From Seekingalpha · Eric Cottrell · · 30s
VEON Cash Conversion Concerns
VEON's digital growth lacks cash conversion to justify stock price rise.
In brief
VEON's digital growth lacks cash conversion to justify stock price rise. VEON's digital revenue growth is not yet translating to sustainable cash flow for shareholders. Originally reported by Seekingalpha.
Digital revenue growth
Digital revenue grew 53.6% to $342m in Q2, now 26.9% of total revenue.
Acquisitions inflate growth
Acquisitions inflate growth and ebitda margins, reported equity free cash flow is overstated.
Net debt concerns
Organic cash generation is much lower, net debt at $1.9b.
The takeaway
VEON's digital revenue growth is not yet translating to sustainable cash flow for shareholders.
