Veon (company)

{{Short description|Multinational telecommunication services company}}

{{Infobox company

| name = VEON Ltd.

| image = The_Index_Tower_-_panoramio.jpg

| image_caption = Headquarters in The Index tower in Dubai{{cite web | url=https://www.reuters.com/markets/companies/VEON.DF | title=VEON.DF - | Stock Price & Latest News | Reuters | website=Reuters }}

| type = Public

| traded_as = {{Unbulleted list|{{NASDAQ|VEON}} }}

| fate =

| predecessor = PJSC VimpelCom and Kyivstar

| successor =

| former_names = VimpelCom Ltd. (2009–2017)

| foundation = {{Start date and age|df=yes|2009}}

| founder =

| defunct =

| location_city = Dubai

| location_country = United Arab Emirates

| locations =

| area_served = Asia, Europe

| key_people = Kaan Terzioğlu (Group CEO), Augie K Fabela II (founder and chairman), Mike Pompeo (board member)

| industry = Telecommunications

| products = Mobile telephony, mobile phones retailing, international telephony, broadband Internet, IPTV, city-wide Wi-Fi, domain name registrar and others

| revenue = {{decrease}} {{US$|3.7 billion|link=yes}} (2023)

| operating_income =

| net_income =

| assets = {{decrease}} {{US$|8.2 billion}} (2023)

| equity =

| num_employees = 17,206 (2023){{Cite web |url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1468091/000146809124000076/vip-20231231.htm |title=2023 Annual Report (Form 20-F) |date=17 October 2024 |publisher=U.S. Securities and Exchange Commission}}

| owners = {{ubl

|Shah Capital Management (13.4%)

|Lingotto Investment Management (7.5%)}}

| divisions = Kyivstar, Jazz, Mobilink Bank, Banglalink, Beeline

| homepage = {{URL|www.veon.com}}

| footnotes =

}}

VEON Ltd. (formerly VimpelCom Ltd.), also known as VEON Group, is a multinational telecommunication and digital services company.{{Cite web |last=UzDaily |title=VEON Group CEO Kaan Terzioğlu: We will go beyond the traditional telecom company |url=https://www.uzdaily.uz/en/post/83419/ |access-date=2024-09-23 |website=UzDaily.uz |language=en}} Headquartered in Dubai, the company is publicly traded on the U.S.-based NASDAQ stock exchange. VEON operates in six markets in Europe and Asia, including Bangladesh, Kazakhstan, Kyrgyzstan, Pakistan, Ukraine and Uzbekistan. Specific brands include Banglalink in Bangladesh, Jazz in Pakistan, Kyivstar in Ukraine, and units operating in Kazakhstan, Kyrgyzstan, and Uzbekistan under the Beeline brand. In 2024, the company had 160 million total customers, 1.8 million fixed line customers, and 111 million monthly active users of its digital services, with products and services in areas such as mobile financial services, entertainment, health, and education among others.{{cite web | url=https://telecomtalk.info/veon-to-accelerate-digital-operator-1440-model/684651/ | title=Veon to Accelerate Digital Operator 1440 Model }}

History

=2009–2016=

VEON was founded in 2009 as VimpelCom, a multinational holding company. Incorporated in Bermuda and headquartered in the Netherlands, VimpelCom was formed when Telenor and Alfa agreed to merge their assets in the telecommunications companies PJSC VimpelCom and Kyivstar. At the time of the incorporation, Kyivstar was Ukraine's largest wireless operator, while PJSC VimpelCom was the second-largest telecommunications operator in Russia.{{cite web|last=Nicholson |first=Chris V. |url=https://dealbook.nytimes.com/2009/10/05/telenor-and-alfa-reach-deal-on-vimpelcom/ |title=Telenor and Alfa Reach Deal on VimpelCom – NYTimes.com |publisher=Dealbook.nytimes.com |date=2009-10-05 |access-date=2012-05-02}} Kyivstar had been founded in 1994{{cite web | url=https://www.kyivpost.com/post/27895 | title='Account Compromise' Caused December Cyberattack – Kyivstar President | date=11 February 2024 }} by Ihor Lytovchenko, also its long-term CEO.{{cite web | url=https://www.kyivpost.com/content/business/kyivstar-founder-ihor-lytovchenko-to-quit-company-352133.html | title=Kyivstar founder Ihor Lytovchenko to quit company - Jun. 16, 2014 | date=16 June 2014 }} PJSC VimpelCom, founded in 1992 by an American businessman Augie K Fabela II and Dmitry Zimin{{cite web |url=http://about.beeline.ru/en/management/founders.wbp?id=38f1d90f-3471-43d4-a4b3-57e9924e8ff9 |title=Founders |publisher=About.beeline.ru |date=1933-04-28 |access-date=2013-09-22 |archive-date=27 September 2013 |archive-url=https://web.archive.org/web/20130927221604/http://about.beeline.ru/en/management/founders.wbp?id=38f1d90f-3471-43d4-a4b3-57e9924e8ff9 |url-status=dead }} as a mobile carrier,{{cite web |url=http://about.beeline.ru/en/management/founders.wbp?id=c8b13687-1089-4ba7-a805-57464c6ad559 |title=Founders |publisher=About.beeline.ru |access-date=2013-09-22 |archive-date=27 September 2013 |archive-url=https://web.archive.org/web/20130927221429/http://about.beeline.ru/en/management/founders.wbp?id=c8b13687-1089-4ba7-a805-57464c6ad559 |url-status=dead }} had launched its Beeline brand in 1993{{citation needed|date=September 2024}} and listed on the NYSE in 1996.{{Cite web |title=Vimpelcom to move stock listing to Nasdaq |website=Reuters |date=7 August 2013 |url=https://www.reuters.com/article/us-vimpelcom-results/vimpelcom-to-move-stock-listing-to-nasdaq-idUSBRE9760AD20130807/ |access-date=2024-10-10}}

File:VimpelCom logo.png

Under CEO Alexander Izosimov, VimpelCom acquired Orascom Telecom and Wind from Naguib Sawiris in 2011.{{cite web | url=https://www.daily-sun.com/printversion/details/650067 | title=VEON CEO to arrive today | date=October 2022 }} After a number of acquisitions, as of December 31, 2011, VimpelCom had 205 million customers across 20 countries,{{cite web |url=http://vimpelcom.com/pr/fs.wbp |title=Fact Sheet(s) |publisher=Vimpelcom.com |access-date=2012-05-02 |archive-url=https://web.archive.org/web/20130207030725/http://www.vimpelcom.com/pr/fs.wbp |archive-date=2013-02-07 |url-status=dead }} and by 2012 it was the 13th largest mobile network operator in the world by number of subscribers.{{cite web|last=Pavliva |first=Halia |url=https://www.bloomberg.com/news/2012-04-12/vimpelcom-rises-as-orascom-rejects-fine-files-for-arbitration.html |title=VimpelCom Rises as Orascom Rejects Fine, Files for Arbitration |publisher=Bloomberg |date=2012-04-12 |access-date=2012-05-02}} The company switched its listing from the NYSE Euronext to the NASDAQ on September 10, 2013.{{Cite news|url=http://blogs.marketwatch.com/thetell/2013/08/07/nasdaq-snags-telecom-vimpelcom-from-nyse/|title=Nasdaq snags telecom VimpelCom from NYSE|work=Marketwatch|access-date=2017-08-22|archive-date=22 August 2017|archive-url=https://web.archive.org/web/20170822221651/http://blogs.marketwatch.com/thetell/2013/08/07/nasdaq-snags-telecom-vimpelcom-from-nyse/|url-status=dead}} It sold its majority stake in Wind Mobile to Globalive in 2014 for US$272 million.{{cite press release | publisher=Reuters| date=15 September 2014| title=Vimpelcom to sell Wind Mobile stake to Canadian minority owner | url=https://www.reuters.com/article/us-canada-telecommunications-windmobile-idUSKBN0HA29I20140915}} and in 2015 the government of Algeria bought VimpelCom's 51% stake in Djezzy for $2.6 billion.{{cite web|title=VimpelCom closes Djezzy deal with Algerian government|url=http://www.developingtelecoms.com/business/deals/operators/5703-vimpelcom-closes-djezzy-deal-with-algerian-government.html|website=Developing Telecom| date=4 February 2015 |access-date=6 March 2017}} VimpelCom's revenue was $9.78 billion in 2016,{{cite web|title=VimpelCom on the Forbes Global 2000 List|url=https://www.forbes.com/companies/vimpelcom/|website=Forbes|access-date=2 June 2016}} while assets were $33.85 billion.{{cite web|url=https://www.forbes.com/companies/vimpelcom/|title=VEON on the Forbes Global 2000 List|website=forbes.com|access-date=15 August 2018}}

= 2017–2022 =

In February 2017, VimpelCom renamed itself VEON, named after the messaging platform that it had developed. The company explained that the re-branding was part of a shift towards marketing itself as a technology company instead of just a telecommunications firm.{{cite web|title=Google and Facebook face an unlikely competitor in emerging markets: a telecom giant|url=https://qz.com/919888/google-and-facebook-face-an-unlikely-competitor-in-emerging-markets-a-telecom-giant/|website=Quartz|date=28 February 2017 |access-date=6 March 2017}}{{Cite web|title=VEON|url=https://26five.com/case-studies/veon/|access-date=2021-10-26|website=26FIVE|language=en-US|archive-date=26 October 2021|archive-url=https://web.archive.org/web/20211026100045/https://26five.com/case-studies/veon/|url-status=dead}} VEON began listing its shares on Euronext Amsterdam in April 2017.{{Cite news|url=https://veon.com/media-center/Press-releases/2017/VEON-to-list-on-the-Euronext-Amsterdam/|title=VEON to list on the Euronext Amsterdam|work=VimpelCom|access-date=2017-08-22|language=en-GB|archive-date=8 January 2019|archive-url=https://web.archive.org/web/20190108201213/https://veon.com/media-center/Press-releases/2017/VEON-to-list-on-the-Euronext-Amsterdam/|url-status=dead}} In July 2017, VEON launched a personal internet platform named VEON in Ukraine, Bangladesh, Pakistan, Italy, and Georgia.{{Cite news|url=https://veon.com/media-center/Press-releases/2017/VEON-Launches-Personal-Internet-Platform-in-Major-Markets/|title=VEON Launches Personal Internet Platform in Major Markets|work=VimpelCom|access-date=2017-11-21|language=en-GB}}{{dead link|date=September 2024}} After a number of divestments and a business transformation, by summer 2017, VEON had around 200 million combined subscribers across 12 markets.{{cite web|url=https://veon.com/profile/Operations/ |title=VEON Business |publisher=VEON |access-date=2017-07-15}}{{dead link|date=September 2024}} By the end of 2017, various listed VEON subsidiaries included Golden Telecom, Kyivstar, and Banglalink, among others in Europe and Africa.{{Citation |date=December 31, 2017 |title=List of subsidiaries |publisher=SEC |url=https://www.sec.gov/Archives/edgar/data/1468091/000104746918001668/a2234823zex-8.htm |access-date=September 17, 2024}}

In March 2018, CEO Jean-Yves Charlier resigned and CEO duties were temporarily assumed by VEON's chair, Ursula Burns.{{Cite news|url=https://www.reuters.com/article/us-veon-moves/veons-ceo-resigns-chairwoman-to-take-over-temporarily-coo-named-idUSKBN1H30IM|title=Veon's CEO resigns, chairwoman to take over temporarily, COO named|work=Reuters|access-date=2018-09-23|language=en-GB}} Burns was appointed CEO in December 2018 while remaining chair.{{cite news |last1=Bicheno |first1=Scott |title=Burns officially made Veon CEO at last |url=http://telecoms.com/494180/ursula-burns-officially-made-veon-ceo-at-last/ |access-date=10 January 2019 |work=Telecoms.com |date=13 December 2018}} In October 2019, VEON hired Sergi Herrero and former ex-Turkcell CEO Kaan Terzioğlu as joint COOs of VEON Group.{{cite news | title=VEON hires ex Turkcell CEO|url=https://www.digitaltveurope.com/2019/10/28/veon-hires-ex-turcell-ceo/|access-date=28 October 2019 |work=digitaltveurope.com |date=28 October 2019}} They both succeeded Burns as co-CEOs in February 2020,{{cite news |last1=Burkitt-Gray |first1=Alan |title=New co-CEOs for Veon as Ursula Burns reverts to chairmanship |url=https://www.capacitymedia.com/articles/3824914/new-co-ceos-for-veon-as-ursula-burns-reverts-to-chairmanship |access-date=9 June 2020 |work=Capacity Media |date=14 February 2020}} and in June 2020, Gennady Gazin succeeded Burns as chairman.{{cite news |last1=Boyadzhieva |first1=Yanitsa |title=Veon settles on new chair, board members |url=https://www.mobileworldlive.com/featured-content/top-three/veon-settles-on-new-chair-board-members/ |access-date=9 June 2020 |work=Mobile World Live |date=2 June 2020}} In 2020 VEON purchased the remaining 15% shares in Jazz from Abu Dhabi Group in Pakistan for 100% ownership.{{Cite web|author=News Desk|date=2020-09-29|title=Veon to buy remaining shares in Jazz for 100pc ownership|url=https://profit.pakistantoday.com.pk/2020/09/29/veon-to-buy-remaining-shares-in-jazz-for-100pc-ownership/|access-date=2020-09-30|website=Profit by Pakistan Today|language=en-US}} VEON exited Armenia in 2020.{{cite web | url=https://www.mobileworldlive.com/featured-content/top-three/veon-sells-georgia-unit-for-45m/ | title=Veon sells Georgia unit for $45M | date=9 June 2022 }} In July 2021, Terzioğlu became VEON's Group CEO,{{cite web | url=https://www.veon.com/we-are-veon/leadership/details/kaan-terzioglu | title=Details }} with oversight of VEON's executives and its regional CEOs assigned to separate markets. The company sold its Georgia unit for $45 million in June 2022, stating it was streamlining its operations. In August 2022, VEON completed the sale of Djezzy to the government of Algeria for USD$682 million.{{cite web | url=https://www.mobileworldlive.com/featured-content/top-three/veon-completes-sale-of-djezzy-algeria-stake/ | title=Veon completes sale of Djezzy Algeria stake | date=5 August 2022 }} After announcing the pending sale of its Russian operations on November 24, 2022,{{Cite web |date=2023-05-30 |title=VEON enters the final stages in the sale of its Russia operations |url=https://www.veon.com/media/media-releases/2023/veon-enters-the-final-stages-in-the-sale-of-its-russia-operations/ |access-date=2023-06-04 |website=Veon |language=en}} VEON completed the sale on October 9, 2023, completely leaving the Russian market.{{Cite web |title=Veon completes Russia exit as Vimpelcom sale closes |work=Reuters |date=9 October 2023 |url=https://www.reuters.com/markets/deals/veon-completes-russia-exit-vimpelcom-sale-closes-2023-10-09/ |access-date=2024-10-10 |last1=Marrow |first1=Alexander }} Following the sale, the company went through various management changes, including reducing the board from 11 to 7 members.{{cite web |title=Veon Russia exit prompts board downsizing |url=https://www.mobileworldlive.com/featured-content/top-three/veon-russia-exit-prompts-board-downsizing/ |date=29 June 2023}}

=2023–2025=

VEON's total revenues in 2023 amounted to $3.7 billion.{{cite web | url=https://www.veon.com/newsroom/press-releases/veon-4q23-trading-update | title=VEON 4Q23 trading update: Strong organic growth in revenue and EBITDA, solid execution of VEON 2.0 strategy }} Morten Lundal was appointed chair of the VEON board in June 2023.{{cite web | url=https://www.veon.com/newsroom/press-releases/veon-shareholders-approve-new-board-morten-lundal-elected-new-chair | title=VEON Shareholders Approve New Board, Morten Lundal Elected New Chair }} Augie K Fabela II was appointed his successor in 2024.{{cite web | url=https://www.mobileworldlive.com/asia-pacific/veon-puts-co-founder-fabela-back-in-the-hotseat/ | title=Veon puts co-founder Fabela back in the hotseat | date=31 May 2024 }} In March 2024, it was reported that VEON had agreed to sell a significant stake of its Kyrgyzstan operations, stating it was looking to focus on large markets.{{cite web | url=https://www.mobileworldlive.com/operators/veon-poised-for-kyrgyzstan-exit/ | title=Veon poised for Kyrgyzstan exit | date=26 March 2024 }} As of 2024, VEON also owned Mobilink Bank in Pakistan, a microfinance institution.{{cite web | url=https://www.app.com.pk/business/mobilink-bank-registers-solid-start-to-year-by-doubling-its-revenue-in-q1-2024/ | title=Mobilink Bank registers solid start to year by doubling its revenue in Q1 2024 | date=18 April 2024 }} Augie Fabela, VEON’s co-founder, was appointed chair of the VEON board in May 2024. Several other new directors were also named to the board, including Mike Pompeo,{{cite web | url=https://www.telecompaper.com/news/veon-names-founder-augie-fabela-as-chairman--1502355 | title=Telecompaper }} Brandon Lewis, and Duncan Perry, with incumbents including Fabela, Michiel Soeting, and VEON's CEO Kaan Terzioglu.{{cite web | url=https://www.veon.com/newsroom/press-releases/veon-announces-its-new-board-names-founder-augie-fabela-as-chairman | title=VEON Announces Its New Board, Names Founder Augie Fabela as Chairman }} It was the largest foreign investor in Ukraine in 2022 and 2023. In June 2024, VEON announced that it was committing US$1 billion in Ukraine's infrastructure via its subsidiary Kyivstar.{{cite web | url=https://www.capacitymedia.com/article/2dcq12hm44vtfutkojcw0/news/veon-kyivstar-to-boost-investment-in-ukraine-to-1bn | title=Veon, Kyivstar to boost investment in Ukraine to $1bn | date=11 June 2024 }} Also in June 2024, VEON announced that over the next three years, it aimed to increase revenues by up to 19%, and would be increasingly focusing on AI technology.{{Cite web |title=Veon upbeat on emerging markets but hints at more asset sales |url=https://www.telecoms.com/operator-ecosystem/veon-upbeat-on-emerging-markets-but-hints-at-more-asset-sales |access-date=2024-10-10}}

As of 2024, the company had 160 million total customers,{{Citation|year=2024|title=We are VEON |publisher=VEON |url=https://www.veon.com/we-are-veon |access-date=September 17, 2024}} 1.8 million fixed line customers,https://www.veon.com/fileadmin/user_upload/VEON_Preliminary_Annual_Results_for_FY_2023.pdf{{Dead link|date=October 2024 |bot=InternetArchiveBot |fix-attempted=yes }} and 111 million monthly active users of its digital services,{{cite web | url=https://www.mobileworldlive.com/operators/veon-boss-committed-to-decade-long-telco-ai-mission/ | title=Veon boss committed to decade-long telco AI mission | date=16 May 2024 }} while its digital operations had six separate markets.{{Cite web |title=VEON Ltd. |url=https://www.wsj.com/market-data/quotes/NL/XAMS/VEON/company-people |access-date=2024-10-10}} Specific brands included units in Kazakhstan, Kyrgyzstan, and Uzbekistan operating under the Beeline brand, as well as Banglalink in Bangladesh, Jazz in Pakistan, and Kyivstar in Ukraine. These units in turn provided digital services with products such as Izi, Simply, hitter, OQ, JazzCash, Beepul, and the Tamasha and Toffee entertainment platforms.{{cite web | url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3139155 | title=S&P Global Ratings }} VEON delisted from the Euronext Amsterdam stock exchange on the 25th of November, 2024, after which their shares trade exclusively on NASDAQ.{{cite web | url=https://www.veon.com/newsroom/press-releases/veon-shares-now-trade-exclusively-on-nasdaq-in-new-york | title=VEON Shares now Trade Exclusively on Nasdaq in New York }} In Dec 2024 it moved its headquarters from Amsterdam to Dubai's Dubai International Financial Center.{{cite web | url=https://www.mobileworldlive.com/middle-east-and-north-africa/veon-finalises-dubai-hq-shift/ | title=Veon finalises Dubai HQ shift | date=19 December 2024 }}

Owners

VEON shareholder structure:{{cite web | url=https://www.veon.com/investors/equity-investors#tab-item-17 | title=Equity Investors }}{{cite web|url=https://www.veon.com/investors/equity-investors/share-ownership/|title=Veon|work=veon.com}}

45.5% of common and voting shares owned by LetterOne Investment Holdings S.A
7.9% of common and voting shares owned by The Stichting
7.2% of common and voting shares owned by Lingotto Investment Management LLP
6.8% of common and voting shares owned by Shah Capital Management Inc.

Subsidiaries

VEON operated in six markets, each with their own brand, as of 2024:{{Citation |year=2024 |title=About |publisher=VEON |url=https://www.veon.com/ |quote=Our digital operators work under five main brands: Kyivstar in Ukraine, Beeline in Kazakhstan, Kyrgyzstan and Uzbekistan, Jazz in Pakistan, and Banglalink in Bangladesh and provide a suite of digital services under the following brands: Tamasha, Toffee, Izi, Simply, hitter, OQ and...|access-date=}}

Banglalink (Bangladesh)
Beeline (Kazakhstan)
Beeline (Kyrgyzstan)
Jazz (Pakistan)
Kyivstar (Ukraine)
Beeline (Uzbekistan)

VimpelCom-Takilant case

In summer 2015, the United States Justice Department claimed VimpelCom had used a network of shell companies and phony consulting contracts to funnel bribes in exchange for market access in Uzbekistan.{{Cite news | url=https://www.bloomberg.com/news/articles/2015-06-29/u-s-seeks-to-grab-300-million-in-uzbek-telecom-bribery-probe | title=U.S. Seeks to Grab $300 Million in Uzbek Telecom Bribe Probe | newspaper=Bloomberg.com | date=29 June 2015 }} VimpelCom's affiliate Telenor severed consulting ties with Telenor's former CEO Jon Fredrik Baksaas due to the police investigation.{{cite news|url=https://www.reuters.com/article/telenor-vimpelcom-idUSL8N1340WF20151109|title=UPDATE 1-Telenor ends consultancy deal with former CEO due to...|first=Reuters|last=Editorial|website=reuters.com| date=9 November 2015 |access-date=15 August 2018}}

In November 2015, VimpelCom CEO Jo Lunder was arrested on corruption charges in Oslo, Norway. The case alleged that in exchange for an operating license, VimpelCom funneled $57.5 million to Takilant, a company linked to Gulnara Karimova, the daughter of Uzbek President Islam Karimov.{{cite news|title=Former VimpelCom CEO seized at Oslo airport|url=http://www.thelocal.no/20151105/former-vimpelcom-ceo-seized-at-oslo-airport|work=The Local|date=5 November 2015}} The case was settled in February 2016, with the Securities and Exchange Commission, the U.S. Department of Justice, and Dutch regulators requiring VimpelCom to pay $795 million to resolve violations of the Foreign Corrupt Practices Act (FCPA).Press Release: [https://www.sec.gov/news/pressrelease/2016-34.html "VimpelCom to Pay $795 Million in Global Settlement for FCPA Violations"], U.S. Securities and Exchange Commission. Retrieved 21 July 2016.Elco Van Groningen, [https://www.bloomberg.com/news/articles/2016-07-20/takilant-found-guilty-of-accepting-bribes-from-telia-vimpelcom "Takilant Found Guilty of Taking Bribes From Telia, VimpelCom"], Bloomberg (July 20, 2016). Retrieved 21 July 2016.