Telecom Company VEON Plans Further Optimizing Cost & Capital Structure: Details
Portfolio Pulse from Shivani Kumaresan
VEON Ltd. (NASDAQ:VEON) reported a 6.1% Y/Y increase in Q3 FY23 sales, reaching $945 million. 4G and Multiplay user revenues rose by 15.4% to $474 million, and service revenue grew by 6.9% to $913 million. EBITDA was up 17% to $444 million, with a margin expansion of 440 basis points to 47%. Net debt stood at $1.3 billion, while EPS from continuing operations decreased slightly to $0.07 from $0.08. The company has $2.2 billion in cash and equivalents. VEON raised its FY23 revenue and EBITDA growth outlook but lowered its Capex intensity outlook. Shares dropped by 1.86% to $19.50.
November 20, 2023 | 2:54 pm
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VEON Ltd. reported strong Q3 FY23 results with increased sales and EBITDA, raised FY23 guidance, but saw a slight decrease in EPS and a drop in share price.
Despite the positive earnings report and raised guidance, the slight decrease in EPS and the immediate negative price action suggest a short-term bearish sentiment among investors. The drop in share price following the report indicates that the market may have had higher expectations or there are other concerns weighing on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100