Capex excl. licenses
Capex excl. licenses LTM/revenue
11.3p.p.
Beeline reported strong results and continues to hold the leading position in both revenue market share and NPS in a highly competitive market.
Total revenue increased 20.3% as mobile service revenue increased 20.4% to UZS 572 billion, primarily as a result of the impact of Beeline´s price plans being pegged to U.S. dollars and successful marketing activities, together with increased revenues from interconnect services, value added services and mobile data. Mobile data revenue increased 28.2%, driven by the continued high-speed data network roll-out, increased smartphone penetration and the launch of new bundled offerings. The overall customer base increased 2.9% to 9.6 million, the second consecutive quarter of year on year growth, driven by strong gross additions.
Underlying EBITDA increased 14.4% compared to the prior year driven by increased revenue, partly offset by higher interconnect costs as a result of both higher off-net usage and a negative currency effect together with increases in content costs, customer costs and structural opex. As a result, the underlying EBITDA margin was a robust 54.3% in Q2 2017.
Capex was UZS 59.8 billion and the LTM capex to revenue ratio was 25.4%, mainly due to prepayments of equipment in Q4 2016 for deployment in 2017. The company continued to invest in its high-speed data networks as it improved the 4G/LTE coverage in Tashkent and increased the number of 3G sites by 41% and further improvements to the high-speed data networks will continue to be a priority for Beeline in 2017.
The cash and deposits balances of USD 696 million in Uzbek som are considered to be largely restricted from repatriation due to local government and central bank regulations.
The Republican Radiofrequencies Council in Uzbekistan published a Decision on ordering the redistribution of radio frequencies in Uzbekistan which, if it comes into force as planned in September 2017, could result in a reallocation of the Company's subsidiary Unitel LLC's radio frequencies to other cellular communications providers in the market.
EUR million
2Q17
2Q16
YoY
1H17
1H16
YoY
Total revenue
1,535
1,563
(1.7%)
3,083
3,078
0.2%
Mobile service revenue
1,042
1,065
(2.2%)
2,085
2,114
(1.4%)
Fixed-line service revenue
268
267
0.5%
539
533
1.1%
EBITDA
442
493
(10.3%)
900
964
(6.6%)
EBITDA underlying2
523
493
6.1%
1,040
964
7.9%
EBITDA margin
28.8%
31.5%
(2.7p.p.)
29.2%
31.3%
(213.4%)
EBITDA underlying2margin
34.0%
31.5%
2.5p.p.
33.7%
31%
240.3%
Capex excl. licenses
266
264
0.9%
506
540
(6.2%)
LTM capex excl. licenses/revenue
17.6%
17.7%
(0.6p.p.)
17.6%
17.7%
(60.0%)
Mobile
Total revenue
1,239
1,292
(4.1%)
2,492
2,535
(1.7%)
- of which mobile data
367
319
15.0%
719
633
13.5%
Customers (mln)
30.3
31.3
(3.4%)
30.3
31.3
(3.4%)
- of which data customers (mln)
19.3
18.9
1.9%
19.3
18.9
1.9%
ARPU (EUR)
11.2
11.2
(0.2%)
11.1
11.1
(0.2%)
MOU (min)
274
286
(4.3%)
269
281
(4.2%)
Fixed-line
Total revenue
296
271
9.6%
591.1
542.2
9.0%
Total voice customers (mln)
2.73
2.78
(1.8%)
2.73
2.78
(1.8%)
ARPU (EUR)
27.6
26.9
2.7%
28
27
2.8%
Broadband customers (mln)
2.4
2.3
2.4%
2.4
2.3
2.4%
Broadband ARPU (EUR)
21.8
20.9
4.2%
21.8
20.7
5.1%
1 The ''combined data'' for Q2 2016 consists of the sum of the WIND Telecomunicazioni s.p.a. and H3G s.p.a. businesses results, respectively, for the three months ended 30 June 2016, prior to the merger of the two businesses. The Q2 2016 data related to H3G s.p.a. was obtained through due diligence performed as part of the merger process. The Company has included this "combined data" because it believes that financial information on the Wind Tre joint venture is relevant to its business and results for the financial quarter. Going forward, the Company expects to include financial information related to the Wind Tre joint venture in the publication of its financial results. It should be noted that the Company owns 50% of the Wind Tre joint venture, while the results above reflect the entire business
2 Q2 2017 underlying EBITDA before integration costs of ~EUR 81 million
3 Q2 2017 LTM EBITDA before approx. EUR 200 million of integration costs
Note: starting from Q2 2017 results, minor changes in accounting policies were adopted and for a proper comparison previous period results were adjusted accordingly
Wind Tre's total revenue in Q2 2017 decreased 1.7% to EUR 1.5 billion, driven by a 2.2% decline in mobile service revenue and lower sales of mobile handsets. The revenue decline was partially offset by growth of 0.5% in fixed-line service revenue.
The mobile service revenue decline was primarily due to increased competition in the market impacting the customer base, a more difficult comparison with Q2 of 2016 when certain re-pricing activities were implemented and by new EU roaming regulations.
Mobile data revenue continued to show strong growth with a 15.0% year on year increase to EUR 367 million, driven by an increase in both data customers, which grew by 1.9% to 19.3 million, and in data ARPU, which grew by 8.3%. At the end of Q2 2017, Wind Tre's mobile customer base was 30.3 million subscribers, declining compared to the previous year due to increased competition ahead of the Iliad launch. In Q2 2017, mobile ARPU remained stable at EUR 11.2 with the increase in data ARPU fully offsetting the decline in voice ARPU.
Fixed-line service revenue performance was driven by a 7.0% growth in broadband revenue to EUR 155 million, with direct and broadband customers growing 1.8% and 2.4% respectively. In Q2 2017, the fixed-line direct customer base reached 2.5 million and the broadband customer base reached 2.4 million as a result of increased demand for ultra-broadband connections. Fixed and broadband ARPU grew by 2.7% and 4.2% respectively.
In Q2 2017, underlying EBITDA2 grew by 6.1% to EUR 523 million, driven by increased other revenues coupled with the benefits of post-merger synergies. As a result, the underlying EBITDA margin for Q2 2017 increased by 2.5 percentage points to 34.0%.
Capex in the quarter totaled EUR 266 million and was primarily focused on expanding capacity and coverage of the 4G/LTE network, as well as modernizing and merging the former Wind and Tre networks. The net leverage ratio (net debt/LTM underlying3 EBITDA) was at 4.1x at the end Q2 2017.
In June 2017, Jeffrey Hedberg was appointed as new CEO of Wind Tre.
CONFERENCE CALL INFORMATION
On 3 August 2017, VEON will also host a conference call at 14:00 CEST (13:00 BST) through video webcast on its website and through following dial-in numbers. The call and slide presentation may be accessed at
14:00 CEST investor and analyst conference call
US call-in number: +1 (646) 254 3366
Confirmation Code: 4916180
International call-in number: +44 (0) 20 3427 1913
Confirmation Code: 4916180
The conference call replay and the slide presentation webcast will be available until 16 August 2017.
The slide presentation will also be available for download on VEON's website.
Investor and analyst call replay
US Replay Number: +1 866 932 5017
Confirmation Code: 4916180
UK Replay Number: 0800 358 7735
Confirmation Code: 4916180
DISCLAIMER
This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by words such as "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" and other similar words. Forward-looking statements include statements relating to, among other things, VEON's plans to implement its strategic priorities, including with respect to its performance transformation, among others; anticipated performance and guidance for 2017, including VEON's ability to generate sufficient cash flow; future market developments and trends; expected synergies of the Italy Joint Venture, including expectations regarding capex and opex benefits; realization of the synergies of the Warid transaction; operational and network development and network investment, including expectations regarding the roll out and benefits of 3G/4G/LTE networks, as applicable, the effect of the acquisition of additional spectrum on customer experience and the Company's ability to realize its targets and strategic initiatives in its various countries of operation. The forward-looking statements included in this release are based on management's best assessment of the Company's strategic and financial position and of future market conditions, trends and other potential developments. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of demand for and market acceptance of VEON's products and services; continued volatility in the economies in VEON's markets; unforeseen developments from competition; governmental regulation of the telecommunications industries; general political uncertainties in VEON's markets; government investigations or other regulatory actions and/or litigation with third parties; failure to realize the expected benefits of the Italy Joint Venture or the Warid transaction as expected or at all due to, among other things, the parties' inability to successfully implement integration strategies or otherwise realize the anticipated synergies; risks associated with data protection or cyber security, other risks beyond the parties' control or a failure to meet expectations regarding various strategic initiatives, including, but not limited to, the performance transformation program, the effect of foreign currency fluctuations, increased competition in the markets in which VEON operates and the effect of consumer taxes on the purchasing activities of consumers of VEON´s services. Certain other factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in the Company's Annual Report on Form 20-F for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission (the "SEC") and other public filings made by VEON with the SEC. Other unknown or unpredictable factors also could harm our future results. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Under no circumstances should the inclusion of such forward-looking statements in this press release be regarded as a representation or warranty by us or any other person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in fact be the case. Therefore, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date hereof. We cannot assure you that any projected results or events will be achieved. Except to the extent required by law, we disclaim any obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made, or to reflect the occurrence of unanticipated events. Furthermore, elements of this release contain, or may contain, "inside information" as defined under the Market Abuse Regulation (EU) No. 596/2014.
All non-IFRS measures disclosed in the document, i.e. EBITDA, EBITDA margin, underlying EBITDA, underlying EBITDA margin, EBIT, net debt, equity free cash flow, organic growth, capital expenditures excluding licenses, last twelve months (LTM) Capex excluding licenses/Revenue, are reconciled to comparable IFRS measures in Attachment C.
ABOUT VEON
VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services, with the ambition to lead the personal internet revolution for the 235 million+ customers it currently serves, and many others in the years to come.
Follow us:
on Twitter @veondigital
visit our blog @ blog.veon.com
go to our website @
For more information on interim financial schedules please refer to the MD & A section and financial statements section.
For more information on financial and operating data for specific countries, please refer to the supplementary file Factbook2Q2017.xls on VEON's website at .
ATTACHMENT A: CUSTOMERS
Mobile
Fixed-line broadband
million
2Q17
2Q16
YoY
2Q17
2Q16
YoY
Russia
58.3
57.5
1.4%
2.2
2.2
2.0%
Pakistan
52.5
49.3
6.4%
Algeria
15.5
16.3
(4.9%)
Bangladesh
30.7
31.1
(1.5%)
Ukraine
26.1
25.4
2.8%
0.8
0.8
1.7%
Uzbekistan
9.6
9.3
2.9%
Other
15.4
15.1
1.7%
0.5
0.4
23.5%
Total consolidated
208.1
204.2
1.9%
3.5
3.4
4.6%
Italy
30.3
31.1
(3.4%)
2.4
2.3
4.3%
Total
238.4
235.3
1.3%
5.9
5.7
3.6%
ATTACHMENT B: DEFINITIONS
ARPU (Average Revenue per User) measures the monthly average revenue per mobile user. We generally calculate mobile ARPU by dividing our mobile serfvice revenue during the relevant period, including data revenue, roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of our mobile customers during the period and dividing by the number of months in that period. Wind Tre defines mobile ARPU as the measure of the sum of the mobile revenue in the period divided by the average number of mobile customers in the period (the average of each month's average number of mobile customers (calculated as the average of the total number of mobile customers at the beginning of the month and the total number of mobile customers at the end of the month) divided by the number of months in that period.
Data customers are mobile customers who have engaged in revenue generating activity during the three months prior to the measurement date as a result of activities including USB modem Internet access using 2.5G/3G/4G/HSPA+ technologies. Wind Tre measures mobile data customers based on the number of active contracts signed and includes customers who have performed at least one mobile Internet event during the previous month. For Algeria, mobile data customers are 3G customers who have performed at least one mobile data event on the 3G network during the previous four months.
Capital expenditures (capex) are purchases of new equipment, new construction, upgrades, software, other long lived assets and related reasonable costs incurred prior to intended use of the non-current asset, accounted at the earliest event of advance payment or delivery. Long-lived assets acquired in business combinations are not included in capital expenditures.
EBIT is a non-IFRS measure and is calculated as EBITDA plus depreciation, amortization and impairment loss. Our management uses EBIT as a supplemental performance measure and believes that it provides useful information of earnings of the Company before making accruals for financial income and expenses and net foreign exchange (loss)/gain and others. Reconciliation of EBIT to net income attributable to VEON Ltd., the most directly comparable IFRS financial measure, is presented in the reconciliation tables section in Attachment C below.
Adjusted EBITDA (called "EBITDA" in this document) is a non-IFRS financial measure. EBITDA is defined as earnings before interest, tax, depreciation and amortization. VEON calculates EBITDA as operating income before depreciation, amortization, loss from disposal of non-current assets and impairment loss and includes certain non-operating losses and gains mainly represented by litigation provisions for all of its Business Units except for its Russia Business Unit. For 2016 Russia Business Unit's EBITDA is calculated as operating income before depreciation, amortization, loss from disposal of non-current assets and impairment loss.
In addition, the components of EBITDA include the key revenue and expense items for which the Company's operating managers are responsible and upon which their performance is evaluated. EBITDA also assists management and investors by increasing the comparability of the Company's performance against the performance of other telecommunications companies that provide EBITDA information. This increased comparability is achieved by excluding the potentially inconsistent effects between periods or companies of depreciation, amortization and impairment losses, which items may significantly affect operating income between periods. However, our EBITDA results may not be directly comparable to other companies' reported EBITDA results due to variances and adjustments in the components of EBITDA (including our calculation of EBITDA) or calculation measures.
Additionally, a limitation of EBITDA's use as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue or the need to replace capital equipment over time. Reconciliation of EBITDA to net income attributable to VEON Ltd., the most directly comparable IFRS financial measure, is presented in the reconciliation tables section in Attachment C below.
EBITDA margin is calculated as EBITDA divided by total revenue, expressed as a percentage.
Gross Debt is calculated as the sum of long term debt and short term debt.
Equity Free Cash Flow is derived from consolidated statements of cash flows and is cash flow before financing activities; net cash from operating activities less net cash used in investing activities. Reconciliation to the most directly comparable IFRS financial measure, is presented in the reconciliation tables section in Attachment C below.
Households passed are households located within buildings, in which indoor installation of all the FTTB equipment necessary to install terminal residential equipment has been completed.
MBOU (Megabyte of use) is calculated by dividing the total data traffic by the average mobile data customers during the period.
MFS (Mobile financial services) is a variety of innovative services, such as mobile commerce or m-commerce, that use a mobile phone as the primary payment user interface and allow mobile customers to conduct money transfers to pay for items such as goods at an online store, utility payments, fines and state fees, loan repayments, domestic and international remittances, mobile insurance and tickets for air and rail travel, all via their mobile phone.
MNP (Mobile number portability) is a facility provided by telecommunications operators, which enables customers to keep their telephone numbers when they change operators.
Mobile customers are generally customers in the registered customer base as of a given measurement date who engaged in a revenue generating activity at any time during the three months prior to such measurement date. Such activity includes any outgoing calls, customer fee accruals, debits related to service, outgoing SMS and MMS, data transmission and receipt sessions, but does not include incoming calls, SMS and MMS or abandoned calls. Our total number of mobile customers also includes customers using mobile internet service via USB modems. For our business in Italy, prepaid mobile customers are counted in our customer base if they have activated our SIM card in the last 13 months (with respect to new customers) or if they have recharged their mobile telephone credit in the last 13 months and have not requested that their SIM card be deactivated and have not switched to another telecommunications operator via mobile number portability during this period (with respect to our existing customers), unless a fraud event has occurred. Postpaid customers in Italy are counted in our customer base if they have an active contract unless a fraud event has occurred or the subscription is deactivated due to payment default or because they have requested and obtained through mobile number portability a switch to another telecommunications operator.
MOU (Monthly Average Minutes of Use per User) measures the monthly average minutes of voice service use per mobile customer. We generally calculate mobile MOU by dividing the total number of minutes of usage for incoming and outgoing calls during the relevant period (excluding guest roamers) by the average number of mobile customers during the period and dividing by the number of months in that period. For our business in Italy, we calculate mobile MOU as the sum of the total traffic (in minutes) in a certain period divided by the average number of customers for the period (the average of each month's average number of customers (calculated as the average of the total number of customers at the beginning of the month and the total number of customers at the end of the month)) divided by the number of months in that period.
Net debt is a non-IFRS financial measure and is calculated as the sum of interest bearing long-term debt and short-term debt minus cash and cash equivalents, long-term and short-term deposits and fair value hedges. The Company believes that net debt provides useful information to investors because it shows the amount of debt outstanding to be paid after using available cash and cash equivalents and long-term and short-term deposits. Net debt should not be considered in isolation as an alternative to long-term debt and short-term debt, or any other measure of the Company financial position.
Net foreign exchange (loss)/gain and others represents the sum of Net foreign exchange (loss)/gain, Equity in net (loss)/gain of associates and Other (expense)/income (primarily (losses)/gains from derivative instruments), and is adjusted for certain non-operating losses and gains mainly represented by litigation provisions. Our management uses Net foreign exchange (loss)/gain and others as a supplemental performance measure and believes that it provides useful information about the impact of our debt denominated in foreign currencies on our results of operations due to fluctuations in exchange rates, the performance of our equity investees and other losses and gains the Company needs to manage the business.
NPS (Net Promoter Score) is the methodology VEON uses to measure customer satisfaction.
Operational expenses (opex) represents service costs and selling, general and administrative expenses.
Organic growth in revenue and EBITDA are non-IFRS financial measures that reflect changes in Revenue and EBITDA, excluding foreign currency movements and other factors, such as businesses under liquidation, disposals, mergers and acquisitions.
Reportable segments: the Company identified Russia, Algeria, Pakistan, Bangladesh, Ukraine and Uzbekistan based on the business activities in different geographical areas. Intersegment revenue is eliminated in consolidation.
ATTACHMENT C: RECONCILIATION TABLES
RECONCILIATION OF CONSOLIDATED EBITDA
USD mln
2Q17
2Q16
reported
1H17
1H16
reported
Unaudited
EBITDA
931
795
1,792
1,553
Depreciation
(386)
(391)
(776)
(723)
Amortization
(146)
(113)
(268)
(225)
Impairment loss
(8)
(4)
(5)
(12)
Loss on disposals of non-current assets
(2)
(4)
(9)
(6)
EBIT
389
283
734
587
Financial Income and Expenses
(208)
(186)
(401)
(354)
- including finance income
24
19
46
31
- including finance costs
(232)
(205)
(447)
(385)
Net foreign exchange (loss)/gain and others
(374)
(2)
(396)
17
- including Other non-operating (losses)/gains
(116)
(24)
(152)
(62)
- including Shares of loss of associates and joint ventures
accounted for using the equity method
(95)
(11)
(196)
(16)
- impairment of JV and associates
(110)
-
(110)
-
- including Net foreign exchange gain
(53)
33
62
95
EBT
(193)
95
(63)
250
Income tax expense
(65)
(135)
(206)
(252)
Profit/ (loss) from discontinued operations
-
186
-
383
Profit/(loss) for the period
(258)
146
(269)
381
Profit/(loss) for the period attributable to non-controlling interest
20
9
14
55
Profit/(loss) for the year attributable to the owners of the parent
(278)
137
(283)
326
RECONCILIATION OF CONSOLIDATED REPORTED AND UNDERLYING EBITDA
USD mln, unaudited
2Q17
2Q16
1H17
1H16
Pro-forma Warid
Pro-forma Warid
EBITDA
931
811
1,792
1,589
Performance transformation costs, of which
44
75
74
117
HQ and Other
37
56
58
89
Russia
1
3
4
4
Emerging Markets
6
16
12
24
Other exceptionals
2
43
2
42
EBITDA underlying
977
928
1,868
1,747
Note: Q2 2016 one-offs have changed to USD 118 million from USD 116 million after reclassification of Opex expenses in 2016
RECONCILIATION OF CAPEX
USD mln unaudited
2Q17
2Q16
1H17
1H16
Cash paid for purchase of property, plant and equipment and intangible assets
709
275
1,196
714
Net difference between timing of recognition and payments for purchase of property, plant and equipment and intangible assets
(65)
75
(284)
(169)
Capital expenditures
644
350
912
545
Less capital expenditures in licenses
(312)
(66)
(317)
(108)
Capital expenditures excl. licenses
332
284
595
437
RECONCILIATION OF ORGANIC AND REPORTED GROWTH RATES
2Q17 vs 2Q16
Total Revenue
EBITDA
Organic
Forex & other
Reported
Organic
Forex & other
Reported
Russia
3.0%
15.7%
18.7%
(1.3%)
15.0%
13.8%
Pakistan
6.9%
28.5%
35.4%
28.3%
17.3%
45.6%
Algeria
(8.0%)
0.3%
(7.6%)
(18.7%)
0.2%
(18.4%)
Bangladesh
(3.0%)
(3.0%)
(6.0%)
(8.9%)
(2.8%)
(11.7%)
Ukraine
10.0%
(5.0%)
5.0%
13.7%
(5.2%)
8.5%
Uzbekistan
20.3%
(27.6%)
(7.3%)
14.4%
(26.3%)
(11.9%)
Total
3.7%
8.6%
12.3%
10.6%
6.5%
17.1%
1H17 vs 1H16
Total Revenue
EBITDA
Organic
Forex & other
Reported
Organic
Forex & other
Reported
Russia
0.4%
20.7%
21.2%
(1.3%)
20.0%
18.7%
Pakistan
6.1%
29.3%
35.5%
20.8%
18.4%
39.3%
Algeria
(11.7%)
(0.7%)
(12.5%)
(23.0%)
(0.7%)
(24.0%)
Bangladesh
(2.1%)
(2.2%)
(4.3%)
(4.2%)
(2.1%)
(6.3%)
Ukraine
10.8%
(5.4%)
5.4%
13.8%
(5.6%)
8.2%
Uzbekistan
15.0%
(22.2%)
(7.2%)
3.4%
(20.2%)
(16.8%)
Total
1.5%
11.1%
12.7%
6.4%
8.9%
15.3%
RECONCILIATION OF VEON CONSOLIDATED NET DEBT
USD mln
30 June 2017
31 March 2017
31 December 2016
Net debt
8,403
7,661
7,162
Cash and cash equivalents
2,873
2,172
2,942
Long - term and short-term deposits
348
407
385
Gross debt
11,624
10,240
10,489
Interest accrued related to financial liabilities
146
160
173
Other unamortised adjustments to financial liabilities (fees, discounts etc.)
(36)
20
40
Derivatives not designated as hedges
309
302
319
Derivatives designated as hedges
33
53
7
Other financial liabilities
76
87
89
Total other financial liabilities
12,153
10,862
11,116
RECONCILIATION OF REPORTED CASH FLOW FROM CONTINUED OPERATIONS AND UNDERLYING EQUITY FREE CASH FLOW EXCLUDING LICENSES
USD million
2Q17
2Q16
1H17
1H16
Net cash from operating activities
578
428
1,162
67
Exceptional items:
58
97
148
941
PT costs
46
74
67
119
Uzbekistan legal costs
-
-
-
795
IRAQNA provision
-
-
69
-
WHT on licence in Pakistan
30
-
30
-
Other
12
23
12
27
Underlying net cash flow from operating activities
664
525
1,341
1,006
Net cash used in investing activities
(725)
(405)
(1,314)
(765)
Adjustments:
Deposits & Financial assets
(27)
(56)
(131)
23
Purchase of license and other
(326)
(67)
(333)
(111)
Underlying net cash flow used in investing activities
(371)
(282)
(850)
(678)
Underlying Equity Free Cash Flow excluding licenses
293
243
491
328
RECONCILIATION OF REPORTED AND PRO-FORMA WARID INCOME STATEMENT FOR Q2 AND 1H 2016
USD million
2Q16
reported
Warid incl.
intercompany
eliminations
2Q16
pro-forma
Total revenue
2,153
75
2,228
Service revenue
2,086
72
2,158
EBITDA
795
16
811
EBITDA margin
37.0%
36.4%
Depreciation, amortization, impairments and other
(512)
(30)
(542)
EBIT
283
(14)
269
Financial income and expenses
(186)
(8)
(194)
Net foreign exchange (loss)/gain and others
9
10
19
Share of profit/(loss) of joint ventures and associates
(11)
(1)
(12)
Impairment of JV and associates
-
-
-
Profit/(loss) before tax
95
(13)
82
Income tax expense
(135)
(2)
(137)
Profit/(loss) from continued operations
(40)
(15)
(55)
Profit/(loss) from discontinued operations
186
1
187
Profit for the period attributable to VEON shareholders
137
(15)
122
USD million
1HQ16
reported
Warid incl.
intercompany
eliminations
1H16
pro-forma
Total revenue
4,169
155
4,324
Service revenue
4,033
147
4,180
EBITDA
1,553
36
1,589
EBITDA margin
37.3%
37.0%
Depreciation, amortization, impairments and other
(966)
(57)
(1,023)
EBIT
587
(21)
566
Financial income and expenses
(355)
(15)
(370)
Net foreign exchange (loss)/gain and others
34
6
40
Share of profit/(loss) of joint ventures and associates
(16)
0
(16)
Impairment of JV and associates
-
-
-
Profit/(loss) before tax
250
(30)
220
Income tax expense
(252)
(4)
(256)
Profit/(loss) from continued operations
(2)
(34)
(36)
Profit/(loss) from discontinued operations
383
0
383
Profit for the period attributable to VEON shareholders
326
(35)
291
RECONCILIATION OF ITALY JV REPORTED NET RESULT TO VEON'S SHARE OF PROFIT/(LOSS) FROM JV AND ASSOCIATES
USD mln
2Q17
Italy JV reported net result
(626)
50% of Italy JV reported net result
(313)
D & A - PPA adjustment
213
Other PPA adjustmnet
15
Total PPA adjustment
228
VEON share of profit/(loss) from JV and associates
(85)
RATES OF FUNCTIONAL CURRENCIES TO USD1
Average rates
Closing rates
2Q17
2Q16
YoY
2Q17
2Q16
QoQ
Russian Ruble
57.15
65.89
(13.3%)
59.09
64.26
(8.0%)
Euro
0.91
0.89
2.6%
0.88
0.90
(2.8%)
Algerian Dinar
109.04
109.54
(0.5%)
107.80
110.31
(2.3%)
Pakistan Rupee
104.81
104.67
0.1%
104.83
104.75
0.1%
Bangladeshi Taka
80.86
78.35
3.2%
80.64
78.33
3.0%
Ukrainian Hryvnia
26.46
25.26
4.8%
26.10
24.85
5.0%
Kazakh Tenge
315.01
335.58
(6.1%)
321.46
338.87
(5.1%)
Uzbekistan Som
3,778.07
2,911.0
29.8%
3,958.56
2,943.5
34.5%
Armenian Dram
483.37
479.06
0.9%
480.47
476.68
0.8%
Kyrgyz Som
68.12
68.38
(0.4%)
69.14
67.49
2.4%
Georgian Lari
2.42
2.21
9.3%
2.41
2.34
2.8%
1 Functional currency in Tajikistan is USD
View original content:
SOURCE VEON Ltd.
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