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VEON

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VEON Ltd.
FormerlyVimpelCom Ltd. (2009–2017)
Company typePublic
ISINBMG9349W1038
US91822M1062 Edit this on Wikidata
IndustryTelecommunications
PredecessorPJSC VimpelCom and Kyivstar
Founded2009; 15 years ago (2009)
Headquarters
Amsterdam
,
Netherlands
Area served
Asia, Europe
Key people
Kaan Terzioğlu (Group CEO), Augie K. Fabela II (founder and chairman), Mike Pompeo (board member)
ProductsMobile telephony, mobile phones retailing, international telephony, broadband Internet, IPTV, city-wide Wi-Fi, domain name registrar and others
RevenueDecrease US$3.7 billion (2023)[1]
Total assetsDecrease US$8.2 billion (2023)[2]
OwnersLetterOne, The Stichting, Lingotto Investment Management, Shah Capital Management
Number of employees
17,206 (2023)[2]
DivisionsKyivstar, Jazz,  Mobilink Bank, Banglalink,  Beeline Kazakhstan,  Beeline Uzbekistan, Beeline Kyrgyzstan
Websiteveon.com

VEON Ltd. (formerly VimpelCom Ltd.),[3] also known as VEON Group, is a multinational telecommunication and digital services company.[4][3] Headquartered in Amsterdam,[5] the company is publicly traded[6] on Euronext Amsterdam and NASDAQ.[7] VEON operates in six markets in Europe and Asia, including Bangladesh, Kazakhstan, Kyrgyzstan, Pakistan, Ukraine and Uzbekistan.[8] Specific brands include Banglalink in Bangladesh, Jazz in Pakistan, Kyivstar in Ukraine, and units operating in Kazakhstan, Kyrgyzstan, and Uzbekistan under the Beeline brand.[7] In 2024, the company had 160 million total customers,[9] 1.8 million fixed line customers,[10] and 111 million monthly active users of its digital services,[11] with products and services in areas such as mobile financial services, entertainment, health, and education among others.[12]

History

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2009–2016

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VEON was founded in 2009 as VimpelCom Ltd., a multinational holding company. Incorporated in Bermuda and headquartered in the Netherlands, VimpelCom Ltd. 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.[13] Kyivstar had been founded in 1994[14] by Ihor Lytovchenko, also its long-term CEO.[15] PJSC VimpelCom, founded in 1992 by Dmitry Zimin[16] and American businessman Augie K. Fabela II as a mobile carrier,[17] had launched its Beeline brand in 1993[citation needed] and listed on the NYSE in 1996.[18]

Company logo until 2017

Under CEO Alexander Izosimov, VimpelCom Ltd. acquired Orascom Telecom and Wind Telecom from Naguib Sawiris in 2011.[19] After a number of acquisitions, as of December 31, 2011, VimpelCom Ltd. had 205 million customers across 20 countries,[20] and by 2012 it was the 13th largest mobile network operator in the world by number of subscribers.[3] The company switched its listing from the NYSE Euronext to the NASDAQ on September 10, 2013.[21] It sold its majority stake in Wind Mobile to Globalive in 2014 for US$272 million.[22] and in 2015 the government of Algeria bought VimpelCom Ltd.'s 51% stake in Djezzy for $2.6 billion.[23] VimpelCom Ltd.'s revenue was $9.78 billion in 2016,[5] while assets were $33.85 billion.[24]

2017–2022

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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.[25][26] VEON began listing its shares on Euronext Amsterdam in April 2017.[27] In July 2017, VEON launched a personal internet platform named VEON in Ukraine, Bangladesh, Pakistan, Italy, and Georgia.[28] After a number of divestments and a business transformation, by summer 2017, VEON had around 200 million combined subscribers across 12 markets.[29] By the end of 2017, various listed VEON subsidiaries included Golden Telecom, Kyivstar, and Banglalink, among others in Europe and Africa.[30]

In March 2018, CEO Jean-Yves Charlier resigned and CEO duties were temporarily assumed by VEON's chair, Ursula Burns.[31] Burns was appointed CEO in December 2018 while remaining chair.[32] In October 2019, VEON hired Sergi Herrero and former ex-Turkcell CEO Kaan Terzioğlu as joint COOs of VEON Group.[33] They both succeeded Burns as co-CEOs in February 2020,[34] and in June 2020, Gennady Gazin succeeded Burns as chairman.[35] In 2020 VEON purchased the remaining 15% shares in Jazz from Abu Dhabi Group in Pakistan for 100% ownership.[36] VEON exited Armenia in 2020.[37] In July 2021, Terzioğlu became VEON's Group CEO,[38] with oversight of VEON's executives and its regional CEOs assigned to separate markets.[7] The company sold its Georgia unit for $45 million in June 2022, stating it was streamlining its operations.[37] In August 2022, VEON completed the sale of Djezzy to the government of Algeria for USD$682 million.[39] After announcing the pending sale of its Russian operations on November 24, 2022,[8] VEON completed the sale on October 9, 2023, completely leaving the Russian market.[40] Following the sale, the company went through various management changes, including reducing the board from 11 to 7 members.[41]

2023–2024

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VEON's total revenues in 2023 amounted to $3.7 billion.[1] Morten Lundal was appointed chair of the VEON board in June 2023.[42] Augie K Fabela II was appointed his successor in 2024.[43] 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.[44] As of 2024, VEON also owned Mobilink Bank in Pakistan, a microfinance institution.[45] 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,[46] Brandon Lewis, and Duncan Perry, with incumbents including Fabela, Michiel Soeting, and VEON's CEO Kaan Terzioglu.[47] 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.[48] 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.[49]

As of 2024, the company had 160 million total customers,[9]  1.8 million fixed line customers,[10] and 111 million monthly active users of its digital services,[11]  while its digital operations had six separate markets.[50] 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,[7] JazzCash, Beepul,[10] and the Tamasha and Toffee entertainment platforms.[6]

Owners

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VEON shareholder structure:[51][52]

Subsidiaries

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VEON operated in six markets, each with their own brand, as of 2024:[7]

VimpelCom-Takilant case

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In summer 2015, the United States Justice Department claimed VimpelCom Ltd. had used a network of shell companies and phony consulting contracts to funnel bribes in exchange for market access in Uzbekistan.[53] VimpelCom Ltd.'s affiliate Telenor severed consulting ties with Telenor's former CEO Jon Fredrik Baksaas due to the police investigation.[54]

In November 2015, VimpelCom Ltd. CEO Jo Lunder was arrested on corruption charges in Oslo, Norway. The case alleged that in exchange for an operating license, VimpelCom Ltd. funneled $57.5 million to Takilant, a company linked to Gulnara Karimova, the daughter of Uzbek President Islam Karimov.[55] The case was settled in February 2016, with the Securities and Exchange Commission, the U.S. Department of Justice, and Dutch regulators requiring VimpelCom Ltd. to pay $795 million to resolve violations of the Foreign Corrupt Practices Act (FCPA).[56][57]

See also

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References

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  1. ^ a b "VEON 4Q23 trading update: Strong organic growth in revenue and EBITDA, solid execution of VEON 2.0 strategy".
  2. ^ a b "2023 Annual Report (Form 20-F)". U.S. Securities and Exchange Commission. 17 October 2024.
  3. ^ a b c Pavliva, Halia (12 April 2012). "VimpelCom Rises as Orascom Rejects Fine, Files for Arbitration". Bloomberg. Retrieved 2 May 2012.
  4. ^ UzDaily. "VEON Group CEO Kaan Terzioğlu: We will go beyond the traditional telecom company". UzDaily.uz. Retrieved 23 September 2024.
  5. ^ a b "VimpelCom on the Forbes Global 2000 List". Forbes. Retrieved 2 June 2016.
  6. ^ a b "S&P Global Ratings".
  7. ^ a b c d e About, VEON, 2024, 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...
  8. ^ a b "VEON enters the final stages in the sale of its Russia operations". Veon. 30 May 2023. Retrieved 4 June 2023.
  9. ^ a b We are VEON, VEON, 2024, retrieved 17 September 2024
  10. ^ a b c https://www.veon.com/fileadmin/user_upload/VEON_Preliminary_Annual_Results_for_FY_2023.pdf[permanent dead link‍]
  11. ^ a b "Veon boss committed to decade-long telco AI mission". 16 May 2024.
  12. ^ "Veon to Accelerate Digital Operator 1440 Model".
  13. ^ Nicholson, Chris V. (5 October 2009). "Telenor and Alfa Reach Deal on VimpelCom – NYTimes.com". Dealbook.nytimes.com. Retrieved 2 May 2012.
  14. ^ "'Account Compromise' Caused December Cyberattack – Kyivstar President". 11 February 2024.
  15. ^ "Kyivstar founder Ihor Lytovchenko to quit company - Jun. 16, 2014". 16 June 2014.
  16. ^ "Founders". About.beeline.ru. 28 April 1933. Archived from the original on 27 September 2013. Retrieved 22 September 2013.
  17. ^ "Founders". About.beeline.ru. Archived from the original on 27 September 2013. Retrieved 22 September 2013.
  18. ^ "Vimpelcom to move stock listing to Nasdaq". Retrieved 10 October 2024.
  19. ^ "VEON CEO to arrive today". October 2022.
  20. ^ "Fact Sheet(s)". Vimpelcom.com. Archived from the original on 7 February 2013. Retrieved 2 May 2012.
  21. ^ "Nasdaq snags telecom VimpelCom from NYSE". Marketwatch. Archived from the original on 22 August 2017. Retrieved 22 August 2017.
  22. ^ "Vimpelcom to sell Wind Mobile stake to Canadian minority owner" (Press release). Reuters. 15 September 2014.
  23. ^ "VimpelCom closes Djezzy deal with Algerian government". Developing Telecom. 4 February 2015. Retrieved 6 March 2017.
  24. ^ "VEON on the Forbes Global 2000 List". forbes.com. Retrieved 15 August 2018.
  25. ^ "Google and Facebook face an unlikely competitor in emerging markets: a telecom giant". Quartz. 28 February 2017. Retrieved 6 March 2017.
  26. ^ "VEON". 26FIVE. Archived from the original on 26 October 2021. Retrieved 26 October 2021.
  27. ^ "VEON to list on the Euronext Amsterdam". VimpelCom. Archived from the original on 8 January 2019. Retrieved 22 August 2017.
  28. ^ "VEON Launches Personal Internet Platform in Major Markets". VimpelCom. Retrieved 21 November 2017.[dead link‍]
  29. ^ "VEON Business". VEON. Retrieved 15 July 2017.[dead link‍]
  30. ^ List of subsidiaries, SEC, 31 December 2017, retrieved 17 September 2024
  31. ^ "Veon's CEO resigns, chairwoman to take over temporarily, COO named". Reuters. Retrieved 23 September 2018.
  32. ^ Bicheno, Scott (13 December 2018). "Burns officially made Veon CEO at last". Telecoms.com. Retrieved 10 January 2019.
  33. ^ "VEON hires ex Turkcell CEO". digitaltveurope.com. 28 October 2019. Retrieved 28 October 2019.
  34. ^ Burkitt-Gray, Alan (14 February 2020). "New co-CEOs for Veon as Ursula Burns reverts to chairmanship". Capacity Media. Retrieved 9 June 2020.
  35. ^ Boyadzhieva, Yanitsa (2 June 2020). "Veon settles on new chair, board members". Mobile World Live. Retrieved 9 June 2020.
  36. ^ News Desk (29 September 2020). "Veon to buy remaining shares in Jazz for 100pc ownership". Profit by Pakistan Today. Retrieved 30 September 2020.
  37. ^ a b "Veon sells Georgia unit for $45M". 9 June 2022.
  38. ^ "Details".
  39. ^ "Veon completes sale of Djezzy Algeria stake". 5 August 2022.
  40. ^ "Veon completes Russia exit as Vimpelcom sale closes". Retrieved 10 October 2024.
  41. ^ "Veon Russia exit prompts board downsizing". 29 June 2023.
  42. ^ "VEON Shareholders Approve New Board, Morten Lundal Elected New Chair".
  43. ^ "Veon puts co-founder Fabela back in the hotseat". 31 May 2024.
  44. ^ "Veon poised for Kyrgyzstan exit". 26 March 2024.
  45. ^ "Mobilink Bank registers solid start to year by doubling its revenue in Q1 2024". 18 April 2024.
  46. ^ "Telecompaper".
  47. ^ "VEON Announces Its New Board, Names Founder Augie Fabela as Chairman".
  48. ^ "Veon, Kyivstar to boost investment in Ukraine to $1bn". 11 June 2024.
  49. ^ "Veon upbeat on emerging markets but hints at more asset sales". Retrieved 10 October 2024.
  50. ^ "VEON Ltd". Retrieved 10 October 2024.
  51. ^ "Equity Investors".
  52. ^ "Veon". veon.com.
  53. ^ "U.S. Seeks to Grab $300 Million in Uzbek Telecom Bribe Probe". Bloomberg.com. 29 June 2015.
  54. ^ Editorial, Reuters (9 November 2015). "UPDATE 1-Telenor ends consultancy deal with former CEO due to..." reuters.com. Retrieved 15 August 2018. {{cite news}}: |first= has generic name (help)
  55. ^ "Former VimpelCom CEO seized at Oslo airport". The Local. 5 November 2015.
  56. ^ Press Release: "VimpelCom to Pay $795 Million in Global Settlement for FCPA Violations", U.S. Securities and Exchange Commission. Retrieved 21 July 2016.
  57. ^ Elco Van Groningen, "Takilant Found Guilty of Taking Bribes From Telia, VimpelCom", Bloomberg (July 20, 2016). Retrieved 21 July 2016.
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