Q3 2024 VEON Ltd Earnings Call
Operator: Hello, welcome to VEON's Q3 2024 Trading Update Call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. As a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Faisal Ghori, you may begin.
Hello, and welcome to <unk> Q3, 2024 trading update call. We ask that you. Please hold all questions until the completion of the formal remarks at which time, you'll be given instructions for the question and answer session.
Also as a reminder, this conference is being recorded today.
Speaker Change: Do you have any objections. Please disconnect at this time, if I sell Corey you may begin.
Faisal Ghori: Thank you. Good afternoon and good morning to everyone, and thank you for joining us today for VEON's Q3 results presentation for the period ending 30 September 2024. I'm Faisal Ghori, Head of Investor Relations. I'm pleased to be joined in the room today by Kaan Terzioglu, our Group CEO, along with Joop Brakenhoff, our Group CFO. Today's presentation will begin with the key highlights and business updates from Kaan, followed by discussion of detailed financial results by Joop. We will then open up the line for Q&A. 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.
Thank you good afternoon, and good morning to everyone and thank you for joining us today for <unk> third quarter results presentation for the period ending September 32024, I'm vessel oriented Investor Relations I'm pleased to be joined in the room today by contours Yolo, Our group CFO, along with you're breaking all our group CFO today's presentation will begin with the key.
Speaker Change: Highlights and business updates from Con followed by discussion of detailed financial results by <unk>. We will then open up the line for Q&A.
Speaker Change: Before getting started I would like to remind you that we may make forward looking statements during today's presentation, which involve certain risks and uncertainties. These statements relating partly to the company's anticipated performance and guidance for 2020 for future market developments and trends operational network development network investments and the company's ability to realize its targets in.
Faisal Ghori: These statements relating partly to the company's anticipated performance and guidance for 2024, future market developments and trends, operational network developments, network investments, and the company's ability to realize its targets in commercial and strategic initiatives, including current and future transactions. Certain factors may cause actual results to differ materially from those in the forward-looking statements, including the risk details in the company's annual report on Form 20-F and other recent public filings made by the company with the SEC. The earnings release and the earnings presentation, each of which include reconciliations of non-IFRS measures presented today, can be downloaded from our website. With that, let me hand it over to Kaan.
Speaker Change: On strategic initiatives, including current and future transactions certain factors may cause actual results to differ materially from those in the forward looking statements, including the risks detailed in the company's annual report on form 20-F, and other recent public filings made by the company with the SEC the earnings release and the earnings presentation, each of which can.
Speaker Change: Each of which include reconciliations of non Ifr estimates presented today can be downloaded from our website with that let me hand, it over to Scott.
Kaan Terzioglu: Thank you, Faisal. Good morning, good afternoon, and welcome to everyone. I appreciate you joining us today for VEON's presentation of Q3 results for 2024. Today, I am hosting the call from Dubai, our designated HQ. As the largest Nasdaq-listed company headquartered in Dubai, once the transition is completed over the next couple of weeks. I am thankful for the Dubai authorities, especially His Excellency Minister of Economy, Mr. Al Marri, for proving how welcoming Dubai is and why it is so easy to do business in this wonderful country. I would like to also remind you that the last day of trading of our stock on the Euronext exchange in Amsterdam will be 22 November, and as of 25 November, VEON stock will be exclusively traded on Nasdaq stock exchange.
Scott: Thank you <unk>. Good morning, good afternoon, and welcome to everyone. I. Appreciate you joining us today for the earnings presentation of Q3 results for 24.
Scott: Today, I'm hosting the call from Dubai or designated HQ.
Scott: As the largest largest NASDAQ listed company headquartered in Dubai, you. Once the transition is completed over the next couple of weeks.
Scott: I am thankful for the Dubai authorities, especially his excellent minister of economy, Mr. Murray for proving how welcoming Dubai is and why it is so easy to do business in this wonderful country.
Scott: I would like to also remind you that the last day of trading of our stock on the Euronext exchange numbers to them will be November 20 seconds and as of November 25th beyond stock will be exclusively traded on NASDAQ stock exchange.
Kaan Terzioglu: This will position VEON as a frontier markets bellwether for US investors who wish to participate in extraordinary growth of Central and South Asia. Going to the quarterly results, another strong billion-dollar quarter growing well above nominal GDP growth. In Q3 2024, we grew revenues by 9.8% year over year in US dollars and 14.1% in local currency terms. Underlying growth, taking into account the impact of the Bangladesh revolution, would be 16% year over year in underlying local currency terms. As a note, the weighted average blended inflation rate across our markets has decelerated from 16.5% in Q3 2023 to 8.2% as of now, marking a substantial reduction of 830 basis points while weighted average blended GDP growth has stayed over 3.4% over the same period. Against this backdrop, our revenue growth underscores VEON growing faster than both inflation and nominal GDP, and thereby gaining wallet share.
Scott: This will position <unk> as the frontier markets Bellwethers for U S investors, who wish to participate in extraordinary growth of central and South Asia.
Scott: Going to the quarterly results another strong billion dollar quarters growing well above nominal GDP growth in the third quarter of 2024, we grew revenues by nine 8% year over year in U S dollars and 14, 1% in.
Scott: Local currency terms.
Scott: Underlying growth taking into account the impact of the bangle digital evolution would be 16% year over year in underlying local currency terms.
Scott: As a note the weighted average blended inflation rate across our markets has decelerated from 16, 5% in Q3 2023 to eight 2% as of now.
Marking a substantial reduction of 830 basis points, while weighted average blended GDP growth has stayed over three 4% over the same period.
Scott: Against this backdrop, our revenue growth underscores we aren't growing faster than both inflation and nominal GDP.
Scott: And thereby gaining wallet share.
Kaan Terzioglu: Group EBITDA decreased 1.5% year-on-year in US dollars and increased 3.5% in local currency. EBITDA performance was impacted by certain identified items, such as pre-revolution disruption of business and post-revolution economic progress impact in Bangladesh, restructuring costs associated with the HQ relocation to Dubai, and charitable donations. Excluding the identified items, underlying EBITDA growth in local currency terms would have been 9.8% in local currency and 4.4% in US dollars. During our presentation, in the next slide, you will see we will concentrate on US dollar growth rates at the corporate level and local currency growth rates at the OpCo level. In Q3 2024, the growth overall was 9.8%. If you look into the breakdown of this growth, you will see that our telecom and infrastructure revenues combined grew 7.2% year-on-year, while our direct digital revenues grew 35.1% year-on-year in US dollars.
Scott: Group EBITDA decreased one 5% year on year in U S dollars and increased three 5% in local currency.
Scott: EBITDA performance was impacted by certain identified items, such as clear evolution disruption of business and possible evolution of economic progress impact in Bangladesh restructuring costs associated with the HQ relocation to the body and charitable donations.
Scott: Excluding the identified items underlying EBITDA growth in local currency terms would have been nine 8%.
Scott: In local currency and four 4% in U S dollars.
Scott: During our presentation in the next slide you will see we will concentrate on U S dollar growth rates at the corporate level and local currency growth rates at the opco level.
Scott: In Q3 2024, the growth overall was nine 8%.
Scott: If you look into the breakdown of this growth you will see that our telecom and infrastructure revenues combined grew seven 2% year on year, while our direct digital revenues grew 35, 1% year on year in U S dollars.
Kaan Terzioglu: Our EBITDA growth for the period was -1.5%, as mentioned, impacted by identified items amounting to $36 million as previously defined. Excluding those identified items, underlying EBITDA growth would have been 4.5% in US dollars. We ended Q3 with a cash position of $1 billion, of which $453 million is held at headquarters level. Gross debt is down 8% year-on-year, demonstrating effective cash management. Capital expenditures increased in Q3, 51.2% year-on-year, reflecting our inability to import equipment to Pakistan in Q3 last year due to macroeconomic conditions. CapEx intensity on a last 12-month basis for the period was 19.2% higher compared to last year by 1.5 percentage points. Now, I will provide a brief overview of our revenue and EBITDA growth across the portfolio of our operations. In Ukraine, revenues grew 17.9% year-on-year, and EBITDA increased 6.9% in Q3.
Scott: Our EBITDA growth for the period was negative one 5% as mentioned impacted by identified items amounting to $36 million as previously defined.
Scott: Excluding those identified items underlying EBITDA growth would have been four 5% in U S dollars.
Scott: We ended Q3 with a cash position of $1 billion of which 453 million is held had headquarters level.
Scott: Gross debt is down 8% year on year, demonstrating effective cash management.
Scott: Capital expenditures increased in Q3, 51, 2% year on year, reflecting our inability to import equipment to Pakistan in Q3 last year due to the macro economy.
Scott: Conditions.
Scott: Opex intensity on the last 12 month basis for the period was $19, 2% higher compared to last year by one five percentage points.
Now I will provide a brief overview of our revenue and EBITDA growth across the portfolio of our operations.
Scott: In Ukraine revenues grew 17, 9% year on year and EBITDA increased six 9% in Q3.
Kaan Terzioglu: This truly reflects our team's dedication to keeping Ukraine and its citizens connected while also maintaining a robust business performance. In our Central and South Asian markets, local currency revenue growth for the year remained robust. Pakistan led the growth with a revenue growth of 22.6% year-on-year, while Kazakhstan's growth was 14.8% and Uzbekistan's growth was 15.2%, as revenues in Bangladesh declined 8.4% due to the revolution, as I explained earlier. On EBITDA, Uzbekistan led at 15% growth, Pakistan by 14.7%, finally, Ukraine at 6.9%. EBITDA growth was -5.9% in Kazakhstan and -4% in Bangladesh. I will run through the drivers in each case as I brief you on the countries. Moving on, I would like to outline some important operational metrics. We added 8 million additional 4G customers year-on-year and grew multi-play customers by additional 4 million.
Scott: This truly reflects our team's dedication to keeping a crane and its citizens connected while also maintaining a robust business performance.
Scott: In our central and South Asian markets local currency revenue growth for the year remains robust.
Scott: Pakistan led the growth with our revenue growth of 22, 6% year on year, while Kazakhstan's growth was $14 eight and it was mixed stunted growth was $15 two.
Scott: As revenues in Bangladesh declined eight 4% due to the revolution as I explained earlier.
Speaker Change: Oh no EBITDA.
Speaker Change: Stunned laid at 15% growth, Pakistan by $14 seven final equal crane at $6 nine.
Speaker Change: EBITDA growth was negative $5 nine in Kazakhstan, and negative 4% in Bangladesh I will run through the drivers in each case as I brief you on the countries.
Speaker Change: Moving on I would like to outline some important operational metrics.
Speaker Change: Edit 8 million additional <unk> customers year on year.
Speaker Change: And grew multiply customers buy additional $4 million.
Kaan Terzioglu: 4G penetration rose 6 percentage points to 65%, bringing us closer to our group target of 70%. As we develop digital services across our market, there are two important growth vectors to take note. As you can see here, first vector is about existing connectivity business grows faster due to greater customer data consumption, improved retention, and ARPU expansion. Consequently, the longer a user stays as a multi-play customer consuming one of our digital services, the greater the ARPU they produce. For example, in Bangladesh, multi-play users that are with us less than 3 months generate 3.1 times the ARPU as they stay with us over 12 months. ARPU jumps 5.3 times. We see compounding effect of our 4G for all and digital operator strategies in our multi-play segment.
Speaker Change: <unk> penetration rose six percentage points to 65%, bringing us closer to our group target of 70.
Speaker Change: As we develop digital services across our markets.
Speaker Change: There are two important growth vectors to take note.
Speaker Change: As you can see here first vectors is about existing connectivity business grows faster due to greater customer data consumption improved retention and ARPA expansion. Consequently, the longer a user stays as a multiple a customer's problem.
Speaker Change: Assuming one of our digital services the greater the ARPA. They produce for example in Bangladesh multiple users that are with us less than three months generate cheap 0.1 times the ARPA as they stay with us over 12 months.
Speaker Change: Jumps 5.3 types.
Speaker Change: We see compounding effect of our <unk> for old and digital operating strategies in our multi play segment.
Kaan Terzioglu: Expanding 4G access enables us to convert more single-player users to multi-play subscribers who use both 4G connectivity for their connectivity needs and digital products. They spend more time with us, they churn less, and they drive higher revenue generation. In Q3, more than half of our revenues were generated by multi-play customers with a growth of 31% year-on-year. Why this is important? Greater digital product adoption across our operating companies deepens our force and increases usage in our core connectivity business. By continuing to focus on customer retention and expanding our multiple offerings, we drive further growth and profitability. Now about the second vector of growth, about our digital services, which shows itself in our direct digital revenues. Let me talk about that next. Direct digital revenues are revenues generated through digital financial services, entertainment services, healthcare services, advertising, super apps, and enterprise services.
Speaker Change: Expanding <unk> access enables us to covert convert more single player users to multi play subscribers.
Speaker Change: Use both <unk> connectivity for.
Speaker Change: Their connectivity needs and digital products, they spend more time with us they churn less and they drive higher revenue generation.
In Q3 more than half of our revenues were generated by multi play customers with a growth of 31% year on year.
Speaker Change: Why this is important.
Speaker Change: Digital product adoption across our operating companies deepens, our force and increases usage in our core connectivity business by continuing to focus on customer retention and expanding our multi play offerings, we drive further growth and profitability.
Speaker Change: Now about the second vector of growth about our digital services, which.
Speaker Change: Shows itself in our direct digital revenues.
Speaker Change: Let me talk about that next.
Speaker Change: Direct digital revenues are revenues generated through digital financial services Entertainment services Health care services advertising Super apps and enterprise services.
Kaan Terzioglu: These are also driving additional revenue streams such as advertising revenues, in-app purchases, interest income, and also additional subscriber revenues. These revenues are not included in our telecom business but accounted for separately. These revenues in the first nine months of 2024 reached $334 million, making up 11% of our total revenues, up from 10% in H1 2024, as we started to share with you. This 11% of our revenues grew 40% year on year in local currency. Diversification into multiple digital verticals allow us to serve unmet market demand and expand our customer base, reducing dependency on a single revenue stream. Our investments in enterprise digital services such as Adtech, cloud services, and software development are paying off, positioning us to seize new market opportunities.
Speaker Change: These are also driving additional revenue streams, such as advertising revenues in App purchases interest income and also additional subscriber revenues.
Speaker Change: These revenues are not included in our telecom business, but accounted for separately.
Speaker Change: These revenues in the first nine months of 2024 reached 334 million, making up 11% of our total revenues up from 10% in the first six months of 2024 as we shared started to share with you.
Speaker Change: This 11% of our revenues grow 40% year on year in local currency.
Speaker Change: Diversification into multiple digital verticals allow us to serve unmet market demand and expand our customer base, reducing dependency on a single revenue stream.
Speaker Change: Our investments in enterprise digital services, such as ethic cloud services and software development are paying golf positioning us to seize new market opportunities looking forward, we are committed to enhancing our digital offerings and expanding our presence in these key verticals driving grow.
Kaan Terzioglu: Looking forward, we are committed to enhancing our digital offerings and expanding our presence in these key verticals, driving growth and delivering value to our shareholders. I will touch on each one of these adjacent verticals later on my presentation. Let's look at our markets and start with Kyivstar in Ukraine. Kyivstar continues to generate strong growth. Revenues for Kyivstar increased almost 18% year on year in local currency. Despite the limited digital portfolio in Ukraine, digital revenues reached 2.2% of total revenues and grew five times since last year this time. EBITDA grew by 7% due to operational cost increases in support of the war and ongoing network and utility cost pressures. We are actively managing operational efficiency by optimizing network, IT support services, and working with our competition for shared services.
Speaker Change: <unk> and delivering value to our shareholders.
Speaker Change: I will touch on each one of these adjacent verticals later on my presentation.
Speaker Change: Let's look at our markets and start with kids start integrate.
Speaker Change: He has started continues to generate strong growth revenues for kids start increased almost 18% year on year in local currency. Despite the limited digital portfolio in Ukraine digital revenues reached two 2% of total revenues and grew five times since last year. This time.
Speaker Change: EBITDA grew by 7% due to operational cost increases in support of the war.
Speaker Change: And ongoing network in utility cost pressures.
Speaker Change: We're actively managing operational efficiency by optimizing network.
Speaker Change: Support services and working with our competition for shared services.
Kaan Terzioglu: Our CapEx is up by 63% in Ukraine year on year, as we ensure network resilience with power storage and generation capacities installed across key sites. These investments include deploying over 2,300 generators and 124,000 4-hour duration batteries at base stations to ensure continued service during blackouts. Additionally, we plan to deploy around another 850 generators and 60,000 more batteries. Moving to Pakistan. Actually, I am just back from an 8-day trip from Pakistan, including Karachi and Islamabad, and I'm glad to report to you that the seriousness of the government in terms of their discipline in executing IMF program is remarkable, as well as the 18 months of stability of the foreign currency rates.
Speaker Change: Our capex is up by 63% in Ukraine year on year, as we ensure network resilience with power storage and generation capacities installed across key sites.
Speaker Change: These investments include deploying over 'twenty 300 generators and 124004 hour duration batteries at base stations to ensure continued service during blackouts.
Additionally, we plan to deploy.
Speaker Change: Another 850 generators and 60000 more batteries.
Speaker Change: Moving to Pakistan.
Speaker Change: Actually I'm just back from a eight day trip from Pakistan, including Karachi and Islamabad.
Speaker Change: I'm glad to report to you that the seriousness of the government in terms of their discipline and executing IMF program.
Speaker Change: It was remarkable as well as the 18 months of stability of the foreign currency rates.
Kaan Terzioglu: I had the opportunity to talk with the governor of Central Bank, prime minister, finance minister, ICT minister, as well as other government authorities, and the resolve that I observed gives me a lot of confidence. Moving to Jazz. Jazz continues its strong growth trajectory with revenue growing 22.6% year on year and EBITDA growing 14.7% growth year on year. Pakistan is furthest along its digital operator journey with direct digital revenues now reaching 26% of total revenues, growing 27.2% year on year. EBITDA grew 14.7% with lower margins reflecting the impact of a higher proportion of non-telecom services and growth investments into enterprise and other digital services. We expect to see total CapEx to sales ratio trending lower as well, resulting in higher free cash flow generation. CapEx increased 99% year on year as Jazz continued to expand and upgrade its 4G network.
I had the opportunity to talk with the Governor of Central Bank Prime Minister of Finance Minister ICT Minister.
Speaker Change: As well as other government authorities and the resolute that I've observed use me a lot of confidence.
Speaker Change: Moving to Jess just continues its strong growth trajectory with revenue growing 22, 6% year on year, and EBITDA growing 14, 7% growth year on year.
Speaker Change: Pakistan is furthest along its digital operator journey with direct digital revenues now, reaching 26% of total revenues growing 27, 2% year on year.
Speaker Change: EBITDA grew 14, 7% with lower margins, reflecting the impact of a higher proportion of non telecom services and growth investments into enterprise and other digital services.
Speaker Change: We expect to see total capex to sales ratio trending lower as well, resulting in higher free cash flow generation.
Speaker Change: Capex increased 19, 9% year on year as just continued to expand and upgrade its <unk> network.
Kaan Terzioglu: Please note that this 99% increase is reflection of inability to import equipment last year at the same time. These efforts as previously delayed given macroeconomic constraints. Moving to Kazakhstan. Beeline Kazakhstan is another outlier in terms of digital operator performance. Total revenues are up by 14.8% while telecom revenues grew 14.1%, digital direct revenues grew 25.4% year over year, reaching 10% of our total revenue base. This quarter, as part of our charitable donation program in the country, where we commit 1% of our total revenues every year into our foundation called Zhyly Zhurek, we proudly completed the inauguration of a newly constructed secondary school in Kazakhstan with high-end technology facilities. Excluding the charitable donation and an exceptional item from Q3 last year, Beeline Kazakhstan's underlying EBITDA would have grown by 10%. CapEx for the quarter was KZT 26.6 billion tenge, increasing 78.2% year on year.
Speaker Change: Please note that this 19, 9% increase is a reflection of inability to import equipment last year at the same time.
Speaker Change: These divorce as previously delayed given microeconomic constraints.
Speaker Change: Moving to Kazakhstan Beeline Kazakhstan's is another outlier in terms of digital operator performance.
Total revenues are up by 14, 8%, while telecom revenues grew 14.1 digital direct revenues grew 25 four year over year, reaching 10% of our total revenue base this quarter as part of our charitable donation program in the country, where we commit one person.
Speaker Change: Of our total revenues every year into our foundation called Julie If you're right. We probably completed the integration of a newly constructed secondary school in Kazakhstan with high end technology facilities.
Speaker Change: Excluding the charitable donation and an exceptional item from Q3 last year Beeline, Kazakhstan's underlying EBITDA would have grown by 10%.
Speaker Change: Capex for the quarter was $26 6 billion tenge, increasing 78, 2% year on year.
Kaan Terzioglu: We are addressing the underlying demand and entrenching our network leadership in the country. Our Massive MIMO initiatives and 4.9G rollout allows us to maintain network leadership and effectively competing with operators with so-called 5G services. Moving into Bangladesh. Let me be very clear. Our commitment to Bangladesh is unwavering. We continue to see our long-term opportunities in the country as very exciting. The pre-revolution disruption and post-revolution economic impact has also impacted our performance in the quarter. Banglalink revenues decreased 8.4% in Q3, impacted also by a new tax on revenues. EBITDA decreased by 4% year over year, as cost reduction initiatives mitigated some of the revenue pressure, and offset by higher electricity and network expansion costs. Banglalink's capital expenditures were BDT 2 billion, a 7.5% year on year decline, reflecting the completion of our 4G network rollout during 2022 and 2023. Turning now to Beeline Uzbekistan.
Speaker Change: We are addressing the underlying demand and entrenching our network leadership in the country.
Speaker Change: Our massive mimo initiatives and four nine G rollout allows us to maintain network leadership and effectively competing with operators with so-called five Joost services.
Speaker Change: Now moving into.
Speaker Change: Okay.
Bangladesh.
Speaker Change: Let me be very clear our commitment to Bangladesh is unwavering.
Speaker Change: We continue to see our long term opportunities in the country as very exciting.
Speaker Change: However, the Pete Revolution disruption.
And postal evolution economy impact is also.
Speaker Change: Impacted our performance in the quarter.
Speaker Change: Bundle linked revenues decreased eight 4% in Q3.
Speaker Change: Impacted also by a new tax on revenues.
Speaker Change: EBITDA decreased by 4% year over year as cost reduction initiatives mitigated some of the revenue pressure.
Speaker Change: And offset by higher electricity and network expansion costs.
Speaker Change: <unk> capital expenditures were 2 billion Taka, a seven 5% year on year decline.
Speaker Change: Reflecting the completion of our <unk> network rollout during 2022 and 'twenty three.
Speaker Change: Turning now to be liners make this stuff.
Kaan Terzioglu: Uzbekistan achieved 15% year-over-year local currency top line growth driven by increased 4G subscribers and higher demand for Beeline's data and digital services, supporting an ARPU growth of 21% year on year. Direct digital revenues in the quarter increased by 67% and reached 3.8% of total revenues. EBITDA for Beeline Uzbekistan increased by 15%, despite higher energy tariffs and increased network expansion costs. CapEx reached UZS 131 billion, an increase of 36.3% year on year, and reflecting about ongoing upgrades and expansions to our network. Looking into our DO1440, digital operator 1,440 minutes strategic development, we are now reaching 103 million customers on our digital service platforms. I expect this number of digital subscribers to continue growing strongly, eventually exceeding our traditional telecom customer base. We aim to be in the lives of our customers in key verticals from entertainment, financial services, health technologies, and education technologies.
Speaker Change: This is Mike stone achieved 15% year over year local currency topline growth driven by increased for new subscribers and higher demand for <unk> data and digital services supporting and ARPA growth of 21% year on year.
Speaker Change: Direct digital revenues in the quarters increased by 67% and reached three 8% of total revenues.
Speaker Change: EBITDA for <unk> increased by 15%, despite higher energy tariffs and increased network expansion costs.
Speaker Change: Capex reached 131 billion suits, an increase of 36, 3% year on year, and reflecting about ongoing upgrades and expansions to our network.
Speaker Change: Looking into our do 14, 40, digital operator 1440 minutes strategic development.
Speaker Change: We are now reaching 103 million customers on our digital service platforms I expect this number of digital subscribers to continue growing strongly you.
Speaker Change: Eventually exceeding our traditional telecom customer base.
Speaker Change: Aim to be in the lives of our customers in key verticals from Entertainment financial services Health technologies and education technologies.
Kaan Terzioglu: As I did last quarter, I want to talk also a little bit about augmented intelligence, the way we define AI for a moment. We have already developed over this quarter a Kazakh language LLM in Kazakhstan in partnership with the GSMA and Barcelona Supercomputing Center. We have also announced a program with NUST in Pakistan to start developing local language models in Pakistan. This is what we are doing to do this in all markets to ensure our markets and customers are not left behind the augmented intelligence revolution. There is nothing artificial about AI. There is a way of using augmented intelligence purposefully. I cannot see a better value proposition than offering a better version of themselves for our customers. Let's now have a look to some of these different digital revenue streams.
Speaker Change: As I did last quarter I want to talk also a little bit about augmented intelligence.
Speaker Change: Wavy defined AI for a moment.
Speaker Change: We have already developed over this quarters contract language LLM in Kazakhstan in partnership with Digi, SMA and Barcelona Supercomputing Center.
Speaker Change: We have also announced the program with lust in Pakistan to start developing local language models in Pakistan.
Speaker Change: This is what we are doing to do this in all markets.
Speaker Change: To ensure our markets and customers are not left behind the augmented intelligence evolution.
Speaker Change: There is nothing artificial about AI that is a ways off.
Speaker Change: Using augmented intelligence purposefully I cannot see a better value proposition that offering a better version of themselves for our customers.
Let's now have a look to some of these different digital revenue streams.
Kaan Terzioglu: Let me start with our mobile financial services, digital financial services, where we have 3 important digital assets, Pakistan JazzCash, Kazakhstan Simply, and Uzbekistan Beepul. We have now a total customer base across financial services platforms of almost 23 million, which has increased 39% year on year. Last 12 month, number of transactions reached 2.7 billion, growing 30%. In Pakistan, total financial revenues grew 74% year on year, driven by a 59% increase in gross transaction value to $30 billion equivalent, which is PKR 8.4 trillion. The high growth was supported by continued expansion of JazzCash's retail distribution network, now reaching more than 400,000 agents and merchants end of Q3. We are now issuing more than 117,000 loans every single day, reaching 19 million customers. Another strong contributor to mobile financial services strategy is Simply in Kazakhstan. This is the first and leading digital payment card.
Speaker Change: Let me start with our mobile financial services digital financial services, where we have three important digital assets, Pakistan just geis.
Speaker Change: I was actually stunned simply and it was based on people.
Speaker Change: We have now a total customer base across financial services platforms of almost $23 million.
Speaker Change: Mitch has increased 39% year on year.
Speaker Change: Last 12 month number of transactions number of transactions reached $2 7 billion growing 30%.
Speaker Change: In Pakistan total financial revenues grew 74% year on year, driven by a 15, 9% increase in gross transaction value to $30 billion equivalent which is eight four trillion rupees.
Speaker Change: The high growth was supported by continued expansion of Jeff's cashes retail distribution network now, reaching more than 400000 agents and merchants end of Q3.
Speaker Change: We are now issuing more than 117000 launch every single day, reaching 19 million customers.
Speaker Change: Another strong contributor to mobile financial services strategy is simply in Kazakhstan.
This is the first and needle.
Speaker Change: Leading digital payments cart.
Kaan Terzioglu: We are seeing a healthy adoption of this service with monthly active users increasing seven times year on year to 2.3 million. Simply has processed over 100 million transactions over the last 12 months, up 81%. Translated to a doubling of gross transaction value of more than $1 billion or KZT 643 billion. Beepul, Uzbekistan's digital financial services platform, also has doubled its customer base to 1.3 million over the last year. Let's move to our entertainment platforms. We are now offering services in Pakistan, Bangladesh, Kazakhstan, and Ukraine as OTT streaming services and IPTV offerings. Across this vertical, we served nearly 20 million customers in the quarter. Our growth in the quarter was impacted by the ending of ICC cricket tournament in our largest countries. Tamasha's customer base declined given the fact that the ICC cricket tournament had an impact over last year.
Speaker Change: We are seeing a healthy adoption of this service with monthly active users increasing seven times year on year to $2 3 million.
Speaker Change: Simply has processed over 100 million transactions over the last 12 months up 81%.
Speaker Change: And translated to a doubling of gross transaction value of more than $1 billion or 643 billion Kazakh tenge.
Speaker Change: People.
Speaker Change: It was basically stops digital financial services platform also has doubled its customer base to $1 3 million over the last year.
Speaker Change: Let's move to our entertainment platforms, we are now offering services in Pakistan, Bangladesh, Kazakhstan, and Ukraine, as OTT streaming services and IP TV offerings across this vertical we serve nearly 20 million customers in the quarter.
Speaker Change: Our growth in the quarter was impacted by the ending of ICC cricket tournament.
Speaker Change: Our largest countries.
Speaker Change: Marshalls customer base declined given the fact that the ICC cricket tournament has an impact over last year.
Kaan Terzioglu: These users sessions showing 15% decrease should not discourage you from saying that the business is slowing down. On the contrary, we see a very strong pickup and conclusion of ICC tournament, which will result in the new cycle, another hike on user numbers. Over the past year, Tamasha has attracted over 50 international and local advertisers, positioning itself as a top choice for brand partnerships in the country's local OTT space. We have generated close to PKR 146 million in advertising revenues this quarter. Toffee, also reflecting the same decline for the same reason, is around 6.1 million active users. Similar to Tamasha, this is the result of the ICC cricket tournament finishing, and Toffee also, similar to Tamasha, continues to generate advertising revenues. Moving to our super apps and second brands. Our super apps are no longer serving just our telecom customers.
Speaker Change: These users.
Speaker Change: Sessions, showing 15% decrease should not discourage you from saying that the business is slowing down on the contrary, we see a very strong pickup and conclusion of ICT tournaments, which will result in the new cycle.
Speaker Change: Another hike on user numbers.
Speaker Change: Over the past years Tamasha has attracted over 50 international and local advertisers positioning itself as a top choice for brand partnerships in the country's local OTT space.
Speaker Change: We have generated close to 146 million rupees in advertising revenues this quarter.
Speaker Change: Toffee also reflecting the same decline for the same reason is around $6 1 million active users similar to tomo shop. This is the result of the I T. ICC cricket tournaments, finishing and toffee also similar to tamasha continues to generate advertising revenues.
Speaker Change: Moving to our Super apps and second brands are Super apps are no longer serving just our telecom customers. They are open platforms for every single citizen.
Kaan Terzioglu: They are open platforms for every single citizen. In addition to offering self-care to our customers, these super apps offer a wide variety of services to everybody, including healthcare, education, entertainment, e-commerce, transportation charges, in a single, easy-to-use platform. We are now serving almost 38 million customers, growing 12% year on year. Our second, or the way we call it, the lifestyle brands, are catered to younger customers, and we just begun launching them over the past 12 months. Our most recent launch was RYZE in Bangladesh, just launched a couple of days ago, symbolizing post-revolution rise of the country with an unmatched entertainment carrier. Across them, we are now reaching 1.3 million customers.
Speaker Change: In addition to offering self care to our customers. These super apps offer a wide variety of services to everybody, including health care Education Entertainment E Commerce transportation charges in a single easy to use platform.
Speaker Change: We are now serving almost 38 million customers growing 12% year on year.
Speaker Change: Our second or the way we call. It the lifestyle brands are catered to younger customers and B just begun launching them over the past 12 months. Our most recent launch was rice in Bangladesh just launched a couple of days ago symbolizing.
Speaker Change: Positive evolution rise of the country with the unmatched entertainment carrier.
Speaker Change: Across them.
Speaker Change: In us, reaching $1 3 million customers.
Kaan Terzioglu: Let me highlight the notable performance of Rocks in Pakistan, which boasts over 460,000 monthly active users and achieves an average ARPU that is 45% higher that of Jazz, even not 1 year past launching this service. Similarly, Easy in Kazakhstan grew its space by 43% year on year and reached 680,000 users. Notably, nearly half of its customers are not Beeline customers. It is attracting customers from other operators, and it has the highest net promoter score and much higher ARPU. Let me also turn to Helsi in Ukraine, our exceptional healthcare service platform, almost with the population equivalent of users registered on it, 28 million. Helsi continues to be the furthest along in terms of our digital healthcare offerings. Across the portfolio, it provides online consultations with medical professionals and is a vital part of Kyivstar's digital operator portfolio. The registered patients is up 8%, reaching 28 million.
Speaker Change: Let me highlight the notable performance of rocks in Pakistan, which boast over 460000 monthly active users and they choose an average our pool.
Speaker Change: 45% higher than that of jets.
Speaker Change: Even not one year past launching this service similarly easy in Kazakhstan grew its space by 43% year on year and reached 680000 users, notably nearly half of these customers are not beeline customers. It is attracting customers from other operators and it.
Speaker Change: Has the highest net promoter score and much higher ARPA.
They may also turned to healthy Ukraine.
Speaker Change: Our exceptional health care service platform.
Speaker Change: Almost with the population equivalent of users registered on its 28 million houses.
Speaker Change: <unk> continues to be the furthest along in terms of our digital health care offerings across the portfolio. It provides online consultations with medical professionals and is a vital part of <unk> digital operated portfolio.
Speaker Change: The registered patients is up 8%, reaching $28 million.
Kaan Terzioglu: Please take into consideration the total population of 38 million in Ukraine. It penetrates 74% of the country. Helsi has access to almost 1,600 active healthcare institutions, up 10%, more than 39,000 healthcare specialists, up 12%. In Q3, we facilitated approximately 2.2 million appointments through the platform, a 20% increase. Our recently launched AI-based subscription service now serves 33,000 customers, demonstrating the great potential of the platform. With that, I will hand over to Joop.
Speaker Change: And please take into consideration the total population of $38 million in Ukraine.
Speaker Change: It penetrates 74% of the country.
Kelsey: Kelsey has access to almost 1600 active health care institutions up 10%.
Kelsey: More than 39000 health care specialists up 12% in Q3, <unk> facilitated approximately $2 2 million appointments through the platform at 20% increase all recently launched AI based subscription service now serves 33000.
Kelsey: Customers demonstrating the great potential of the platform.
Speaker Change: With that I will hand over to Europe.
Joop Brakenhoff: Thank you, Kaan. For the recent quarter, we've achieved double-digit year-on-year growth in local currency revenues across our 6 markets, with total revenue growing 40% year on year and digital revenue growing 33% year on year. Our reported revenue on a US dollar basis increased 9.8% year on year. This performance is despite the revolution in Bangladesh. The driving forces behind our revenue growth include gains in market share and expansion of our digital platforms across all operations, coupled with the implementation of disciplined inflationary pricing strategies. Excluding identified items, underlying group revenue would have increased by 16% year over year in constant currency. We're also seeing positive macroeconomic tailwinds in our markets, which is assisting in our growth. Turning our attention to our EBITDA and EBITDA margin. Group EBITDA increased by 3.5% year on year in local currency terms, reaching $438 million and declined by 1.5% in reported currency.
Speaker Change: But to come.
Speaker Change: For the recent quarter, we've achieved double digit year on year growth in local currency revenues across our six markets.
With total revenue growing 40% year on year, and digital revenue growing 33% year on year.
Speaker Change: Our reported revenue when you ignore basis increased 8% year on year.
Speaker Change: This performance is despite the revolution.
Speaker Change: The driving forces behind the revenue growth the group gains or market share and the expansion of our digital platforms.
Speaker Change: Yes.
Speaker Change: Coupled with the implementation disciplined inflationary pricing approaches.
Speaker Change: Excluding I did different items.
Speaker Change: Group revenue would have increased by 60% year over year equals instruments.
Speaker Change: You're also seeing positive macroeconomic students in our markets. This is assisting in our growth.
Speaker Change: Turning our attention towards EBITDA.
Speaker Change: Margin.
Group EBITDA increased by three 5% year on year in local currency terms.
Speaker Change: 438 million bore and declined by one 5% in reported currency.
Joop Brakenhoff: Our EBITDA margin stood at 42.2%, a decrease of 4.9 percentage points. Our EBITDA growth was impacted by identified items in Bangladesh and costs associated with restructuring at our HQ. Excluding these identified items, underlying group EBITDA would have increased by 9.8% year over year in constant currency. Shifting focus to key balance sheet figures. As we close the quarter, the group maintained a healthy liquidity position with a cash reserve of $1 billion plus 80% year on year. Of this amount, $453 million is held at our headquarters. In the first nine months of 2024, net dividends, excluding preferred stocks, amounted to $396 million, strengthening our financial position. Turning now to our debt profile. Our average cost of debt is now just under 10% and reflects the blended rate of borrowing in our market currencies.
Speaker Change: Our EBITDA margin stood at 42, 2% decreased 49% in sports.
Speaker Change: Our EBITDA growth was impacted by identified items in front of dish and costs associated with restructuring.
Speaker Change: True.
Speaker Change: Excluding these identified items.
Speaker Change: With you would've increased by nine 8% year over year constant currency.
Speaker Change: Shifting focus to keep balance sheet figures.
Speaker Change: If we close the quarter the group maintains a healthy liquidity position.
Speaker Change: We sure want to bore plus 80% year on year.
Speaker Change: This amount of $453 million is held at our headquarters.
Speaker Change: In the first nine months of two of them 24 net dividends.
Speaker Change: Groups.
Speaker Change: Mulder too few of 96 million bore strengthening our financial position.
Speaker Change: Turning now towards their profile.
Speaker Change: Our average cost of debt, it's not just under 10% and reflects the blended rates in our market groups.
Joop Brakenhoff: Apart from some insignificant other facilities, Pakistani rupee debt generally has the highest cost and is about 28% of our total group debt, excluding leases. Our average debt maturity is now 2.7 years, 3.3 years if you include our lease liabilities. Turning to our debt maturity schedule, we have no material maturities anymore in 2024, only smaller maturities at our operating subsidiaries. At HQ, the nearest maturity is in April 2025. Let me hand it back to Kaan.
Speaker Change: Apart from something significant.
Speaker Change: Significant other facilities.
Speaker Change: Can you repeat that generally is the highest scores.
Speaker Change: It's about 28%.
Speaker Change: Excluding leases.
Speaker Change: However different too.
Speaker Change: Several years.
Speaker Change: 3.3 years, if he groups our lease liabilities.
Speaker Change: Turning to our debt maturity schedule.
Speaker Change: We have no material maturities anymore in 224, only small maturities operating subsidiaries.
Speaker Change: It's true the nearest maturity since April two I'm pretty fast.
Speaker Change: Let me hand, it back to come.
Kaan Terzioglu: Thank you very much, Joop. Let me start looking to the 2024 outlook. Blended weighted average inflation rates in the countries that we operate has declined from 16.5% in Q3 2023 to 8.2% in Q3 2024, a reduction of 830 basis points. At the same time, blended weighted average real GDP growth in our markets is around 3.4% for the period. As a result, 6 weeks to the end of the year, for the full year, we now expect total revenue growth of 8% to 10% year on year growth in US dollars, and an EBITDA growth of 46% in US dollar terms, assuming current foreign currency rates. We are revising our prior local currency guidance on this call, given above considerations, to 12% to 14% year on year growth for total revenue and 9% to 11% year on year growth for EBITDA in local currency terms.
Speaker Change: Thank you very much job.
Speaker Change: Let me start looking to the 2020 for outlook.
Speaker Change: Blended weighted average inflation rates in the countries that we operate has declined from 16, 5% in Q3 2023 to eight 2% in Q3 2024.
Speaker Change: A reduction of 830 basis points at.
Speaker Change: At the same time blended weighted average real GDP growth in our markets is around three 4% for the period.
Speaker Change: As a result, six weeks to the end of the year.
Speaker Change: For the full years, we now expect total revenue growth of 8% to 10% year on year growth in U S dollars.
Speaker Change: And then EBITDA growth of 46% in U S. Dollar terms, assuming current foreign currency rates.
Speaker Change: We are revising our prior local currency guidance on this call.
Given above closer durations to 12% to 14% year on year growth for total revenue and 9% to 11% year on year growth for EBITDA in local currency terms.
Kaan Terzioglu: Taking into consideration the identified items that we have mentioned, underlying growth in local currency is expected to be 15.7% growth in revenue and 11.2% growth in EBITDA. This marks a change from our previous guidance of 16% to 18% growth for revenue and 18% to 20% growth in EBITDA for 2024 in local currency terms. I would like to mention that we are very satisfied with our current trajectory of growth, given that we are actually beating more than planned the nominal GDP growth, which demonstrates solid wallet share gains in the countries that we operate in. With that, I would like to end our call and pass it to you and start the Q&A session. Faisal?
Taking into consideration the identified items that we have mentioned.
Speaker Change: Underlying growth in local currency is expected to be 15, 7% growth in revenue and 11, 2% growth in EBITDA.
Speaker Change: This marks a change from our previous guidance of 16% to 18% growth for revenue and 18% to 20% growth in EBITDA for 2024 in local currency terms.
Speaker Change: I would like to mention that we are very satisfied with our current trajectory of growth given that we are beating.
Speaker Change: Actually more than planned.
Speaker Change: The nominal GDP growth, which demonstrates solid wallet share gains in the countries that we operate in.
Speaker Change: With that I would like to end, our cold and pass it to you and start to create a session by salt. Thank.
Faisal Ghori: Thank you, Kaan. We can now open up the line to Q&A.
Speaker Change: We can now open up the line to Q&A.
Operator: Thank you. At this time, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen inviting you to join as a panelist. Please accept and wait until you are promoted to panelist. Please unmute your audio, turn on your camera and ask your question. As a reminder, we are allowing analysts one question and one related follow-up today. Written questions can be submitted on the webcast by using the Ask a Question tab on the top right of your screen. We will pause one moment to allow the queue to form. Our first question will come from Stella Cridge with Barclays. Please unmute your audio and ask your question.
Speaker Change: Thank you at this time, if you would like to ask a question. Please click on the raise hand button, which can be found on the black bar at the bottom of your screen.
Speaker Change: When it is your turn you will receive a message on your screen inviting you to join us a panelist.
Speaker Change: Please accept and wait until you are promoted the panelist.
Please send me your audio turn on your camera and ask your question.
Speaker Change: As a reminder, we are allowing analysts one question and one related follow up today.
Written questions can be submitted on the webcast by using the ask a question tab on the top right of your screen, we will pause one moment to allow the California.
Speaker Change: Yes.
Speaker Change: Our first question will come from stellar credit with Barclays. Please limit your audio and ask your question.
Stella Cridge: Hi there, everyone. Many thanks for all the updates that you gave today. I wanted to ask about the base case that you have for addressing the 2025 maturities. We obviously saw the whole core cash increasing quarter-on-quarter. I was reading that you were expecting to receive the proceeds of the sale of TNS Plus within 6 weeks at the end of September. I just wondered if that happened also. Would you plan to still engage in some refinancing? That would be great, thanks.
Speaker Change: Hello, everyone.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Goodbye.
Speaker Change: Okay.
Interesting.
Speaker Change: I mean is that the holdco cash Christopher <unk>.
Speaker Change: I was reading that you are expecting to receive the proceeds of the Sarah cannon.
Speaker Change: Barbara.
Speaker Change: So I just wonder if that how can also or would you plan to start taking some refinancing.
Kaan Terzioglu: Stella, thank you very much for your question. We feel very comfortable about the servicing the 2025, and that will happen through our operational cash proceeds as well as you mentioned, the TNS Plus sale. A portion of the sale proceeds has already been collected, and the rest will happen over the next couple of weeks. We do not see any issues with regard to that. Gökhan, anything that you would like to add?
Speaker Change: So thank you very much for your question are we feel very comfortable about the servicing the 2025.
Speaker Change: And that will happen through our operational cash proceeds as well as as you mentioned the TNF plus sale.
Speaker Change: A portion of the sale proceeds has already been collected and the rest will happen over the next couple of weeks. So we do not see any issues with regard to the Europe anything that you would like that kind of where you put a rock based on the year to upstream a fish in the ear problems from our tenants.
Gökhan Öğüt: Well, Kaan, you are fully right. Based on the current obscene of cash and the proceeds from the TNS Plus, we will be able to pay back the bonds in April.
Speaker Change: Yes, Brooks, we will be able to were pretty big.
Stella Cridge: Okay. Many thanks for that. If I could take the opportunity of this follow-up option for the question as well. I know you're speaking today from Dubai. You've communicated about the change in the headquarters. Just from a corporate structure point of view, does this have any other implications than the structure? You've always got the on-holding BD as the issuing entity. Would you plan to issue from another entity in the future, or do you think you would keep that as your bond release entity?
Speaker Change: In April.
Speaker Change: Okay and then.
And if I could.
Speaker Change: Since you have the option for the question as well.
Speaker Change: Speaking today from Dubai.
Speaker Change: They ticked up a bit.
Speaker Change: The headquarters.
Speaker Change: From a corporate structure point of view does this have any implications and the structure is.
Speaker Change: It's got to be on hold due to your question.
Speaker Change: Would you plan to issue. Another interesting chart you. Thank you Mr. <unk>.
Speaker Change: I sure can.
Speaker Change: Okay.
Kaan Terzioglu: Stella, I think those decisions will happen over time. We will definitely explore alternatives to it as we will be paying back the old bonds. The new bonds will probably be issued from a new entity.
Speaker Change: Stella I think those decisions will happen over the time, but we will definitely explore alternatives to it as we will be paying back.
Speaker Change: All the bonds and the new bonds will probably be issues from a new entity.
Operator: This was anything but.
Speaker Change: Okay.
Kaan Terzioglu: Thank you very much.
Speaker Change: Thank you very much.
Faisal Ghori: We have a submitted question from a retail investor. Given Shah Capital's roadmap to $160 share price or 5.5x EV/EBITDA valuation by 2026, can you discuss the feasibility of achieving these targets and the strategies you plan to implement to reach them? What are we doing to increase worth?
Speaker Change: We have a submitted question from a retail investor.
Given some of the capital roadmap to a $160 share price or a five five times EV EBIT da valuation by 2026 can you discuss the feasibility of achieving these targets and the strategies you plan to implement to reach them what are we doing to increase worth.
Kaan Terzioglu: Thank you very much, and thanks a lot for raising this question. We have actually responded to the letter sent by Shah Capital in a proper way approved by our board. First of all, we are delighted to have committed and excited shareholders in supporting our strategies. All the seven issues Shah Capital has raised in their letter are actually part of our game plans, and we are in the process of delivering on those. Given that, and given the, I think, a reasonable 5.5 metric he has set for it, of course, we will do everything in our control in terms of executing the strategy and achieving that value creation opportunity. Naturally, there are certain things which might be out of our control, like the wars and revolutions in different parts of the world.
Speaker Change: Thank you very much and thanks, a lot for a raising this question.
Speaker Change: We have actually responded to the letter sent by a shark capital in a proper way approved by our board and first of all we are delighted to have committed and excited.
Speaker Change: Shareholders in supporting our strategies oldest seven issues Chuck capital has raised in their letter are actually part of our game plans and we are in the process of delivering on all dose so given that and given the.
Speaker Change: I think a reasonable five five metric he has set for it.
Of course, we will do everything in our control in terms of executing the strategy and achieving that value creation opportunity naturally there are certain things which might be out of our.
Speaker Change: Control like the wars and revolutions in different parts of the world, but so far our team I believe has proven to be very resilient. When it comes to the challenges of that nature, and we will be executing our strategies as previous the plant. Thank you very much.
Kaan Terzioglu: So far, our team, I believe, has proven to be very resilient when it comes to challenges of that nature, and we will be executing our strategies as previously planned. Thank you very much.
Operator: We'll take another submitted question from a retail investor. What is the amount of tax savings that VEON is expecting in 2025 with the headquarters move to Dubai? Will there be any savings for 2024?
Speaker Change: We will take another submitted question from a retail investor what is the amount of tax savings that xeon is expecting in 2025 with the headquarters move to Dubai will there be any savings for 2024.
Kaan Terzioglu: To be precise, moving to Dubai has never been an issue about saving taxes. We do pay our taxes in the countries that we operate, and there is no particular differentiation between Netherlands and United Arab Emirates nor Dubai in terms of taxation of enterprises. We are not expecting any changes to our effective tax rate because of our move to Dubai. There are other areas where we have prioritized our effective tax rate as something that we have to improve. If you would remember, this was also one of the 7 points of the famous Shark letter that we will, of course, take into consideration, most of them related to our local operations. Thank you.
Speaker Change: To be precise moving to Dubai has never been an issue about saving Texas, we do pay our taxes in the countries that we operate and there is no particular differentiation in between Netherlands, and United Arab Emirates, nor Dubai in terms of taxation of enterprises.
Speaker Change: So we are not expecting any change.
Speaker Change: Changes to our effective tax rate because of our move to Dubai.
Speaker Change: There are other areas, where we have prioritized our effective tax rate as something that we have to improve and if you would remember. This was also one of the seven points of the famous shop lessors that vivo of course taken to consideration most of them related to our local operations. Thank you.
Operator: We have no further questions at this time. I will hand it back to Faisal Ghori for closing remarks.
Speaker Change: We have no further questions at this time I will hand, it back to <unk> for closing remarks.
Faisal Ghori: Thank you, everybody. Thank you for joining our Q3 Earnings Call. Myself and the IR team is available for any additional questions that you may have, so feel free to reach out. Thank you, everybody.
Thank you everybody. Thank you for joining our quarter three earnings call myself and the IR team is available for any additional questions that you may have so feel free to reach out. Thank you everybody.