VEON is making good progress in executing its strategy
Two years ago, VimpelCom, the international telecommunications business, announced its strategy to transform itself into a global technology company. In February 2017, in line with this strategy, it rebranded itself as VEON. It is making good progress in executing its strategy.
VEON has completed its 50–50 merger of Wind assets with ‘3’ assets owned by Hutchison in Italy. The Italian JV is already operating as one company and holds the No. 1 position in the Italian market. The merger enabled VEON net debt to be reduced to a sustainable level of around 2.0x EBITDA.
In Pakistan, all regulatory approvals were secured and a merger with Warid in Pakistan was completed; this transaction was one of the most exciting deals in Asia in 2016 and secured the Mobilink subsidiary of VEON firmly as No. 1 in a country with a population of 200 million.
A country-wide network-sharing agreement with Kcell (part of TeliaSonera) was signed in Kazakhstan; all approvals have been received and the transaction is being executed. It positions VEON well in this oil-rich country. All in all, more than 80 initiatives are being executed within the performance transformation programme to deliver more than USD$500 m in savings in 2016.
VEON is executing on six strategic priorities:
- Continuing to build world-class operations.
- Capitalising on new revenue streams enabled by third-party partnerships and fuelled by data growth, fixed- mobile convergence and business- to-business opportunities.
- Emerging as a digital leader from the transition to a mobile data-centric model and simplified digital customer experience.
- Rationalising and consolidating its global business portfolio it aims to be No. 1 or a strong No. 2 in all the markets in which it operates.
- Achieving superior operating expenditures and improving cost and capital base through its performance transformation programme.
- Building structural improvements to optimise capital structure.
VEON management is driving cultural change across the company by introducing and executing on new values and an exciting vision to be a pioneering technology company.