pakistan has <unk>.
Issues currently, especially when it comes to foreign currency fluctuations, but this does not change our commitment to the country.
Thank you could you also come into a little bit on the revised godless and maybe the the normal outperformance <unk> unexpected yes.
Yes, as I mentioned, if he would normalize the one off show of last year and also maybe this year.
Although much smaller the underlying performance that we see is projecting revenue growth of 17 to 20 per cent.
And then a b D a growth of 15% to 17% we have been.
Working on the higher end of our performance expectations, especially <unk>.
And I see no reason just to change actually I was already mention that July was in line with the future performance and actually even delivering hard currency.
He turns as well okay.
Thank you Uhm and that's.
Another one that comes with my Q P. Please can you hear me coming from the impacts the Canadian sanctions.
Well to be clear there is the impact of Kennedy infectious to <unk>. It is a pity that Canadian government. Unlike the United States, which is considered telecommunications industry as a humanitarian service providers and excluded from sanctions, Canada decided to sanction.
Telecom company as well in Russia, but it has no direct practical impacts.
To our operations cause I think we've got time for one last question was it just comes with an a P people could you maybe just come in from the risk of nationalization in Ukraine.
Luke.
<unk> is it publicly listed company in NASDAQ in Europe .
And we have.
American European UK investors, who count on us and who support us and who encourage us.
To continue investing in okay.
We have an international management team and independent board of directors.
We have committed an additional $600 million to rebuild crazy infrastructure and our 4000 people in Ukraine is working relentlessly day and night to connect <unk> and keep them safe.
I believe you know we have to focus on the value.
And beyond provides two great and.
Clearly we are always managing risks in the most detailed way.
We raise these in older transparency way in the in the.
Reports that the issue.
But I'm confident that value in case, there is realized recognized in our further commitment together with wreck with them to further utilize open run in the country is going to be also recognized very positively.
And thanks, very much I've gone in Europe , Uhm, we're out of time not teased if there are any more questions I'm. Neither a couple more that can be done if topping out we will get back to you to anything additional please feel free to reach out his voice. Thank you very much everyone for your time and for <unk>.
Thank you. Thank you.