AMSTERDAM, Aug. 2, 2018 /PRNewswire/ — VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam:
VEON), a leading global provider of connectivity and internet services headquartered in Amsterdam and serving more than 240 million customers, today announces financial and operating results for
the quarter ended 30 June 2018.

KEY DEVELOPMENTS

  • FY 2018 guidance reaffirmed after revenue and EBITDA organic1 growth in Q2 and H1 2018
  • Interim dividend approved of USD 0.12 per share, compared to USD
    0.11
    announced in August 2017
  • New HQ operating model being built with high-level reporting structure established
  • Agreement for the sale of 50% stake in the Italy Joint Venture to CK Hutchison
  • Offer to acquire GTH assets in Pakistan and Bangladesh
  • AGM elected three new directors

Q2 2018 KEY RESULTS2

  • Total reported revenue decreased by 6.1% to USD 2,270 million, mainly due to currency
    movements
  • Total revenue grew organically1 by 3.0%, driven by Russia, Pakistan, Ukraine and Uzbekistan,
    partially offset by continued pressure in Algeria and Bangladesh
  • Reported EBITDA decreased 8.0% to USD 857 million, primarily due to the significant
    devaluation of the Uzbek, Russian and Pakistani currencies, as well as the cost of Euroset integration in Russia
  • EBITDA grew by 4.8% organically1, driven by good operational performance in Russia, Pakistan and Ukraine, partially
    offset by declining EBITDA in Algeria and Bangladesh
  • EBITDA margin of 37.7%, down 0.8 percentage points year on year, due to the cost of Euroset integration
  • Equity free cash flow3 excluding licenses totalled USD 206 million in Q2 2018 and
    USD 540 million in H1 2018

URSULA BURNS, EXECUTIVE CHAIRMAN, COMMENTS:

“In the second quarter, we delivered strong operating results in our largest and most important geographies and made progress
in refining our strategic framework for growth. We took decisive action to sharpen VEON’s focus on the emerging markets and
streamline our headquarters operations, while maintaining robust compliance and internal controls and continuing our focus on our
digital core offerings. These steps will allow us to grow in these key markets by delivering a locally relevant offering to the
benefit of our customers, employees and shareholders. The board and senior management team are focused on executing against this
strategic framework and driving value for all of our stakeholders.”





1)

Organic change is a non-IFRS measure and reflects changes in revenue and
EBITDA. Organic change excludes the effect of foreign currency movements and other factors, such as businesses


under liquidation, disposals, mergers and acquisitions. In Q2 2018, organic growth is calculated at constant currency and
excludes the impact from Euroset transaction. See Attachment C for reconciliations

2)

Key results compare to prior year results unless stated
otherwise

3)

Equity free cash flow excluding licenses is a non-IFRS measure and is
defined as free cash flow from operating activities less cash flow used in investing activities, excluding M&A


transactions, capex for licenses, inflow/outflow of deposits, financial assets and other one-off items. See attachment C
for reconciliations

 

KEY RESULTS: CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS



















USD million

2Q18

2Q17

Reported


YoY

Organic


YoY 1

Total revenue, of which 

2,270

2,417

(6.1%)

3.0%

   mobile and fixed service revenue

2,136

2,331

(8.4%)

1.6%

   mobile data revenue

517

465

11.0%

24.5%

EBITDA

857

931

(8.0%)

4.8%

EBITDA margin (EBITDA/total revenue)

37.7%

38.5%

                      
(0.8p.p.)

0.7p.p

Profit/(Loss) from continued operations

32

(173)

118.1%

Loss from discontinued operations

(170)

(85)

(95.6%)

Loss for the period attributable to VEON shareholders

(138)

(258)

46.6%

Equity free cash flow excl. licenses 2

206

209

(1.3%)

Capital expenditures excl. licenses

402

333

20.8%

LTM capex excl. licenses/revenue

17.4%

18.4%

                      
(1.0p.p.)

Net debt

8,645

8,403

2.9%

Net debt/LTM EBITDA

2.5

2.5

Total mobile customer (millions, excluding Italy)

210

208

0.9%

Total fixed-line broadband customers (millions, excluding Italy)

3.6

3.4

5.6%




1)

Organic change is a non-IFRS measure and reflects changes in revenue and
EBITDA. Organic change excludes the effect of foreign currency movements and other factors, such as


businesses under liquidation, disposals, mergers and acquisitions. In Q2 2018, organic growth is calculated at constant
currency and excludes the impact from Euroset transaction.


See Attachment C for reconciliations

2)

Equity free cash flow excluding licenses is a non-IFRS measure and is
defined as free cash flow from operating activities less cash flow used in investing activities, excluding M&A


transactions, capex for licenses, inflow/outflow of deposits, financial assets and other one-off items. See attachment C
for reconciliations


















USD million

1H18

1H17

Reported


YoY

Organic


YoY 1

Total revenue, of which 

4,520

4,698

(3.8%)

3.1%

   mobile and fixed service revenue

4,292

4,533

(5.3%)

2.3%

   mobile data revenue

1,022

901

13.4%

23.8%

EBITDA

1,711

1,792

(4.5%)

5.5%

EBITDA margin (EBITDA/total revenue)

37.9%

38.1%

                      
(0.3p.p.)

                        
0.9p.p.

Profit/(Loss) from continued operations

80

(95)

185.2%

Loss from discontinued operations

(300)

(174)

(70.9%)

Loss for the period attributable to VEON shareholders

(220)

(269)

18.1%

Equity free cash flow excl. licenses 2

540

315

71.7%

Capital expenditures excl. licenses

757

596

27.0%

LTM capex excl. licenses/revenue

17.4%

18.4%

                      
(1.0p.p.)

Net debt

8,645

8,403

2.9%

Net debt/LTM EBITDA

2.5

2.5

Total mobile customer (millions, excluding Italy)

210

208

0.9%

Total fixed-line broadband customers (millions, excluding Italy)

3.6

3.4

5.6%

Contents

MAIN EVENTS…………………………………………………………………………………………… 5


GROUP PERFORMANCE………………………………………………………………………………… 7


COUNTRY PERFORMANCE……………………………………………………………………………. 12


CONFERENCE CALL INFORMATION………………………………………………………………….. 21


ATTACHMENTS………………………………………………………………………………………… 25

PRESENTATION OF FINANCIAL RESULTS

VEON’s results presented in this earnings release are based on IFRS and have not been audited.

Certain amounts and percentages that appear in this earnings release have been subject to rounding adjustments. As a result,
certain numerical figures shown as totals, including those in tables, may not be an exact arithmetic aggregation of the figures
that precede or follow them.

All non-IFRS measures disclosed in the document, i.e. EBITDA, EBITDA margin, EBIT, net debt, equity free cash flow, organic
growth, capital expenditures excluding licenses, last twelve months (LTM) Capex excluding licenses/Revenue, are reconciled to the
comparable IFRS measures in Attachment C.

VEON Ltd. owns a 50% share of the Italy Joint Venture (with CK Hutchison Holdings Ltd. owning the other 50%) and we account
for this joint venture using the equity method as we do not have control. All information related to the Italy Joint Venture is
the sole responsibility of the Italy Joint Venture’s management, and no such information contained herein, including, but not
limited to, the Italy Joint Venture’s financial and industry data, has been prepared by or on behalf of, or approved by, our
management. All information related to the Wind Tre Joint Venture is the sole responsibility of the Wind Tre Joint Venture’s
management, and no such information contained herein, including, but not limited to, the Wind Tre Joint Venture’s financial and
industry data, has been prepared by or on behalf of, or approved by, our management. For further information on the Italy Joint
Venture and its accounting treatment, see Note 6 to our audited consolidated financial statements included in our Annual Report
on Form 20-F for the year ended 31 December 2017.

On 3 July 2018, VEON Ltd. entered into an agreement with CK Hutchison Holdings Ltd., for the
sale of its 50% stake in the Italy Joint Venture (see Main Events below). As a result of this anticipated transaction, the
investment in the Italy Joint Venture was reclassified as an asset held-for-sale and a discontinued operation as of 30 June 2018. Subsequent to its classification as a discontinued operation, as of 30
June 2018
, the Italy Joint Venture is no longer a reportable segment.

All comparisons are on a year on year basis unless otherwise stated.

MAIN EVENTS

VEON’S SUPERVISORY BOARD HAS APPROVED AN INTERIM DIVIDEND 2018 OF USD 0.12 PER SHARE

Consistent with the Company’s commitment to paying a sustainable and progressive dividend based on the evolution of
its equity free cash flow, the Supervisory Board approved the distribution of an interim gross dividend of USD 0.12 per share for 2018, with a record date of 14 August 2018, compared to
USD 0.11 announced in August 2017. For ordinary shareholders at
Euronext Amsterdam, the interim dividend of USD 0.12 will be paid in euro.

VEON GROUP MANAGEMENT AND STRUCTURE UPDATE

As part of its ongoing comprehensive review to ensure VEON’s HQ is an effective, efficient organization, the Group is
making changes to how it supports its operating companies in emerging markets. Kjell Morten
Johnsen
has been appointed Group Chief Operating Officer, a role he had held on an interim basis since March 2018. To support VEON’s increased focus on emerging markets with a simplified flatter structure, all
VEON’s operating companies will report directly to Kjell.

Christopher Schlaeffer, Group Chief Commercial & Digital Officer, has chosen to leave VEON later this year. Christopher
joined at the start of 2016 to lead a newly created Digital function as well as the Group’s commercial teams. VEON remains
committed to its significant investment in digital infrastructure and services and a search is underway for his successor.

Mark MacGann, Group Chief Corporate & Public Affairs Officer, has also decided to leave VEON. Mark joined in early 2016 in
a newly created role to oversee the Group’s communications, corporate, regulatory and government affairs efforts. The position is
not being filled and the teams will be integrated into different relevant functions.

There are no leadership changes in legal, compliance, finance, HR or technology.


The new high-level structure has now been established as VEON continues to create a leaner HQ with clear accountability, while
continuing our commitment to the highest standards of compliance and internal controls. This work is ongoing as VEON transitions
to a more efficient operating model.

AGREEMENT FOR THE SALE OF 50% STAKE IN THE ITALY JOINT VENTURE TO CK HUTCHISON

On 3 July 2018, VEON (through its wholly owned subsidiary VEON Luxembourg Holdings S.a
r.l.) entered into an agreement with CK Hutchison for the sale of its 50% stake in the Italy Joint Venture. On completion, VEON
will receive a total cash consideration for its equity stake of EUR 2,450 million (approximately
USD 2,867 million equivalent1) and CK Hutchison will take control of the Italy Joint
Venture with VEON fully exiting. VEON intends to use a fraction of proceeds to acquire the GTH assets and the remainder to reduce
debt, reducing its leverage ratio and supporting its current dividend policy2, whilst pursuing other strategic
initiatives. Following completion of both transactions, net pro-forma leverage ratio will be approximately 1.8x, significantly
below VEON’s target ratio of 2.0x.

OFFER TO ACQUIRE GTH ASSETS IN PAKISTAN AND BANGLADESH

In addition to reducing VEON’s debt level, a fraction of the sale proceeds of VEON’s 50% stake in the Italy Joint
Venture (approximately USD 400 million) will be used to further the Group’s ambitions of
simplifying its corporate structure and increasing focus on emerging markets. Accordingly, on 2 July
2018
, VEON submitted an offer to acquire the assets of Global Telecom Holding S.A.E (“GTH”) in Pakistan and Bangladesh for a gross consideration for the equity of
USD 2,550 million. These assets are already fully consolidated in VEON’s accounts. VEON will
continue to hold its stake in Algeria (Djezzy) through GTH.

AGM ELECTED THREE NEW DIRECTORS

Following the election of the directors of the Supervisory Board at the AGM of 30 July
2018
, the Supervisory Board now includes eight previously serving directors, Ursula Burns,
Mikhail M. Fridman, Gennady Gazin, Gunnar
Holt
, Andrei Gusev, Sir Julian Horn-Smith, Guy Laurence and Alexander Pertsovsky, as well as three new directors,
Guillaume Bacuvier, Osama Bedier and Robert Jan van de Kraats.




1)

USD/EUR = 1.17

2)

VEON is committed to paying a sustainable and progressive dividend based on
the evolution of the Company’s equity free cash flow

EUROSET STORES INTEGRATION AND REBRANDING INTO BEELINE MONOBRAND STORES IN RUSSIA ON TRACK

The nationwide integration of the Euroset stores under the single brand “Beeline” integration is on track and at the
end of June 2018, around 1,400 Euroset stores out of the total 1,600 were integrated and rebranded
into Beeline monobrand stores. The company expects the integration to be completed in August
2018
.

GROUP PERFORMANCE

FINANCIALS BY COUNTRY







































USD million

2Q18

2Q17

Reported


YoY

Organic1


YoY

1H18

1H17

Reported


YoY

Organic1


YoY

Total revenue

2,270

2,417

(6.1%)

3.0%

4,520

4,698

(3.8%)

3.1%

Russia

1,174

1,197

(1.9%)

4.5%

2,340

2,294

2.0%

4.1%

Pakistan

363

385

(5.9%)

4.9%

731

755

(3.2%)

5.3%

Algeria

199

231

(13.8%)

(8.5%)

402

463

(13.2%)

(8.9%)

Bangladesh

131

148

(11.6%)

(8.4%)

260

299

(13.1%)

(9.5%)

Ukraine

173

154

12.6%

11.4%

329

297

11.0%

10.8%

Uzbekistan

79

153

(48.0%)

10.3%

155

306

(49.3%)

14.9%

HQ

Other and eliminations

151

149

1.3%

303

284

6.4%

Service revenue

2,136

2,331

(8.4%)

1.6%

4,292

4,533

(5.3%)

2.3%

Russia

1,076

1,147

(6.2%)

2.1%

2,187

2,201

(0.7%)

2.7%

Pakistan

337

359

(6.2%)

4.6%

678

705

(3.8%)

4.7%

Algeria

198

228

(13.2%)

(7.9%)

400

456

(12.4%)

(8.0%)

Bangladesh

125

144

(13.2%)

(10.0%)

250

291

(14.1%)

(10.6%)

Ukraine

172

153

12.3%

11.2%

327

295

10.8%

10.6%

Uzbekistan

79

152

(48.0%)

10.2%

155

305

(49.3%)

14.8%

HQ

Other and eliminations

148

146

1.4%

296

279

6.1%

EBITDA

857

931

(8.0%)

4.8%

1,711

1,792

(4.5%)

5.5%

Russia

441

471

(6.3%)

4.9%

884

880

0.5%

6.2%

Pakistan

174

167

4.8%

16.8%

349

321

8.7%

18.4%

Algeria

87

105

(17.0%)

(11.9%)

178

219

(18.7%)

(14.8%)

Bangladesh

44

61

(26.0%)

(23.3%)

91

130

(29.7%)

(26.8%)

Ukraine

95

87

9.2%

8.0%

184

164

12.2%

12.0%

Uzbekistan

34

83

(58.2%)

(11.5%)

68

162

(57.6%)

(4.3%)

HQ

(54)

(94)

(42.6%)

(134)

(170)

(21.2%)

Other and eliminations

35

51

(30.7%)

90

86

3.9%

EBITDA margin

37.7%

38.5%

        (0.8p.p.)

         0.7p.p

37.9%

38.1%

        (0.3p.p.)

         0.9p.p




1 Organic change is a non-IFRS measure and reflects changes in
revenue and EBITDA. Organic change excludes the effect of foreign currency movements and other factors, such as


businesses under liquidation, disposals, mergers and acquisitions. In H1 2018 and Q2 2018 organic growth is calculated at
constant currency and excludes the impact from Euroset


transaction for the group. In H1 and Q2 2018 the organic change in Russia exclude the impact of Euroset and the impact of
transit traffic revenue. Transit traffic revenue were partially


centralized at VEON Wholesale Services. See Attachment C for reconciliations, including reconciliation for
EBITDA

 

Group reported revenue for Q2 2018 decreased by 6.1% year on year to USD 2.3 billion, primarily
due to currency headwinds in Russia, Uzbekistan, Pakistan, Algeria and Bangladesh. Group
revenue increased by 3.0% organically, driven by revenue growth in Russia, Pakistan, Ukraine and Uzbekistan, which
was partially offset by continued pressure on revenue in Algeria and Bangladesh. The revenue trend was supported by good organic growth in mobile data revenue, increasing 24.5%
for the quarter. Reported mobile data revenue increased by 11.0%. Mobile customers increased 0.9% to 210 million at the end of Q2
2018, primarily driven by growth in customer numbers in Pakistan, Bangladesh and Ukraine.

Group reported EBITDA decreased by 8.0% to USD 857 million in Q2 2018, compared to USD 931 million in Q2 2017, primarily due to the significant devaluation of the Uzbek, Russian and Pakistani
currencies as well as Euroset integration costs, partially offset by lower corporate costs. EBITDA organically increased by 4.8%,
driven by good operational performances in Russia, Pakistan and
Ukraine, which were partially offset by EBITDA pressure in Algeria, Bangladesh and Uzbekistan. A more
detailed explanation for these trends is provided in the following paragraphs.

For the discussion of each country’s individual performances below, all trends are expressed in local currency.

In Russia, Beeline reported good results in Q2 2018, delivering year on year EBITDA growth,
despite the integration costs for Euroset that were incurred during the quarter. The competitive environment was relatively
stable during the quarter, though the company expects the macro-economic and market conditions to remain challenging in
Russia, including as a result of the recent weakening of the ruble. Total revenue in Q2 2018
increased by 6.0%, driven by an increase in mobile service revenue and a strong growth in sales of equipment and accessories of
107.2%, which was mainly attributable to the additional monobrand stores established following the Euroset stores integration and
rebranding. Mobile service revenue increased by 3.5%, driven by growth in mobile data and other value-added services, thereby
offsetting the decrease in voice revenue. Mobile ARPU continued its growth trajectory in Q2 2018, increasing by 5.6% year on
year. Fixed-line service revenue decreased by 10.0%, mainly due to a decrease in transit traffic revenue, which was partially
centralized at VEON Wholesale Services, a Group division based in Amsterdam centrally managing
arrangements of VEON Group companies with international carriers, and reported in revenue of the Group’s segment “other”. EBITDA
increased by 1.2% in Q2 2018, driven by revenue growth, partially offset by increased advertising costs, growth in technical and
IT costs as a result of network expansion and Euroset integration costs of approximately RUB 1
billion
during the quarter. Russia’s EBITDA margin in Q2 was 37.6%, a decrease of 1.8
percentage points year on year, largely as a consequence of the incurred Euroset integration costs.

In Pakistan, total revenue grew by 4.9% year on year and was supported by an acceleration of
mobile data revenue growth of 37.0% year on year, in turn driven by an increase in data customers and usage through higher bundle
penetration and continued data network expansion. The customer base for Jazz, our operating business and local brand, increased
by 5.6% year on year, driven by gross additions together with lower churn as a result of simplifying prices and more efficient
distribution channel management, coupled with better customer retention. Jazz sees data and voice monetization among its key
priorities, underpinned by the aim to offer the best network in terms of both quality of service and coverage. EBITDA increased
by 16.8%, driven by revenue growth, opex synergies and the absence of merger integration costs, leading to an EBITDA margin of
48.2%, an increase of 4.9 percentage points year on year and an increase of 0.7 percentage points quarter on quarter.

In Algeria, trends are improving as customers grew and revenue stabilized quarter on quarter,
signalling a turnaround in a challenging market with intense price competition and a regulatory and macro-economic environment
which remains characterized by inflationary pressures and import restrictions on certain goods. In Algeria, total revenue decreased by 8.5% year on year, a slightly lower pace of decline compared to Q1 2018
(-9.3%) as the operational turnaround continued. Price competition, in both voice and data, caused a continued reduction in ARPU.
Djezzy’s Q2 2018 service revenue decreased by 7.9%, while data revenue growth was 80.7% year on year, due to higher usage and a
substantial increase in data customers as a result of the 3G and 4G/LTE network roll-out. This data revenue growth is also
supported by the change towards a more aggressive data pricing strategy since the beginning of 2018. However, in Q2 the market
reacted and the share of gross adds for Djezzy slightly decreased compared to Q1, while still leading the market with the highest
share. The net adds trend, reversed from negative to positive during Q1 2018, was still positive during Q2 2018 and led to
customer growth quarter on quarter of 1.1%, or broadly flat year on year. EBITDA decreased by 11.9% year on year, mainly due to
the decline in revenue.

In Bangladesh, total revenue decreased by 8.4% year on year, mainly driven by service
revenue, which decreased by 10.0% year on year. The decline in service revenue was still mainly due to the gap in 3G network
coverage compared to the competition. However, service revenue increased by 0.8% quarter on quarter in Q2 2018; the increase was
mainly driven by data growth resulting from improved network during the quarter, following spectrum acquisition in Q1 2018 and
enhanced network availability, along with the expansion of the distribution footprint. The customer base grew by 4.1% year on
year, supported by improved distribution, however the sequential decrease in customer base was mainly caused by intense pricing
pressure in the market, resulting in ARPU decreasing year on year by 14.1%. Data revenue increased by 14.5% year on year, driven
by increased smartphone penetration and 88.0% year on year data usage growth, along with 20.8% growth in active data users.
EBITDA in Q2 2018 decreased by 23.3% to BDT 3.8 billion, mainly as a result of revenue decline and
an increase of structural opex related to network expansion. The EBITDA margin was 34.4% in Q2 2018, which represents a year on
year reduction of 6.7 percentage points.

In Ukraine, total revenue increased by 11.4% year on year, mainly driven by continued strong
growth of mobile data revenue, which increased by 69% as a result of growing data usage and successful marketing activities
driven by the continued 3G network roll-out and data-centric tariffs. EBITDA increased by 8.0%, representing an EBITDA margin of
55.1%, driven by revenue growth, partially offset by increased service costs and customer acquisition costs.

Uzbekistan continued to report double digit revenue growth, driven by repricing activities
that the company introduced in March 2018. Total revenue for the quarter increased by 10.3% and
mobile service revenue increased by 10.0%, driven by 10.9% growth in ARPU. Mobile data traffic more than doubled and mobile data
revenue increased by 53.1% year on year, supported by the continued high-speed data network roll-out, increased smartphone
penetration and the launch of new bundled offers. EBITDA decreased by 11.5% and the EBITDA margin was 43.5% in Q2 2018, mainly
driven by an increase in customer tax (~UZS 57 billion), which doubled to UZS 4,000 per customer per month from 1 January 2018 and the negative impact of the reduction in mobile termination rates.

The HQ segment in Q2 2018 consists largely of costs in VEON’s headquarters in Amsterdam and
London, costs for digital and external costs for services and projects (e.g. M&A and legal
costs). In Q2 2018, these combined costs decreased by 43% year on year to USD 54 million mainly
driven by a decrease in personnel costs, external cost for services and the release of certain provisions. VEON has the mid-term
ambition to halve the run-rate of corporate costs between FY 2017 (USD 431 million) and year-end
2019.

“Other” in Q2 2018 includes the results of Kazakhstan, Kyrgyzstan, Armenia, Georgia, Tajikistan, other global operations and services and intercompany eliminations.

INCOME STATEMENT & CAPITAL EXPENDITURES

























USD million

2Q18

2Q17

Reported


YoY

1H18

2H17

Reported


YoY

Total revenue

2,270

2,417

(6.1%)

4,520

4,698

(3.8%)

Service revenue

2,136

2,331

(8.4%)

4,292

4,533

(5.3%)

EBITDA

857

931

(8.0%)

1,711

1,792

(4.5%)

EBITDA margin

37.7%

38.5%

(0.8p.p.)

37.9%

38.1%

(0.3p.p.)

Depreciation, amortization, impairments and other

(465)

(542)

14.0%

(957)

(1,057)

n.m.

EBIT (Operating Profit)

392

389

0.4%

754

734

2.6%

Financial income and expenses

(194)

(208)

6.7%

(392)

(401)

2.5%

Net foreign exchange (loss)/gain and others

(27)

(169)

n.m.

(24)

91

n.m.

Share of (loss)/profit of joint ventures and associates

(10)

n.m.

(22)

n.m.

Impairment of JV and associates 

(110)

n.m.

(110)

n.m.

Profit before tax

171

(108)

n.m.

338

111

200.6%

Income tax expense

(139)

(65)

(115.2%)

(258)

(206)

(25.2%)

(Loss)/Profit from continued operations

32

(173)

n.m.

80

(95)

n.m.

(Loss)/Profit from discontinued operations

(170)

(85)

(95.6%)

(300)

(174)

(70.9%)

(Loss)/Profit for the period attributable to VEON shareholders

(138)

(258)

46.6%

(220)

(269)

18.1%

2Q18

2Q17

Reported


YoY

1H18

2H17

Reported


YoY

Capex

497

644

(22.9%)

1,271

913

39.3%

Capex excl. licenses

402

333

20.8%

757

596

27.0%

Capex excl. licenses/revenue

17.7%

13.8%

         3.9p.p.

16.7%

12.7%

         4.1p.p.

LTM capex excl. licenses/revenue

17.4%

18.4%

       (1.0p.p.)

17.4%

18.4%

       (1.0p.p.)

Q2 2018 ANALYSIS

Currency weakness, mainly as a result of continued devaluation of the Russian ruble, Pakistan
rupee and Uzbek som, resulted in an 8% decline in reported EBITDA in Q2 of USD 857 million.
Reported EBIT was USD 392 million, slightly up year on year, helped by lower depreciation and
amortization costs mainly as a result of the devaluation of the Uzbek som. In addition, this decrease was driven by the
classification of Pakistan towers as assets held for sale from Q3 2017 and higher amortization
in Pakistan in Q2 2017, following the revision of the useful life of Mobilink and Warid
brands.

Profit before tax turned positive at USD 171 million, compared to a loss of USD 108 million in Q2 2017 mainly due to the Euroset impairment of USD 110
million
and high expenses due to the early redemption premiums on bond repurchases of USD 124
million
. Furthermore, financial expenses decreased year on year in Q2 2018 as a result of lower indebtedness, coupled with
lower interest rates. Starting from Q2 2018 and retrospectively, the share of loss of joint ventures and associates will no
longer include the proportionate results (50%) of the Italy Joint Venture, after the announcement on 3
July 2018
of the agreement for the sale of VEON’s 50% stake in the Italy Joint Venture to CK Hutchison.

The year on year increase in income tax expense to USD 139 million in Q2 2018 was primarily
attributable to higher taxes in Russia resulting from higher profitability, while in Q2 2017 tax
expenses in Russia were low because of deductibility of fees paid in connection with bond
repurchases in 2017.

As a result of the anticipated sale transaction highlighted in the section “Main Events”, the investment in the Italy Joint
Venture was reclassified as an asset held-for-sale and a discontinued operation as of June 30,
2018
, with retrospective adjustment to comparative periods in the Income Statement. The Q2 loss from Italy (presented as a discontinued operation) increased in Q2 2018 to USD 170
million
compared to USD 85 million in Q2 2017, mainly due to higher negative purchase price
allocation adjustments for VEON IFRS reporting purposes, despite lower underlying local net loss for the period.

In Q2 2018, the company recorded a net loss for the period attributable to VEON´s shareholders of USD
138 million
, driven by the above-mentioned factors.

Capex excluding licenses increased to USD 402 million in Q2 2018, primarily as a result of
higher capex in Russia due to accelerated network roll-out and Euroset integration. The LTM
ratio of capex excluding licenses to revenue was 17.4% in Q2 2018, or 1 percentage point lower than Q2 2017.

FINANCIAL POSITION & CASH FLOW














USD million

2Q18

1Q18

QoQ

Total assets

17,442

18,750

(7.0%)

Shareholders’ equity

3,549

4,018

(11.7%)

Gross debt

9,992

10,402

(3.9%)

Net debt

8,645

8,966

(3.6%)

Net debt/LTM EBITDA

2.5

2.5

USD million

2Q18

2Q17

YoY

1H18

1H17

YoY

Net cash from/(used in) operating activities

600

578

22

1,302

1,162

139

Net cash from/(used in) investing activities

(458)

(725)

267

(90)

(1,314)

1,224

Net cash from/(used in) financing activities 

(332)

909

(1,241)

(1,333)

163

(1,496)

Total assets decreased by USD 1,308 million compared to Q1 2018 mainly due to currency
depreciation in Russia and Pakistan and the loss from the Italy
JV.

Gross debt decreased approximately USD 410 million quarter on quarter mainly due to the
scheduled repayment of HQ loans and bonds, as well as the depreciation of the ruble and euro. The reduction in net debt in Q2
2018 was driven by a reduction in gross debt, while cash and deposits remained broadly stable quarter on quarter. Net debt/LTM
EBITDA ratio in Q2 2018 was 2.5x.

Net cash from operating activities was broadly stable year on year at USD 600 million, driven by
higher cash flow from continuing operations as a result of continuous improvements in working capital offsetting the decrease in
EBITDA. The year on year improvement in working capital was mostly related to cash in of certain settlement, partially offset
with purchase of inventory devices in Russia due to Euroset integration.

Net cash flow used in investing activities decreased year on year by USD 267 million as the
payment of the 4G/LTE license purchase in Ukraine in Q2 2018 of USD 74
million
was lower compared to the investment in the Pakistan license in Q2 2017 of
USD 295 million.

Net cash paid in financing activities amounted to USD 332 million in Q2 2018, compared to net
cash received of USD 909 million in Q2 2017; the difference was driven by significantly lower debt
facility draw-downs in Q2 2018 compared to Q2 2017.

COUNTRY PERFORMANCE

  • Russia
  • Pakistan
  • Algeria
  • Bangladesh
  • Ukraine
  • Uzbekistan
  • Italy

RUSSIA

 
























RUB million

2Q18

2Q17

YoY

1H18

1H17

YoY

Total revenue

72,542

68,407

6.0%

138,893

132,913

4.5%

Mobile service revenue

57,609

55,674

3.5%

111,892

108,022

3.6%

Fixed-line service revenue

8,901

9,889

(10.0%)

17,768

19,549

(9.1%)

EBITDA

27,243

26,925

1.2%

52,447

50,995

2.8%

EBITDA margin

37.6%

39.4%

       (1.8p.p.)

37.8%

38.4%

       (0.6p.p.)

Capex excl. licenses

13,321

7,882

69.0%

22,328

14,577

53.2%

LTM Capex excl. licenses /revenue

16.6%

16.7%

       (0.1p.p.)

16.6%

16.7%

       (0.1p.p.)

Mobile

Total revenue

63,576

58,491

8.7%

121,029

113,313

6.8%

– of which mobile data

15,417

14,510

6.2%

30,555

28,413

7.5%

Customers (mln)

56.4

58.3

(3.3%)

– of which data users (mln)

36.6

38.1

(4.0%)

ARPU (RUB)

338

320

5.6%

MOU (min)

323

338

(4.2%)

Data usage (MB/user)

3,454

2,716

27.2%

Fixed-line 1

Total revenue

8,966

9,916

(9.6%)

17,865

19,600

(8.9%)

Broadband revenue

2,547

2,579

(1.2%)

5,107

5,229

(2.3%)

Broadband customers (mln)

2.3

2.2

4.2%

Broadband ARPU (RUB)

371

391

(5.2%)

Beeline reported good results in Q2 2018, delivering year on year EBITDA growth, despite the integration costs for Euroset
that occurred during the quarter. The competitive environment was relatively stable during the quarter, though the company
expects the macro-economic and market conditions to remain challenging in Russia, including as a
result of the recent weakening of the ruble.

Total revenue in Q2 2018 increased by 6.0% year on year to RUB 72.5 billion, driven by an
increase in mobile service revenue and a strong growth in sales of equipment and accessories of 107.2% to RUB 5.7 billion, which was mainly attributable to the additional monobrand stores following the Euroset
integration and rebranding since 22 February 2018. Mobile service revenue increased by 3.5% to
RUB 57.6 billion, mainly driven by growth in mobile data and other value-added services, offsetting
the decrease in voice revenue. Mobile ARPU continued its growth trajectory in Q2 2018, increasing by 5.6% year on year.

Mobile data revenue continued to grow, increasing by 6.2% to RUB 15.4 billion, as a result of an
increased penetration of integrated bundles and smartphones, resulting in data traffic growth. Mobile data ARPU showed continued
improvement, growing by 8.9%, driven by successful upselling activities and continued efforts to simplify tariff plans, while
being supported by increased penetration of bundled propositions in the customer base.

Beeline’s mobile customer base decreased by 3.3% year on year to 56.4 million customers, in line with the market trend, driven
by a reduction in sales from alternative distribution channels, as Beeline focused on monobrand distribution. The customer
decrease was caused by a decline in customers with a lifetime less than 12 months, while customers with a lifetime longer than 12
months increased in the customer base. The share of B2C sales volume from Beeline monobrand stores increased to 38% at the end of
Q2 2018, compared to 24% in the prior year.

Fixed-line service revenue decreased by 10.0% to RUB 8.9 billion. The decline was mainly due to
a decrease of approximately RUB 600 million in transit traffic revenue, which was partially
centralized at VEON Wholesale Services, a Group division based in Amsterdam centrally managing
arrangements of VEON Group companies with international carriers, and reported in revenue of the Group’s segment “other”.
Excluding this impact, fixed-line revenue would have decreased by 4.4%, showing an improving trend compared to previous quarters.
The centralization of the international interconnect and transit traffic services revenues will continue in the remainder of this
year and the expected maximum impact on revenue for Russia is USD 45
million
, while the expected maximum impact on EBITDA is USD 5 million in FY 2018. The FMC
proposition continues to play an important role in the turnaround of the fixed-line business for Beeline. The FMC customer base
grew by 34.0% year on year in Q2 2018 to 973,000. This represents a 43% FMC customer penetration in the broadband customer base,
supporting improvements in broadband customer churn.

Beeline continues to focus on the B2B segment, improving its proposition with more customized offers and solutions to both
small and large enterprises. The segment’s fixed-line business demonstrated a 2.5% growth compared to the first quarter, for the
first time in three years, mostly attributable to the modernization of the network infrastructure and growth in sales.

EBITDA increased by 1.2% to RUB 27.2 billion, leading to an EBITDA margin of 37.6%, a decrease
of 1.8 percentage points year on year. The year on year growth in EBITDA was driven by the revenue growth, partially offset by
increased advertising costs, growth in technical and IT costs as a result of network expansion and Euroset integration costs of
approximately RUB 1 billion during the quarter. The integration costs are partially offset by
improved margin on equipment and accessories, as a result of growth in sales of devices mainly driven by the increased number of
Beeline monobrand stores. The Euroset integration is on track and at the end of July 2018, around
1,400 Euroset stores out of the total 1,600 were integrated and rebranded into Beeline monobrand stores. Beeline expects
continued negative impact on EBITDA of approximately RUB 3 billion in FY 2018 due to the
integration and rebranding costs for the Euroset stores into Beeline monobrand stores. Additionally, Beeline expects EBITDA
margin pressure following the integration and rebranding of the Euroset stores. To partially offset this effect, Beeline plans to
decrease its expenditures on alternative sales channels.

The Euroset integration is an important milestone in executing Beeline´s monobrand strategy. After the rebranding and
integration of the Euroset stores, Beeline expects a positive effect on revenue going forward and, from 2019, on EBITDA, driven
by acceleration in device sales and channel-mix improvement.

Capex excluding licenses increased by 69.0% year on year during the quarter, mainly as a result of accelerated network roll
out and the integration of Euroset stores. Beeline continues to invest in network development to ensure it has high-tech and up
to date network infrastructure that is ready to integrate new technologies. The LTM capex excluding licenses to revenue ratio for
Q2 2018 was 16.6%.

The current best estimate for the expenditures related to the Yarovaya law in FY 2018 of approximately RUB 6 billion are expected to be recognized in Q3 and Q4 2018.

PAKISTAN


















PKR billion

2Q18

2Q17

YoY

1H18

1H17

YoY

Total revenue

42.4

40.4

4.9%

83.4

79.2

5.3%

Mobile service revenue

39.4

37.7

4.6%

77.3

73.9

4.7%

of which mobile data

7.9

5.8

37.0%

14.9

11.0

35.5%

EBITDA

20.4

17.5

16.8%

39.9

33.7

18.4%

EBITDA margin

48.2%

43.3%

        4.9p.p.

47.8%

42.5%

        5.3p.p.

Capex excl. licenses

6.7

6.8

(1.6%)

14.0

10.4

34.5%

LTM capex excl. licenses/revenue

17.5%

18.0%

      (0.5p.p.)

17.5%

18.0%

      (0.5p.p.)

Mobile

Customers (mln)

55.5

52.5

5.6%

– of which data users (mln)

31.5

26.7

17.9%

ARPU (PKR)

236.9

238.4

(0.7%)

MOU (min)

543

520

4.4%

Data usage (MB/user)

950

509

86.7%

The market in Q2 2018 remained competitive, particularly relating to data and social network offers.

Jazz continued to show growth of both revenue and customers despite these competitive market conditions. In Q2 2018, whilst
the country was characterized by political and currency uncertainty ahead of the upcoming elections, revenue growth of 4.9% year
on year was supported by an acceleration of mobile data revenue growth of 37.0% year on year, driven by an increase in data
customers and usage through higher bundle penetration and continued data network expansion. 

The customer base increased by 5.6% year on year, driven by gross additions together with lower churn as a result of
simplifying prices and more efficient distribution channel management, coupled with better customer retention. Jazz sees data and
voice monetization among its key priorities, underpinned by the aim to offer the best network in terms of both quality of service
and coverage.

EBITDA increased by 16.8%, driven by revenue growth, opex synergies and the absence of merger integration costs, leading to an
EBITDA margin of 48.2%, an increase of 4.9 percentage points year on year and an increase of 0.7 percentage points quarter on
quarter.

Capex excluding licenses slightly decreased year on year to PKR 6.7 billion in Q2 2018,
supporting 4G/LTE network expansion. Quarterly distribution is more balanced in FY 2018, while the LTM capex excluding licenses
to revenue ratio was 17.5%. At the end of the Q2 2018, 3G was offered in more than 368 cities while 4G/LTE was offered in over
117 cities (defined as cities with at least three base stations). At the end of Q2 2018, population coverage of 3G and 4G/LTE
networks was 52% and 32.5% respectively.

ALGERIA

















DZD billion

 2Q18 

 2Q17 

YoY

 1H18 

 1H17 

YoY

Total revenue

23.1

25.3

(8.5%)

46.2

50.7

(8.9%)

Mobile service revenue

22.9

24.9

(7.9%)

45.9

49.9

(8.0%)

of which mobile data

5.9

3.2

80.7%

10.8

6.0

80.3%

EBITDA

10.0

11.4

(11.9%)

20.4

23.9

(14.8%)

EBITDA margin

43.4%

45.1%

        (1.7p.p.)

44.1%

47.2%

        (3.0p.p.)

Capex excl. licenses

3.3

3.1

4.3%

4.9

6.0

(19.2%)

LTM capex excl. licenses/revenue

13.9%

15.5%

        (1.6p.p.)

13.9%

15.5%

        (1.6p.p.)

Mobile

Customers (mln)

15.5

15.5

(0.2%)

– of which mobile data customers (mln)

8.3

7.0

18.6%

ARPU (DZD)

496

522

(5.1%)

MOU (min)

447

379

18.1%

Data usage (MB/user)

1,643

478

243.3%

In Algeria, trends are improving as customers grew and revenue stabilized quarter on quarter,
signalling a turnaround in a challenging market with intense price competition and a regulatory and macro-economic environment
which remains characterized by inflationary pressures and import restrictions on certain goods.

Revenue decreased by 8.5% year on year, a slightly lower declining pace compared to Q1 2018, as an operational turnaround
continued. Price competition, in both voice and data, caused a continued reduction in ARPU.


Djezzy’s Q2 2018 service revenue was DZD 22.9 billion, a 7.9% decline, while data revenue growth
was 80.7%, due to higher usage and a substantial increase in data customers as a result of the 3G and 4G/LTE network roll-out.
This data revenue growth is also supported by the change towards a more aggressive data pricing strategy since the beginning of
2018. However, in Q2 the market reacted, and the share of gross adds for Djezzy slightly decreased compared to Q1, while still
leading the market with the highest share. The net adds trend, reversed from negative to positive during Q1 2018, was still
positive during Q2 2018 and led to customer growth quarter on quarter of 1.1% or broadly flat year on year. The quarter on
quarter growth was driven by continued positive uptake of new offers.

ARPU declined by 5.1% year on year, primarily driven by continued and intense price competition.

In June 2018, Djezzy successfully migrated to the new DBSS platform. This step towards the
digitization of core processes is expected to result in simplification, agility, faster time to market, coupled with improved
competitive speed and customer service.

In Q2 2018, EBITDA decreased by 11.9% year on year, mainly due to the decline in revenues. The new Finance Law, effective from
January 2018, continues to impact year on year performance. As a result of new taxation, Djezzy’s
EBITDA was negatively impacted in Q2 2018 by approximately DZD 207 million. This impact on EBITDA
was broadly offset by the positive impact from the partial MTR symmetry, which has been in place since 31
October 2017
.

At the end of Q2 2018, the company’s 4G/LTE services covered 28 wilayas and more than 25.4% of the country’s population, while
the 3G network covered all 48 wilayas and more than 75.6% of population. In Q2 2018, capex excluding licenses was DZD 3.3 billion, with an LTM capex excluding licenses to revenue ratio of 13.9%.

BANGLADESH

















BDT billion

 2Q18 

 2Q17 

YoY

 1H18 

 1H17 

YoY

Total revenue

10.9

12.0

(8.4%)

21.7

24.0

(9.5%)

Mobile service revenue

10.5

11.6

(10.0%)

20.9

23.3

(10.6%)

of which mobile data

1.8

1.5

14.5%

3.4

3.1

11.2%

EBITDA

3.8

4.9

(23.3%)

7.6

10.4

(26.8%)

EBITDA margin

34.4%

41.1%

      (6.7p.p.)

35.2%

43.5%

      (8.3p.p.)

Capex excl. licenses

1.7

1.4

22.2%

6.3

2.2

189.5%

LTM capex excl. licenses/revenue

27.9%

18.7%

        9.2p.p.

27.9%

18.7%

        9.2p.p.

Mobile

Customers (mln)

32.0

30.7

4.1%

– of which mobile data customers (mln)

19.2

15.9

20.8%

ARPU (BDT)

109

127

(14.1%)

MOU (min)

270

285

(5.4%)

Data usage (MB/user)

684

364

88.0%

The market during Q2 2018 was characterized by accelerated price pressure from competition. The regulatory environment remains
challenging and limits customer growth in the market. For example, the regulator has recently restricted sale of subsequent SIM
card within 3-hours of purchase of the preceding SIM using the same national identity card. This restriction has impacted the
gross additions across the mobile industry in Bangladesh.

In Bangladesh, Q2 2018 results continue to be affected by intense competition, with a
specific focus on customer acquisition, and also by costs related to the network expansion after the acquisition in Q1 2018 of
additional spectrum and a 4G/LTE licence. During Q2 2018, Banglalink continued to focus on acquiring customers in a competitive
market, with improved network availability.

Revenue in Q2 2018 decreased by 8.4% year on year, mainly driven by service revenue, which decreased by 10.0% year on year to
BDT 10.5 billion. The decline in service revenue was still mainly due to the gap in 3G network
coverage compared to competition. However, the service revenue increased by 0.8% quarter on quarter in Q2 2018; the increase was
mainly driven by data growth resulting from improved network during the quarter, following spectrum acquisition in Q1 2018 and
enhanced network availability, along with the expansion of the distribution footprint. The customer base grew by 4.1% year on
year, supported by improved distribution, however the sequential decrease in customer base was mainly caused by intense pricing
pressure in the market.  As a result of this pricing pressure, ARPU decreased year on year by 14.1%. Data revenue increased
by 14.5% year on year, driven by increased smartphone penetration and 88.0% year on year data usage growth, along with 20.8%
growth in active data users.

Banglalink’s EBITDA in Q2 2018 decreased by 23.3% to BDT 3.8 billion, mainly as a result of
revenue decline and increase of structural opex due to network expansion. The EBITDA margin was 34.4% in Q2 2018, which
represents a year on year reduction of 6.7 percentage points.

In Q2 2018, capex excluding licenses significantly increased year on year to BDT 1.7 billion,
driven by investments to improve network resilience and roll-out 4G/LTE sites. Banglalink continues to invest in efficient,
high-speed data networks aiming to substantially improve its 3G network coverage (approximately 72% of the population at the end
of Q2 2018, versus approximately 70% in Q1 2018) and availability. The 4G/LTE service, which was launched in February 2018, covered a population of approximately 15% at the end of Q2 2018. LTM capex excluding licenses to
revenue ratio was 27.9%.

UKRAINE
























UAH million

 2Q18 

 2Q17 

YoY

 1H18 

 1H17 

YoY

Total revenue

4,521

4,058

11.4%

8,785

7,929

10.8%

Mobile service revenue

4,200

3,768

11.4%

8,149

7,328

11.2%

Fixed-line service revenue

297

277

7.3%

593

572

3.6%

EBITDA

2,490

2,305

8.0%

4,902

4,378

12.0%

EBITDA margin

55.1%

56.8%

      (1.7p.p.)

55.8%

55.2%

        0.6p.p.

Capex excl. licenses

927

705

31.5%

1,614

1,442

11.9%

LTM capex excl. licenses/revenue

16.0%

19.9%

      (3.9p.p.)

16.0%

19.9%

      (3.9p.p.)

Mobile

Total operating revenue

4,224

3,781

11.7%

8,192

7,357

11.4%

– of which mobile data

1,574

933

68.8%

2,915

1,778

64.0%

Customers (mln)

26.5

26.1

1.4%

– of which data customers (mln)

13.5

11.2

21.1%

ARPU (UAH)

52

48

9.6%

MOU (min)

580

573

1.2%

Data usage (MB/user)

1,811

758

139.0%

Fixed-line

Total operating revenue

297

277

7.3%

593

572

3.6%

Broadband revenue

185

170

8.5%

366

340

7.6%

Broadband customers (mln)

0.9

0.8

6.5%

Broadband ARPU (UAH)

72

69

4.3%

Kyivstar launched 4G/LTE from April 2018, following the spectrum acquisition in February and
March 2018. Kyivstar further strengthened its market position in a growing market and believes it
is well positioned to increase the geographical coverage of its high-speed data network in Ukraine.

Kyivstar continued its strong performance in the second quarter, as total revenue increased by 11.4% year on year to UAH 4.5
billion. Mobile service revenue grew by 11.4% to UAH 4.2 billion. The growth in mobile service revenue was mainly driven by
continued strong growth of mobile data revenue, which increased by 69% as a result of growing data usage and successful marketing
activities, driven by the continued 3G and 4G/LTE network roll-out and data-centric tariffs. As a result, data consumption per
user increased 139.0% in Q2 2018 compared to the same quarter in the previous year.

Kyivstar´s mobile customer base increased by 1.4% to 26.5 million, supported by improved churn, while mobile ARPU increased by
9.6% year on year to UAH 52.

Fixed-line service revenue grew 7.3% year on year to UAH 297 million. Uptake for Kyivstar’s FMC proposition, which was
launched in 2017, continues to be strong and the fixed broadband customer base increased by 6.5% year on year to 858,000, while
fixed broadband ARPU increased by 4.3% year on year to UAH 72.6.

EBITDA increased by 8.0% year on year to UAH 2.5 billion in Q2 2018, representing an EBITDA margin of 55.1%, driven by revenue
growth and partially offset by increased service costs and customer acquisition costs.

Q2 2018 capex excluding licenses was UAH 927 million with an LTM capex excluding licenses to revenue ratio of 16.0%, as
Kyivstar continued to roll out its 3G network, reaching a population coverage of 74.5 %, up from 69% in the same quarter last
year. During Q2 2018 Kyivstar started 4G/LTE rollout in 21 cities, covering 20% of the population.

UZBEKISTAN


















UZS bln

 2Q18 

 2Q17 

YoY

 1H18 

 1H17 

YoY

Total revenue

635

576

10.3%

1,252

1,089

14.9%

Mobile service revenue

629

572

10.0%

1,241

1,082

14.7%

– of which mobile data

213

139

53.1%

400

274

46.1%

Fixed-line service revenue

5.0

3.7

34.6%

9

7

29.6%

EBITDA

277

313

(11.5%)

553

577

(4.3%)

EBITDA margin

43.5%

54.3%

      (10.7p.p.)

44.1%

53.0%

         (8.8p.p.)

Capex excl. licenses

132

60

120.2%

206

135

52.9%

LTM Capex excl. licenses/revenue

15.0%

25.4%

      (10.4p.p.)

15.0%

25.4%

      (10.4p.p.)

Mobile

Customers (mln)

9.3

9.6

(3.1%)

– of which mobile data customers (mln)

5.0

4.5

10.3%

ARPU (UZS)

22,018

19,847

10.9%

MOU (min)

568

578

(1.8%)

Data usage (MB/user)

1,014

392

158.9%

Unitel continued to report double-digit revenue growth in Q2 2018, driven by repricing initiatives introduced in March 2018. Total revenue for the quarter increased by 10.3% year on year and mobile service revenue increased
by 10.0% to UZS 629 billion, driven by 10.9% growth in ARPU. Mobile data traffic more than doubled and mobile data revenue
increased by 53.1% year on year, supported by the continued roll-out of its high-speed data network, increased smartphone
penetration and the launch of new bundled offerings. As a result, the penetration of bundled tariff plans in the customer base
increased to 30.4% in Q2 2018, from 21.9% in Q2 2017. Total mobile customers decreased by 3.1% to 9.3 million, partially due to a
clean-up of the customer base.

EBITDA decreased by 11.5% to UZS 277 billion and the EBITDA margin was 43.5% in Q2 2018, mainly driven by external factors
such as the increase in customer tax (~UZS 56 billion), which doubled to UZS 4,000 per customer per month from 1 January 2018, and the negative impact of the reduction in mobile termination rates.

Capex excluding licenses totalled UZS 132 billion and the Q2 2018 LTM capex excluding licenses to revenue ratio was 15.0%. The
company continued to invest in its high-speed data networks, improving the 4G/LTE coverage to 25% and increasing the number of
nationwide 3G sites by 33% year on year. Further improvements to the high-speed data networks will continue to be a priority for
Unitel for the remainder of 2018.

The cash and deposits balances as of the end of Q2 2018 in Uzbekistan are USD 96 million in Uzbek som. In Q2 2018, VEON’s subsidiary PJSC VimpelCom successfully repatriated a net amount
of approximately USD 86 million from Uzbekistan. The repatriation
of cash was executed at the market rate and the Company aims to continue to repatriate excess cash in the remainder of FY
2018.

ITALY JOINT VENTURE























EUR million

 2Q18 

 2Q17 

YoY

1H18

1H17

YoY

Total revenue

1,361

1,535

(11.4%)

2,771

3,083

(10.1%)

Mobile service revenue

940

1,042

(9.8%)

1,901

2,085

(8.8%)

Fixed-line service revenue

257

268

(4.0%)

516

539

(4.1%)

EBITDA1

451

442

1.9%

935

900

3.9%

EBITDA margin1

33.1%

28.8%

               
4.3p.p.

33.7%

29.2%

               
4.6p.p.

Capex excl. licenses1

235

266

(11.6%)

459

506

(9.3%)

LTM capex excl. licenses/revenue2

19.9%

17.6%

               
2.3p.p.

19.9%

17.6%

               
2.3p.p.

Mobile

Total revenue

1,076

1,239

(13.2%)

2,191

2,492

(12.1%)

– of which mobile data

357

367

(2.7%)

713

719

(0.8%)

Customers (mln)

28.6

30.3

(5.3%)

28.6

30.3

(5.3%)

– of which data customers (mln)

19.3

19.3

(0.0%)

19.3

19.3

(0.0%)

ARPU (EUR)

10.5

11.2

(6.1%)

10.6

11.1

(4.1%)

MOU (min)

290

274

5.9%

287

269

6.7%

Fixed-line

Total revenue

285

296

(3.9%)

579

591

(2.0%)

Total voice customers (mln)

2.71

2.73

(0.8%)

2.71

2.73

(0.8%)

ARPU (EUR)

27.0

27.6

(2.1%)

27.0

27.8

(2.9%)

Broadband customers (mln)

2.41

2.38

1.1%

2.41

2.38

1.1%

Broadband ARPU (EUR)

20.7

21.8

(5.1%)

20.7

21.8

(5.1%)








Notes: EBITDA negatively impacted by integration costs of approximately EUR
81 million in Q2 2017 and of approximately EUR 35 million in Q2 2018

The Italy Joint Venture has different accounting policies for presenting
amortization of capitalized costs of obtaining contracts with customers in accordance IFRS 15.


VEON’s policy is to present this expense within “Selling, general and administrative expenses” in profit or loss, whilst
the Italy Joint Venture presents this expense within


the “Amortization” line item in profit or loss.

1 EBITDA and Capex are in line with the Italy Joint Venture
statutory reported financial schemes: 2018 compliant with IFRS 15 and 2017 compliant with IAS 18. For


comparison purposes: Q2 2018 EBITDA under IAS 18 would have been EUR 427 million; Q2 2018 Capex under IAS 18 would have
been EUR 212 million

2 LTM capex/revenue under IAS 18

Wind Tre’s total revenue in Q2 2018 decreased by 11.4% year on year to EUR 1.4 billion,
primarily driven by a 9.8% decline in mobile service revenue and lower CPE (“Customer Premises Equipment”) related to mobile
handsets. The mobile service revenue decline was primarily due to continuing aggressive competition in the market, which was
exacerbated at the end of May by a new market entrant, which impacted both customer base (-5.3%) and ARPU. In addition, a delay
in network modernization due to the U.S. Department of Commerce’s Denial Order issued to ZTE Corporation (“ZTE”) negatively
impacted Wind Tre’s revenue and the company’s ability to compete and retain customers in non-modernized areas. The mobile handset
revenue decline was primarily due to a lower volume of gross additions and more selective mobile customer scoring starting from
H2 2017.

In Q2 2018, mobile ARPU slightly declined to EUR 10.5, a 6.1% year on year erosion, almost
completely attributable to the voice component.

Fixed-line service revenue declined by 4.0% year on year, due to ARPU dilution only partially offset by the 1.1% increase in
both direct and broadband customers, driven by the increased demand for fibre connections. In Q2 2018, the fixed-line direct
customer base and the broadband customer base reached 2.5 million and 2.4 million respectively. Within the broadband customer
base, fibre customers almost tripled year on year. The highly competitive market has impacted Q2 2018, particularly on total and
broadband ARPUs, which both slightly decreased year on year.

Q2 2018 EBITDA increased by 1.9% year on year to EUR 451 with revenue pressure more than offset
by change in accounting to IFRS 15, contributing 5.3p.p. of EBITDA growth coupled with incremental synergies (approximately
EUR 41 million in Q2 2018) and approximately EUR 45 million lower YoY
integration costs.    

Wind Tre’s EBITDA margin increased 4.3 percentage points to 33.1%.

Capex in the quarter was EUR 235 million and was primarily focused on modernizing and merging
the former Wind and Tre networks as well as expanding capacity and coverage of 4G/LTE.

At the end of June 2018 approximately 1/3 of the transmission sites were modernized including
Rome, Milano and Bologna. The network modernization resulted in
a sensible network performance improvement in these cities, leading to an overall improvement of the customer experience.

On 3 July 2018, VEON (through its wholly owned subsidiary VEON Luxembourg Holdings S.a r.l.)
entered into an agreement with CK Hutchison for the sale of its 50% stake in the Italy Joint Venture.

CONFERENCE CALL INFORMATION

On 2 August 2018, VEON will also host a conference call by senior management at 9:30 CEST (8:30 BST) on the same day, which will be made available through
following dial-in numbers. The call and slide presentation may be accessed at http://www.veon.com

9:30 CEST investor and analyst conference call


US call-in number: +1 (929) 477 0448


Confirmation Code: 7347728

International call-in number: 44 (0) 330 336 9126


Confirmation Code: 7347728

The conference call replay and the slide presentation webcast will be available until 9 August
2018
.


The slide presentation will also be available for download on VEON’s website.

Investor and analyst call replay


US Replay Number: +1 719 457 0820


Confirmation Code: 7347728

UK Replay Number: 0800 101 1153


Confirmation Code: 7347728

DISCLAIMER

This press release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act
of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements
may be identified by words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,”
“seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” and other similar words.
Forward-looking statements include statements relating to, among other things, VEON’s plans to implement its strategic
priorities, including operating model and development plans; anticipated performance and guidance for 2018 and 2019, including
VEON’s ability to generate sufficient cash flow; future market developments and trends; operational and network development and
network investment, including expectations regarding the roll-out and benefits of 3G/4G/LTE networks, as applicable; the effect
of the acquisition of additional spectrum on customer experience; VEON’s ability to realize the acquisition and disposition of
any of its businesses and assets; VEON’S ability to realize financial improvements, including an expected reduction of net
pro-forma leverage ratio following the successful completion of certain dispositions and acquisitions; and VEON’s ability to
realize its targets and strategic initiatives in its various countries of operation. The forward-looking statements included in
this press release are based on management’s best assessment of VEON’s strategic and financial position and of future market
conditions, trends and other potential developments. These discussions involve risks and uncertainties. The actual outcome may
differ materially from these statements as a result of demand for and market acceptance of VEON’s products and services;
continued volatility in the economies in VEON’s markets; unforeseen developments from competition; governmental regulation of the
telecommunications industries; general political uncertainties in VEON’s markets; government investigations or other regulatory
actions; litigation or disputes with third parties or other negative developments regarding such parties;; risks associated with
data protection or cyber security, other risks beyond the parties’ control or a failure to meet expectations regarding various
strategic priorities, the effect of foreign currency fluctuations, increased competition in the markets in which VEON operates
and the effect of consumer taxes on the purchasing activities of consumers of VEON´s services. Certain other factors that could
cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors
described in VEON’s Annual Report on Form 20-F for the year ended December 31, 2017 filed with the
U.S. Securities and Exchange Commission (the “SEC”) and other public filings made by VEON with the SEC. Other unknown or
unpredictable factors also could harm our future results. New risk factors and uncertainties emerge from time to time and it is
not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Under no circumstances should the inclusion of such forward-looking statements in
this press release be regarded as a representation or warranty by us or any other person with respect to the achievement of
results set out in such statements or that the underlying assumptions used will in fact be the case. Therefore, you are cautioned
not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date hereof.
We cannot assure you that any projected results or events will be achieved. Except to the extent required by law, we disclaim any
obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or
otherwise, after the date on which the statements are made, or to reflect the occurrence of unanticipated events. Non-IFRS
measures are reconciled to comparable IFRS measures in VEON Ltd.’s earnings release published on its website on the date hereof.
Furthermore, elements of this press release contain or may contain, “inside information” as defined under the Market Abuse
Regulation (EU) No. 596/2014.

VEON Ltd. owns a 50% share of the Italy Joint Venture (with CK Hutchison owning the other 50%) and we account for this JV
using the equity method as we do not have control. All information related to the Italy Joint Venture is the sole responsibility
of the Italy Joint Venture’s management, and no information contained herein, including, but not limited to, the Italy Joint
Venture’s financial and industry data, has been prepared by or on behalf of, or approved by, our management. As a result of this,
we do not provide any reconciliations for non-IFRS measures for the Wind Tre Joint Venture. For further information on the Italy
Joint Venture and its accounting treatment, see “Explanatory Note—Presentation of Financial Information of the Italy Joint
Venture” included in our Annual Report on Form 20-F for the year ended 31 December 2017 and notes
5, 14 and 25 to our audited consolidated financial statements filed therewith.

All non-IFRS measures disclosed further in this press release (including, without limitation, EBITDA, EBITDA margin, EBT, net
debt, equity free cash flow, organic growth, capital expenditures excluding licenses and LTM (last twelve months) capex excluding
licenses/revenue) are reconciled to comparable IFRS measures in VEON Ltd.’s earnings release published on its website on the date
hereof. In addition, we present certain information on a forward-looking basis (including, without limitation, the expected
impact on revenue, EBITDA and equity free cash flow from the consolidation of the Euroset stores after completing the transaction
ending the Euroset joint venture). We are not able to, without unreasonable efforts, provide a full reconciliation to IFRS due to
potentially high variability, complexity and low visibility as to the items that would be excluded from the comparable IFRS
measure in the relevant future period, including, but not limited to, depreciation and amortization, impairment loss, loss on
disposal of non-current assets, financial income and expenses, foreign currency exchange losses and gains, income tax expense and
performance transformation costs, cash and cash equivalents, long – term and short-term deposits, interest accrued related to
financial liabilities, other unamortized adjustments to financial liabilities, derivatives, and other financial liabilities.

ABOUT VEON

VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services, with the ambition to
lead the personal internet revolution for over 240 million customers it currently serves, and many others in the years to
come.

Follow us:

on Twitter @veondigital

visit our blog @ blog.veon.com  

go to our website @ http://www.veon.com

CONTENT OF THE ATTACHMENTS








Attachment A

Customers

25

Attachment B

Definitions

25

Attachment C

Reconciliation tables

27

Average rates and target rates of functional currencies to USD

For more information on financial and operating data for specific countries, please refer to the supplementary file
Factbook2Q2018.xls on VEON’s website at http://veon.com/Investor-relations/Reports–results/Results/.

ATTACHMENT A: CUSTOMERS














Mobile

Fixed-line broadband

million

2Q18

2Q17

YoY

2Q18

2Q17

YoY

Russia

56.4

58.3

(3.3%)

2.3

2.2

4.2%

Pakistan

55.5

52.5

5.6%

Algeria

15.5

15.5

(0.2%)

Bangladesh

32.0

30.7

4.1%

Ukraine

26.5

26.1

1.4%

0.9

0.8

6.2%

Uzbekistan

9.3

9.6

(3.1%)

Other

14.9

15.4

(3.2%)

0.5

0.4

8.4%

Total consolidated

210.0

208.1

0.9%

3.6

3.4

5.6%

Italy

28.6

30.3

(5.6%)

2.4

2.4

1.1%

Total 

238.6

238.4

0.1%

6.0

5.8

3.8%

ATTACHMENT B: DEFINITIONS

ARPU (Average Revenue per User) measures the monthly average revenue per mobile user. We generally calculate mobile ARPU by
dividing our mobile service revenue during the relevant period, including data revenue, roaming revenue, MFS and interconnect
revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the
average number of our mobile customers during the period and dividing by the number of months in that period. Wind Tre defines
mobile ARPU as the measure of the sum of the mobile revenue in the period divided by the average number of mobile customers in
the period (the average of each month’s average number of mobile customers (calculated as the average of the total number of
mobile customers at the beginning of the month and the total number of mobile customers at the end of the month) divided by the
number of months in that period.

Mobile data customers are mobile customers who have engaged in revenue generating activity during the three months prior to
the measurement date as a result of activities including USB modem Internet access using 2.5G/3G/4G/HSPA+ technologies. Wind Tre
measures mobile data customers based on the number of active contracts signed and includes customers who have performed at least
one mobile Internet event during the previous month. For Algeria, mobile data customers are 3G
customers who have performed at least one mobile data event on the 3G network during the previous four months.

Capital expenditures (capex) are purchases of new equipment, new construction, upgrades, licenses, software, other long-lived
assets and related reasonable costs incurred prior to intended use of the non-current asset, accounted at the earliest event of
advance payment or delivery. Long-lived assets acquired in business combinations are not included in capital expenditures.

Capital expenditures (capex) excluding licenses is calculated as capex, excluding purchases of new spectrum licenses.

EBIT or Operating Profit is calculated as EBITDA plus depreciation, amortization and impairment loss. Our management uses EBIT
as a supplemental performance measure and believes that it provides useful information of earnings of the Company before making
accruals for financial income and expenses and net foreign exchange (loss)/gain and others. Reconciliation of EBIT to net income
attributable to VEON Ltd., the most directly comparable IFRS financial measure, is presented in the reconciliation tables section
in Attachment C below.

Adjusted EBITDA (called EBITDA in this document) is a non-IFRS financial measure. VEON calculates Adjusted EBITDA as
(loss)/profit before tax before depreciation, amortization, loss from disposal of non-current assets and impairment loss and
includes certain non-operating losses and gains mainly represented by litigation provisions for all of its segments except for
Russia. Our Adjusted EBITDA may be used to evaluate our performance against other
telecommunications companies that provide EBITDA.

Additionally, a limitation of EBITDA’s use as a performance measure is that it does not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating revenue or the need to replace capital equipment over time.
Reconciliation of EBITDA to net income attributable to VEON Ltd., the most directly comparable IFRS financial measure, is
presented in the reconciliation tables section in Attachment C below.

EBITDA margin is calculated as EBITDA divided by total revenue, expressed as a percentage.

Gross Debt is calculated as the sum of long term notional debt and short-term notional debt.

Equity free cash flow is a non-IFRS measure and is defined as free cash flow from operating activities less cash flow used in
investing activities, excluding M&A transactions, capex for licenses, inflow/outflow of deposits, financial assets and other
one-off items. Reconciliation to the most directly comparable IFRS financial measure, is presented in the reconciliation tables
section in Attachment C below.

An FMC customer is a customer on a 1 month Active Broadband Connection subscribing to a converged bundle consisting of at
least fixed internet subscription and at least 1 mobile SIM

Households passed are households located within buildings, in which indoor installation of all the FTTB equipment necessary to
install terminal residential equipment has been completed.

MFS (Mobile financial services) is a variety of innovative services, such as mobile commerce or m-commerce, that use a mobile
phone as the primary payment user interface and allow mobile customers to conduct money transfers to pay for items such as goods
at an online store, utility payments, fines and state fees, loan repayments, domestic and international remittances, mobile
insurance and tickets for air and rail travel, all via their mobile phone.

Mobile customers are generally customers in the registered customer base as at a given measurement date who engaged in a
revenue generating activity at any time during the three months prior to such measurement date. Such activity includes any
outgoing calls, customer fee accruals, debits related to service, outgoing SMS and MMS, data transmission and receipt sessions,
but does not include incoming calls, SMS and MMS or abandoned calls. Our total number of mobile customers also includes customers
using mobile internet service via USB modems and fixed-mobile convergence (“FMC”)

Net debt is a non-IFRS financial measure and is calculated as the sum of interest bearing long-term notional debt and
short-term notional debt minus cash and cash equivalents, long-term and short-term deposits. The Company believes that net debt
provides useful information to investors because it shows the amount of notional debt outstanding to be paid after using
available cash and cash equivalents and long-term and short-term deposits. Net debt should not be considered in isolation as an
alternative to long-term debt and short-term debt, or any other measure of the Company financial position.

Net foreign exchange (loss)/gain and others represents the sum of Net foreign exchange (loss)/gain, VEON’s share in net
(loss)/gain of associates and Other (expense)/income (primarily (losses)/gains from derivative instruments) and is adjusted for
certain non-operating losses and gains mainly represented by litigation provisions.

NPS (Net Promoter Score) is the methodology VEON uses to measure customer satisfaction.

Organic growth in revenue and EBITDA are non-IFRS financial measures that reflect changes in Revenue and EBITDA, excluding
foreign currency movements and other factors, such as businesses under liquidation, disposals, mergers and acquisitions.

Reportable segments: the Company identified Russia, Pakistan, Algeria, Bangladesh,
Ukraine, Uzbekistan and HQ based on the business activities in
different geographical areas

Total revenue in this section is fully comparable with Total Operating revenue in MD&A section below.

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF CONSOLIDATED EBITDA




































USD mln

2Q18

2Q17

1H18

1H17

Unaudited

EBITDA

857

931

1,711

1,792

Depreciation

(328)

(386)

(674)

(776)

Amortization

(130)

(146)

(256)

(268)

Impairment loss

(7)

(8)

(10)

(5)

Loss on disposals of non-current assets

(20)

(2)

(37)

(9)

Gain (loss) on disposal of subsidiaries

20

20

Operating profit

392

389

754

734

Financial Income and Expenses

(194)

(208)

(392)

(401)

 –  including  finance income

12

24

31

46

 –  including finance costs

(206)

(232)

(423)

(447)

Net foreign exchange (loss)/gain and others

(27)

(289)

(24)

(222)

 –  including Other non-operating (losses)/gains

(16)

(116)

(25)

(152)

  –  including Shares of loss of associates and joint ventures
accounted for using the equity method 

(10)

(22)

  –   including impairments of JV and
associates 

(110)

(110)

 –  including Net foreign exchange gain

(11)

(53)

1

62

Profit before tax

171

(108)

338

111

 Income tax expense 

(139)

(65)

(258)

(206)

 Profit/(Loss) from discontinued operations 

(170)

(85)

(300)

(174)

(Loss)/Profit for the period

(138)

(258)

(220)

(269)

Less profit attributable to non-controlling interest

1

20

28

14

(Loss)/profit attributable to the owners of the parent

(139)

(278)

(248)

(283)

 

RECONCILIATION OF CAPEX








USD mln unaudited

2Q18

2Q17

1H18

1H17

Cash paid for purchase of property, plant and equipment and intangible
assets

501

709

1,177

1,196

Net difference between timing of recognition and payments for purchase of
property, plant and equipment and intangible assets

(5)

(65)

94

(283)

Capital expenditures 

497

644

1,271

913

Less capital expenditures in licenses and other

(95)

(312)

(514)

(316)

Capital expenditures excl. licenses

402

333

757

596

 

RECONCILIATION OF ORGANIC AND REPORTED GROWTH RATES













2Q18 vs 2Q17

Total Revenue

EBITDA

Organic

Forex & other 1

Reported

Organic

Forex & other 1

Reported

Russia 

4.5%

(6.4%)

(1.9%)

4.9%

(11.2%)

(6.3%)

Pakistan

4.9%

(10.8%)

(5.9%)

16.8%

(12.0%)

4.8%

Algeria

(8.5%)

(5.3%)

(13.8%)

(11.9%)

(5.0%)

(17.0%)

Bangladesh

(8.4%)

(3.2%)

(11.6%)

(23.3%)

(2.7%)

(26.0%)

Ukraine 

11.4%

1.2%

12.6%

8.0%

1.1%

9.2%

Uzbekistan

10.3%

(58.3%)

(48.0%)

(11.5%)

(46.6%)

(58.2%)

Total 

3.0%

(9.1%)

(6.1%)

4.8%

(12.8%)

(8.0%)

 















1H18 vs 1H17

Total Revenue

EBITDA

Organic

Forex & other 1

Reported

Organic

Forex & other 1

Reported

Russia 

4.1%

(2.1%)

2.0%

6.2%

(5.7%)

0.5%

Pakistan

5.3%

(8.5%)

(3.2%)

18.4%

(9.6%)

8.7%

Algeria

(8.9%)

(4.3%)

(13.2%)

(14.8%)

(4.0%)

(18.7%)

Bangladesh

(9.5%)

(3.5%)

(13.1%)

(26.8%)

(2.9%)

(29.7%)

Ukraine 

10.8%

0.2%

11.0%

12.0%

0.2%

12.2%

Uzbekistan

14.9%

(64.2%)

(49.3%)

(4.3%)

(53.4%)

(57.6%)

Total 

3.1%

(6.9%)

(3.8%)

5.5%

(10.0%)

(4.5%)

1)  In Q2 2018 and H1 2018 other includes the impact from
Euroset transaction for the group. In Q2 2018 and H1 2018 other in Russia includes the impact of Euroset and the impact
of transit traffic revenue. Transit traffic revenue were partially centralized at VEON Wholesale Services

 

RECONCILIATION OF VEON CONSOLIDATED NET DEBT
















USD mln

30 June 2018

31 March 2018

31 December 2017

Net debt

8,645

8,966

8,741

Cash and cash equivalents

1,343

1,393

1,304

Long – term and short-term deposits

4

43

70

Cash pledged as collateral for the Mandatory Tender Offer

987

Gross debt

9,992

10,402

11,102

Interest accrued related to financial liabilities

113

132

130

Other unamortised adjustments to financial liabilities (fees, discounts
etc.)

(29)

(35)

(34)

Derivatives not designated as hedges

314

311

310

Derivatives designated as hedges

48

81

60

Other financial liabilities

134

135

62

Total other financial liabilities

10,571

11,026

11,630

Note: As of June 30, 2018, some bank accounts forming part of a cash
pooling program and being an integral part of VEON’s cash management remained overdrawn by US$ 201 million. Even though
the total balance of the cash pool remained positive, VEON has no legally enforceable right to set-off and therefore the
overdrawn accounts are presented as financial liabilities and form part of our debt in our financial
statements

 

RECONCILIATION OF EQUITY FREE CASH FLOW













USD million

2Q18

2Q17

YoY

EBITDA

857

931

(8.0%)

Changes in working capital

64

(42)

n.m.

Movements in provision

(24)

(6)

n.m.

Net interest paid received

(189)

(189)

(0.2%)

Income tax paid

(108)

(117)

(7.5%)

Cash flow from operating activities (excl.discontinued
operations)

600

578

3.7%

Capex excl.licenses

(402)

(333)

20.8%

Working capital related to Capex excl. license

5

(50)

n.m.

Proceeds from sale of PPE

3

14

(78.6%)

Equity Free Cash Flow excl.licenses

206

209

(1.3%)

 

RECONCILIATION OF SHARE OF PROFIT / LOSS FROM ITALY JOINT VENTURE














USD mln

2Q18

2Q17

1H18

1H17

Italy JV reported net result

(214)

(626)

(420)

(1,168)

50% of Italy JV reported net result

(107)

(313)

(210)

(584)

D&A – PPA adjustment

(63)

213

(95)

403

Other PPA adjustmnet

15

5

7

Total PPA adjustment

(63)

228

(90)

410

Share of profit/(loss) from JV and associates

(170)

(85)

(300)

(174)

EBITDA RECONCILIATION FOR COUNTRY

Q2 2018














Russia

Pakistan

Algeria

Bangladesh

Ukraine

Uzbekistan

HQ

Other

VEON


Consolidated

USD mln

EBITDA

441

174

87

44

95

34

(54)

35

857

Less

Depreciation

(189)

(31)

(25)

(31)

(15)

(9)

(1)

(28)

(328)

Amortization

(39)

(32)

(20)

(16)

(11)

(0)

(3)

(9)

(130)

Impairment loss

(5)

(1)

(0)

(1)

(0)

(7)

Loss on disposals of non-current assets

(9)

(0)

0

(5)

(5)

(0)

(1)

(21)

Gain (loss) on disposal of subsidiaries

20

20

Operating profit

198

112

41

(7)

64

25

(58)

17

392

 

Q2 2017














Russia

Pakistan

Algeria

Bangladesh

Ukraine

Uzbekistan

HQ

Other

VEON


Consolidated

USD mln

EBITDA

471

167

105

61

87

83

(94)

51

931

Less

Depreciation

(206)

(65)

(25)

(32)

(13)

(15)

(30)

(386)

Amortization

(40)

(42)

(29)

(10)

(13)

(1)

(2)

(9)

(146)

Impairment loss

(8)

(1)

1

(9)

Loss on disposals of non-current assets

(8)

4

(2)

1

4

(1)

Gain (loss) on disposal of subsidiaries

Operating profit

209

64

50

16

62

71

(96)

13

389

 

H1 2018














Russia

Pakistan

Algeria

Bangladesh

Ukraine

Uzbekistan

HQ

Other

VEON


Consolidated

USD mln

EBITDA

884

349

178

91

184

68

(134)

90

1,711

Less

Depreciation

(398)

(62)

(51)

(61)

(28)

(16)

(1)

(56)

(674)

Amortization

(76)

(65)

(41)

(27)

(21)

(1)

(6)

(19)

(256)

Impairment loss

(6)

20

(1)

(1)

(21)

(10)

Loss on disposals of non-current assets

(11)

(1)

0

(19)

(5)

(1)

(37)

Gain (loss) on disposal of subsidiaries

20

20

Operating profit

393

241

84

(16)

129

51

(141)

13

754

 

H1 2017













Russia

Pakistan

Algeria

Bangladesh

Ukraine

Uzbekistan

HQ

Other

VEON


Consolidated

USD mln

EBITDA

880

321

219

130

164

162

(170)

86

1,792

Less

Depreciation

(409)

(117)

(56)

(72)

(29)

(31)

(1)

(61)

(776)

Amortization

(79)

(63)

(57)

(20)

(24)

(3)

(4)

(18)

(268)

Impairment loss

(9)

0

1

1

(5)

Loss on disposals of non-current assets

(12)

3

0

(6)

2

6

(2)

(8)

Operating profit

372

144

105

33

114

134

(175)

7

734

 

RATES OF FUNCTIONAL CURRENCIES TO USD1

















Target rates 

Average rates

Closing rates

2018

2Q18

2Q17

YoY

2Q18

2Q17

YoY

Russian Ruble

60

61.80

57.15

8.1%

62.76

59.09

6.2%

Euro

0.8

0.84

0.91

-7.6%

0.86

0.88

-2.2%

Algerian Dinar

110

115.80

109.04

6.2%

117.50

107.80

9.0%

Pakistan Rupee

105

116.80

104.81

11.4%

121.58

104.83

16.0%

Bangladeshi Taka

79

83.78

80.86

3.6%

83.78

80.64

3.9%

Ukrainian Hryvnia

27

26.18

26.46

-1.1%

26.19

26.10

0.3%

Kazakh Tenge

340

329.63

315.01

4.6%

341.08

321.46

6.1%

Uzbekistan Som

8,748

8,011.80

3,778.07

112.1%

7,871.66

3,958.56

98.9%

Armenian Dram

480

482.75

483.37

-0.1%

482.24

480.47

0.4%

Kyrgyz Som

70

68.50

68.12

0.6%

68.18

69.14

-1.4%

Georgian Lari

2.4

2.45

2.42

1.1%

2.45

2.41

1.8%

1 Functional currency in Tajikistan is USD

 

View original content:http://www.prnewswire.com/news-releases/veon-reports-good-q2-2018-results-with-fy-2018-targets-confirmed-300690728.html

SOURCE VEON Ltd.



Source link

Content Disclaimer 

This Content is Generated from RSS Feeds, if your content is featured and you would like to be removed, please Contact Us With your website address and name of site you wish to be removed from.

Note:

You can control what content is distributed in your RSS Feed by using your Website Editor.   If you are looking to make money from running your own business at home, visit the links below.

Computers and Software Buyers Guide

Compare Computers and Laptops

Mobile Phones Buyers Guide

Compare Mobile Phones