Veon loses $250m but ‘results were positive’ says CEO Charlier

Alan Burkitt-Gray
Published on:

Jean-Yves Charlier says the former VimpelCom is making good progress with its transformation into an internet services platform

Veon reported a loss of over $250 million in the second quarter, but the company’s results were positive, according to CEO Jean-Yves Charlier.

There was continued double-digit growth in revenues and EBITDA, “and further revenue growth in our core markets of Russia, Pakistan and Ukraine, which saw strong demand for our mobile data services”, said Charlier, who took over as CEO in April 2015.

He told Global Telecoms Business: “This morning’s results show that our transformation is well on track. We reported a solid set of results and we’ve moved from negative growth two years ago to double-digit growth now.”

The company – called VimpelCom until earlier this year – is busy trying to re-invent itself as an internet services business, which will use the new brand in all markets. However, existing brands – such as Beeline in Russia and Djezzy in Algeria – will continue for telecoms services.

The new platform – already launched in Russia, Italy, Ukraine, Pakistan and Georgia – allows customers to manage their accounts and to use Veon’s own messaging and voice-over-IP services, even when they have no credit.

“We will have the platform in all countries by the end of the year,” Charlier told GTB.

Despite its quarterly loss, of $258 million, Veon will pay shareholders an interim dividend of 11 cents a share, “cents on the back of our strong financial performance”, he said.

Global Telecoms Business will publish a full interview with Charlier shortly.