DUBAI/AMSTERDAM - VEON Ltd (AS:VON). (NASDAQ:VEON (NASDAQ:VEON)), a global provider of digital services, has announced the launch of a $30 million share buyback program, the first phase of a larger $100 million plan. This move comes as the company's stock has shown remarkable strength, gaining over 76% year-to-date and trading near its 52-week high of $35.59. According to InvestingPro analysis, the company's shares are currently trading at Fair Value, with 8 additional key insights available to subscribers. This buyback aims to optimize shareholder value and capitalize on what the company perceives as the undervaluation of its American Depositary Shares (ADS) in relation to its operational performance and strategic potential.
The buyback will take place on the open market under a 10b5-1 plan with a registered broker-dealer, adhering to Rule 10b-18 guidelines. With a market capitalization of $2.46 billion and a solid EBITDA of $1.7 billion, VEON's CEO, Kaan Terzioglu, stated that the initiation of the buyback reflects confidence in the company's growth and commitment to long-term shareholder value, emphasizing a disciplined approach to capital allocation.
VEON, which operates in six countries and serves nearly 160 million customers, is focused on providing connectivity and digital services that drive economic growth and empower individuals. The company maintains a "GOOD" financial health score according to InvestingPro's comprehensive analysis, despite short-term obligations exceeding liquid assets. The specifics of the buyback, such as timing and volume, will be contingent on market conditions, liquidity, legal requirements, and other relevant factors. For detailed insights into VEON's valuation metrics and future growth potential, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
The company had previously communicated on August 1, 2024, its intentions to undertake this buyback program as part of its strategy to enhance shareholder returns. The subsequent phases of the buyback will proceed in a similar manner, subject to the same considerations, up to the authorized $100 million limit.
This announcement is based on a press release statement and contains forward-looking statements which are subject to risks and uncertainties. VEON has made it clear that there is no guarantee that the buyback initiatives will be successful and that the forward-looking statements are valid only as of the date of the release. The company has not committed to updating these statements in light of new information or future events.
In other recent news, VEON Ltd. reported robust Q3 2024 earnings, highlighting a 9.8% increase in revenue year-over-year in USD and a 14.1% increase in local currency terms. Despite facing challenges such as the Bangladesh Revolution, VEON ended the quarter with $1 billion in cash and managed to reduce its gross debt by 8%. The company is shifting its focus towards digital services, which now constitute 11% of total revenues, and has seen strong performances in regions like Ukraine, Pakistan, Kazakhstan, and Uzbekistan.
VEON has also announced plans to cease trading on Euronext (EPA:ENX) Amsterdam and move its listing exclusively to NASDAQ as part of its transition to becoming a US-based frontier market company. The company has revised its 2024 revenue growth outlook to 8%-10% in USD and 12%-14% in local currency.
While EBITDA decreased by 1.5% in USD, it increased by 3.5% in local currency. However, the company's EBITDA margin declined to 42.2%, and Bangladesh's performance was impacted by new revenue tax and economic challenges post-revolution. Despite these challenges, VEON remains committed to strategies aligned with Shaw Capital's target of a $160 share price by 2026. These are recent developments in the company's performance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.