Benzinga | Aug 30, 2021 04:07PM EDT

4G Customers Drive VEON's 9.2% Revenue Growth In Q2, Raises FY21 Guidance

* Connectivity and digital services provider VEON Ltd (NASDAQ:VEON) reported second-quarter FY21 revenue growth of 9.2% year-on-year to $2.07 billion, beating the analyst consensus of $2.04 billion.

* Mobile and fixed service revenue grew 7.4% Y/Y to $1.93 billion, out of which mobile data revenue rose 16.7% Y/Y to $724 million.

* The EBITDA margin remained flat at 42.6%.

* The net income attributable to shareholders declined 35.4% Y/Y to $101 million.

* VEON held $1.2 billion in cash and equivalents and generated $602 million in operating cash flow.

* Drivers: 4G smartphone users increased 24.3% Y/Y to 105.6 million as 4G smartphone penetration expanded 790 bps to 49.4%.

* 4G users increased 39.2% Y/Y to 92.7 million.

* The 4G customer base penetration expanded 1,080 bps to 43.4%.

* The 4G coverage increased 1,040 bps to 77.1%.

* Outlook: VEON increased its FY21 revenue guidance to high single-digit revenue local currency growth from mid-single-digit revenue growth.

* Price Action: VEON shares closed higher by 1.89% at $2.16 on Monday.