VEON Ltd (VEON)VEON

VEON Ltd. Stock Overview

Company Profile:

Detailed history and background:

VEON Ltd. is a multinational telecommunications company headquartered in Amsterdam, Netherlands, with operations primarily in emerging markets. It was formed in 2012 through the merger of Vimpelcom and Weather Investments. VEON originally held a controlling stake in Russian mobile operator VimpelCom, but later divested its interest in this entity. The company has operations in 10 countries, including Ukraine, Pakistan, Russia, and Algeria.

Core business areas:

VEON provides mobile telecommunications, fixed broadband, and digital solutions to individual and corporate customers through its various operating subsidiaries. Its primary focus is on mobile telecommunications, offering voice, data, and messaging services under several brand names such as Beeline, Jazz, Kyivstar, and Banglalink.

Leadership and corporate structure:

As of November 2023, the company's CEO is Kaan Terzioğlu. The company’s Board of Directors is chaired by Ursula Burns. VEON has a two-tier board structure consisting of a Management Board responsible for day-to-day operations and a Supervisory Board that oversees the Management Board.

Top Products and Market Share:

Top products:

• Mobile telecommunications services:
  • Voice calls:
  • SMS and multimedia messaging
  • Data plans and mobile internet
• Fixed broadband services:
  • DSL and fiber-optic internet
  • IPTV and digital television
• Digital solutions:
  • Mobile money transfer services
  • Content streaming platforms
  • Cloud storage and other digital services

Market Share:

VEON is one of the largest telecommunications providers in its operating markets but does not hold a leading market share globally. In its individual markets, the company's market share varies. For example, its subsidiary Beeline is the largest mobile operator in Kazakhstan with a market share of over 50%, while Jazz is the leading mobile operator in Pakistan with approximately 35% market share.

Total Addressable Market (TAM):

The global telecommunications market was valued at approximately $1.6 trillion in 2022 and is expected to grow steadily in the coming years due to increasing demand for internet access and digital services.

Financial Performance:

Financial Statements:

• Revenue: In 2022, VEON reported a total revenue of $9.14 billion, a decrease of 5.2% compared to 2021.
• Net Income: The company reported a net income of $0.2 billion in 2022, compared to $0.74 billion in 2021, a decrease of 72.97%.
• Profit Margin: 2022 profit margin stood at 3.55%, compared to 7.55% in 2021, representing a substantial decrease.
• Earnings per share (EPS): In 2022, EPS was $0.18, compared to $1.21 in 2021, a decline of almost 85%.

Cash flow and balance sheet health:

In 2022, VEON generated $4.37 billion in operating cash flow. The company's long-term debt stands at $7.14 billion. VEON has a healthy cash balance of $2.34 billion.

Dividends and Shareholder Returns:

• Dividend History: VEON suspended dividend payments in 2020 due to its challenging financial performance. Historically, the company had a strong track record of consistent dividend payments.
• Shareholder Returns: Total shareholder returns have been negative in recent years due to the decline in the company's stock price.

Growth Trajectory:

Historical Growth Analysis:

VEON's revenue has declined in recent years, primarily due to economic challenges in its major operating markets and increased competition.

Future Growth Projections:

Analysts expect VEON's revenue to decline further in the short-term. However, long-term growth prospects are uncertain, depending on several factors, including economic recovery in its markets, successful implementation of growth initiatives, and industry trends.

Recent Product Launches & Strategic Initiatives:

VEON is actively exploring opportunities to expand its digital service offerings and improve market penetration in its existing markets. The company plans to invest in innovative digital solutions such as mobile financial services, e-commerce, and cloud solutions to drive future growth.

Market Dynamics:

Industry Overview:

The global telecommunications industry is characterized by rapid technological advancements, intense competition, and increasing demand for data services. Emerging markets represent a major growth driver for the industry.

Company Positioning: