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Mobile operator Veon . Ukrainian expatriate for ‘increases data usage’

Aug 4 (Reuters) – Mobile operator Veon (VON.AS) reported a 5.6% increase in second-quarter revenue on Thursday, driven by rising subscriber numbers and data usage of Ukrainian refugees, as well as an inflationary pricing strategy Is.

Although the firm faces geopolitical uncertainties amid the Russia-Ukraine conflict, investors feared it could put pressure on cash flow as both countries account for its most profitable markets. It saw a strong ramp-up in revenue in the three months that ended. june.

The Amsterdam-listed company reported revenue of $2 billion in the three months to June 30, compared to $1.9 billion a year earlier.

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In Ukraine, where Veon operates the largest cell phone provider Kyivstar, the 4G subscriber base grew by 11.9%, while in Russia, its largest market where it operates the Beeline mobile brand, reported a 12.2% increase in revenue. registered an increase.

“Ukraine for us is a network that needs to be run at all costs,” Chief Executive Officer Kan Terzioglu said in an interview. “6 million Ukrainians have been out of the country while roaming, and their voice and data usage has increased 16-fold during this time.”

He said the conflict in Ukraine had killed two employees.

Russia’s capital controls are affecting international cash transfers, but Terzioglu said Vion’s operating self-reliance allows the company to finance activity in its country units through locally earned money.

Terzioglu said the company, which reported $2.4 billion in cash, does not plan to withdraw money from Russia.

“They will be very cash-rich, local operations,” he said.

The company said it would continue to monitor the situation in Russia and Ukraine and assess the need for potential impairment charges.

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Reporting by Diana Mandia and Alizzi Degoras in Gdansk; Additional reporting by Supanth Mukherjee in Stockholm; Editing by Rashmi Aich and Christian Schmollinger

Our Standards: Thomson Reuters Trust Principles.

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