Q1 2024 VEON Ltd Earnings Call
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Speaker Change: Good afternoon, and good morning, everyone and thank you for joining us today for <unk> first quarter results presentation for the period ending March 31st White label.
Faisal Ghori: Sponsored ADR Good afternoon and good morning to everyone, and thank you for joining us today for VEON's first quarter results presentation for the period ending March 31st, 2024. I'm Faisal Ghori, Head of Investor Relations. I'm pleased to be joined in the room today by Khan Terzioglu, our Group CEO, along with Joop Brakenhoff, our Group CFO. Today's presentation will begin as usual with the key business highlights and business updates from Khan. Following a discussion of the detailed financial results by Joop, we will then open up the line for Q&A.
Speaker Change: And vessel worried that Investor relations at <unk>.
Speaker Change: Bye.
Speaker Change: Contrary yield.
Speaker Change: <unk> CEO, along with yoga alcohol.
Speaker Change: Our group CFO.
Speaker Change: Today's presentation will begin as usual with.
Speaker Change: The key business highlights and business updates.
Speaker Change: All in discussion of detailed financials.
We will then open up the language way.
Faisal Ghori: 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. The statements relating partly to the company's anticipated performance and guidance for 2024, future market developments and trends, operational network development, and network investment, and the company's ability to realize targets and commercial strategic initiatives, including current and future. Certain factors may cause actual results to differ materially from those in the forward-looking statements, including the risk details of the company's annual report on June 20th and the other recent public comments made by the company with the SEC.
Speaker Change: Before getting started that wed like to remind you that we may make forward looking statements during today's presentation, which involve certain risks and uncertainties.
Speaker Change: Statements relating to the company's anticipated performance and guidance for 2000 people future market developments and trends operational network development and network.
Speaker Change: And the company's ability to realize its targets that commercial changing initiatives, including correct.
Speaker Change: Certain factors may cause actual results to differ materially.
Speaker Change: Statements, including the risks detailed in the Companys annual report.
Speaker Change: On won't play yet and the other recent public filings made by the company with the SEC. The earnings release any earnings presentation, each of which include reconciliations.
Faisal Ghori: The earnings release and the earnings presentation, each of which includes reconciliations of non-IFRS measures presented today, can be downloaded from our website. We also note that today's presentation will include ratings from credit rating agencies, a rating is not a recommendation to buy, sell, or hold securities, and may be subject to revisions or withdrawal at any time. With that, I will hand it over to Kyle. Thank you.
Chris: Chris I just presented today can be downloaded off site. We also note that todays presentation will include ratings from credit rating agency radiant recommendation of ice eligible securities and may be subject to revision withdrawal.
Scott: With that let me hand, it over to Scott.
Unknown Executive: Thank you, Faisal. Good morning, good afternoon, and welcome to everyone.
Scott: Thank you if I saw good morning, good afternoon, and welcome to everyone. I. Appreciate you joining us today on May 16th four P. M. Dubai guidance Gaurav first quarter results for 2020 book.
Unknown Executive: I appreciate you joining us today at 4 p.m. Dubai time for our first quarter results for 2021. Today, I'm excited to highlight the robust growth in U.S. dollar revenue growth. In the first quarter of 2024, we report a 6.6% year-over-year growth in U.S. dollar revenue. This figure is particularly notable when considering the impacts of a significant network cyber attack in Ukraine.
Speaker Change: Today I'm excited to highlight the robust growth in U S dollar revenue growth.
Speaker Change: In the first quarter of 2020 core via reports at six 6% year over year growth in U S dollars ready.
Speaker Change: This figure is particularly notable when considering the impacts of the significant network cyber attack.
Unknown Executive: Other than Ukraine, our organic U.S. dollar revenue growth across all operations increased to 15% year-over-year, a mid-teens hard currency growth rate. In local currency, Ukraine declined 14% in Q1, and the rest of the operation's growth accelerated to 20.5% in Q1 from an already high local currency growth rate of 19.2% year-over-year in 2023. This exceptional performance not only underscores our leadership position in telecom but also highlights our performance in digital platforms and mobile financial services.
Speaker Change: Other than a great organic U S dollar revenue growth across all operations increased to 15% year over year.
Speaker Change: Mid teens are currency growth rate.
Speaker Change: In local currency.
<unk> declined 14% in Q1, and the rich spoke to operational growth accelerated to 25% in Q1 <unk> already high local currency Growth's April 19 point to year over year in 2023.
This exceptional performance not only underscores already their position in the telecom business.
Speaker Change: It also highlights our performance in digital platforms and mobile financial services.
Unknown Executive: Let's delve into the strategies that have driven this remarkable growth. During our presentation, I will concentrate on local currency growth rates that more accurately reflect the true underlying growth trends and operational achievements across our operating companies.
Speaker Change: Let's delve into the strategies that that Zealand this remarkable growth.
Speaker Change: During our presentation I will concentrate on local currency growth rates that more accurately reflects the true underlying growth trends and operational achievements across our operating companies.
Unknown Executive: Please note local currency growth rates include the impact of recent cyber attacks in Ukraine. In Q1 2024, we achieved double-digit growth at 12% year-over-year in local currency terms. Service revenues rose at a similar rate of 10% year-on-year in local currency. Other than Ukraine, revenue grew 15% year-on-year in dollars, and local currency growth expanded to 20.5%. Local currency EBITDA expanded in Q1 2024 at a rate of 5% year-on-year. However, if we isolate the Ukraine operation, ABTA grew 16% year-on-year in U.S. dollar terms.
Speaker Change: Lease no local currency growth things includes the impact of recent cyber attacks and grade.
Speaker Change: In Q1, 2024, we achieved double digit growth at 12% year over year in local currency terms service revenues rose at the similar rate up 10% year on year in local currency.
Speaker Change: Other than new Crane revenue grew 15% year on year in dollars and local currency growth expanded to 25%.
Speaker Change: Local currency EBITDA expanded in Q1 2024 at a rate of 5% year on year.
Speaker Change: The isolate the great operation EBITDA grew 16% year on year in U S dollar terms.
Unknown Executive: This is indicative of positive operating leverage and sound execution of cost management programs. Our balance sheet remains robust as well. We have a cash position of $632 million, of which $261 million is held at the headquarters. In late March, we repaid the full outstanding balance of $805 million of principal under the revolving credit facility and canceled the revolving credit facility.
Speaker Change: This is indicative of positive operating leverage and solve the execution of cost management programs.
Speaker Change: Our balance sheet remains robust as well.
Speaker Change: <unk> cash position of $632 million of which $261 million is held at the headquarters.
Speaker Change: In late March repaid the full outstanding balance of $805 million.
Speaker Change: Dollars of principal under the revolving credit facility and canceled the revolving credit facility.
Unknown Executive: Later in this presentation, Joop, our Chief Financial Officer, will provide an update on our pro forma liquidity status, which takes into account the revolving credit facility repayment. Capital expenditures increased by 39% year-on-year, totaling $125 million for the first quarter. Context Intensity for the last 12 months has come in at 18.3%, two percentage points lower than last year's same time. I will now provide a brief overview of our 37-year NMDA growth across the portfolio.
Speaker Change: Later in this presentation Youll, our chief Financial Officer will provide an update on our pro forma liquidity status, which takes into account.
Speaker Change: The revolving credit facility payments.
Speaker Change: Capital expenditures increased by 39% year on year totaling $125 million for the first quarter.
Speaker Change: Capex intensity for the last 12 months basis.
Speaker Change: Has come in at 18, 3% two percentage points lower than last year same time.
Speaker Change: I will now provide a brief overview of about <unk> 17, and EBITDA growth across the portfolio.
Speaker Change: So grant service revenue growth in local currency declined 14, 6% year on year, given the impact of customer retention programs. We have put in place successfully after the cyber event.
Unknown Executive: Ukraine service revenue growth in local currency declined 14.6% year-on-year, given the impact of customer retention programs we have put in place successfully after the cyber attack. Excluding Disimpact, service revenue grew 6.4% year-on-year, and I'm happy to report that the Security Attack has been totally neutralized, and Ukraine is back on double-digit growth as of April.
Speaker Change: Excluding this impact certainly 70 grow grew six 4% year on year and I'm happy to report.
Speaker Change: Security effect has been totally neutralized as the grain is back on double digit growth as of April.
Speaker Change: In our central and South Asian markets local currency service revenue growth for the year remained robust with increases in larger markets ranging from 22, 2% in Kazakhstan to 25, 7% in Pakistan for smaller markets that have any growth ranged from six 2% in <unk>.
Unknown Executive: In our Central and South Asian markets, local currency service revenue growth for the year remained robust, with increases in larger markets ranging from 22.2% in Kazakhstan to 25.7% in Pakistan. For smaller markets, revenue growth ranged from 6.2% in Bangladesh to 15.1% in Uzbekistan. Moving on, I would like to outline some of our 4G and multiplayer operational highlights. While overall mobile subscribers remained largely flat relative to the prior periods, we note that the 4G user base increased 11% to 97 million, a growth of 10 million 4G subscribers. The 4G penetration rate rose 6 percentage points to 62, bringing us closer to our target of 70%.
Speaker Change: 215.1% in those big stuff.
Speaker Change: Moving on I would like to outline some of our <unk> and multiplayer operational highlights.
Speaker Change: While the world mobile subscribers remained largely flat relative to the prior periods. We note that Fortunately user base increased 11% to 97 million a growth of 10 million <unk> subscribers.
Speaker Change: <unk> penetration rate rose six percentage points to 62, bringing us closer to our target of 70%.
Unknown Executive: We see the compounding effect of 4G for all and digital operator strategies in our multiplayer segment. Customers who consume our digital services, in addition to 4G capabilities, have increased significantly, and this enables us to convert more single-player users to multiplayer subscribers who use our digital services, spend more time with us, consume more data, churn less, and drive higher revenue. In Q1, Multiplied Segment Revenue represented 49% of our consumer revenues and grew 36% year-over-year.
Speaker Change: We see compounding effect of Portuguese parole and digital operator strategies in our multiple end segments.
Speaker Change: Customers, who consume our digital services. In addition to forging capabilities have increased significantly and this enables us to convert more single player users to multi play subscribers, who use our digital services spend more time with us consume more data shown less.
Speaker Change: And drive our higher revenues.
Speaker Change: In Q1 multiply segment revenues represented 49% of consumer revenues and grew 36% year over year.
Speaker Change: Multi play average revenue per user growth ranged in between 4% to 47% across all countries.
Unknown Executive: Multiply the average revenue per user growth range of between 4% to 47% across our country. Now, let me move to country-by-country performance and start with Kyivstar in Ukraine. I'm pleased to report that Kyivstar has effectively neutralized the impact of the recent attack, and both customer retention and customer activities have come to normal levels. However, revenues for PSDAR decreased 14.1% year-over-year in local currency and 17.8% in reported currency. This is largely due to the cyber attack we experienced, and we have substantial immediate effects on our operation. A BPA decreased 26.3% in local currency and 29.6% in reported currency in Ukraine.
Speaker Change: Let me move to country by country performance and start with Costar Ukraine.
Unknown Executive: If we normalize for this impact, Kirstar demonstrated resilience and strong operational performance. Revenue and EBITDA showed substantial organic growth, increasing by 7 and 10% year-on-year, respectively. This performance underlines Kyivstar's strong leadership and strategic execution capabilities, ensuring that despite adverse conditions, we continue to advance and maintain our market leadership. This resilience not only reflects our ability to navigate immediate challenges but also a commitment to long-term growth and presence in the market. Q124 CapEx increased the new brain 37% year on year.
Speaker Change: Pleased to report that <unk> has effectively neutralized the impact of the recent attack and gold customer retention and customer activities has come to normal levels.
Speaker Change: Revenues for P. F Star decreased 14, one 1% year over year in local currency.
Speaker Change: At 17, 8% in reported currency.
Speaker Change: This is largely attributed to the cyber attack we experienced NV.
Speaker Change: And we had substantial immediate effects a lot of operations.
Speaker Change: EBITDA decreased 26, 3% in local currency and 29, 6% an important currency who Craig.
Speaker Change: If we normalize for this impact he didn't start demonstrated resilience and strong operational performance.
Speaker Change: Revenue and EBITDA showed substantial organic growth, increasing by seven and 10% year on year, respectively.
Speaker Change: This performance underlines he has started strong leadership and strategic execution capabilities.
Speaker Change: During that despite adverse conditions, we continue to advance and maintain our market leadership.
This is Julian is not only reflects our ability to navigate immediate challenges, but also a commitment for long term growth and presence in the market.
Speaker Change: Q1, 'twenty four Capex increase then Ukraine, Turkey, 7% year on year.
Unknown Executive: TS-STAR has made significant progress to ensure network resilience with power storage and generation capacity across key sites. As part of its 4G everywhere strategy, we established 170 new sites and 900 new base stations throughout Q1-24. We have upgraded most of our critical sites to battery power which can last up to 72 hours, considering the continuous attacks on the energy infrastructure.
Speaker Change: <unk> has made significant progress to issue a net brokerage aliens with power storage and generation capacity across key sites.
Speaker Change: As part of its Gorgie everywhere strategy via established under that 70, new sites 900, New base stations throughout Q1 24.
Speaker Change: We have upgraded most of our critical sites to battery power switch get lost up to 72 hours considering the continuous FX on the energy infrastructure.
Unknown Executive: Kyivstar continues to grow its 4G user base, which reached 14.5 million in the fourth quarter, increasing 61% of the user base. Now, let's move to Helsi, our most advanced digital healthcare platform in Ukraine. The Healthy Platform provides online consultations with medical professionals and is a vital part of KFSTAR's digital portfolio, with more than 28 million registered patients, which is up 11% year on year, relative to a total population of 38 million in Ukraine or 74% penetration in population.
<unk> continues to grow as for G user base, which has reached $14 5 million in the fourth quarter rising 61% of the user base.
Speaker Change: Let's move to healthy our most advanced digital health care platform integrate.
Speaker Change: <unk> platform provides online consultations with medical professionals and is a vital part of <unk> digital portfolio.
Speaker Change: With more than 28 million registered patients, which is up 11% year on year.
Speaker Change: Relative to a total population of 38 million in the brain or 74% penetration in population.
Speaker Change: LLC has access to almost 1600 active health care institutions.
Unknown Executive: Healthy has access to almost 1,600 active healthcare institutions, which is up 4%, and more than 38,000 specialists active on the platform, up 14%. We have executed 2.5 million appointments through the platform during the first quarter, a 33% increase year-on-year. Let's move to Pakistan.
Speaker Change: Which is up 4% and more than 38000 specialists active on the platform up 14%.
We have executed $2 5 million appointments through the platform during the quarter to one.
Speaker Change: 33% increase year on year.
Speaker Change: Let's move to Pakistan.
Unknown Executive: Just continues to sustain its strong growth trajectory. Jazz's successful execution of its digital operator strategy helped drive total revenue growth of 29% year-on-year and EBITDA growth of 27% in the quarter. In Q1, the 4G user base reached 46 per million, a year-on-year increase of 7%, with 4G penetration reaching 64%. Multiply users account for 29% of our operators' monthly active users, and these users generate almost 3.2 times the ARPU of voice only users.
Speaker Change: <unk> continues to sustain its strong growth trajectory.
Speaker Change: Jeff This successful execution of our digital operator strategy helped drive total revenue growth of 29% year on year and EBITDA growth of 27% in the quarter.
Speaker Change: In Q1, the forging user base reached $46 million, a year on year, and <unk>, 7% with porgy penetration, reaching 64%.
Speaker Change: Multiply users accounting for 29% of all operators monthly active users and these users generate almost three two times our pool of voice all new users.
Speaker Change: Judges multiple a customers generated 57% of its revenues and this is up 11.5 percentage points year on year.
Unknown Executive: Jans' Multiplay customers generated 57% of its revenues, and this is up 11.5 percentage points year-on-year. As a result of higher data consumption per subscriber and strong financial services growth, ARPA expanded 30%, in part. Our capital expenditures increased 45%, showing our continued commitment to service quality. These efforts were previously delayed given regulatory constraints and the macroeconomic environment.
Speaker Change: As a result of higher data consumption per subscriber and strong financial services grow ARPA expanded 30% in Pakistan.
Speaker Change: Our capital expenditures increased 45% showing our continued commitment to service quality.
Speaker Change: These efforts were previously delayed even regulatory cost trends and macroeconomic environment.
Unknown Executive: Last 12-month capex insensitivity was 11.5% and was impacted by import control. Let's move to our mobile financial services. JustCash and Mobilink Bank continue to grow profit. Moblin's gross loan portfolio expanded 20%, and the average loan size increased by 9% year-on-year.
Speaker Change: Last 12 months Capex intensity was 11, 5% and was impacted by.
Speaker Change: Import controls.
Speaker Change: Let's move to our mobile financial services in Pakistan jazz cash and mortgage bank continuing to grow profitability.
Speaker Change: <unk> gross loan portfolio expanded 20% and the average loan size increased by 9% year on year.
Unknown Executive: Total financial revenues grew 93% by an increase of 47% in 12-month gross transaction value. This transaction value amounted to 24 billion U.S. dollars or 6.6 billion Pakistani rupees. This is supported also by our continued expansion of the Merchant Acquisition Network, reaching 370,000 active merchants, which is up 37%, including the agent network. JazzCash has 17.2 million monthly active users, and it has extended 7.9 million digital loans to more than 2 million customers, up 37% year-on-year. Revenue for Jazz Cash grew 89% year-on-year, driven by gross transaction values of $6.6 trillion, a 47% increase. In the first quarter of 2024, Jazz Cash achieved significant milestones with an average daily issuance of 87,000 consumer loans.
Speaker Change: Total financial revenues grew 93% by an increase of 47% in 12 months gross transaction value.
Speaker Change: This transaction value amounted to 24 billion U S dollars or six six trillion Pakistani rupees.
Speaker Change: This is supported also by our continued expansion of merchant acquisition network, reaching 370000 active merchants.
Speaker Change: Which is up.
Speaker Change: 37%, including the agent network.
Speaker Change: Jazz cash.
Speaker Change: $17 2 million monthly active users.
It has extended seven 9 million digital loans to more than 2 million customers.
Speaker Change: Up 37% year on year revenue.
Speaker Change: Revenue for jazz cash grew 89% year on year.
Speaker Change: England by gross transaction values of $6 six trillion, 47% increase.
Speaker Change: In the first quarter of 2020 for Jess casualty achieved significant milestone. We then average daily issues of 87000 whole schumer loans.
Speaker Change: These figures underscore the robust demand and trust in our financial services, demonstrating jazz cash has strong position in the market and its vital role in facilitating financial inclusion and digitalization of the Pakistani economy.
Unknown Executive: These figures underscore the robust demand and trust for our financial services, demonstrating Just Cash's strong position in the market and its vital role in facilitating financial inclusion and digitalization of the Pakistani economy. Now, let me switch to Tamasha, our leading entertainment blogger.
Speaker Change: Let me switch to Tom Usher, our leading entertainment platform.
Unknown Executive: In the first quarter, we experienced impressive growth, up to 12 million monthly active users, achieving a remarkable 2.1 percent, 2.1 times increase compared to the previous year. This is mainly driven by the KSL Cricket Tournament. Additionally, the total number of user sessions throughout the quarter saw a significant rise, increasing 2.5 times compared to the previous year, reaching 303 million viewing sessions. Additionally, Tamasya has recently secured digital streaming rights for all major international Cricket Council tournaments in 2024 and 2025.
Speaker Change: In the first quarter, we have experienced impressive growth up to 12 million monthly active users achieving a remarkable two 1% to one times increase compared to the previous three and this is mainly driven by the PSL cricket tournament.
Speaker Change: Additionally, the total number of users sessions throughout the quarter. So a significant drives increasing two five times compared to the previous year, reaching 303 million viewing sessions.
Speaker Change: So Marcia has recently secured digital streaming rights for all major International Cricket Council carnivals in 2024 and 'twenty five.
Speaker Change: This content generates nearly 131 million rupees of advertising revenues exceeding the cost that we paid for the license.
Unknown Executive: This content generates nearly 131 million rupees in advertising revenues exceeding the cost that we paid for the license. Due to Tamasha's extensive reach and high engagement, leading brands in Pakistan are increasingly partnering with Tamasha for their advertising placement. Tamasha attracted over 50 international local advertisers over the past year, positioning it as a top choice for brand partnerships in the country. The growth highlights Tamasha's expanding influence and popularity, illustrating that localized sporting content matters in our market. Tamasha is open to all internet users.
Speaker Change: Due to the much of the extensive reach and high engagement, leading brands in Pakistan are increasingly partnering with how much our board their advertising placements.
Speaker Change: Sure I objected over 50 international local advertisers over the past year positioning it at the top choice for brand partnerships in the country.
Speaker Change: The growth highlights the Marshalls, expanding influence and popularity illustrating that localized sporting content matters in our markets.
Speaker Change: So Marcia is open to all Internet users.
Unknown Executive: 35% of its user base consists of non-JASC customers, demonstrating that our OTT application is world class and is a choice of the customers when it comes to watching sports. By bringing original and exclusive content that is relevant to our customs, in Pakistan, Jazz and Tamasha are able to drive more individuals to data consumption and increase our revenues per month. Now let's move to Kazakhstan.
Speaker Change: <unk>, 5% of its user base consists of non <unk> customers demonstrating that our OTT application is world class and has a choice of the customers when it comes to watching sports.
Speaker Change: By bringing original and exclusive content that is relevant to our customers in Pakistan jazz enter Russia are able to drive more individuals to the data consumption and increase our revenues.
Speaker Change: Months.
Speaker Change: Let's move to Kazakhstan.
Unknown Executive: Total revenues rose by 21% year-on-year, and service revenues increased by 22% year-on-year, driven by growth in mobile and fixed business, as well as from digital offerings. EBITDA increased 28% year-on-year in Q1. Higher output, a growing customer base, and rising consumption of data and digital services supported a solid top line growth. BILA in Kazakhstan's strong performance and ARCO expansion continues to be driven by an increase in 4G users, higher data consumption per subscriber, with converged fixed and mobile offers, and specialized, 4G penetration stands at 76%, reflecting a user base of 8.4 million. This is up 16% year on year, and Multiplay customers reached 3.8 billion, an increase of 10% year-on-year, approaching nearly half of our 4G usage. Now, let's look at Easy, a digital operator in one application.
Speaker Change: Total revenues rose by 21% year on year.
Speaker Change: And service revenues increased by 22% year on year, driven by growth in mobile and fixed business as well as from digital offerings.
Speaker Change: EBITDA increased 28% year on year in Q1 as.
Speaker Change: As hierarchical a growing customer base and rising consumption of data and digital services supported a solid topline growth.
Speaker Change: Beeline Kazakhstan's strong performance in Aqua expansion continues to be driven by an increase in Kochi users higher data consumption per subscriber with converged fixed and mobile offers and specialized.
Speaker Change: Family packages.
Speaker Change: <unk> penetration stands at 76%, reflecting a user base of $8 4 million. This is up 16% year on year.
Speaker Change: And multi play customers reached three 8 billion, an increase of 10% year on year approaching nearly all of our forging visits.
Speaker Change: Let's look too easy a digital operator in one application.
Unknown Executive: Developed and designed by Generation AI for the use of Generation AI, this domestic digital first operator has now half a million monthly active users, and this user base has increased 62% year on year. Just under half of EZ users are non-B9 customers who choose to use EZ for entertainment and gaming applications, while the other half enjoys also communication services.
Speaker Change: Both of them designed by generation AI for the use of generation AI.
Speaker Change: This domestic digital first operator has now all 10 million monthly active users and this user base increased 62% year on year.
Speaker Change: Just under half of easy users are non beeline customers, who choose to use easy for entertainment and gaming applications that while the other hall enjoys also the communication services.
Speaker Change: Let's move to bundling, where our revenues rose 6% in Q1, and this is driven by an expansion of its or if its total customer base, 6% year on year and data users, 10% up year on year.
Unknown Executive: Let's move to Bangladesh, where our revenues rose 6% in Q1, and this was driven by an expansion of its total customer base, 6% year-on-year, and data users, 10% year-on-year. Furthermore, driven by the uptake of digital services, the multiplayer customer base grew 8% year-on-year, supporting a 19% year-on-year increase in revenue. In Q1, ABTA declined 9.4% due to a one-off regulatory charge relating to the tower sale procedure.
Speaker Change: Driven by the uptake of digital services the multiple players.
Speaker Change: <unk> base grew 8% year on year supporting 19% year on year increase in revenues.
Speaker Change: Q1, EBITDA declined nine 4% due to a one volts.
Speaker Change: Regulatory charge relating to the solar powered sale proceeds.
Speaker Change: Excluding this the EBITDA growth was positive three 8%.
Unknown Executive: Excluding this, the MBTA growth was positive 3.8%. In the first quarter of 2024, our capital expenditures totaled 1.6 billion taka, and the CAPEX intensity decreased to 15.5 percent as we have come to a maturity level of the deployments in 2022 and 2023. Over the last 18 months, we have expanded our network footprint by 50% with more than 15,000 sites. And with the shutting down of 3G, we will accelerate. The quality of 4G connectivity across the country and continue to provide the best service.
Speaker Change: In the first quarter of 2020 for our capital expenditures totaled $1 6 billion Tucker and the Capex intensity decreased to 15, 5%.
Speaker Change: As we have come to a maturity level of the deployments in 2022 and 'twenty three.
Over the last 18 months, we have expand our network footprint by 50% with more than 15000 sites.
Speaker Change: And with shutting down the T G V will accelerate.
Speaker Change: Quality of <unk> connectivity across the country and continue to provide the best service.
Speaker Change: Looking to our entertainment platform in Bangladesh Toffee, I'm happy to report and May maintaining a healthy user base with monthly active users, reaching $9 2 million.
Unknown Executive: Looking to our entertainment platform in Bangladesh, Topi, I'm happy to report maintaining a healthy user base with monthly active users reaching 9.2 million. Tophie, again, is available to all internet customers in the country, and 68% of Tophie users are not Bangladeshi customers. We are seeing continuous increases in consumption and retention rates, and again, TOFI will be the exclusive broadcasting channel for cricket events. BanglaLink customers, who are also watching TOFI, generate three times more output than single voice customers. Let's look at Uzbekistan.
Speaker Change: <unk> again is available to all internet customers in the country and 68% October toffee users are not <unk> customers.
Speaker Change: We are seeing continuous increase in the consumption and the retention rates and again trophy will be the exclusive broadcasting channel for cricket events.
Speaker Change: Bundling customers, who are also watching Tobey generally three times more than the single voice customers.
Speaker Change: Let's look those big stuff.
Unknown Executive: Our Uzbekistan operation grew 15% year-on-year in local currency. The performance was mainly driven by 4G subscriber growth and higher demand for Beeline's data and digital services, supporting an R2 growth of 17%. Beeline Uzbekistan now exceeds its 70% corgi penetration target. The 4G user base reached 6.1 million, which is a 6% year-on-year increase. In the first quarter, B-Line Uzbekistan increased its capex spending by five times.
Speaker Change: Our <unk> operations grew 15% year on year in local currency.
Speaker Change: <unk> performance was mainly driven by four <unk> subscriber growth and higher demand for <unk> lines data and digital services supporting an ARPA growth of 17%.
Speaker Change: Beeline is Vicki style now exceed 70% core GE penetration targets.
Speaker Change: The <unk> user base reached $6 1 million, which is a 6% year on year increase in the first quarter Beeline, those VIX that increased capex spend by five times.
Unknown Executive: This shows our strong commitment to the country's quality of network infrastructure, and we would like to continue moving into shutting down the 3G and enhancing our 4G coverage and improved network quality in Uzbekistan. Let me also share a quick summary of our digital operator efforts. As you can see on this flywheel, across our digital offerings, we are now reaching over 100 million customers, 111 million to be precise. In other words, we have reached nearly two-thirds of our traditional GSM subscriber base, and more than 20 million non-subscribers of telecom services are using our digital offerings.
Speaker Change: Demonstrating our strong commitment to the country's quality of network infrastructure.
Speaker Change: And we would like to continue moving into shutting down the <unk> and enhancing our <unk> coverage and improve network quality in those big stuff.
Speaker Change: Let me also share a quick summary of our digital operator efforts as you can see on this slide.
Across our digital offerings, we are now reaching over 100 million customers 190 11 million to be precise.
Speaker Change: In other words, we have reached nearly two thirds of our traditional GSM subscriber base and more 20 million non subscribers of telecom services are using our digital offerings.
Unknown Executive: We aim to be in the lives of our customers every single minute. Key verticals from entertainment to financial services, healthcare, and educational services. As you can see, users spent more than 69 billion minutes with us over the last 12-month period. With that, I will hand over to Joop for financial updates.
Speaker Change: We aim to be in the lives of our customers in every single units.
Speaker Change: And key verticals from entertainment to financial services healthcare and education services.
Speaker Change: As you can see users spend more than 69 billion minutes with us on a last 12 month basis.
Speaker Change: With that I will hand over to Europe for financial update.
Speaker Change: Thanks, John.
Joop Brakenhoff: For the first quarter, we achieved double-digit area growth in local currency revenues across our six markets, with total revenue growing 12% year-on-year and service revenue growing at a 10% year-on-year growth rate, culminating in reported revenue of $942 million. This performance, despite the cyber-attack, is in your brain.
Speaker Change: For the first quarter, we've achieved double digit year over year growth in local currency revenues across our six markets.
Speaker Change: With total revenue growing 12% year on year and service revenue growing 10% year over year brokerage rumor.
Speaker Change: Ruminating and report revenue reported 2 million Gore.
Speaker Change: Our reported revenue on a dollar basis decreased 7% year on year.
Speaker Change: This performance is despite the cyber book.
Speaker Change: You agree.
Joop Brakenhoff: If you visit our church for this incident, upward direct US dollar revenue growth across all operations rose to 50% year-on-year. The driving forces behind the revenue growth include gains in market share and the expansion of our digital platforms across all operations. Along with the implementation of a disciplined advisory pricing strategy, you also see a positive microeconomic environment in our markets, which is assisting in our growth. Not turning our attention to our EVDA and EVDA margin.
Speaker Change: If you read or just privacy concerns.
Our revenue growth across all operations grew 50% year on year.
Speaker Change: The driving force of stronger revenue growth and gains in market share and the expansion of our digital platforms across all operations.
Speaker Change: Coupled with even with digital disciplined depressing prices grades.
Speaker Change: You're also seeing of course, the macroeconomic environment in our markets. This is assisting in our group.
Speaker Change: Now turning our attention to our EBITDA and EBITDA margin.
Speaker Change: In the first quarter EBITDA was British increasing by 3% year on year in reported currency and rice fiber and 3% in local currency terms.
Joop Brakenhoff: In the first quarter, Group MDA was British, increasing by 0.3% year-on-year in reported currency and by 5.3% in local currency. Our EVDA margin decreased by 2.5 percentage points at 41%, probably being marginally impacted by three factors. First, the customer retention measures already discussed in your brain. These measures have a significant financial impact of approximately $46 million on revenue and around $47 million on EBITDA. Second, we incurred a one-off charge in Bangladesh related to our tower sales. And lastly, in Uzbekistan, where our ad tech business is located, we saw an uptick in investments and also an increase in electricity fares in the market.
Speaker Change: Our EBITDA margin decreased <unk> five percentage points from 41%.
Speaker Change: Our margin was in Brexit pardon me about three factors.
Speaker Change: The customer had been some measures already disbursed EUR brain.
Speaker Change: These measures had a significant impact of Berkshire would be 46 million more on revenue and a rock $47 million EBITDA.
Speaker Change: Secondly, a grid of world's Georgia by this related power sales and last week It was big stone.
Speaker Change: <unk> business is located vishal cryptic in investments and also the region or <unk> in the market.
Speaker Change: Oregon Your breeding fueled first quarter EBITDA grew 50% year over year in U S dollar terms.
Joop Brakenhoff: All of them to bring VEON's first quarter EVA to 50% year-on-year in U.S. dollar terms. Now, shifting our focus to key balance sheet figures. As we close the first quarter, the group maintained a healthy liquidity position, with a cash reserve of $632 million, excluding our bank activities and practices. All this amounts to $161 million held at that ward, at the Operating Level in Server Operating Companies, Sultan. In March this year, we announced the full repayment of the remaining outstanding balance of $805 million on our re-evolving credit system.
Speaker Change: Shifting our focus to key balance sheet figures.
Speaker Change: As we close the first quarter the group maintains that hoping the groups position.
Speaker Change: But it gets reserve of 630 <unk>.
Speaker Change: Proving our activities at Barton stone.
Speaker Change: August amounts to 61 million bar is hope of headquarters.
Speaker Change: At the operating level is a horrible vertical fees.
Speaker Change: Perfect.
Speaker Change: And Mark this year in Vietnam, the full repayments of the remaining outstanding balance of pregnant or on a revolving credit facility.
Speaker Change: Well currently the RCM has been cancelled.
Joop Brakenhoff: So currently, the RCA has been, This will reduce VEON's interest expenses, reflecting our commitment to efficient cash management and balance sheet optimization. Turning now to our debt profile, our average cost of debt is now 8% and reflects the blended rate of borrowing in our market group. Pakistani rupee debt remains the highest cost and is about 20% off the overgroup debt.
Speaker Change: This will reduce interest.
Speaker Change: Interest expenses, reflecting our commitment to cost management.
Speaker Change: She optimization.
Speaker Change: Turning now to our debt profile.
Speaker Change: Our average cost of debt is up 8% and reflects the blend reflects the blended rates borrowing market currencies.
Speaker Change: <unk> remains the highest cost is about printing sample supergroup.
Speaker Change: Interest cost over beer, where losses favorable.
Joop Brakenhoff: Intersposed overbeard, we're lost and stable. Now, Evan's death maturity is now 2.8 years, and 3.4 years if he includes Arlis Library. Let the impact come.
Speaker Change: And our average debt maturity is our two eight years.
Speaker Change: Three four years ABB group RV Gregory.
Let me hand back to Kevin.
Joop Brakenhoff: Thank you. Let me reiterate our guidance for 2024. Our actual Q1 numbers are reflective of local currency growth rates, including Ukraine and its cyber attacks. On a normalized basis, excluding this impact from Ukraine, our normalized growth rates for both revenue and ABTA were up 17% year-on-year. Please note our guidance is based on a normalized growth rate. I would like to reiterate our guidance for 2024 as it is, which is 16 to 18% revenue growth, 18 to 20% EBITDA growth, and the last 12-month CAPEX intensity of 18 to 19%. Thank you for listening to us, and now we'll move on to the questions.
Speaker Change: Thank you <unk>, let me reiterate our guidance for 2024.
Our actual Q1 numbers are reflective of local currency growth rates, including a crane and its cyber attacks.
Kevin: On a normalized excluding this impact from rain or normalized growth rates for both revenue and EBITDA were up 17% year on year.
Kevin: Please note our guidance is based on a normalized growth rates.
Kevin: I would like to reiterate our guidance for 2024.
Kevin: It is which is 16% to 18% revenue growth, 18% to 20% EBITDA growth and a last 12 month basis, Capex capex intensity of 18% to 19%.
Kevin: Thank you for listening to us and now let's move to the questions.
Thank you.
Kevin: Thank you everybody.
Unknown Executive: Thank you, everybody. We don't have a lot of questions about the zoom. So if anybody has questions, please ask. But as a result of that, I'll turn to our retail platform. Our first question comes from Joseph M. Can you elaborate on the long-term strategy for your digital services? It seems that they have the potential to be extremely valuable, particularly video and financial platforms. How do you think the value of these businesses will eventually be reflected?
We don't have a lot of questions on the <unk>. If anybody has questions been asked but as a result of that I will turn to our <unk>.
Speaker Change: Our retail platform. Our first question comes from Joseph M. Can you elaborate on long term strategy for your digital services. It seems have potential to be extremely valuable, particularly video and financial outcomes.
Joseph M.: How do you think the value of these businesses will eventually be reflected it can be.
Joseph M.: Joseph Thank you very much for the question.
Unknown Executive: Joseph, thank you very much for the question. To give you an overall understanding why we are so passionate about this, in the five markets that we operate, I'm excluding Kyrgyzstan for simplicity purposes, 500 million people live. One out of three is our telecom subscriber, and as I reported in Q1, almost 111 million people are consuming our digital services. These markets are heavily underserved, from a financial services perspective, an entertainment perspective, education, and healthcare perspective. All these four lateral adjacent markers that I mentioned are actually as big as the telephone itself.
To give you an overall understanding why we are so passionate about this.
Speaker Change: In the five markets that we operate I mean, excluding COVID-19 has done for simplicity purposes.
Speaker Change: 500 million people live.
Speaker Change: One out of three is our telecom subscribers.
Speaker Change: And as I have reported in Q1, almost other than 11 million people are consuming our digital services. These markets are heavily underserved.
Speaker Change: From a financial services perspective Entertainment perspective, education, and healthcare perspective.
Speaker Change: All these four lateral adjacent markets the dimension actually are as big as the telephone so we.
Unknown Executive: We have a unique advantage of being a very low-cost customer acquisition engine and a very effective distribution platform. We believe in being a lighthouse, and we focus on what matters for the customer. Therefore, all these adjacent markets we consider as our core areas for capturing bullet share. And in the last three years, by deploying 4G networks across our countries, we created the platform for our digital applications to be successful.
Speaker Change: We have a unique advantage of being a very low cost customer acquisition engine and they're very effective distribution platform.
Speaker Change: We believe in being asset light and we focus on what matters for the customer.
Speaker Change: Therefore, all of these adjacent markets, we consider as our core areas for capturing wallet share.
Speaker Change: And in the last three years by deploying <unk> networks across our countries. We created the platform for our digital applications to be successful.
Unknown Executive: Therefore, entertainment platforms such as B-TV, Tamasha, Toffee for Kinect, or financial services offerings such as Jazz Catch, Simpli, or Veep are core businesses that we expect to grow in the current financial model we have. These businesses have a direct impact on our retention rates and accuracy to our. As we build strong user bases, all these digital services will have their feet on the ground as sustainable standalone businesses as well.
Speaker Change: Therefore entertainment platforms, such as <unk> TV Tamasha Trophy.
Speaker Change: Or choenix.
Speaker Change: Our financial services offerings, such as Jess cash or simply or beat our four core businesses that we expect to grow.
In the current financial model, we have these businesses have a direct impact on our retention rates and accurate to argue.
Speaker Change: As we build strong user basis all of these digital services will have their feet on the ground as sustainable standalone businesses as well.
Unknown Executive: I would like to highlight that our strategy is at certain points to not only monetize through retention and higher output but also to focus on the value creation of these digital services by themselves. The time will come, and we will brief you more about that in the hours ahead. upcoming Capital Markets Day on June 6.
Speaker Change: I would like to highlight that our strategy is at certain points to not only monetize through retention and higher output, but also to focus on the value creation of these digital services by themselves. The time will come and we will brief you more about that over all.
Speaker Change: Upcoming capital markets day in June six.
Unknown Executive: Our next question comes from Mitchell Oldsteer at DG Capital. Can you please explain in more detail why January was impacted by the cyber attack which was resolved in December?
Speaker Change: Our next question comes from Mitchell holds here at TG capital can you. Please explain in more detail when January was impacted by cyber attacks with two unresolved and discipline.
Speaker Change: Thank you. Thank you very much for the question. This cyber attack. If you remember happened kind of torque vehicle December and actually it was very immediate and very resilient. The address why the team but of course cost cyber attack veto that it is the right time for us being generous towards our customer base.
Unknown Executive: kind of in the third week of December. And actually, it was very immediately and very resiliently addressed by the team. But of course, post-cyber attack, we thought that it was the right time for us to be generous towards our customer base, and we implemented a customer retention program that practically provided a free service to our customers for an extended period of time covering January and a reduction of service levels for the next day.
Speaker Change: And we have implemented a customer retention program, which practically provided a free service to our customers for an extended period of time covering January and a reduction of service levels for the next three months.
Unknown Executive: These periods resulted in and ended with 100% success in retaining our customer base and going back to activity levels before the cyber attack. So it was money well spent, and I'm very happy that our customers returned our generosity with their indication of loyalty.
Speaker Change: These periods have resulted and ended with 100% success in retaining our customer base and going back to activity levels before the cyber. It. So it was money well spent and I am very happy that our customers returned our generosity with their indication of Lloyd.
Speaker Change: Our next question comes from Rob Warshaw from polymer.
Unknown Executive: Our next question comes from Rahul Shah from Talamardinam. Can you walk us through the $730 million charge on the sale of towers? Should we expect similar charges for future tower sales? Thank you.
Rob Warshaw: Can you walk us through the 730 million type of charge from the sale of towers should we expect similar charges for future tower sales.
Unknown Executive: Thank you, Rahul, for the question. No, you should not expect similar charges except for sales in Bangladesh. But in Bangladesh, the regulations require a sales tax on these types of transactions. And this is a unique thing for the Bangladeshi environment, where we will see almost 6% over the total figures. And it is what was expected. But, of course, it didn't. Our next question is from Chris Hall from New Street Research. Can you help explain what drove the strong event down?
Speaker Change: Thank you. Thank you Robert for the question No you should not expect similar charges, except for the sales in Bangladesh, but in Bangladesh deregulation is required as sales tax over these type of transactions.
And this is a unique thing for the bank this year environment, where we will see almost 6% over the total figures and it is because expected but of course it hit in Q1.
Speaker Change: Our next question is from Chris <unk> from Ministry of Research can you help explain what drove the strong EBITDA from digital financial services platform.
Speaker Change: Great. Thanks, a lot for the question actually our.
Unknown Executive: Chris, thanks a lot for the question. Actually, our financial services business in Pakistan has two important pillars. One is our microfinance bank, MML bank, and the second one is jazz cash. Both of these operations are growing at high rates, meaning 80 to 90% year-on-year. And from an economic unit cost perspective, we have the right model in place now, and they are accretive, generating FDA approvals and also generating cash flow.
Speaker Change: Financial services business in Pakistan as two important pillars, one is our micro finance Bank <unk> Bank.
Speaker Change: And the second one is just cash both of these operations are growing in high.
Speaker Change: Teams meeting in <unk> at 90% year on year.
Speaker Change: And from an economy unit cost perspective, we have the right model in place now and they are accretive at generating EBITDA and also generating cash flow.
Speaker Change: The next question is from <unk> Doshi from many given the recently announced changes in Ukraine from <unk> regarding getting a capital calls or you see opportunities touchscreen foreign cash.
Unknown Executive: The next question is from Anjali Doshi from Naveen: given the recent announced changes in Ukraine from the NBU regarding easing of capital goals, will you see opportunities to upstream from cash? We actually have a pleasant conversation.
Speaker Change: We have actually pleasantly.
Unknown Executive: We have actually pleasantly listened to changes in capital controls in Ukraine, and yes, for 2025, it shows that there are possibilities of upstreaming certain funds from the country.
Speaker Change: Listen the changes in the capital controls in Ukraine at yes for 2025. It shows that there are possibilities of upstream and certain.
Funds from the country.
Speaker Change: Okay.
Speaker Change: Okay.
Unknown Executive: There's an anonymous question. Congratulations on the recent Sukuk issuance in Pakistan. Can we expect further progress to shift that to authority?
Speaker Change: There's a novice question.
Speaker Change: Congratulations on the recent Secaucus Shelterbox on can we expect further progress to shift that to operating costs.
Unknown Executive: Well, we are actually looking at all sorts of innovative and localized means of tapping into local financial markets. So Sukuk was one good example. If there are other markets with similar potential, we will, of course, explore those. Give it maybe one or two more.
Speaker Change: While we are actually looking to all sorts of notice and localized means of tapping into local financial markets. Social group was one. Good example, if there are other markets with similar potential we will of course explore dose.
Speaker Change: Kevin maybe one or two more minutes for any additional questions.
Unknown Executive: Give it maybe one or two more minutes for any additional questions, but I think we've kind of exhausted most of them.
Just a bunch of them.
Speaker Change: Okay.
Speaker Change: I would like to again highlight that on June six we are going to be having a capital markets day in Dubai.
Unknown Executive: I would like to again highlight that on June 6th, we are going to be having a Capital Markets Day in Dubai. Please check our website in terms of how to attend in person, and you are more than welcome to join us or online through our broadcast. And I would like to thank you again for your time and attendance and questions. Until the next time we see each other, Thank you very much.
Speaker Change: Please check our website in terms of how to attend physically and you're more than welcome to join us or online through.
Through our broadcast and I would like to thank you again for your time and attendance and questions.
Speaker Change: Up until the next time you see Chuck Thank you very much. Thank you.
Speaker Change: Sure.
Speaker Change: Goodbye.