VEON (NASDAQ:VEON) Posts Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• VEON beat quarterly expectations, reporting $1.69 EPS versus the $1.59 consensus and revenue of $1.27 billion versus $1.23 billion expected.
• Management raised its full-year outlook to 15%–18% revenue growth and 9%–12% EBITDA growth, supported by strong organic performance and digital momentum. Digital revenue rose 53.6%, while digital EBITDA increased 66.2%.
• Cash generation improved significantly, with first-half equity free cash flow up 47.5% to $320 million; however, Kazakhstan faced margin pressure from higher VAT and Bangladesh experienced energy-related disruptions.

VEON (NASDAQ:VEON - Get Free Report) posted its quarterly earnings results on Friday. The Wireless communications provider reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $1.59 by $0.10, RTT News reports. VEON had a return on equity of 44.43% and a net margin of 11.65%.The business had revenue of $1.27 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the prior year, the business earned $8.30 EPS.

Here are the key takeaways from VEON's conference call:

• VEON raised its full-year outlook, now expecting revenue growth of 15%–18% and EBITDA growth of 9%–12%, citing stronger-than-expected organic performance and digital momentum.
• Second-quarter revenue increased 17% to $1.27 billion, while digital revenue surged 53.6% and digital EBITDA rose 66.2%; management said digital margins reached 36% and the businesses are generating significant cash with limited capital intensity.
• Cash generation strengthened materially, with first-half equity free cash flow up 47.5% to $320 million. VEON also completed a $1.4 billion bond offering, reduced refinancing risk, and committed to canceling at least $100 million of shares annually.
• Kazakhstan’s margins were pressured by a 6-percentage-point VAT increase and accounting effects from bundled smartphone sales, while Bangladesh faced substantial energy disruptions that reduced national data consumption.
• Management highlighted further growth opportunities in financial services, including expanding JazzCash in Pakistan, launching payment services in Bangladesh in the third quarter, pursuing digital banking licenses, and extending satellite connectivity partnerships into additional markets.

VEON Stock Performance

VEON stock traded down $0.50 during trading hours on Friday, hitting $52.29. 157,705 shares of the stock were exchanged, compared to its average volume of 95,243. VEON has a 12 month low of $42.60 and a 12 month high of $64.00. The company has a current ratio of 0.86, a quick ratio of 0.85 and a debt-to-equity ratio of 2.15. The firm has a market capitalization of $3.87 billion, a P/E ratio of 7.01 and a beta of 1.64. The company has a 50-day simple moving average of $52.58 and a two-hundred day simple moving average of $52.40.

Wall Street Analysts Forecast Growth

Several research firms have commented on VEON. Northland Securities initiated coverage on shares of VEON in a report on Tuesday, June 9th. They issued an "outperform" rating and a $70.00 price objective on the stock. Rothschild & Co Redburn set a $74.00 target price on shares of VEON and gave the stock a "buy" rating in a research note on Thursday, April 16th. Benchmark reaffirmed a "buy" rating on shares of VEON in a report on Monday, June 15th. Weiss Ratings lowered shares of VEON from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 18th. Finally, Wall Street Zen cut shares of VEON from a "strong-buy" rating to a "buy" rating in a report on Tuesday, May 26th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $72.00.

Institutional Trading of VEON

Hedge funds and other institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. grew its position in shares of VEON by 36.8% during the 2nd quarter. Osaic Holdings Inc. now owns 1,443 shares of the Wireless communications provider's stock worth $66,000 after purchasing an additional 388 shares in the last quarter. Royal Bank of Canada increased its holdings in shares of VEON by 184.3% during the fourth quarter. Royal Bank of Canada now owns 2,431 shares of the Wireless communications provider's stock worth $128,000 after purchasing an additional 1,576 shares during the period. Lazard Asset Management LLC bought a new stake in shares of VEON in the third quarter valued at approximately $252,000. Engineers Gate Manager LP bought a new stake in shares of VEON during the 2nd quarter worth approximately $243,000. Finally, Mercer Global Advisors Inc. ADV acquired a new stake in shares of VEON during the 3rd quarter worth approximately $325,000. Institutional investors and hedge funds own 21.30% of the company's stock.

About VEON

VEON Ltd NASDAQ: VEON is a global telecommunications and digital services provider headquartered in Amsterdam, the Netherlands. Originally founded as VimpelCom in Russia in 1992, the company rebranded to VEON in 2017 to reflect its transformation into a technology-driven operator. VEON operates as a holding company with direct investments in mobile and internet service providers across multiple emerging markets, delivering voice, data and digital services to individual and enterprise customers.

Through its operating subsidiaries, VEON offers a broad portfolio that includes 2G/3G/4G mobile access, fixed broadband, digital lifestyle applications and mobile financial services.

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