Adrian Cundy

Adrian Cundy inquired about VEON's strategy for its Ukraine Tower Company (UTC) and general infrastructure in Kyivstar, specifically if divestment similar to Pakistan's model is planned, given network upgrades and 5G. He also asked for more color on JazzCash and MMBL's operations in Pakistan, including loan types and future value extraction initiatives.

Answer

Kaan Terzioğlu, CEO of VEON, confirmed the asset-light strategy for towers, aiming for independent ownership and shared infrastructure in Ukraine. For Pakistan's financial services, he detailed the significant unmet demand, the roles of MMBL and JazzCash, the scale of nano loans (averaging 153,000 daily at $30-40), the 700,000 merchant network, and the 13% contribution to Pakistan's GDP via Raast transactions. He also mentioned exploring strategic investors and value crystallization for digital assets.

Adrian Cundy asked two questions: first, whether VEON will continue to pursue divestment of tower assets in Ukraine (like the Pakistan model) or retain control, especially with Kyivstar's network upgrade and 5G plans; second, about the collaboration between JazzCash and MMBL with the cellular business in Pakistan, the types of loans extended, and potential further value extraction initiatives for the Pakistan business.

Answer

CEO Kaan Terzioğlu stated that VEON's asset-light strategy applies to Ukraine, aiming for independent tower companies to manage infrastructure more effectively and allow sharing among operators, avoiding cross-subsidization. For Pakistan, he highlighted the huge unmet demand in financial services, with MMBL and JazzCash serving 50 million accounts and 22 million monthly active users. He detailed the issuance of 153,000 nano loans daily (around $30-$40) and JazzCash's role in processing 13% of Pakistan's GDP in transactions, growing 33% year-on-year. He confirmed that VEON is looking for value crystallization opportunities for its digital assets when they reach the right scale.

Adrian Cundy from Emerging & Frontier Capital LLP asked about strategies to increase 4G adoption, the revenue contribution from 4G and multiplay users, the deployment of 4.9G/MIMO networks, and the specific financial cost breakdown of the Kyivstar de-SPAC transaction.

Answer

Group CEO Kaan Terzioğlu detailed the '4G for all' strategy, including smartphone initiatives, and noted that multiplay customers now generate 54% of total revenue. Group CFO Burak Ozer specified the de-SPAC impact would be a $50-$100 million charge at the VEON level based on share price, plus $30-$50 million in transaction costs booked to equity.

Adrian Cundy from Emerging & Frontier Capital LLP asked about strategies to increase 4G adoption, the revenue contribution from 4G multiplay users, the deployment of 4.9G/MIMO technology, and the accounting breakdown of the Kyivstar SPAC transaction costs.

Answer

Group CEO Kaan Terzioğlu detailed the '4G for all' strategy, including offering pre-loaded smartphones, and noted that multiplay customers generate 54% of revenue. He confirmed the use of Massive MIMO to enhance service quality. Group CFO Burak Ozer clarified that SPAC transaction costs of $30-50 million will be booked to equity, with a parent-level P&L impact of $50-100 million depending on the closing share price.

Adrian Cundy from Emerging & Frontier Capital LLP asked about strategies to increase 4G adoption, the revenue contribution from 4G and multiplay users, the deployment of 4.9G/MIMO technology, and the cost breakdown of the Kyivstar de-SPAC transaction.

Answer

CEO Kaan Terzioğlu explained that 4G and multiplay customers generate approximately 70% of revenue, with strategies to boost adoption including bundling smartphones with digital services. He confirmed the use of 4.9G technologies like Massive MIMO to enhance service quality. CFO Burak Ozer detailed the de-SPAC's financial effects, estimating a $50-100 million non-cash charge at the VEON parent level and $30-50 million in transaction costs booked to equity.