VEON 4Q 20 Conference Call Notes

-VEON expects the current level of investments of 22-24% operational capex/sales ratio to remain until FY 23e to reach the target of 75% 4G coverage in all markets of presence.
-Positive mobile service revenue dynamics in Russia observed in December 20 remain in place in FY 21 to date.
-VEON expects to see a double digit revenue growth in Pakistan, Ukraine and Kazakhstan in FY 21e.
-VEON has changed its holding management structure providing more authorities to local boards of directors aiming at a leaner HQ structure, which may result in further HQ cost reduction in FY 21e.
-Dividend policy of 50% equity free cash flow payout remains in place, and the management sees a possibility of resuming dividend payments after FY 21e.
-In FY 21e VEON plans to start managing its tower portfolio consisting of 50,000 towers more effectively, also considering a monetization possibility.
-In digital space VEON plans to focus on developing selected verticals, like OTT, fintech and adtech in Russia and Kazakhstan, and take a more holistic ecosystem approach in Pakistan and Bangladesh.
-Debt optimization procedures during FY 20 led to annual interest savings around USD 100 mn, and further optimization remains a priority.
-VEON will be reviewing its portfolio opportunities on a regular basis, there have been no decision made yet on Djezzy put option exercise, which comes due on July 1, 2021.
-VEON describes the current competitive situation in the Russian market as rational, does not plan to initiate any type of intensive price competition in the market.