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Veon CEO Hints at Potential Asset Sales Amid Optimistic Growth Projections

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Veon, a telecommunications giant, unveiled ambitious growth plans during its Capital Markets Day, sparking optimism among investors. CEO Kaan Terzioglu emphasized the promising landscape of emerging markets where Veon operates, asserting that the company’s digital transformation has positioned it for substantial growth.

Terzioglu highlighted Veon’s success in becoming a digital operator and expressed confidence in the company’s ability to capitalize on the vast market potential within its operating footprint. He underscored the importance of leveraging Veon’s digital strategy to enhance investor value by streamlining business operations and making assets more accessible to local investors.

The recent sale of Veon’s stake in Kazakhstan wholesaler TNS+ to DAR Group aligns with its asset-light approach, hinting at a potential strategy to divest more assets in the future. Following its exit from Russia last year, Veon’s focus remains on its mobile operator footprint in Eastern Europe and Central Asia, with Pakistan emerging as a key revenue driver.

Veon’s projected growth trajectory for 2023-2027 includes ambitious targets for revenue and earnings, with Pakistan expected to experience significant growth. The company aims to increase the proportion of non-connectivity services revenue and capitalize on the augmented intelligence (AI) opportunity through its AI1440 strategy.

Furthermore, Veon aims to expand into adjacent verticals and strengthen its customer base in 4G and multiplay services. While the company has not disclosed extensive plans regarding 5G, it remains committed to reducing leverage and generating cash to maintain investor confidence.

Investors are optimistic about Veon’s growth prospects, particularly in light of its recent financial performance, which demonstrated strong revenue growth across its key markets. The company’s emphasis on diversifying revenue streams and leveraging digital technologies resonates well with investors’ expectations.

As Veon continues to pursue its growth agenda, further asset sales may be on the horizon, presenting additional opportunities for value creation. Overall, the company’s strategic direction aligns with investor preferences for sustained growth and financial stability in the telecommunications sector.

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