Q4 2024 VEON Ltd Earnings Call

Operator: Hello and welcome to VEON's full year 2024 and fourth quarter 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. Also, as a reminder, this conference is being recorded today.

Hello, and welcome to <unk> full year, 'twenty, 'twenty, four and fourth quarter of 2020 people trading update call. We ask that you. Please hold all questions until the completion of the formal remarks.

Time, he will be given instructions for the question and answer session.

Also as a reminder, this conference is being recorded today. If you have any objections. Please disconnect at this time.

Operator: If you have any objections, please disconnect at this time.

Operator: Anand Ramachandran, you may now begin. Thank you. Good afternoon. Good morning.

So much on DRAM you may now begin.

Thank you.

Good afternoon. Good morning, Thank you everyone for joining us today for beyond fully our presentation for the period ending December 35, 2024 <unk>.

Anand Ramachandran: Thank you, everyone, for joining us today for VEON's full year presentation for the period ending December 31st, 2024. My name is Anand Ramachandran, Chief of Staff and also heading the Investor Relations function for the group. Allow me to introduce our senior management in the room today. Next to me is Mr. Khan Terzioglu, a Group CEO. And next to him, Mr. Burak Ozer, a Group CFO. Also joining on the line today is Mr. Faisal Ghori from our Investor Relations team in the US.

Speaker Change: My name is unknown that I'm agenda, chief of staff and also heading the Investor relations function for the group.

Speaker Change: Allow me to introduce our senior management in the room today next to me is Mr. Gunther <unk>, our group CEO and next to him Mr. Barack Ozark Our group CFO.

Speaker Change: Also joining on the line today isn't that you'll find some good reads from our Investor relations team in the U S.

Anand Ramachandran: Today's presentation will begin with the key highlights and business updates from Khan, followed by a discussion of financial results by Burak. We will then open up the line for Q&A. Please note that we may make forward-looking statements during today's presentation which involve certain risks and uncertainties. These statements relate to the company's anticipated performance, guidance for 2025, future market developments, and operational and network developments and investments, and the company's ability to realize its targets and initiatives. Actual results may differ materially due to risks detailed in the company's annual report on the Form 20-F and other recent public filings with the SEC.

Speaker Change: Today's presentation will begin with the key highlights and business updates from con.

buildup: Followed by a discussion of financial results by buildup. We will then open up the line for Q&A.

buildup: Please note that we may make forward looking statements during today's presentation, which involve certain risks and uncertainties.

buildup: These statements relate to the company's anticipated performance and guidance for 'twenty 'twenty, five future market developments and operational and network development and investments in the company's ability to realize its targets and initiate is.

buildup: Actual results may differ materially due to risks detailed in the company's annual report on the form 20-F, and other recent public filings with the SEC.

Anand Ramachandran: The earnings release and presentation, including reconciliations of non-IFRS measures, can be downloaded from our website.

buildup: The earnings release and presentation, including reconciliations of non I hope all of these measures can be downloaded from our website.

Anand Ramachandran: With that, let me hand it over to Kan. Thank you. Thank you, Anand.

Gordon: With that let me hand, it over to Gordon.

Gordon: Thank you. Thank you John and good morning, Good afternoon, and welcome to everyone. We appreciate you joining us today for our full year 2024 results today I'm hosting this call from our headquarters in Dubai.

Khan Terzioglu: Good morning, good afternoon and welcome to everyone. We appreciate you joining us today for our full year 2024 results. Today I am hosting this call from our headquarters in Dubai. We are proud to be the largest Nasdaq-listed company headquartered in Dubai. I am thankful to the Emirati authorities for proving how welcoming and easy to do business in this wonderful country.

Gordon: I'm proud to be the largest NASDAQ listed company headquartered in Dubai.

Gordon: I'm thankful to the Emirati authorities for proving how welcoming and easy to do business in this wonderful country as we hold this call during the holiday months of Ramadan I would like to extend my warmest wishes to all observing.

Khan Terzioglu: As we hold this call during the holy month of Ramadan, I would like to extend my warmest wishes to all observing.

Khan Terzioglu: 2024 has truly been a transformative year for VEON and let me highlight some of our achievements. First, starting with our financial performance. We have delivered strong growth. In reported U.S. dollar terms, we delivered 8.3% revenue growth in 2024, versus our 8 to 10% growth expectation declared during Q3 results. Our U.S. Dollar EBITDA grew 4.9% versus our 4-6% growth expectation. We also meet our expectations in underlying local currency terms. We delivered 14.6% revenue growth versus our 12-14% expectation and 12% EVTA growth versus our 9-11% expectation. Our local currency revenue growth outpaced both inflation and nominal GDP and highlights our ability to capture a larger share of consumer wallets in the markets that we serve at, even amidst persistent macro headwinds.

Gordon: 2024 has truly been a transformative year for beyond and let me highlight some of our achievements.

Gordon: First starting with our financial performance.

Gordon: We have delivered strong growth in reported U S. Dollar terms, we delivered eight 3% revenue growth in 2024 versus our 8% to 10% growth expectation declared during Q3 results.

Gordon: Our U S dollar EBITDA grew four 9% versus our 4% to 6% growth expectation.

Gordon: We also beat our expectations in underlying local currency terms, we delivered 14, 6% revenue growth versus our 12% to 14% expectation and 12% EBITDA growth versus our 9% to 11% expectations.

Gordon: Our local currency revenue growth outpaced, both installation and nominal GDP and highlights our ability to capture a larger share of consumer wallets in the markets that we serve it even emmis persistent macro headwinds.

Khan Terzioglu: Second, we are scaling our digital services with great success. Our direct digital revenues grew by 63% for the full year and grew 42% year-on-year in the fourth quarter. Digital services comprised 12.6% of our total revenues in Q4 and underscore our evolution into a services company with a telco license. Third, we made substantial progress in executing our asset light strategy, which has unlocked significant value for us, as you can see on the slide. These transactions not only strengthen our balance sheet, but also align with our longer-term strategy.

Gordon: Second we are scaling our digital services with great success, our direct digital revenues grew by 63% for the full year and grew 42% year on year in the fourth quarter.

Gordon: Digital services comprised 12, 6% of our total revenues in Q4 and underscore our evolution into a services company with a telco license.

Gordon: Third we made substantial progress in executing our asset light strategy, which has unlocked significant value for us as you can see on the slide.

Gordon: These transactions not only strengthen our balance sheet, but also aligns with our longer term strategy.

Khan Terzioglu: Last but not least, I am particularly pleased with our progress is being acknowledged by the market. Our share price more than doubled in 2024 and is up 15% year-to-date in 2025. We announced a $100 million share buyback program in July 2024 over three years. and since completed phase one with 30 million dollars repurchase. We have successfully strengthened our cash position and are well prepared to redeem our bonds maturing this year. We are actively preparing for Kyivstar's public listing in the U.S., which will significantly enhance its visibility and profile. And finally, being headquartered out of Dubai, with closer proximity to our markets, we will drive better efficiencies and cost savings.

Gordon: Last but not least I am, particularly pleased with our progress is being acknowledged by the markets.

Gordon: Our share price more than doubled in 2024 and is up 15% year to date in 2025.

Gordon: We announced a $100 million.

Gordon: Share buyback program in July 2020 for over three years.

Gordon: And since completed phase, one mid $30 million repurchased.

Gordon: We have successfully strengthened our cash position and are well prepared to redeem our bonds maturing this year.

Gordon: We are actively preparing for key of staar's public listing in the U S, which will significantly enhance its visibility and profile.

Gordon: And finally being headquartered out of Dubai with closer proximity to our markets.

Gordon: We'll drive better efficiencies and cost savings.

Khan Terzioglu: I am particularly pleased to note that our stock price is now back at pre-war levels. On the onset of Ukraine-Russia war in early 2022, our stock faced substantial pressure and dropped to as low as $8. However, our decisive actions in exiting Russia business and consistently executing to a clear strategy have all driven a strong recovery. Exiting Russia has also reshaped our financial profile. Pre-divestment, our net-to-debt EBITDA was over three times. Now it is down to 1.3. We see a similar profile in our credit as well. The performance of our bonds is a testament to our disciplined execution in transforming our credit profile.

Gordon: I am, particularly pleased to note that our stock price is now back at prewar levels.

Gordon: On the offset of Ukraine, and Russia or in early 2022, our stock faced substantial pressure and dropped to as low as $8. However, our decisive actions in exiting Russia business and consistently executing to a clear strategy have all driven a strong recovery.

Gordon: Exiting Russia has also reshaped our financial profile pre divestments, our net to debt to EBITDA was over three times now it is down to one three.

Gordon: We see a similar profile in our credit as well the performance of our bonds is a testament to our disciplined execution and transforming our credit profile since.

Khan Terzioglu: Since 2022, our 2025 bonds have recovered nicely, and our 2027 bond has nearly doubled in value. It is pleasing to note that our 2027 bonds are trading at levels comparable to higher-rated corporate bonds with similar maturity.

Gordon: Since 2022, our 2025 bonds have recovered nicely and our 2027 bond has nearly doubled in value it.

Gordon: It is pleasing to note that our 2027 bonds are trading at levels comparable to higher rated corporate bonds with similar maturity Sim.

Khan Terzioglu: Simply put, we have reshaped and transformed VEON to a leaner and stronger company. VEON is primed for agility and growth.

Gordon: Simply put we have reshaped and transformed beyond to a leaner and stronger company.

Gordon: Beyond is primed for agility and growth.

Khan Terzioglu: Let us now focus on our 2024 performance. As I highlighted earlier, our revenues grew 8.3% in reported US dollar terms, a significant turnaround from previous year. Underlying Local Currency Growth in Revenues was 14.6%. I would like to emphasize that we achieved this growth despite inflation in our markets moderating through the year from 14.8% in Q4 of 2023 to 8.2% in Q4 of 2024. This demonstrates the potential of our markets to generate growth and strength of our operations. Looking ahead, our 2025 revenue guidance of 12-14% in local currency reflects this continued momentum as well. On EBITDA side, we reported 4.9% growth in U.S.

Gordon: Let us now focus on our 2020 for performance as I highlighted earlier, our revenues grew eight 3% in reported U S. Dollar terms a significant turnaround from previous years.

Gordon: Underlying local currency growth in revenues was 14, 6%.

Gordon: I would like to emphasize that we achieved this growth despite inflation in our markets moderating through the year from 14, 8% in fourth quarter of 'twenty three to eight 2% in fourth quarter of 'twenty four.

Gordon: This demonstrates the potential of our markets to generate growth and strength of our operations.

Gordon: Looking ahead, our 2025 revenue guidance of 12% to 14% in local currency reflects this continued momentum as well.

Gordon: EBITDA side, we reported four 9% growth in U S dollar terms.

Khan Terzioglu: dollar terms. In underlying local currency terms, EBITDA grew 12%. Looking ahead, we expect 13 to 15% EBITDA growth in local currency terms in 2025, underpinned by strong revenue trends and disciplined cost control.

Gordon: In underlying local currency terms EBITDA grew 12% looking ahead, we expect 13% to 15% EBITDA growth in local currency terms in 2025.

Gordon: Underpinned by strong revenue trends and disciplined cost controls.

Khan Terzioglu: Let me now dig a little deeper to the headline numbers. As you can see on this page, our financials were impacted by certain identified items including the cyber attack in Ukraine, political unrest in Bangladesh, and HQ restructuring costs. Additionally, our underlying growth was also impacted by the deconsolidation of TNS Plus in Kazakhstan, effective fourth quarter of 2024, following the sale of this business. Adjusting for the impact of these items, like for like, US dollar growth was 10% versus the headline of 8.3. Similarly for EBITDA, like for like, EBITDA US dollar growth was 7% versus the headline of 4.9.

Gordon: Let me now dig a little deeper to the headline numbers.

Gordon: As you can see on this page our financials were impacted by shorten identified items, including the cyber attack and a great political unrest in Bangladesh and HQ restructuring costs.

Gordon: Additionally, our underlying growth was also impacted by the deconsolidation of TNF plus in Kazakhstan effective fourth quarter of 2024, following the sale of this business.

Gordon: Adjusting for the impact of these items like for like U S. Dollar growth was 10% versus the headline of eight three.

Gordon: Similarly for EBITDA.

Gordon: Like for like EBITDA U S dollar growth was 7% versus the headline of four nine.

Gordon: Yeah.

Khan Terzioglu: We have successfully grown VEON to a $4 billion-plus company in 2024. Our telecom and infrastructure segment contributed $3.6 billion to this and grew 3.8% year-on-year in USD and 7.1% year-on-year in local currency terms. Meanwhile, our direct digital revenues surged by 63% to $460 million. and demonstrates the success of our digital strategy execution. We are confident that this is a trend that will sustain into the future. Our EBITDA grew $1.7 billion and as I explained earlier, 4.9% on a reported basis and 12% on an underlying local currency basis. Our capital intensity for the year was 20.6% and exceeded our guidance of 18-19%.

Gordon: We have successfully grown beyond two of $4 billion plus company in 2024 hour Telecom and infrastructure segment contributed $3 $6 billion to this and grew three 8% year on year in USD and seven 1% year on year.

Gordon: In local currency terms mean.

Gordon: Meanwhile, our direct digital revenues surged by 63% to $460 million.

Gordon: And demonstrates the success of our digital strategy execution.

Gordon: We are confident that this is a trend that will sustain into the future.

Gordon: Our EBITDA grew one $7 billion and as I explained earlier.

Gordon: Four 9% on a reported basis and 12% on an underlying local currency basis.

Gordon: Our capital intensity for the year was 26% and exceeded our guidance of 18 to 19.

Khan Terzioglu: This was primarily driven by escalated investments in Ukraine amidst the war. Excluding Ukraine, our CAPEX intensity would have been in line with our guidance of 18-19%. This higher CAPEX also impacted our equity-free cash flow, which declined 2.2% year-on-year to $403 million.

Gordon: This was primarily driven by escalated investments in Ukraine amidst the war <unk>.

Excluding Ukraine, our Capex intensity would have been in line with our guidance of 18% to 19%.

Gordon: This higher Capex also impacted our equity free cash flow, which declined two 2% year on year to 403 million U S dollars.

Khan Terzioglu: In 2024, we also made good progress in strengthening our balance sheet. Our net debt to EBITDA ratio is down to 1.3% as of the year-end. from 1.5 times as of Q3 and 1.4 times from the last year-end. We ended the year with $1.7 billion in cash, including $481 million at the headquarters level. Since the end of 2024, we have received remaining proceeds from our TNS Plus sale and further dividends from our operating company.

Gordon: In 2024, we also made good progress in strengthening our balance sheets.

Gordon: Our net debt to EBITDA ratio is down to one 3% as of the yearend.

Gordon: From one five times as of Q3.

Gordon: And one four times from the last year end.

Gordon: We ended the year with $1 7 billion in cash, including $481 million at the headquarters level.

Gordon: Since the end of 2024, we have received remaining proceeds from our TNF plus sale and further dividends from our operating companies.

Khan Terzioglu: I will now provide a brief overview of our revenue and EBITDA growth in underlying terms across our portfolio. Our Pakistan business was the strongest performer with revenues growing 22.7% and EBITDA growing 15.6% both in local currency terms. Ukraine delivered a stellar second half as it emerged stronger from the cyber attack. Revenues grew 13.7% and EBITDA grew 10.3% in local currency terms. Kazakhstan continues to deliver robust growth as reflected in the underlying growth trends that adjust for the deconsolidation of TNS Plus business in Q4. Uzbekistan delivers solid revenue growth, but EBITDA was impacted by a prior year one-off and elevated operating expenses from network investment rollout.

Gordon: I will now provide a brief overview of our revenue and EBITDA growth in underlying terms across our portfolio.

Gordon: Our Pakistan business was the strongest performance performed well with revenues growing 22, 7% and EBITDA growing 15, 6% both in local currency terms.

Gordon: Crane delivered a stellar second half as it emerged stronger from the cyber attack.

Gordon: Revenues growth 13, 7% and EBITDA grew 10, 3% in local currency terms.

Gordon: Cause I can stand continues to deliver robust growth as reflected in the underlying growth trends that adjust for the deconsolidation of TNF plus business in Q4.

Gordon: But as the bank has done.

Gordon: Delivers solid revenue growth, but EBITDA was impacted by a prior year, one off and elevated operating expenses from network investment Rollouts.

Khan Terzioglu: That position is valid for the future of our network quality. I will share more details on this matter later.

Gordon: That position it well for the future of our network quality.

Gordon: I will share more details on this matter later.

Khan Terzioglu: Finally, Bangladesh business was severely impacted by the political changes and unrest and the challenging macroeconomic environment throughout the year. Excluding the impact from these, its revenue base would have been stable.

Gordon: Finally, Bangladesh business was really impacted by the political changes and unrest and the challenging macroeconomic environment throughout the year, excluding the impact from these its revenue base would have been stable.

Khan Terzioglu: Multiply, which counts customers that use at least one digital service in addition to voice and data services, is a key feature of our digital operator's 1,440 growth strategy. Increased 4G adoption remains also being the key driver of our growth. While total 4G user base grew 5.3% year-on-year, it has reached 12.7% when excluding Ukraine and Bangladesh. As you can imagine, in Ukraine and Bangladesh, user numbers are impacted by specific challenges. Multiplayer segment drives growth with stronger customer engagement, higher data consumption, more frequent usage of voice services, improved retention and ARPU expansion. Our Multiplay customers continue to generate 3 to 3.5 times the ARPU as compared to voice-only customers.

Gordon: Multi play which coast customers that use at least one digital service. In addition to voice and data services is a key feature of our digital operators 1440 <unk> growth strategy.

Gordon: Increased towards the adoption remains also being the key driver of our growth.

Gordon: While total Ford your user base grew five 3% year on year. It has reached 12, 7% when excluding crane and Bangladesh.

Gordon: As you can imagine in a crane in Bangladesh user numbers are impacted by specific challenges.

Gordon: Multiple age segment drives growth with stronger customer engagement higher data consumption more frequent usage of voice services improved retention and output expansion.

Gordon: Our multi play customers continued to generate two to three five times the RP as compared to voice only customers. This increased our book is driven by additional consumption of data due to increasing usage of our digital applications and platforms, which enhances the customer experience.

Khan Terzioglu: This increased ARPU is driven by additional consumption of data due to increasing usage of our digital applications and platforms, which enhances the customer experience.

Khan Terzioglu: Let me now delve deeper into our digital revenue growth. These revenues are generated through our core digital services, including financial services, healthcare, education, entertainment and enterprise services, such as advertising technologies, cloud and software development. In 2024, our direct digital revenues reached $460 million, growing by an impressive 63% year-on-year, and now accounting for 11.5% of total revenue. For Q4 alone, these revenues grew 42% year-on-year and comprise 12.6% of total revenue.

Gordon: Let me now delve deeper into our digital revenue growth.

Gordon: These revenues are generated through our core digital services, including financial services Health care Education Entertainment and enterprise services, such as advertising technologies cloud and software development.

Gordon: In 2024 hour direct digital revenues reached $460 million growing by an impressive 63% year on year and now accounting for 11, 5% of total revenues.

Gordon: For Q4 alone. These revenues grew 42% year on year and comprised 12, 6% of total revenues.

Khan Terzioglu: We expect this trend to continue as we expand our digital portfolio and capture underlying customer demand across our market.

Gordon: We expect this trend to continue as we expand our digital portfolio and capture underlying customer demand across our markets.

Gordon: Yeah.

Khan Terzioglu: Looking to individual countries, let's start with Ukraine. Kyivstar has delivered a strong finish to 2020. Underlying local currency growth adjusting for the cyber attack impact was 13.7%. underlying EBITDA growth by 10.3% despite ongoing network and utility cost pressure. We are also happy to report that all operating metrics, including subscriber numbers, minutes of usage, data consumption and churn, are now trending positively relative to the pre-cyber attack period. Direct digital revenues increase 122% year-on-year, driven by Kyivstar TV, Kyivstar Cloud, and Healthy, our health platform. Digital revenues comprise only 2.4% of total revenues, which shows the significant growth potential ahead.

Gordon: Looking to individual countries, let's start with two great gifts star has delivered a strong finish to 2024.

The lying local currency growth adjusting for the cyber attack impact was 13, 7%.

Gordon: Underlying EBITDA grew by 10, 3%, despite ongoing network and utility cost pressures.

Gordon: We are also happy to report that all operating metrics, including subscriber numbers minutes of usage data consumption and churn are now trending positively relative to the pre cyber attack periods.

Gordon: Direct digital revenues increased 122% year on year, driven by key of Star TV.

Gordon: Yes, dark clouds and healthy our health platform.

Gordon: Digital revenues comprised only two 4% of total revenues, which shows the significant growth potential ahead.

Khan Terzioglu: I am pleased to inform you that Kievstar has signed an agreement to acquire Uklon. Ukraine's leading ride-hailing business. The transaction values UCLOM at 160 million U.S. dollars and we have acquired 97% of it. UCLON also offers delivery services and advertising services. It operates in 27 Ukrainian cities and unites more than 100,000 driver partners on the platform. UCLON also recently expanded its operations to Uzbekistan.

Gordon: I'm pleased to inform you that Costar has signed an agreement to acquire <unk>.

Gordon: Cranes, leading ride hailing business the transaction values <unk> at $160 million and we have acquired 97% of it.

Gordon: Oakland also offers delivery services and advertising services.

Gordon: It operates in 27, Ukrainian cities and unites more than hundred thousand driver partners on the platform.

<unk> also recently expanded its operations to make it stop.

Khan Terzioglu: Fourth quarter of 2024 was a landmark quarter for Kyivstar. In November, restrictions on VEON's corporate rights in Kyivstar were lifted. In December, Kyivstar partnered with Starlink to bring direct-to-cell satellite connectivity in Ukraine.

Gordon: Fourth quarter of 2024 was a landmark quarter for gift stock in November restrictions on beyond corporate rights in Kiev start were lifted.

Gordon: In December <unk> partnered with Sterling to bring direct to sell satellite connectivity in Ukraine.

Khan Terzioglu: We have also decided to list KFSTAR on NASDAQ.

Gordon: We have also decided to list gift stock on NASDAQ, Let me now take a couple of minutes to highlight why Costar makes a compelling investment proposition.

Khan Terzioglu: Let me now take a couple of minutes to highlight why KFSTAR makes a compelling investment proposition. First, Kyivstar is a national champion, recognized as Ukraine's leading digital operator, and one of the most iconic national brands. Second, Kyivstar is a highly profitable entity with robust free cash flow and multiple growth levels just discussed. Third, the business is supported by a very strong balance sheet which is free of external debt and has ample liquidity. Fourth, Kievstar's world-class management team are proven leaders with a track record of resilience through war and robust governance. Last but not least, Kyivstar's listing will offer scarcity value as the only US-listed vehicle for investors who want to participate in Ukraine's recovery and growth potential.

Gordon: First <unk>.

Gordon: <unk> story is our nation's champion recognized as cranes, leading digital operator, and one of the most iconic national brands.

Gordon: Second give start is a highly profitable entity with robust free cash flow and multiple growth levels just discussed.

Gordon: Sure.

Gordon: The business is supported by a very strong balance sheet, which is free of external debt and has ample liquidity.

Gordon: Fourth he have stars World Class management team are proven leaders with a track record of Brazilians true war and robust governance last but not least give start listing will offer scarcity value as the only U S listed vehicle for investors, who want to participate in a crane recovery.

Gordon: And growth potential.

Khan Terzioglu: Listing Kyivstar in the US is independent on the successful completion of the business combination with Cohen Circle. We are excited about this and look forward to sharing more details with you as we execute on Kyivstar's listing.

Gordon: Listening <unk> start in the U S is independent on the successful completion.

Gordon: Of the business combination with coherent circle. We are excited about this and look forward to sharing more details with you as we execute on KIF started soliciting.

Khan Terzioglu: Moving to Pakistan. Jazz continues to deliver robust growth with revenues increasing 23% and EBITDA rising 15.6%. Jazz's telecom infrastructure revenues grew at 11.6% in 2024, which highlights the strength of Jazz's network and innovative services. Direct Digital Revenues surged by 78% and contributes 24.5% of total revenues in Pakistan. Just cash revenues increased by a whopping 116% and Mobilink Microfinance Bank grew 32% year-on-year. Meanwhile, the strategic partnership with Angro Corporation on infrastructure sharing, executing our Asset Light Strategy, will bolster JAWS service focused business. The transaction is going through customary legal and regulatory approval process.

Gordon: Moving to Pakistan, just continues to deliver robust growth with revenues, increasing 23% and EBITDA rising $15 six.

Gordon: Jazz is telecom and in infrastructure revenues grew at 11, 6% in 2024, which highlights the strength of <unk> network and <unk> services.

Gordon: Iraq digital revenues surged by 78% and contributes 24, 5% of total revenues in Pakistan.

Gordon: <unk> cash revenues increased by a whopping, 116% and mobile in micro Finance bank grew 32% year on year.

Gordon: Meanwhile, the strategic partnership with <unk> Corporation on infrastructure sharing executing our asset light strategy will bolster just service focused businesses.

Gordon: The transaction is going through customary legal legal and regulatory approval process once completed and grow bill pay just $188 million.

Khan Terzioglu: Once completed, ANGRO will pay JAS $188 million and guarantee repayment of Deodar's intercompany debt of $375 million.

Gordon: And guarantee repayment of intercompany debt of $375 million.

Khan Terzioglu: Moving on to Kazakhstan. Headline financials reflect the deconsolidation of TNS Plus Effective Q4 2024. Excluding TNS Plus deconsolidation, telecom and infrastructure revenues grew 15.3%. Beeline's growing market share and traction is a testament to the success of its 4.9G rollout. Our performance with 4.9G networks is remarkably strong versus competitors. servicing 5G networks and we are gaining market share. BILA's digital portfolio continues to grow robustly. Simply, our financial services platform continues to scale strongly with 145% rise in monthly active users. which I will just refer to as user's hero to 3.2 million.

Gordon: Moving on to Kazakhstan.

Gordon: Headline financials reflect the deconsolidation of <unk>, plus effective Q4, 2024, excluding tennis, plus deconsolidation telecom and infrastructure revenues grew 15, 3%.

Gordon: <unk> lines growing market share and traction is a testament to the success of its four nine <unk> rollouts.

Gordon: Our performance with 490, <unk> networks is remarkably strong versus competitors.

Gordon: Servicing <unk> networks, and we are gaining market share.

Gordon: <unk> digital portfolio continued to grow robustly.

Gordon: Simply our financial services platform continues.

Gordon: <unk> continues to scale strongly with 145% rise in monthly active users, which I will just referred to as users hero to $3 2 million.

Khan Terzioglu: Cascode is our enterprise solutions company that has a team of over 800 employees that includes 400 developers and data scientists. It is one of the largest software firms in Kazakhstan and Central Asia.

Gordon: <unk> is our enterprise solutions company that has a team of over 800 employees that includes 400 developers and data scientists.

Gordon: It is one of the largest software firms in Kazakhstan in Central Asia.

Khan Terzioglu: I wanted to particularly highlight CASCODE's development and launch of CAS-LLM, an open-source Kazakh-language large-language model in collaboration with Barcelona Supercomputing Centre, GSMA Foundry and Kazakh National Research Institution. Beeline and Cascode have already launched several AI solutions and services developed in-house which are being used internally and externally.

Gordon: I wanted to particularly highlight cost coach development and launch of cause LLM and open source contract language large language model in collaboration with Barcelona Supercomputing centers.

Gordon: Semey foundry and Kozak National research institutions.

Gordon: The line on cost cuts have already launched several AI solutions and services developed in house, which are being used internally and externally.

Khan Terzioglu: Turning to Bangladesh The country faced significant challenges in the second half of 2024, with macroeconomic pressures weighing on the broader economy and telecom industry. Whilst the interim government is taking the right steps after the political unrest, customer sentiment is yet to show any sustained recovery. In response, BanglaLink has strategically pivoted to optimize its distribution model and customer acquisition strategy, which is beginning to structurally lower costs without effective revenue share. Despite these challenges, direct digital revenues were 66% up as BanglaLink remains committed to its digital operator strategy. Successful launch of the AI-enabled lifestyle application RISE in November is a good example with regard to this fact.

Turning to Bangladesh.

Gordon: The country faced significant challenges in the second half of 2024 with macroeconomic pressures weighing on the broader economy and telecom industry.

Gordon: We'll see the interim government is taking the right steps after the political unrest customer sentiment is yet to show any sustained recovery in.

Gordon: In response bundle, Inc has strategically pivoted to optimize this distribution model and customer acquisition strategy, which is beginning to structurally lower costs without effective revenue share.

Gordon: Despite these challenges direct digital revenues were 66%.

Gordon: Up as bundling remains committed to its digital operator strategy.

Gordon: Successful launch of the AI enabled lifestyle application rise in November is a good example, with regard to distract.

Khan Terzioglu: RISE recorded 220,000 users by December, just a month into the launch.

Gordon: <unk> recorded 220000 users by December.

Gordon: Just a month into the launch.

Khan Terzioglu: Looking ahead, we are optimistic that worst of the macroeconomic impact is in the past and BanglaLink is well positioned to drive sustainable long-term growth.

Gordon: Looking ahead, we are optimistic that first off the macroeconomic impact is in the past and bundling is well positioned to drive sustainable long term growth.

Khan Terzioglu: Turning to Uzbekistan, B-Line Uzbekistan focused on enhancing its foundations and doubling down on digital adjacencies in 2024. Revenues grew 9.4% in local currency terms, EBITDA declined by 3.7%, largely reflecting higher operating expenses from network rollouts and one-off tax-related impacts in the year earlier. Digital revenues increased 21% and now compromise 4.2% of total revenue. Beeple, our financial services product. Our integrated financial services platform into our super apps scaled rapidly.

Gordon: Turning towards but does it make to stock <unk> focused on enhancing its foundations and doubling down on digital Adjacencies in 2024.

Gordon: Revenues grew nine 4% in local currency terms EBITDA declined by 3%.

Gordon: Three 7% largely reflecting higher operating expenses from network Rollouts and one off tax related impacts in the year earlier.

Gordon: Digital revenues increased 21% and now compromise for 2% of total revenues.

Gordon: People are financial services products are.

Gordon: Our integrated financial services platform into our Super apps scaled rapidly.

Khan Terzioglu: In Q4, we saw the launch of a new super app, Hambi, meaning all-in-one in Uzbek language. Hanbi is off to a strong start with 5 million users in a short time frame. Meanwhile, we welcome government's decision to reduce the excise tax on mobile communications in the This development has enabled us to accelerate our 4.9G rollout, benefiting both the industry and the consumers.

Gordon: In Q4, we saw the launch of a new Super App Humvee, meaning all in one in those baked language Hanmi is off to a strong start with 5 million users in a short timeframe.

Gordon: Meanwhile, we welcome government's decision to reduce the excise tax on mobile communications industry.

Gordon: This development has enabled us to accelerate our four nine gene rollout benefiting both the industry and the consumers.

Khan Terzioglu: We look forward to welcoming the industry at GSMA Mobile 360 Eurasia in Tashkent in May.

Gordon: We look forward to welcoming the industry at GSM Mobile C 60, Eurasia in touch and in May.

Khan Terzioglu: Let me explore our digital ecosystem in more detail. We continue to see strong growth across our digital platform. Our total digital users reached 122 million, reflecting a 27% increase. Within that base, we are witnessing even faster expansion in digital-only users, growing at 37% to 29 million. This trend underscores how our digital products are rapidly gaining traction and becoming the applications of choice for customers in competitive markets.

Gordon: Let me explore our digital ecosystem in more detail.

Gordon: We continue to see strong growth across our digital platforms. Our total digital users reached $122 million, reflecting a 27% increase within that base. We are witnessing even faster expansion in digital only users growth.

Gordon: Being at 37% to $29 million.

Gordon: This trend underscores how our digital products are rapidly gaining traction and becoming the applications of choice for customers in competitive markets.

Khan Terzioglu: In 2024, we focused on AI with a clear focus on augmenting human capabilities. and launched our AI1440 augmented intelligence in every single minute in a day strategy. We accelerated the integration of AI powered features in our digital applications, bringing AI to our customers in their native language. We are going well beyond using AI just for process optimization.

Gordon: In 2024, we focused on AI, we think clear focus on augmented augmenting human capabilities.

Gordon: And launched our AI 14, 40 augmented intelligence in every single minutes in a day.

Gordon: <unk> strategy.

Gordon: We accelerated the integration of AI powered features in our digital applications, bringing AI to our customers in their native languages.

Gordon: Going well beyond using AI just for process optimization.

Khan Terzioglu: Starting with mobile financial services, we now have a total customer base of 38 million across our financial services platforms, an increase of 42% year-on-year. Let me focus on top three of these performances. In Pakistan, JazCash's gross transaction value rose 64% to $34 billion. Representing 9% of Pakistan's GDP. This growth was supported by a 40% year-on-year rise in total transactions and 33% rise in average transaction value per user. Jazz Cash continues to expand its retail distribution network, which now has 350,000 merchants. On average, we are now issuing more than 140,000 loans. every single day.

Gordon: Starting with mobile financial services, we now have a total customer base of $38 million across our financial services platforms and increase of 42% year on year.

Gordon: Let me focus on top three of these performances.

Gordon: In Pakistan, just caches gross transaction value rose, 64% to $34 billion.

Gordon: Representing 9% of Pakistan GDP.

Gordon: This growth was supported by a 40% year on year rise in total transactions and 33% rise in average transaction value per user.

Gordon: Jazz cash continues to expand its retail distribution network, which now has 350000 merchants.

Gordon: On average we are now issuing more than 140000 launch ever.

Gordon: Every single day.

Khan Terzioglu: Simply, Kazakhstan's second largest digital services operator, continues to scale strongly with 145% rise in users. reaching 3.2 million.

Gordon: Simply Kazakhistan second largest digital services operators continues to scale strongly with 145% rise in users.

Gordon: Reaching $3 2 million.

Khan Terzioglu: In Uzbekistan, Bpool's revenues grew almost 2.3 times in 2024, and user numbers increased 3.6 times, reaching 2.4 million users as of December end.

Gordon: <unk> be pools revenues grew almost two three times in 2024 and user numbers increased three six times, reaching $2 4 million users as of December end.

Khan Terzioglu: Our entertainment platforms continue to deliver unique content and experiences reaching 41 million users across Pakistan, Bangladesh, Kazakhstan, Ukraine and Uzbekistan. Tamasha in Pakistan remains our largest platform with 17.1 million users. TOFI is now the largest OTT platform in Bangladesh, offering linear TV. The recently concluded ICC Cricket Championship has driven a strong uptick in user numbers and engagement. Tamasha during the games registered 22 million users and Toffee registered 8.5 million users during this period. Kyivstar TV in Ukraine has shown impressive growth with users increasing by 55% to 2 million. BTV in Kazakhstan has maintained steady growth with users up 8% to 1 million.

Gordon: Our entertainment platforms continue to deliver unique content and experiences, reaching 41 million users at gross Pakistan, Bangladesh, Kazakhstan, Ukraine and Uzbekistan.

Gordon: I'm ashamed, Pakistan remains our largest platform with $17 1 million users.

Gordon: <unk> is now the largest OTT platform in Bangladesh offering linear TV.

Gordon: The recently concluded ICC Cricket Championship has driven a strong uptick in user numbers and engagement.

Gordon: Thomas shop during the games registered 22 million users and toffee registered $8 5 million users during this period.

Gordon: Kickstart television in Ukraine has shown impressive growth with users increasing by 55% to $2 million.

Gordon: <unk> TV in Kazakhstan has maintained steady growth with users up 8% to $1 million.

Khan Terzioglu: We are evolving our self-care platforms into super apps, which offer a wide variety of services to all customers, including from other telecom operators, and serving them healthcare, education, entertainment, e-commerce in a single, easy-to-use platform. Our super apps are now serving 43 million customers up 17%.

Gordon: We are evolving our self care platforms into super apps, which offer a wide variety of services to all customers, including from other telecom operators and serving them health care Education Entertainment E Commerce in a single easy to use platform.

Gordon: Our Super apps are now serving 43 million customers up 17%.

Khan Terzioglu: Our premium digital brands are targeted at digital natives and combined advanced digital entertainment features with telecom services. These have all launched in the last 12 to 15 months and are now showing impressive traction. ROKS in Pakistan has hit a million users. EZ in Kazakhstan has grown its user base to 700,000. RISE in Bangladesh has 220,000 users just a month after launch.

Gordon: Our premium digital brands are targeted at digital natives and combined advanced digital entertainment features with Telecom services.

Gordon: These have all launched in the last 12 to 15 months and are now showing impressive traction Roxanne Pakistan has hit a million users easy in Kazakhstan has grown its user base to 700000.

Gordon: In Bangladesh has 220000 users just eight months after launch.

Khan Terzioglu: Lastly, our healthcare platforms. In Ukraine, health leads with over 28 million registered patients, marking a 5% year-on-year increase. The platform supports more than 1,600 active health care institutions, 39,000 doctors and specialists, and many laboratories. An AI engine to help customers analyze the results of laboratory tests and inform on potential health risks sees a strong demand.

Gordon: Lastly, our healthcare platforms in Ukraine, Helsel leads with over 28 million registered patients, marking a 5% year on year increase.

The platform supports more than 1600 active health care institutions, Turkey, 9000, doctors and specialists and many laboratories.

Gordon: And AI engine to help customers analyze the results of laboratory tests and inform on potential health risks sees as strong demand.

Khan Terzioglu: In Pakistan, Ficker Free, meaning no worries, was launched in the fourth quarter. Ticker Free is an insurance and healthcare marketplace application offering a variety of insurance products and healthcare services. including e-pharmacy and doctor consultation. It is off to a great start with over 1.4 million users registered and 1.2 million active insurance policies solved.

Gordon: In Pakistan figure three meaning no varies was launched in the fourth quarter.

Gordon: Stinker free is an insurance and health care marketplace application offering a variety of insurance products and healthcare services.

Gordon: Including E pharmacy and Doctor consultations.

Gordon: It is off to a great start with over one 4 million users registered and one 2 million active insurance policies shopped.

Burak Ozer: With that, I will now hand over to Burak to carry you through the finance. Thanks, Collin. In financial year 24, we achieved robust revenue growth, with total revenue reaching slightly over $4 billion, an 8.3% increase year over year. Adjusting for identified items, as Kaan has explained earlier, and the sale of TNS Plus in Kazakhstan, our underlying revenue grew by 14.6% in local currency. Direct digital revenue was a standout performance. Growing by 63% to $460 million. reflecting the successful expansion of our digital platform and service. Our revenue growth was driven by market share gains. Disciplined Inflationary Pricing Strategies and the Continued Expansion of our Digital Network.

Gordon: With that I will now handover to Brett to carry you through the financials.

Brett: Thanks, Tom.

Brett: In financial year 'twenty four.

Brett: <unk> robust revenue growth with total revenue, reaching slightly over $4 billion and.

Brett: Eight 3% decrease year over year.

Brett: Adjusting for identified items as <unk> has explained earlier.

Brett: And the sale of TNF plus in Kazakhstan.

Brett: Underlying revenue grew by 14, 6% in local currency.

Brett: Direct digital revenue was a standout performer.

Brett: Growing by 6% to 3% to $460 million.

Brett: Reflecting the successful expansion of our digital platform. It serves.

Brett: Our revenue growth was driven by market share gains disciplined inflationary pricing strategies and the continued expansion of our digital ecosystems.

Burak Ozer: Taking a closer look at the Fort Fort. We delivered solid results. with total revenue reaching $998 million, a 4.7% increase year over year. Adjusting for identified items and the sale of TNS Plus in Kazakhstan, our underlying revenue continues to grow by double digit. Increasing 11.1% in local care. Direct digital revenue continues to be the key driver. growing by 42.4% to $126 million. Reflecting the ongoing expansion and adaptation of our digital platform.

Brett: Taking a closer look at the fourth floor.

Brett: We delivered solid results with total revenue reaching 998.

Brett: No.

Brett: Four 7% increase year over to you.

Brett: Adjusting for identified items and the sale of Chinas Flushing, Kazakhstan, our underlying revenue continued to grow by double digits, increasing 11, 1% in local currency.

Brett: Direct digital revenue continues to be the key driver.

Brett: Growing by 42, 4% to $126 million.

Brett: Reflecting the ongoing expansion and adaptation of our digital platforms.

Burak Ozer: Turning to profitability. Our EBITDA for 2024 reached 1.7 billion dollars. reflecting 4.9% growth. Adjusting for identified items and the sale of TNS Plus in Kazakhstan are underlying EBITDA growth plus 12% in local currency. Our EBITDA margin for the year stood at 42.2%. A decrease of 1.3% and reflect some of the challenges we discussed earlier. With digital at 12% of revenues now, our margin profile is also starting to reflect the combination of higher telco margins, coupled with strong, but competitively lower digital margins. We are comfortable with this margin profile as we expect the combination to continue to drive better absolute EBITDA We also note digital businesses have much lower capex intensity relative to telco.

Brett: Turning to profitability.

Brett: The 401, and 2024 reached $1 $7 billion.

Brett: Reflecting four 9% growth.

Brett: Adjusting for identified items and the sale of PNM Lovesick, Kazakhstan, our underlying EBITDA growth was 12% in local currency terms.

Brett: Our EBITDA margin for the year stood at 42, 2%.

Brett: A decrease of one three percentage points.

Brett: And reflect some of the challenges we discussed earlier.

Brett: With digital at 12% of revenues now our margin profile is also starting to reflect a combination of higher telco margins, coupled with strong but comparatively lower digital margins. We are comfortable with this margin profile as we expect the combination to continue to drive better absolute EBITDA growth.

Brett: We also launched digital businesses have much lower capex intensity relative to telco.

Burak Ozer: Hence, we would expect cash generation for both telco and digital to be very comparable as a proportion of revenue.

Hence, we would expect cash generation for both telco and digital to be very comparable as a proportion of revenues.

Burak Ozer: Focusing on fourth quarter alone, Group EBITDA reached $408 million. Marking 11.3% year-over-year increase in reported currency and 14.1% rise in underlying local currency.

Brett: Focusing on fourth quarter alone group EBITDA reached $408 million.

Marty: Marty 11, 3% year over year increase in reported currency and 44.

Brett: 1% rise in underlying local currency terms.

Burak Ozer: Looking ahead, we remain focused on optimizing our cost structure and enhancing operational efficiency to drive sustainable evictions.

Brett: Looking ahead, we remain focused on optimizing our cost structure and enhancing operational efficiency to drive sustainable growth.

Burak Ozer: Now, shifting our focus to key balance sheet figures. We have significantly strengthened our liquidity position. with cash reserves rising 65.6% quarter-on-quarter to $1.7 billion. which includes $481 million held at As Kaan mentioned earlier, we have since received the remaining portion of our receivables from the sale of TNS+. and are of course have obstructed further dividends as well.

Brett: Now shifting our focus to key balance sheet figures.

Brett: We have significantly strengthened our liquidity position.

Brett: With cash reserves rising, 6% to five 6% quarter on quarter to $1 7 billion.

Brett: Reached includes $481 million held at headquarters.

Brett: John mentioned earlier, we have since received the remaining portion of our receivables from the sale of <unk> plus <unk>.

Brett: And of course, our upstream further dividends as well.

Burak Ozer: All in all, we are in a comfortable position to redeem our debt maturities in 2020. Our net debt to EBITDA ratio, excluding leases, improved to 1.3 times. down from 1.5 times last quarter. This reflects our disciplined approach to debt management and commitment to maintaining a healthy balance.

Brett: All in all we are in a comfortable position to redeem our debt maturities in 2025.

Brett: Our net debt to EBITDA ratio, excluding leases improved to one three times down from one five times last quarter.

Brett: This reflects our disciplined approach to the management and commitment to maintaining a healthy balance sheets I will now hand, it back over to Carl.

Khan Terzioglu: I will now hand it back over to Karl. Thank you Burak. As we look back over the last 12 to 18 months, we have transformed VEON significantly into a leaner, faster and stronger digital operator. We successfully exited Russia. We have scaled our digital operators strategy with great success. We are making good progress on our asset-light strategy. We have executed on our share buyback program and relocated our headquarters to Dubai. All these initiatives have not only streamlined our operations, but also sharpened our focus on growth and innovation. Looking forward, we are focused to continue delivering on our strategy.

Carl: Thank you Brook as we look back over the last 12 to 18 months, we have transformed significantly into a leaner faster and stronger digital operators.

Carl: We successfully exited Russia.

Carl: We have scaled our digital operator strategy with great success.

Carl: We are making good progress on our asset light strategy.

Carl: We have executed on our share buyback program and relocated our headquarters to Dubai.

Carl: All of these initiatives have not only streamlined our operations, but also sharpened our focus on growth and innovation.

Carl: Looking forward, we are focused to continue delivering on our strategy.

Khan Terzioglu: A pivotal milestone ahead is the listing of Kyivstar, offering investors a unique opportunity to participate in Ukraine's recovery and growth potential. Our markets have significant growth potential as our digital operator strategy leave us well balanced in optimally leveraged points. We are also exploring accretive in-market opportunities that allow us to improve our market. We will continue to deliver on our asset light strategy, which will also improve our operating flexibility, while we continue to focus on reducing costs and overall leverage. We are focused on delivering shareholder value. As I mentioned earlier, we have completed phase one of our buyback with $30 million.

Carl: Pivotal milestone ahead is the listing of <unk> stock offering investors a unique opportunity to participate in cranes recovery and growth potential.

Carl: Our markets have significant growth potential.

Carl: As our digital operator strategy leaves us well balanced in optimally leverage point.

Carl: We are also exploring accretive in market opportunities that allow us to improve our market position.

Carl: We will continue to deliver on our asset light strategy, which will also improve our operating flexibility, while we continue to focus on reducing costs.

Carl: And overall leverage.

Carl: We are focused on delivering shareholder value as I mentioned earlier, we have completed phase one of our buyback with $30 million.

Khan Terzioglu: Today, I am pleased to announce that our board has approved phase 2 of the buyback for an additional $35 million, which will be commencing shortly.

Carl: Today I am pleased to announce that our board has approved phase two of the buyback for an additional $35 million, which will be commencing shortly.

Khan Terzioglu: Let me now provide you our outlook and guidance for 2025. In local currency terms, we expect total revenue growth of 12-14% year-on-year. and a BDA growth of 13 to 15%. We expect CAPEX intensity between 17 and 19%. I will point out that our guidance factors in a blended weighted average inflation rate of 8.2% as of the year end. Do note that our results and guidance in local currency terms for 2025 are likely to be impacted if there is a big change in underlying inflation levels. We are ready to do more in 2025.

Carl: Let me now provide you our outlook and guidance for 2025.

Carl: In local currency terms, we expect total revenue growth of 12% to 14% year on year.

Carl: And EBITDA growth of 13% to 15%.

Carl: We expect capex intensity between 17 and 19%.

Carl: I will point out that our guidance factors in a blended weighted average inflation rate of eight 2% as of the yearend.

Carl: Do note that our results and guidance in local currency terms for 2025 are likely to be impacted if there is a big change in underlying inflation levels.

Carl: We are ready to do more in 2025.

Khan Terzioglu: We look forward to continuing to deliver on our strategy and creating sustainable value for our state.

Carl: We look forward to continuing to deliver on our strategy and creating sustainable value for our stakeholders.

Khan Terzioglu: Thank you for your continued support and trust in VEON.

Carl: Thank you for your continued support and trust in beyond.

Operator: Now let's open the line for Q&A. 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 panellist. Please accept and wait until you are promoted to a panellist. 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 using the ask a question tab at the top right of your screen.

Carl: Now, let's open the line for Q&A.

Carl: Thank you.

Carl: At this time, if you would like to ask a question. Please click on the right hand button, which can be found on the black box at the bottom of your screen. When it is you'll turn you will receive a message on your screen inviting you to join as a panellist. Please accept.

Carl: And wait until you are promoted to economist. Please on mute your audio turn on your camera.

Carl: Ask your question.

Speaker Change: As a reminder, we are allowing analysts to one question and one related follow up today.

Speaker Change: Richard questions can be submitted on the webcast using the ask a question tab at the top.

Speaker Change: Right of your screen.

Operator: We will pause a moment to allow the queue to form.

Speaker Change: We will pull the moment to allow the key twofold.

David Lopez: Our first question comes from David Lopez at Newstreet Research. Please unmute your line. Hi, can you hear me? Yes, we can. Hi, thank you for the opportunity for questions and congratulations on the solid 2024 performance. Got three questions, if I may. First one would be on your full year 2025 guidance. I was wondering if you could comment on the key drivers behind the guidance, perhaps which countries will contribute the most. And on CapEx, I was wondering if you could comment on the intensity beyond 2025. And then my second question will be on competition. I was wondering if you could talk to us about the latest developments in competition in your main market.

David Lopez: Our first question comes from David Lopez at New Street Research. Please mute your line.

Speaker Change: I've been here.

David Lopez: Yes, we can.

Speaker Change: Hi, Thank you for the opportunity for questions and congratulations on the solid kudos on country folk are foremost.

Speaker Change: Three questions if I may.

Speaker Change: First one would be on your full year guidance I was wondering if you could comment on the key drivers behind the guidance math, perhaps which countries we contribute the most.

Speaker Change: And numbers on Capex I was wondering if shaw.

Speaker Change: Could comment on the intensity beyond 2025.

Speaker Change: And then my second question.

Speaker Change: We'll be on competition.

Speaker Change: If you could.

Speaker Change: Talk to a somewhat later.

Speaker Change: Nope months and competition in your main markets.

Khan Terzioglu: And the last one, a quick one on TOWERS, I was wondering if you could update us about your plans and what are the progress on the remaining TOWERS. Thank you very much. Thank you very much, David.

Speaker Change: And the last one a quick one on the towers.

Speaker Change: Wondering if you could update us about your plans and what type of progression on the remaining towers. Thank.

Speaker Change: Thank you very much.

Speaker Change: Thank you very much David So let me take the questions one by one let's start with the 2025 growth expectations and what drives the growth.

Khan Terzioglu: So let me pick the questions one by one. Let's start with the 2025 growth expectations and what drives the growth. You know, clearly our direct digital revenues now reaching almost 12.4% in Q4. I expect this growth to be significant this year as well. I think it would not be a surprise to increase it one percentage point in terms of percentage of the business every single quarter moving onwards. And this is primarily driven by our success in financial services and entertainment services. But also, let's not forget that our recent acquisitions, including Uklon, the ride-hailing business, will bring us additional revenue potential as we are able to serve the unmet demand in our market.

Speaker Change: Clearly our direct digital revenues now, reaching almost 12, 4% in Q4 I expect this growth to be significant this year as well I think it would not be a surprise to increase at one percentage point in terms of percentage of the business every single quarter moving onboard.

Speaker Change: And this is primarily driven by our success in financial services and Entertainment services, but also let's not forget that our recent acquisitions, including <unk>. The ride hailing business will bring us additional revenue potential as we are able to serve the unmet demand in our markets.

Khan Terzioglu: We are uniquely positioned to be in frontier markets. Our customers are underserved, not getting the services that they deserve, and we will be there to provide them the services in our local markets from Ukraine to Bangladesh. From a country perspective, I do expect Ukraine and also Pakistan and Kazakhstan to continue on very strong growth. I do also expect that Uzbekistan, with new tax regime, will be a strong contributor. Time will tell in terms of how fast the consumer confidence in Bangladesh will come back. But I have no doubt, with 180 million population, this country is one of the biggest growth potentials as the time goes on.

Speaker Change: We are uniquely positioned to be in frontier markets. Our customers are underserved not getting the services that they deserve and we will be there to provide them the services in our local markets from Ukraine to Bangladesh.

Speaker Change: From a country perspective.

Speaker Change: Crane and also Pakistan and Kazakhstan to continue on very strong growth.

Speaker Change: I do also expect that Uzbekistan with new tax regime will be a strong contributor.

Speaker Change: <unk> will tell in terms of how fast the consumer confidence in Bangladesh will come back, but I have no doubt with 180 million population in this country is one of the biggest growth potentials as the time goes on.

Khan Terzioglu: Now, looking to CAPEX guidance. We are now almost 65% in terms of 5G penetration, and I'm sure in the last four years I have repeated this many times, we see 70% as the sweet spot for our 4G penetration, so probably one, two more quarters we will be there. But having said that, we are now seeing that we are successfully competing against 5G with our 4.5G technology, which includes virtualization of the core, massive MIMO and carrier aggregation. I believe we will be strong in service quality and meeting the expectations of the customers. I do expect post-2025 our CAPEX to go lower towards 16% year-on-year from the current level.

Speaker Change: Now looking to Capex guidance.

Speaker Change: We are now almost 65% in terms of five cheap penetration and I'm sure in the last four years I have repeated this many times, we see 70% as the sweet spot for our <unk>.

Speaker Change: Penetration, so probably one two more quarters, we will be there, but having said that we are now seeing that we are successfully competing against <unk> with our four <unk> technology, which includes virtualization of the core massive mimo and carrier aggregation, we will I believe we will.

Speaker Change: Be strong in service quality and meeting the expectations of the customers I do expect first post 2025, our capex to go lower towards 16% year on year from the current levels.

Khan Terzioglu: Looking to competition, lots of changes happening in different markets, we are welcoming Ilyad as a new competitor in Ukraine, we are always excited to compete on fair-based terms. We also see a new competitor coming into Kazakhstan. We would like to welcome also Qatari investors in Kazakhstan as you know the market shows great potential. And you know clearly our ability to go as a digital operator positions now our company not just with the traditional telecom competitors. And we will be actually keeping a closer eye on this as we progress.

Speaker Change: Looking to competition lots of changes happening in different markets. We are welcoming Iliad as a new competitor in Ukraine. We are always excited to compete on fair base dark terms.

Speaker Change: We also see a new competitor coming in because I can start we would like to welcome also Qatari investors in Kazakhstan.

Speaker Change: You know the market shows great potential.

Speaker Change: And then clearly.

Speaker Change: Yes.

Speaker Change: Our ability to grow as a digital operator positions know our company not just with the traditional telecom competitors.

Speaker Change: And we will be actually keeping a closer eye on this.

Khan Terzioglu: With regard to the towers we still you know have quite a lot of tower assets in Ukraine, in Uzbekistan, in Kazakhstan. As you know this year we have announced an important deal with Angro Corporation about our towers for more than a 500 million dollar consideration. And I do expect also you know that to be closed hopefully over the next couple of quarters. But we have a strong commitment in terms of being an asset-light company. And we believe the towers are naturally owned by independent tower companies and no telecom company can afford exclusive networks anymore. We will execute on that.

Speaker Change: B.

Speaker Change: Progress with regard to the towers, we still have quite a lot of tower assets in Crane, Uzbekistan and Kazakhstan. As you know this year, we have announced an important deal with Anglo Corporation about our towers for more than a $500 million consideration and I do expect also that to.

Speaker Change: <unk> closed hopefully over the next couple of quarters, but we have stripped strong commitment in terms of being an asset light company and we believe the towers are naturally owned by independent tower companies and no Telecom company can afford exclusive networks anymore, we will execute on that.

David Lopez: Thank you very much, David. Very clear. Thank you very much.

Speaker Change: Thank you very much David.

Speaker Change: Very clear thank you very much.

Speaker Change: Yeah.

Nicholas Payton: Our next question comes from Nicholas Payton at Edison Group.

Speaker Change: Yes.

Speaker Change: Our next question comes from David comes from Nicholas Payton Edison Group. Please mute your line and ask your question.

Nicholas Payton: Please unmute your line and ask your question. Good afternoon, everybody. So I have a question on the, hi, I just have a quick question on the on the guidance for 2027. So if I if I look at the growth for 2025 that you're looking for, it seems to leave quite a lot for 2026 and 2027 to be able to hit your 16 to 19 CAGR for the entire period. Is there something that is there something that we're missing out of the equation? Does it include acquisitions? Or are you expecting the organic growth to accelerate in the latter two years for the guidance period?

Nicholas Payton: Good afternoon everybody.

Speaker Change: A question on the Hi, I just have a quick question on the on the guidance for 2027, so if I if I look at the growth for 2025 that you are looking for it seems to leave quite a lot.

Speaker Change: For 2026, and 2027 to be able to hit your 16% to 19 cargo for the entire periods is that something that's.

Speaker Change: Is this something that we're missing out of the equation.

Speaker Change: Does it include acquisitions or are you expecting the organic growth to accelerate in <unk>.

Speaker Change: The latter two years for the guidance period.

Khan Terzioglu: Nikolas, thanks a lot for asking the question and also giving me the opportunity to clarify. Local currency growth rates are clearly a function of the inflation, right? So that's why when I refer to our growth rates, I always refer to the weighted average inflation rate in the countries. And of course, in our three-year plan, we talked about 16-19% CAGRs. But you have to keep in mind that in those days, when we gave those numbers, the weighted average inflation was almost 14% in the markets that we were operating at. And I have said in that day as well, this growth rate implies actually a mid-single-digit dollar growth in hard currency over the time and double-digit EBITDA growth in the same period.

Speaker Change: Nicolas Thanks, a lot for asking the question and also giving me the opportunity to clarify local currency growth rates and are clearly a function of the inflation right. So that's why when I referred to our growth rates I always refer to the weighted average inflation rates in the countries and Av.

Speaker Change: Of course in our three year plan, we talked about 16, 19% CAGR, but you have to keep in mind that in those days. When we gave those numbers the weighted average inflation was almost 14% in the markets that we were operating it and I have said in that day as well this growth rate implies actually.

Speaker Change: Really a mid single digit dollar growth in hard currency overtime and double digits.

Speaker Change: EBITDA growth in the same period, so I am not.

Khan Terzioglu: So I am not worried about not meeting those targets. I think we will always be delivering above inflation and above nominal GDP growth, and that will bring us where we need to be in terms of our hard currency numbers.

Speaker Change: Worried about not meeting those targets I think we will always be delivering above inflation and above nominal GDP growth and that will bring us where we need to be in terms of our hard hard currency numbers.

Nicholas Payton: Perfect, that makes more sense. Thanks, guys.

Speaker Change: Perfect that makes more sense. Thanks, guys. Thank you nikolas.

Operator: Thank you, Nikolas.

Chris: Thank you. Our next question comes from Chris at New Street Research. Please unmute your line and turn your video on and ask your question. Thank you. Yeah, hi guys. Thanks for the opportunity. I had a couple of questions if possible.

Speaker Change: Thank you. Our next question comes from Krish <unk>, New Street research. Please on mute Caroline <unk> video on and ask your question. Thank you.

Krish: Yes, hi, guys. Thanks for the opportunity I had a couple of questions if possible I wanted to get a bit more detail on the strategic rationale behind the acquisition of the ride hailing business that Ukraine and.

Chris: I wanted to get a bit more detail on the strategic rationale behind the acquisition of the ride hailing business in Ukraine. And I suppose also just thinking, is that going to be a feature going forward that you're going to be making acquisitions in the digital space? And then the second question would be around Ukraine and sort of what is baked into your assumptions when you're giving the guidance for, you know, the political situation in Ukraine, and I suppose what would be the flex if it changes relative to your central case? Chris, thank you very much.

Krish: Also just thinking is that going to be a feature going forward that you're going to be making acquisitions in the digital space.

Krish: And then the second question would be around Ukraine.

Krish: So what is baked into your assumptions.

Krish: Can you give me the guidance.

Krish: For the political situation in Ukraine.

Krish: I was curious what would be the flags.

Krish: If it changes relative to euro centric.

Krish: Central case.

Krish: Chris Thank you very much pleased drive safely.

Khan Terzioglu: Please drive safely. Uklon is a very important acquisition that I think signals our intentions in terms of being relatively important in the lives of our customers. Uklon is one of the unique EBITDA-positive cash-generative ride-hailing businesses in the entire world. We are looking for a company which has been growing on average 49% CAGR over the last four years, reaching almost $60 million revenues, and with a positive EBITDA of 44%. If I look to the entire world, I do not know any other ride-hailing business which can hit these numbers. But more importantly, in frontier markets, we see an unmet demand in many areas with our customer base.

Krish: Okay.

Speaker Change: A very important acquisition that signals our intentions in terms of being relatively important in the lives of our customers who <unk> is one of the unique EBITDA positive cash generative ride hailing businesses in the entire world.

Speaker Change: We're looking for a company, which has been growing on average 49% CAGR over the last four years, reaching almost $60 million revenues.

Speaker Change: And we've had positive EBITDA of 44% if I look to the entire world I do not know of any other ride hailing business, which can hit these numbers, but more importantly in frontier markets, we see an unmet demand in many areas with our customer base. Therefore, as we move into the digital <unk>.

Khan Terzioglu: Therefore, as we move into the digital services, we believe ride-hailing and delivery services, including marketplaces, are a natural part of our super-app feature set. So you will see us getting active on all countries. And also you will see us actually getting Uklon to be replicated in other countries that we operate as well.

Speaker Change: Services, we believe ride hailing and delivery services, including marketplaces are in nature of part of our Super App feature sets. So you will see us getting active on all countries and also you will see us actually getting <unk> to be replicated in other countries that we operate.

Speaker Change: So as well.

Khan Terzioglu: Coming to Great Britain. We have been in this war situation for three years. I believe that there is light at the end of the tunnel that will bring sustainable peace to Ukraine. Whether this peace process will be six months or a year, actually our plans does not change. We focus on what matters and it is our customers. And during these three years I think we have demonstrated how resilient we are and how capable we are in terms of growing our business in the worst even conditions. So we are planning for actually for better days but we are ready to take the worst as well.

Speaker Change: Great.

Speaker Change: We have been in this war situation for three years I believe that there is light at the end of the tunnel that will bring sustainable piece to Craig.

Speaker Change: Whether this peace process will be six months or a year actually our plan does not change the focus on what matters and it is our customers and during this three years I think we have demonstrated how resilient PR and how capable we are in terms of growing our business in the worst even conditions.

Speaker Change: So we are planning.

Speaker Change: For actually for better days, but we are ready to take the worst as well.

Chris: Okay, thank you. Thank you, Chris.

Speaker Change: Okay. Thank you.

Chris: Thank you Chris.

Dimitri Ivanov: Our next question comes from Dimitri Ivanov at Jeffreys. Please turn on your camera, unmute your line and ask your question. Thank you.

Speaker Change: Our next question comes from Dmitry <unk> Jefferies. Please turn on your camera on mute your line and ask your question. Thank you.

Dimitri Ivanov: Dimitri, you're on mute. I think we can't hear you. Can you hear me now? Oh yes, we can hear you now. Yeah, apologies for the technical glitch. Yeah, thank you for the presentation and congrats on the results. I have two quick questions, if I may.

Speaker Change: Dmitry.

Speaker Change: I think we can't hear you.

Speaker Change: Yeah.

Speaker Change: Yes, we can hear you.

Speaker Change: Yes, I apologize for the technical glitch.

Thank you for the presentation and congrats on the results.

Speaker Change: I have two quick questions if I may.

Khan Terzioglu: The first one would be on Expected use of proceeds from an Ergo-like deal, so this 500 million consideration. How do you plan to use this proceeds? Like how much is expected to upstream to the whole co-level and what's like kind of expectation when it comes to deployment of this cash?

Speaker Change: The first one would be on them.

Speaker Change: Our expected use of proceeds from NRG.

Speaker Change: And they'll go like deal because it's 500 million.

Speaker Change: Consideration, how do you plan to use this proceeds like how much do you expect it to upstream to the holdco level and what looks like kind of expectation when it comes to deployment of this cash.

Burak Ozer: And the second question would be on your capital market access euro bonds. So basically, after you repay 2025 bonds. I'm just curious how do you see and what's your timeline to come back to the euro bond market to reissue with a new bond and how do you see like your need in this new euro bonds is it coming like month or quarters? That's my second question. Thank you very much.

Speaker Change: The second question would be on your capital market access eurobonds. So basically after you repay 25 bonds.

Speaker Change: Just curious how do you see.

Speaker Change: What's the timeline to come back to the eurobond market.

Speaker Change: <unk> two EQ.

Speaker Change: With a new bond and how do you see like.

Speaker Change: You'll need.

Speaker Change: Euro bonds.

Speaker Change: Come and collect multiple quarters.

Speaker Change: Second question. Thank you very much.

Speaker Change: And Mr. Thank you very much I will take the first question and I will ask <unk> to answer the second one.

Khan Terzioglu: I will take the first question and I will ask Burak to answer the second one. With regard to, you know, our tower deal in Pakistan, the total proceeds from tower deal will be on the upside of $550 million. And it will be a combination of cash payments and also some guarantees over an intercompany loan that we have with the tower company. We expect this proceeds to be used for deleveraging both at local level and also at corporate level. We have no issues in terms of upstreaming cash from Pakistan. And the stability of the macroeconomic environment in Pakistan has been stellar over the last 24 months.

Speaker Change: With regard to ours.

Speaker Change: Our tower deal in.

Speaker Change: In Pakistan. The total proceeds from tower deal will be on the upside of $550 million and it will be a combination of cash payments and also some guarantees or an intercompany loan that we have at our company.

Speaker Change: We expect this proceeds to be used for deleveraging both at local level and also at corporate levels.

Speaker Change: We have no issues in terms of upstream in cash from Pakistan and the stability of the macroeconomic environment in Pakistan has been stellar over the last 24 months and I think this partnership.

Khan Terzioglu: And I think, you know, this partnership will, with Engro, will have a potential to also to expand out of Pakistan. And we are very happy to partner with one of the most reputable and strong companies in Pakistan. On the Eurobond question, we are now ready with the cash flow that we have built in the HQ to pay our April and June obligations this year. Going forward, we need to understand what we are going to capitalize from our assets and kind of put them into our war chest in the center. Then eventually, if there is a need, we will definitely go back to Eurobond markets, but not as of today.

Speaker Change: Bill and growth will have a potential to also to expand out of Pakistan and.

Speaker Change: We are very happy to have partnered with one of the most reputable and strong companies in Pakistan.

Speaker Change: On the Euro bond question.

Speaker Change: We are now ready with the cash flow that we have built into HBO to pay off April and June obligations distribution going forward, we need to understand that we are going to capitalize for modern assets and kind of put them into our war chest in the centers that eventually there is a need we will definitely go back to your bulk markets.

But not as of today I mean, there is no consideration that we see today.

Khan Terzioglu: I mean, there is no consideration that we see today that has the need for us to go to Eurobond markets again in the near term. And Dimitri, one maybe thing I would like to add here, we are in frontier markets, we make our money in takkas, tengez, rupees, hrivnas. I do not necessarily see that it is a good practice to borrow in hard currency in these type of environments. And in the path of asset to light, there is ample opportunity for us actually to recycle our hard currency debt at headquarters with local currency leverage, long-term capital liabilities in the local markets.

Speaker Change: Has the need to for us to go through your pump markets again in the near term.

Dmitry: And Dmitry, one maybe thing that I would like to add here.

Dmitry: We are in frontier markets, we make our money in cut cost tengiz rupees, driven us I do not necessarily see that it is a good practice to borrow in hard currency in these type of environments and in the path of asset light there is ample opportunity for us actually to reach.

Dmitry: Cycle, our hard currency debt at headquarters with local currency leverage long term capital liabilities into local markets and you will see us making those transformational changes just like we have done over the last few years.

Dimitri Ivanov: And you will see us making those transformational changes, just like we have done over the last Thank you very much and congrats on the results again.

Dmitry: Thank you very much and congrats on the results again. Thank you. Thank you dmitry.

Matthew Harrigan: Thank you. Our next question comes from Matthew Harrigan at Benchmark. Please ask your question. Thank you. I actually have two. I'll do them sequentially because I think it's easier. You're to be commended on the progress on the digital portfolio now with UCLan and then Cascode LLM, I think is particularly interesting. I think a lot of management teams would just be distracted watching Trump and Zelensky and Putin every day. But how is it that you really optimally monetize what's a pretty remarkable portfolio at this point? I mean, clearly, those businesses are integral to your competitive positions in Pakistan, Ukraine, etc.

Speaker Change: Our next question comes from Matthew Harrigan Benchmark. Please ask your question.

Speaker Change: Actually our apparel sequentially, because I think it's easier.

Speaker Change: There are to be commended on the progress on the digital portfolio of bandwidth requirement and then Kurt Hello Am I think is particularly interesting because I think a lot of management changes.

Speaker Change: Contracted watching Trump <unk> prudent every day, but how is the betsey really.

Speaker Change: Often when we monetize.

Speaker Change: What is a pretty remarkable portfolio at this point I mean, clearly those businesses are integral to your competitive position with Pakistan, Ukraine et cetera.

Matthew Harrigan: But I mean, there are companies, you know, Liberty Global, for instance, that occasionally divests what it regards as non-strategic from their venture portfolio. And clearly, these businesses have a lot of growth potential. You're probably nowhere near doing that. I know you're not going to do something exotic like a tracking stock. And hopefully, when the jazz IPO comes, I think you have 25% of your revenues there from digital. That'll get more of a quasi-digital type valuation.

Speaker Change: I mean, there are companies Liberty Global for instance that occasionally when it regards as nonstrategic premier venture portfolio and clearly these businesses are all growth, which ancillary or probably nowhere near doing that.

Speaker Change: Youre not going to do something exotic bucket like a tracking stock.

Speaker Change: And hopefully when the jazz IPO comps, so I think 25% of your revenues there from digital that will get more of a quasi digital type valuation, but where's your thinking on that because clearly.

Khan Terzioglu: But where's your thinking on that? Because clearly, you've got a tremendous glide path on the growth in these businesses in the market, even with your very good stock performance recently isn't close to giving you recognition compared to the peer valuations in some of these businesses. And I guess you're very fortunate to be able to buy Uclan, I think, for $125 million it was. It feels like you can do a lot of creative acquisitions as well. Thank you. I apologize for a long question. No, Matthew, thank you very much. $155 million, by the way, Uclan for 97% of it.

Speaker Change: You've got a tremendous quite there on the growth in these businesses in the market even with very good stock performance recently has been close to giving you recognition compared to the peer valuations in some of these businesses.

Speaker Change: I guess you are very fortunate to be able to buy two quadratic for $125 million. It was it feels like you can do a lot of accretive acquisitions as well. Thank you I apologize for a long question.

Speaker Change: Matthew Thank you very much a 155 by the way who owns four star 91% of it but you know we are blessed because as a company. We are in frontier markets large population countries, where actually the people are underserved on all of the verticals that we discuss about including enterprises being underserved.

Khan Terzioglu: But, you know, we are blessed because as a company, we are in frontier markets, large population countries. where actually the people are underserved on all of the verticals that we discuss about, including enterprises being underserved on IT services, cloud, but consumers as well. And they don't have access to actually transaction capabilities. They don't have credit cards. They don't have ability to pay offshore subscription fees. So these are unique opportunities for us. And actually, we as a company with a telecom license has the unique capability to acquire customers at a very low cost and distribute services in a very efficient manner.

Speaker Change: On it services cloud, but consumers as well and they don't have access to actually transaction capabilities. They don't have credit cards. They don't have the ability to pay off shore.

Speaker Change: Subscription fees. So these are unique opportunities for us and actually we as a company with a telecom license has the unique capability to acquire customers at a very low cost and distribute services in a very efficient manner venue move to this space large.

Khan Terzioglu: When you move to this space, large populations, underserved customers, unmet demand, low customer acquisition costs and efficient distribution, this is a recipe for success for any kind of digital service. That's why every digital service we launch is showing great success in the markets that we operate in. As we do this, some of our businesses are clearly signaling unicorn type of characteristics. One of them is clearly JazzCash, which has now reached 20 million monthly active users and almost $400 million float and 140,000 loans, non-loans every single day. And it is not a mistake that I'm doing while saying this.

Speaker Change: Populations underserved customers unmet demand low customer acquisition cost and efficient distribution. This is a recipe for success for any kind of digital service. That's why every digital service be launch is showing great success in the markets that we operate as we do this some of our.

Speaker Change: Businesses are clearly signaling unicorn type of characteristics. One of them is clearly just cash which has now reached 20 million monthly active users and almost $400 million float and 140000 loans none of loans every single day and it does not I missed.

Speaker Change: Take that I'm doing what I was saying this every single day, we issued 140000 loans 30 to $40 loans. The loans that are used by maybe a taxi driver to fill his tank or changes flat tire or a housewife to buy flour sugar are next to cook, a cookie and sell it.

Khan Terzioglu: Every single day, we issue 140,000 loans, $30 to $40 loans. The loans that are used by maybe a taxi driver to fill his tank or change his flat tire or a housewife to buy flour, sugar and eggs to cook a cookie and sell. It's an amazing platform. And clearly, at certain point, we see actually these businesses to be standalone success stories themselves. I think that time is coming as we look into the further listing of our local operators, which are blue chip stocks in the countries that they operate in. Please do not be surprised if we bring certain assets with big customer bases and revenue potential also in strategic value crystallization transactions.

Speaker Change: An amazing platform and clearly at certain point, we see actually these businesses to be Standalone success stories themselves I think that time is coming as we look into the third the listing of our local operators, which are blue chip stocks in the countries that they operate and please don't.

Speaker Change: Be surprised if he brings certain assets with big customer basis and revenue potential also in strategic value crystallization transactions.

Khan Terzioglu: And then secondly, as you pointed out, just earlier, I mean, you're very careful on not having currency mismatches operationally, and particularly in the financing side, with hard currencies. But needless to say, with the trade policies right now in tariffs, I mean, a lot of companies in the US and Europe are very concerned about the economic situation. And clearly, you're providing necessary services. And again, I mean, you're and sometimes you're the only alternative, as with jazz cash. But how do you see your growth, depending on economic conditions, if there is a recession? I mean, do you think you might be significantly harder hit than US or European companies?

Speaker Change: And then secondly on theirs.

Speaker Change: As you pointed out earlier I mean, you are very careful about heavy currency mismatches operationally in particular on the financing side with hard currencies, but needless to say with the trade policies right now on tariffs I mean, a lot of companies in the U S and Europe, we're very concerned about the economic situation.

Speaker Change: Yeah.

Clearly you are providing necessary services and again, sometimes you really don't want alternatives with jazz cash, but how do you see your growth depending on.

Speaker Change: Economic conditions, if there is a recession I mean do you think.

Speaker Change: Might be significantly harder hit than you asked for European companies or do you think there is enough growth in these markets, which you've been actually whether it decently well.

Khan Terzioglu: Or do you think there's enough growth in these markets that you can actually weather it decently well? Well, I think there is one fact in our business that you cannot beat macro, right? And we have to be realistic about that. But given the current conditions, I believe that as U.S. sets out a roadmap for being a manufacturing base and being an exporting country. I think this will signal a balancing of the current account deficit, and this potentially signals more stability with a weaker dollar and a stable foreign currency market for emerging markets. I count on actually this trend to realize over the time.

Speaker Change: Well I think there is one factor in our business that you cannot beat macro right and we have to be realistic about that but given the current conditions I believe that as U S.

Speaker Change: Sets out our roadmap for being a manufacturing base and being in exporting country.

Speaker Change: This will signal a balancing of the current account deficit and this potentially signals more stability with the weaker dollar and a stable foreign currency market for emerging markets I count on actually this trend to realize over the time.

Khan Terzioglu: Now, that doesn't mean that a weak U.S. dollar is going to loosen the position or weaken the position of dollar as a reserve currency. I think these two things can happen at the same time. But I do believe over the next five years we are going to see a relatively stable foreign currency environment in our markets, compared to the past. And also I believe the oil prices will moderate, and that will also help the inflation levels to go lower than they are today. So I believe, you know, our businesses is mainly driven by domestic growth and consumer confidence.

Speaker Change: Now that doesn't mean that a weak U S. Dollar is going to loosen the position or weaken the position of dollar as a reserve currency I think these two things can happen at the same time, but I do believe over the next five years, we are going to see relatively stable foreign currency environment in our markets.

Speaker Change: Compared to the past and also I believe the oil prices will moderate and that will also help the inflation levels to go lower than they are today. So I believe.

Speaker Change: Our businesses is mainly driven by domestic growth and consumer confidence and I feel quite actually bullish about that trend to continue as well so compared to the last five years.

Khan Terzioglu: And I feel quite actually bullish about that trend to continue as well. So, you know, compared to the last five years, I think the next five years probably will show more stability in our markets in terms of foreign currency fluctuation.

Speaker Change: In the next five years, probably will show more stability in our markets in terms of foreign currency fluctuations.

Khan Terzioglu: And then lastly, if you don't mind, I'll be a hog and ask one more question. I mean, clearly, everyone wants to see a resolution in Ukraine. But if we did get a fringe outcome that was less favorable, do you feel that your status as a Dubai company, you know, somewhat enables you to be agile and addressing whatever, you know, political situation comes along? I mean, if there was to be a change of government in Kiev, and more You know, for forced neutrality, if you will, do you think you can get through almost any condition that arises and wind you down the conflict?

Speaker Change: Whilst if.

Speaker Change: If you don't model of the Hog and ask one more question I mean, clearly everyone wants to see a resolution.

Speaker Change: But if we did get the French outcome that was less favorable do you feel that your status being able to Dubai company somewhat enables you to be agile in addressing whatever political situation comes along if there was to be a change of government.

Speaker Change: And kiosks.

Speaker Change: More.

Speaker Change: For forest neutrality.

Speaker Change: Will do you think you can get through almost a condition that arises in winding down the conflict.

Khan Terzioglu: Look, I hear a lot of experience with lust and all that. I wish the best, the sustainable peace for Ukraine. We have been in a difficult period in the last three years. We have demonstrated our resilience. And the secret sauce of this, Matthew, is to focus on what matters. and we will keep our service continuity in place. We will continue servicing our customers in the best way. And I will refrain from speculating on what can happen over the next couple of months. Thank you. Yeah, it's an awkward question, but thank you for your answer and congratulations on the results.

Speaker Change: Look our real world experience with lots of them.

Speaker Change: I wish the best to sustainable peace for Crane.

Speaker Change: We have been in a difficult periods in the last three years, we have demonstrated our resilience.

Matthew: And the secret sauce of this Matthew is to focus on what matters.

Matthew: It's our customers and we will keep our service continuity in place fuels continue servicing our customers and the best way and I will refrain from speculating on what can happen over the next couple of months. Thank you.

Matthew: Awkward question, but thank you for your answers and congratulations on the results.

Operator: Thank you very much. Thank you.

Matthew: Thank you very much.

Anand Ramachandran: At the moment, we have no more raised hands, so I will hand it back over to Anand for closing remarks. Well, thank you very much for your continued support and trust in VEON. I do see some more typed questions out there and the Investor Relations team will get back to you.

Alan: Thank you at the moment, we have no more based hands, so I will hand, it back over to Alan for closing remarks.

Alan: Well. Thank you very much for your continued support and trust and beyond I do see some more type questions out there in the Investor Relations team will get back to you Needless to say any questions any time to feel free to get in touch with us.

Needless to say, any questions, any time, do feel free to get in touch with us. As Khan pointed out, we are focused on continuing to deliver to our strategy and look forward to seeing you all again in a quarter's time, if not before that, to update you of the progress we'll continue to make. Thank you again for taking the time. Thank you for your support. Bye-bye. Thank you very much.

Alan: As Ken pointed out we look we are focused on continuing to deliver to our strategy and look forward to seeing you all again in a quarter's time, if not before that the updating of the progress. We continue to make thank you again for taking the time. Thank you for your support Bye bye. Thank you very much.