VEON swings to Q1 IFRS $4 mln loss from Q1 ’16 $187 mln profit

MOSCOW, May 11 (PRIME) -- Amsterdam-based VEON, the sole owner of Russian mobile operator VimpelCom, had a loss attributable to shareholders of U.S. $4 million in January–March after a profit of $187 million in the same period of 2016, as calculated under International Financial Reporting Standards (IFRS), VEON said on Thursday in a statement.

Total revenue rose 13.1% on the year to $2.281 billion. Mobile and fixed service revenue increased 13.1% to $2.202 billion, including mobile data revenue that jumped 47.6% to $449 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 13.6% to $861 million.

Capital expenditures excluding licenses rocketed 75% to $263 million.

Net debt widened 20% to $7.661 billion.

“In the first quarter of 2017, VEON recorded double-digit revenue and EBITDA growth, boosted by currency tailwinds. Furthermore, we generated almost $200 million in underlying equity free cash flow and are on track with our guidance for the year. The positive momentum of 2016 is continuing into 2017 while our Italian joint-venture also had a positive start into the year, with solid revenue growth and synergies on track,” VEON CEO Jean-Yves Charlier said.

“The first quarter of 2017 was pivotal for VEON, with the acceleration of our business transformation, demonstrated through several major milestones. We announced a sustainable and progressive dividend policy and paid final dividends for 2016. In addition, we accelerated our digital strategy, with the rebranding of the company as VEON. Finally, on April 4, VEON

listed on Euronext Amsterdam, complementing our current listing on Nasdaq.”

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