Kyivstar parent VEON 'cautiously optimistic' on 2024 revenue growth

By Nathan Vifflin

(Reuters) -VEON, the owner of Ukraine's largest mobile network Kyivstar, said on Thursday it expected lower revenue growth in 2024, though it still forecast double-digit expansion.

The Amsterdam-listed company expects local currency revenue to grow 16%-18% in 2024 from the $3.70 billion it reported for 2023 in local currency normalised for one-offs.

"I think this is a cautiously optimistic number," VEON's CEO Kaan Terzioglu told Reuters.

VEON is the largest mobile services provider in four of its six markets, including Ukraine, and was targeted by mass cyberattacks in December, costing it almost $100 million in sales.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 20% to $1.61 billion, in line with 2023 guidance at 18%-20% with local currency normalised. It left earnings guidance for 2024 unchanged.

"As a result of its digital operator strategy, and an expected slowdown in inflation, the company has guided for another year of double-digit growth," VEON said in a statement.

Terzioglu said the biggest issue VEON faces is elevated interest rates in emerging markets, while he expects rate cuts to "give a little bit of a breathing capability" in Pakistan, Bangladesh, Ukraine, Kazakhstan and Uzbekistan.

VEON completed its exit from Russia with the $1.28 billion sale of its Russian business Vimpelcom in October last year.

(Reporting by Nathan Vifflin in Gdansk; Editing by Sonia Cheema and Jan Harvey)