VEON (VEON) Stock: Why The Price Jumped Up Over 10%

By Amit Chowdhry ● Apr 28, 2022
  • The stock price of VEON Ltd (NASDAQ: VEON) increased by over 10% pre-market today. This is why.

The stock price of VEON Ltd (NASDAQ: VEON) increased by over 10% pre-market today. Investors are responding positively to VEON announcing a trading update for the first quarter ended 31 March 2022, including selected financial and operating results:

— VEON ended 1Q22 with revenue of USD 1,823 million, +9.8% YoY in local currency (-0.4% YoY in reported currency) and EBITDA of USD 775 million, +5.7% YoY in local currency (-4.0% YoY in reported currency). Group capex was USD 367 million (-6.2% YoY), with capex intensity of 23.2%, -2.2 p.p. YoY. Group net debt/EBITDA was 2.4x.

Q1 2022 Highlights:

— Revenue of USD 1,823 million, +9.8% YoY in local currency (-0.4% YoY reported currency)

— EBITDA of USD 775 million, +5.7% YoY in local currency (-4.0% YoY reported currency)

— Capex of USD 367 million, -6.2% YoY, capex intensity of 23.2%

— Total cash USD 1.904 million, with USD 1,304 million at Headquarters (additional USD 692 million in committed undrawn credit lines)

— 206 million mobile subscribers, up 3.9% YoY

— 100.8 million 4G users, up 24.3% YoY

— Net debt/EBITDA ratio of 2.4x

— Current ratio (Current assets/Current liabilities) of 1.11x

KEY QUOTE:

“I am proud of how our teams are tackling the current challenges and ensuring service and business continuity, keeping our 220 million customers across nine countries connected. Our commitment to provide access to information and other vital digital services is intact in these character-building times. The solid results we are reporting today illustrate our operational and financial discipline. We continue to enjoy high-single-digit growth and we have improved our capital structure.”

— Kaan Terzioğlu

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.