2023 Update

About VEON

VEON Ltd. is a global mobile and fixed-line telecommunications company headquartered in Amsterdam, Netherlands. Founded in 1992, the talent-rich multinational company is powered by an international team of approximately 40,000 professionals. VEON’s core offering is encompassed through a range of products and services offered in eight countries across Europe, Asia, Africa, and the CIS.

VEON offers a variety of products and services including, but not limited, to voice, data, short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, machine-to-machine and other services. These offerings are provided under VEON’s branded mobile and fixed-line service names, Beeline, Kyivstar, Jazz, Djezzy, and banglalink.

VEON has over 220 million customers in the countries it serves and is a leader in the development of the mobile ecosystems featuring products, applications, and services that are designed to meet customer needs. The company also provides value-added services aimed at both consumers and corporations as well as the sale of equipment and accessories.

VEON is licensed and regulated by the applicable telecom authorities in the countries in which it operates. VEON is engaged in activities to improve the lives of the people of the countries in which the company operates. This includes improving access to digital knowledge, supporting innovation, encouraging entrepreneurship, developing healthcare initiatives, and investing in youth empowerment.

VEON's Performance

VEON Ltd has seen some fluctuation in its financial performance recently. In the year 2020, company revenue decreased by 51.50%, however the company’s total cash increased to 3.11B, and their gross profit margin remained strong at 100.00%. In addition to this, their Profit Margins decreased to -4.82%, and their Operating Margins decreased to 19.12%.

VEON’s EBITDA margin remained strong in 2020, sitting at 70.89%. This was offset by weak earnings growth. Furthermore, VEON’s current ratio, free cash flow, return on equity, and return on assets all remained fairly constant compared to the year before.

In terms of debt, VEON had 7.57B in total debt at the end of 2020, and their Debt to Equity Ratio was 975.64. In terms of recommendations, VEON has a “Hold” rating, with a mean recommendation of 3.00.

Overall, VEON Ltd has performed well financially, despite some fluctuations in 2020. The company has strong gross margins, EBITDA margins, and a healthy debt to equity ratio. However, their profit margins, operating margins, and earnings growth have all declined in recent years, and their recommendation remains a “hold”.

How does VEON Perform During a Recession?

When it comes to recession, it is important for companies to understand and plan for how they will operate during this period. VEON Ltd. is no exception – its strategies for success during a recession are based on anticipating and reacting quickly to the changing nature of the industry.

In order to remain profitable, VEON Ltd. focuses on market-sensitive pricing in order to remain competitive and capitalise on opportunities. The company also looks to expand its market presence by offering value-added services and attractive bundles. Additionally, the company ensures that its network is strong and reliable to retain and attract customers. The company has invested in network consolidation and expansion projects to ensure a strong network coverage, which allows it to remain competitive with other telecom companies in the market.

Further, VEON Ltd. looks to control operational costs by introducing operational efficiencies and reducing redundancies where possible. Additionally, it looks to reinvest any liberated spending in areas that can drive better outcomes such as customer service, technology, and innovation initiatives.

Finally, VEON Ltd. also works to incorporate assessment and evaluation strategies to ensure that it is constantly assessing customer needs and emerging trends in the industry, which it can then use to modify its strategies and offerings in order to remain competitive and profitable.

How does VEON Perform During High Inflation Economy?

When facing high inflation, VEON Ltd. must take steps to ensure that its products and services remain competitive and can effectively maintain their market share. The company can adjust its prices or plans in order to reflect any changing economic conditions. It may also alter its product offerings in order to remain competitive. In addition, the company could explore opportunities to expand its services into other markets and increase its customer reach.

At the same time, VEON Ltd. must focus on efficiency and cost control measures in order to maintain margins as well as the level of capital expenditure. It may need to optimize its existing product offerings and operating expenses in order to remain competitive and profitable.

VEON Ltd. must also be prepared to make changes to its structure and business model to ensure that it is responding effectively to the needs of its customers. This may include offering new and innovative services, introducing new billing models, and exploring new revenue sources.

Finally, the company must focus on customer satisfaction by providing excellent service and customer-centric solutions. The company must ensure that its customers receive value for money and that customers are happy with the products and services they are using. This will ensure that the company’s customers, and in turn, its bottom line, remain strong in times of high inflation.

What Are the Risks Associated to VEON (VEON)?

Risks associated with investing in VEON Ltd. include macroeconomic risks, as the company is exposed to changes in market demand for its services; competitive risks, as VEON Ltd may face increased competition in certain markets; and the risk of technological obsolescence, as new technologies are developed that may replace the company’s existing services. In addition, political and regulatory risks associated with the countries in which VEON Ltd. operates could have an adverse impact on the company’s performance. Investors should consider all these risks before investing in the stock.