Ahmed Mustafa

Ahmed Mustafa asked about the main drivers sustaining the momentum of strong local currency revenue growth into the next year and the medium-term target for digital revenues as a share of total revenue.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, attributed the growth to sustainable core telco business growth, significant growth in current digital revenue, and non-organic growth from the Uklon acquisition, reflecting the digital service provider strategy. He stated that while no forward-looking statements on digital revenue share are provided, the objective from a three-year strategy was to reach 15% digital revenue from top lines.

Ahmed Mustafa asked about the main drivers sustaining the momentum of strong local currency revenue growth into the next year and inquired about the medium-term target for digital revenues as a share of total revenue.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, stated that the Q3 performance reflects their strategy: sustainable core telco business growth (9% year-on-year), nearly 100% growth in current digital revenue, and non-organic growth from the Uklon acquisition. He described this as a 'magic formula' for future success. Regarding the medium-term target for digital revenue share, he referenced a three-year strategy from VEON Capital days, aiming to reach 15% of top-line revenue, but did not provide specific forward-looking statements.

Ahmed Mustafa asked how VEON manages the trade-off between scaling digital services and maintaining profitability, given Jazz's strong EBITDA margin. He also sought clarification on the main drivers behind the raised EBITDA growth guidance for the year.

Answer

Kaan Terzioğlu, CEO of VEON, attributed the improving EBITDA margins, despite digital services growth, to disciplined operational cost management. Burak Özer, CFO of VEON, added that disciplined price actions, designed to beat inflation, devaluation, and GDP growth, also significantly contributed to margin expansion.

Ahmed Mustafa asked about managing the trade-off between scale and profitability, given Jazz's strong EBITDA margin but the potential for consolidated margins to soften as digital services scale. He also asked for the main drivers behind the raised EBITDA growth guidance for the year.

Answer

CEO Kaan Terzioğlu noted that digital services have not diluted EBITDA margins as much as anticipated, attributing this to disciplined operational cost management. CFO Burak Özer added that disciplined price actions, beating inflation, devaluation, and GDP growth, also contributed to margin improvement.