VEON Ltd (ADR)(NASDAQ:VEON) issued operating and financial report for the quarter closed September 30, 2017. Total revenue jumped 4% YoY and 3.2% organically. Solid revenue and underlying EBITDA performance during the third quarter was led by Ukraine, Uzbekistan, Russia and Pakistan, partly offset by pressure in Bangladesh and Algeria.
The details
Jean-Yves Charlier, the CEO of Veon, expressed that the firm posted another robust performance in Q3 2017 with further growth in EBITDA and revenue, driven in particular by robust performance in Russia, Ukraine and Pakistan, and also delivered on several strategic imperatives. The impressive operating performance and underway strategic execution have assisted to advance further the equity free cash flow, which touched $965 million for the initial nine months of the year.
This underlines the achievement of the performance transformation plan which the company introduced in August 2015, where it committed to generate annualized cash flow improvements of minimum $750 million by the close of 2018 and further reinforces the progressive and sustainable dividend policy that the firm reported in February of this year. Additionally, Veon can confirm its full year 2017 projection, which was lately updated in respect to the Uzbek som liberalization.
Across the Group, the management remain focused on implementing their plan to reinvent and revitalize their business. Yesterday, the company filed a mandatory tender offer in respect to GTH, while during the third quarter it also posted the value accretive sale of Pakistan tower business. Wind Tre has closed the full refinancing of its debt, lowering annualized interest costs, improving maturities and optimizing its capital structure.
This deal was the top high yield deal of a European issuer since 2014. Veon reported that these refinancing gains are incremental to the capex and opex synergies reported with the deal and will assist to further boost cash flow generation and deleveraging.
