AMSTERDAM - VEON (NASDAQ:VEON) Ltd. (NASDAQ:VEON, Euronext Amsterdam: VEON), a global provider of digital connectivity and online services, has received approval from Nasdaq for its plan to regain compliance with the exchange's listing rules. The company has been granted an exception to file its delayed Annual Report on Form 20-F for the year ended December 31, 2023, by November 11, 2024.
The delay in filing the 2023 20-F report was attributed to the extraordinary circumstances arising from the conflict in Ukraine and the subsequent sale of VEON's Russian operations. These events have impacted the company's ability to appoint an independent Public Company Accounting Oversight Board (PCAOB) registered audit firm in a timely manner. VEON has since appointed UHY LLP as its PCAOB auditors for the 2023 20-F.
VEON had previously disclosed its non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of financial reports. The acceptance of VEON's compliance plan by the Listing Qualifications Department of The Nasdaq Stock Market allows the company additional time to meet the listing requirements.
The company, which serves nearly 160 million customers across six countries, continues to work closely with its newly appointed auditors to complete and file the 2023 20-F within the newly established timeframe. VEON's efforts are focused on maintaining its listing status on Nasdaq and Euronext exchanges while it works to complete the necessary financial reporting.
This announcement is based on a press release statement from VEON Ltd. The company has cautioned that forward-looking statements within the release are subject to risks and uncertainties, and there can be no guarantee of the successful completion of the initiatives discussed. VEON has not provided any update on the anticipated financial results to be included in the delayed annual report.
In other recent news, Vodafone (NASDAQ:VOD) and Virgin Media O2 have extended their network sharing partnership, a significant development in the UK telecom sector. The extension is contingent on the approval of the proposed merger between Vodafone and Three UK, currently under review.
This collaboration aims to leverage each other's network capabilities, potentially lowering operational costs and enhancing services. The financial terms and specific operational details of the deal remain undisclosed.
In parallel developments, VEON Ltd., a global connectivity and internet services provider, reported a 6.6% year-over-year increase in its first-quarter revenue for 2024. The growth was driven by solid performance across its digital platforms and mobile financial services, despite a cyberattack in Ukraine. The company's 4G user base expanded to 97 million, and its multiplay segment, representing nearly half of consumer revenues, grew by 36% year-over-year.
These are recent developments that provide insights into the companies' strategies and performance. The telecom industry, customers, and investors are now awaiting the decision on the Vodafone and Three UK merger, which will determine the realization of the network sharing agreement.
Meanwhile, VEON aims for 16-18% revenue growth and 18-20% EBITDA growth in 2024, continuing its focus on digital services.
InvestingPro Insights
As VEON Ltd. navigates through the complexities of its compliance efforts, investors and analysts are closely monitoring the company's financial health and stock performance. According to recent data from InvestingPro, VEON's market capitalization stands at a modest 70.61 million USD, reflecting the scale of the company within the telecom sector. The company's P/E ratio, adjusted for the last twelve months as of Q1 2024, is 4.97, which may appeal to value-oriented investors seeking potentially undervalued stocks.
InvestingPro Tips suggest that while VEON's stock price movements have been quite volatile, there has been a large price uptick over the last six months, with a 37.72% total return. This considerable gain could indicate a positive market sentiment towards the company's future prospects. Moreover, analysts predict that VEON will be profitable this year, which is consistent with the company's profitable performance over the last twelve months. It is important to note, however, that VEON does not pay a dividend to shareholders, which may influence investment decisions for those seeking regular income.
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