Veon CEO Kaan Terzioglu (pictured) hailed the growing contribution of digital services to its finances in Q2, with the field contributing more than 10 per cent of its overall revenue, and being credited with boosting customer usage and retention.
Terzioglu noted in earnings documents this is the first time Veon has broken out the revenue generated from digital services. The $108 million made was up 83.3 per cent on Q2 2023, with the contribution to overall revenue 77 per cent higher as the sector begins to pull its weight in terms of adding to the operator’s topline growth.
Veon is providing digital financial, entertainment, healthcare and advertising services, along with so-called super apps.
Terzioglu said the sector is boosting ARPU along with generating revenue from advertising, “subscription services, platform commissions and pay-per-view”.
The CEO told Reuters Veon could make some limited acquisitions to further its digital offering and may also seek network sharing deals.
In Veon’s statement, Terzioglu hailed a “billion-dollar quarter”, after overall revenue grew 12.1 per cent to $1 billion, of which $987 million derived from services.
The executive explained organic gains were “driven by 10 million additional 4G customers” and “111 million digital service users”, pledging to beef the latter products up by employing “cutting-edge technologies” including AI.
Net profit attributable to shareholders of $68 million compared with $251 million in Q2 2023, with the H1 figure of $125 million down from $593 million.
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