VEON Eyes 10-14% CAGR Benchmark Through 2024

Amsterdam-based global telecommunications and digital services company VEON Ltd. has announced a benchmark of 10-14% compound annual growth rate (CAGR) local currency revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) growth through 2024, according to a Tuesday (Dec. 7) press release.  

VEON’s goal anticipates acceleration in group revenue growth as its return on investment in high-speed 4G networks pay off, according to the announcement. In addition, the group hopes to reach a 3% EBITDA margin increase over the next three years.

Bolstered by its group-wide efficiency program, the expected EBITDA expansion is focused on bringing yearly run rate savings of $250 million by the end of 2024, according to the press release. 

Another goal highlighted is to decrease “USD-denominated debt” to under 40% of net debt while upping the local currency funding and extending the tenor of its debt to four years. 

“Our new medium-term financial aspiration positions VEON as a growth company with an exciting value creation opportunity across its nine operating markets,” said VEON CEO Kaan Terzioğlu. “By transitioning our businesses to a digital operator model, VEON is entering into an exciting growth phase that realizes the benefits of our recent investments in 4G networks and digital services.” 

Earlier this year, VEON announced a collaborative effort with Mastercard to bolster services for digital finance in countries where VEON operates, including Russia, Pakistan, Ukraine, Kazakhstan and Bangladesh, according to PYMNTS.

Read more: VEON, Mastercard Announce Partnership Expanding Financial Inclusion 

The arrangement enables VEON to improve its current digital services and offer customers products customized to their needs. By joining forces with Mastercard, VEON can provide financial and digital inclusion for customers who have previously been underserved, PYMNTS reports. 

VEON, which owns Pakistani mobile wallet company JazzCash, made strides in 2021 to provide financial inclusion to the world’s 1.7 billion who are unbanked, according to PYMNTS.

VEON co-CEO Sergi Herrero told PYMNTS in January that JazzCash — which has surpassed 10 million active monthly users — offers the 100 million people in Pakistan who do not have a bank account the freedom to transfer funds, pay bills and food deliveries via their smartphones. 

See also: VEON: The Year Of Digital Financial Inclusion In Developing Markets 

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NEW REPORT: TECHREG™ CHRONICLE – DECEMBER 2021

About: This report represents the inaugural edition of the TechREG™ Chronicle. The regulation of digital businesses is emerging as one of the signature issues of our times. Through this new publication, we seek to contribute to the debate and discussion over when, how, and when not to regulate digital businesses and the key technologies they use.

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