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Mobile operator Veon reported a 5.6% rise in second-quarter revenue on Thursday, driven by a rising number of subscribers and an inflationary pricing strategy.
The Amsterdam-listed company, which is Ukraine’s largest telecom operator and the second largest in Russia, recorded revenues of $2.0 billion in the three months to June 30, compared with $1.9 billion a year earlier.
Although the firm has been facing geopolitical uncertainties amid the Russia-Ukraine conflict, which investors feared could put pressure on cash flow as both the countries account for its most profitable markets, it still saw a strong ramp-up in revenues in the three months ending in June.
“Our second-quarter results demonstrate the resilience and the success of Veon Group companies, as our 4G focus and digital operator strategy continued to deliver growth despite unprecedented geopolitical challenges,” Chief Executive Officer Kaan Terzioglu said in a statement.
Veon’s 4G users reached 50% of the company’s customer base this quarter, the group said.
In Ukraine, where Veon operates the biggest cell phone provider Kyivstar, 4G customer base grew 11.9%, and customers consumed more data, with a 26.9% jump in usage, while in Russia, its biggest market where it operates the Beeline mobile brand, Veon reported a revenue increase of 12.2%.
Kyivstar saw a 4.3% year-on-year decline in its overall subscriber base, Veon said, as the increasing number of refugees leaving Ukraine impacted industry growth during the quarter, with more subscribers using local mobile providers in the countries where they are sheltering.
The company added it continued to monitor the situation in Russia and Ukraine and to assess the need for potential impairment charges.
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