Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | VEON Ltd. |
Entity Central Index Key | 0001468091 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Profit or loss [abstract] | ||||
Service revenues | $ 1,795 | $ 2,080 | $ 3,773 | $ 4,085 |
Sale of equipment and accessories | 72 | 112 | 160 | 201 |
Other revenue | 25 | 69 | 55 | 99 |
Total operating revenues | 1,892 | 2,261 | 3,988 | 4,385 |
Other operating income | 2 | 0 | 2 | 350 |
Service costs | (365) | (390) | (746) | (758) |
Cost of equipment and accessories | (74) | (116) | (163) | (206) |
Selling, general and administrative expenses | (646) | (761) | (1,352) | (1,479) |
Depreciation | (389) | (409) | (804) | (812) |
Amortization | (86) | (111) | (178) | (205) |
Impairment (loss) / reversal | (1) | (4) | (1) | (10) |
Gain / (loss) on disposal of non-current assets | (6) | (7) | (12) | (14) |
Gain / (loss) on disposal of subsidiaries | 0 | 1 | 0 | 1 |
Operating profit | 327 | 464 | 734 | 1,252 |
Finance costs | (184) | (210) | (391) | (421) |
Finance income | 6 | 14 | 15 | 28 |
Other non-operating gain / (loss) | 86 | 10 | 101 | 14 |
Net foreign exchange gain / (loss) | 8 | (22) | (21) | (8) |
Profit (loss) before tax | 243 | 256 | 438 | 865 |
Income tax expense | (68) | (181) | (144) | (260) |
Profit / (loss) for the period | 175 | 75 | 294 | 605 |
Attributable to: | ||||
The owners of the parent | 156 | 70 | 264 | 565 |
Non-controlling interest | $ 19 | $ 5 | $ 30 | $ 40 |
Basic and diluted gain/(loss) per share attributable to ordinary equity holders of the parent (in dollars per share) | $ 0.09 | $ 0.04 | $ 0.15 | $ 0.32 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of comprehensive income [abstract] | ||||
Profit / (loss) for the period | $ 175 | $ 75 | $ 294 | $ 605 |
Items that may be reclassified to profit or loss | ||||
Foreign currency translation | 94 | (34) | (486) | 22 |
Other | 0 | 0 | 1 | 0 |
Items reclassified to profit or loss | ||||
Other | 0 | 0 | (5) | 0 |
Other comprehensive income / (loss) , net of tax | 94 | (34) | (490) | 22 |
Total comprehensive income / (loss) , net of tax | 269 | 41 | (196) | 627 |
Attributable to: | ||||
The owners of the parent | 259 | 76 | (150) | 640 |
Non-controlling interests | 10 | (35) | (46) | (13) |
Total comprehensive income / (loss) , net of tax | $ 269 | $ 41 | $ (196) | $ 627 |
INTERIM CONDENSED CONSOLIDATE_3
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Non-current assets | |||
Property and equipment | $ 6,679 | $ 7,340 | |
Intangible assets | 5,119 | 5,688 | |
Non-current | 281 | 235 | |
Deferred tax assets | 117 | 134 | |
Other assets | 173 | 163 | |
Total non-current assets | 12,369 | 13,560 | |
Current assets | |||
Inventories | 102 | 169 | |
Trade and other receivables * | [1] | 437 | 512 |
Investments and derivatives * | [1] | 276 | 198 |
Current income tax assets | 35 | 16 | |
Other assets | 350 | 354 | |
Cash and cash equivalents | 1,166 | 1,250 | |
Total current assets | 2,366 | 2,499 | |
Total assets | 14,735 | 16,059 | |
Equity | |||
Equity attributable to equity owners of the parent | 811 | 1,226 | |
Non-controlling interests | 891 | 994 | |
Total equity | 1,702 | 2,220 | |
Non-current liabilities | |||
Debt and derivatives | 7,297 | 7,759 | |
Provisions | 121 | 138 | |
Deferred tax liabilities | 113 | 141 | |
Other liabilities | 29 | 33 | |
Total non-current liabilities | 7,560 | 8,071 | |
Current liabilities | |||
Trade and other payables * | [1] | 1,535 | 1,642 |
Debt and derivatives * | [1] | 2,812 | 2,790 |
Provisions | 158 | 222 | |
Current income tax payables | 97 | 102 | |
Other liabilities | 871 | 1,012 | |
Total current liabilities | 5,473 | 5,768 | |
Total equity and liabilities | $ 14,735 | $ 16,059 | |
[1] | * Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 14 for further details. |
INTERIM CONDENSED CONSOLIDATE_4
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Attributable to equity owners of the parent | Issued capital | Capital Surplus | Other capital reserves | Accumulated deficit | Foreign currency translation | Non- controlling interests |
Number of shares outstanding at beginning of period (in shares) at Dec. 31, 2018 | 1,749,127,404 | |||||||
Equity at beginning of period at Dec. 31, 2018 | $ 2,779 | $ 3,670 | $ 2 | $ 12,753 | $ 743 | $ (1,412) | $ (8,416) | $ (891) |
Profit / (loss) for the period | 605 | 565 | 565 | 40 | ||||
Other comprehensive income / (loss) | 22 | 75 | 0 | 1 | 74 | (53) | ||
Total comprehensive income / (loss) , net of tax | 627 | 640 | 0 | 566 | 74 | (13) | ||
Dividends declared | (405) | (297) | (297) | (108) | ||||
Other | (7) | (10) | 1 | (11) | 0 | 3 | ||
Number of shares outstanding at end of period (in shares) at Jun. 30, 2019 | 1,749,127,404 | |||||||
Equity at end of period at Jun. 30, 2019 | 2,990 | 4,000 | $ 2 | 12,753 | 744 | (1,157) | (8,342) | (1,010) |
Number of shares outstanding at beginning of period (in shares) at Mar. 31, 2019 | 1,749,127,404 | |||||||
Equity at beginning of period at Mar. 31, 2019 | 3,035 | 3,933 | $ 2 | 12,753 | 744 | (1,217) | (8,349) | (898) |
Profit / (loss) for the period | 75 | 70 | 70 | 5 | ||||
Other comprehensive income / (loss) | (34) | 6 | 0 | (1) | 7 | (40) | ||
Total comprehensive income / (loss) , net of tax | 41 | 76 | 0 | 69 | 7 | (35) | ||
Dividends declared | (84) | (84) | ||||||
Other | (2) | (9) | 0 | (9) | 0 | 7 | ||
Number of shares outstanding at end of period (in shares) at Jun. 30, 2019 | 1,749,127,404 | |||||||
Equity at end of period at Jun. 30, 2019 | 2,990 | 4,000 | $ 2 | 12,753 | 744 | (1,157) | (8,342) | (1,010) |
Number of shares outstanding at beginning of period (in shares) at Dec. 31, 2019 | 1,749,127,404 | |||||||
Equity at beginning of period at Dec. 31, 2019 | 2,220 | 1,226 | $ 2 | 12,753 | (1,887) | (1,330) | (8,312) | 994 |
Profit / (loss) for the period | 294 | 264 | 264 | 30 | ||||
Other comprehensive income / (loss) | (490) | (414) | (4) | (1) | (409) | (76) | ||
Total comprehensive income / (loss) , net of tax | (196) | (150) | (4) | 263 | (409) | (46) | ||
Dividends declared | (321) | (262) | (262) | (59) | ||||
Other | (1) | (3) | (3) | 26 | (26) | 2 | ||
Number of shares outstanding at end of period (in shares) at Jun. 30, 2020 | 1,749,127,404 | |||||||
Equity at end of period at Jun. 30, 2020 | 1,702 | 811 | $ 2 | 12,753 | (1,894) | (1,303) | (8,747) | 891 |
Number of shares outstanding at beginning of period (in shares) at Mar. 31, 2020 | 1,749,127,404 | |||||||
Equity at beginning of period at Mar. 31, 2020 | 1,492 | 543 | $ 2 | 12,753 | (1,893) | (1,494) | (8,825) | 949 |
Profit / (loss) for the period | 175 | 156 | 156 | 19 | ||||
Other comprehensive income / (loss) | 94 | 103 | 0 | (1) | 104 | (9) | ||
Total comprehensive income / (loss) , net of tax | 269 | 259 | 0 | 155 | 104 | 10 | ||
Dividends declared | (59) | (59) | ||||||
Other | 0 | 9 | (1) | 36 | (26) | (9) | ||
Number of shares outstanding at end of period (in shares) at Jun. 30, 2020 | 1,749,127,404 | |||||||
Equity at end of period at Jun. 30, 2020 | $ 1,702 | $ 811 | $ 2 | $ 12,753 | $ (1,894) | $ (1,303) | $ (8,747) | $ 891 |
INTERIM CONDENSED CONSOLIDATE_5
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS $ in Millions | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |||
Operating activities | ||||
Profit / (loss) before tax | $ 438 | $ 865 | ||
Non-cash adjustments to reconcile profit before tax to net cash flows | ||||
Depreciation, amortization and impairment loss / (reversal) | 983 | 1,027 | ||
(Gain) / loss on disposal of non-current assets | 12 | 14 | ||
(Gain) / loss on disposal of subsidiaries | 0 | (1) | ||
Finance costs | 391 | 421 | ||
Finance income | (15) | (28) | ||
Other non-operating (gain) / loss | (101) | (14) | ||
Net foreign exchange (gain) / loss | 21 | 8 | ||
Changes in trade and other receivables and prepayments | (100) | [1] | (167) | [1] |
Changes in inventories | 45 | (27) | ||
Changes in trade and other payables | (58) | [1] | (12) | [1] |
Changes in provisions, pensions and other | (14) | 46 | ||
Interest paid | (337) | (358) | ||
Interest received | 15 | 32 | ||
Income tax paid | (175) | (241) | ||
Net cash flows from operating activities | 1,105 | 1,565 | ||
Investing activities | ||||
Purchase of property, plant and equipment and intangible assets | (893) | (825) | ||
Receipts from / (payment on) deposits | (98) | (662) | ||
Receipts from / (investment in) financial assets | (64) | [1] | (28) | [1] |
Other proceeds from investing activities, net | 7 | 24 | ||
Net cash flows from / (used in) investing activities | (1,048) | (1,491) | ||
Financing activities | ||||
Proceeds from borrowings, net of fees paid | 2,951 | [2] | 1,206 | [2] |
Repayments of debt | (2,733) | [1] | (1,427) | [1] |
Acquisition of non-controlling interest | (1) | (5) | ||
Dividends paid to owners of the parent | (259) | (295) | ||
Dividends paid to non-controlling interests | (19) | (62) | ||
Net cash flows from / (used in) financing activities | (61) | (583) | ||
Net (decrease) / increase in cash and cash equivalents | (4) | (509) | ||
Net foreign exchange difference | (37) | (8) | ||
Cash and cash equivalents at beginning of period | 1,204 | 1,791 | ||
Cash and cash equivalents at end of period, net of overdrafts | 1,163 | [3] | 1,274 | [3] |
Fees paid for borrowings | 15 | $ 14 | ||
Overdrawn amount | $ 3 | |||
[1] | *** Certain comparative amounts have been reclassified to conform to the current period presentation | |||
[2] | * Fees paid for borrowings were US$15 (2019: US$14). | |||
[3] | ** Overdrawn amount was US$3 (2019: US$57) *** Certain comparative amounts have been reclassified to conform to the current period presentation |
GENERAL INFORMATION
GENERAL INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
General Information | |
GENERAL INFORMATION | GENERAL INFORMATION VEON Ltd. ( “VEON” , the “Company” and together with its consolidated subsidiaries, the “Group” or “we” ) was incorporated in Bermuda on June 5, 2009. The registered office of VEON is Victoria Place, 31 Victoria Street, Hamilton HM 10, Bermuda. VEON’s headquarters and the principal place of business is located at Claude Debussylaan 88, 1082 MD Amsterdam, the Netherlands. VEON generates revenue from the provision of voice, data and other telecommunication services through a range of mobile and fixed-line technologies, as well as selling equipment and accessories. The interim condensed consolidated financial statements are presented in United States dollars ( “U.S. dollar” or “US$ ”). In these notes, U.S. dollar amounts are presented in millions, except for share and per share (or American Depository Shares ( “ADS” )) amounts and as otherwise indicated. VEON’s ADSs are listed on the NASDAQ Global Select Market ( “NASDAQ” ) and VEON’s common shares are listed on Euronext Amsterdam, the regulated market of Euronext Amsterdam N.V. (“ Euronext Amsterdam ”). Major developments during the six-month period ended June 30, 2020 Financing activities In June 2020, VEON Holdings B.V. entered into a new RUB bilateral term loan agreement with Sberbank for a total amount of RUB100 billion (US$1,450), subsequently utilizing an amount of RUB87.5 billion (US$1,281). The proceeds were used to prepay outstanding amounts under a previous Sberbank term facilities agreement. For further details please refer to Note 7 . In April 2020, VEON Holdings B.V. established a Global Medium Term Note program for the issuance of bonds in multiple currencies, with a limit equivalent to US$6,500. In June 2020, VEON Holdings B.V. executed a drawdown of RUB20 billion (US$288) senior unsecured notes under the program. For further details please refer to Note 7 . Coronavirus outbreak On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The second quarter saw the full impact on our operations of the lockdowns imposed across our markets in response to the COVID-19 pandemic. This resulted in material disruption to our retail operations following store closures, which impacted gross connections and airtime sales. Restrictions on travel resulted in a significant decline in roaming revenues and the loss of migrant customers from our subscriber base, particularly in Russia. Conversely, demand for our data services remained strong during the quarter, enabling us to continue to grow our data revenues at a double-digit pace. We also experienced a continued shift in data traffic from mobile to fixed networks as lockdowns encouraged home working and schooling alongside a greater use of devices through our domestic broadband services. Furthermore, an increase in demand for hard currencies has resulted in the devaluation of exchange rates in the countries in which VEON operates. As such, in the first half of 2020, the book value of assets and liabilities of our foreign operations, in U.S. dollar terms, has decreased significantly, with a corresponding loss of US$486 recorded against the foreign currency translation reserve in the Statement of Comprehensive Income. Our management has taken appropriate measures to keep our personnel safe and secure. As of the date of these financial statements, we have not observed any particular material adverse impacts to our business, financial condition, and results of operations, other than as described above, and the group liquidity is sufficient to fund the business operations for at least another 12 months. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Operating Segments [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Management analyzes the Company’s operating segments separately because of different economic environments and stages of development in different geographical areas, requiring different investment and marketing strategies. All the segments are grouped and analyzed as three main markets - our cornerstone, our growth engines and our frontier markets - representing the Company's strategy and capital allocation framework. Management evaluates the performance of the Company’s segments on a regular basis, primarily based on earnings before interest, tax, depreciation, amortization, impairment, gain / loss on disposals of non-current assets, other non-operating gains / losses and share of profit / loss of joint ventures and associates ( “Adjusted EBITDA” ) along with assessing the capital expenditures excluding certain costs such as those for telecommunication licenses and right-of-use assets ( “CAPEX exc. licenses and ROU” ). Management does not analyze assets or liabilities by reportable segments. As of December 31, 2019, management decided to include Kazakhstan as a separate reportable segment due to the increased impact of Kazakhstan operations on the overall business (as described in the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019). In addition, management decided to show the financial impact of HQ and eliminations separately from operating companies. Comparative figures for six and three-month periods ended June 30, 2019 have been adjusted to reflect this change. Financial information by reportable segment for the six and three-month periods ended June 30, is presented in the following tables. Inter-segment transactions between segments are not material, and are made on terms which are comparable to transactions with third parties. For the six-month period ended June 30 Service revenue Sale of equipment and accessories Other revenue Total Revenue Mobile Fixed 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Our cornerstone Russia 1,506 1,714 265 260 151 191 5 7 1,927 2,172 Our growth engines Pakistan 559 662 — — 3 4 42 44 604 710 Ukraine 429 372 30 25 — — 2 3 461 400 Kazakhstan 190 180 37 33 2 1 1 39 230 253 Uzbekistan 101 130 1 1 — — — — 102 131 Our frontier markets Algeria 343 378 — — 2 1 — — 345 379 Bangladesh 262 264 — — — 1 5 6 267 271 Other frontier markets 55 66 12 14 2 3 — — 69 83 Other HQ and eliminations (17) (14) — — — — — — (17) (14) Total segments 3,428 3,752 345 333 160 201 55 99 3,988 4,385 Adjusted CAPEX 2020 2019 2020 2019 Our cornerstone Russia 784 966 415 462 Our growth engines Pakistan 280 369 153 118 Ukraine 313 256 96 67 Kazakhstan 124 152 52 53 Uzbekistan 45 67 26 39 Our frontier markets Algeria 145 172 38 48 Bangladesh 113 114 59 37 Other frontier markets 25 28 19 14 Other HQ and eliminations (100) 168 2 — Total segments 1,729 2,292 860 838 For the three-month period ended June 30 Service revenue Sale of equipment and accessories Other revenue Total Revenue Mobile Fixed 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Our cornerstone Russia 711 883 128 131 68 106 — 4 907 1,124 Our growth engines Pakistan 266 324 — — 1 2 21 22 288 348 Ukraine 208 198 14 13 — — 1 1 223 212 Kazakhstan 92 94 19 17 1 — — 39 112 150 Uzbekistan 47 67 — — — — — — 47 67 Our frontier markets Algeria 159 187 — — 1 — — — 160 187 Bangladesh 128 134 — — — — 3 3 131 137 Other frontier markets 25 34 6 7 1 4 — — 32 45 Other HQ and eliminations (8) (9) — — — — — — (8) (9) Total segments 1,628 1,912 167 168 72 112 25 69 1,892 2,261 Adjusted CAPEX 2020 2019 2020 2019 Our cornerstone Russia 357 498 249 236 Our growth engines Pakistan 133 186 85 67 Ukraine 151 138 58 38 Kazakhstan 61 97 28 42 Uzbekistan 20 35 21 14 Our frontier markets Algeria 64 83 24 30 Bangladesh 54 54 15 23 Other frontier markets 11 15 12 8 Other HQ and eliminations (42) (112) — (9) Total segments 809 994 492 449 The following table provides the reconciliation of Profit / (loss) before tax to Total Adjusted EBITDA for the six and three-month periods ended June 30: Six-month period Three-month period 2020 2019 2020 2019 Profit / (loss) before tax 438 865 243 256 Adjustments to reconcile Profit / (loss) before tax to Total Adjusted EBITDA Depreciation 804 812 389 409 Amortization 178 205 86 111 Impairment loss / (reversal) 1 10 1 4 (Gain) / loss on disposal of non-current assets 12 14 6 7 (Gain) / loss on disposal of subsidiaries — (1) — (1) Finance costs 391 421 184 210 Finance income (15) (28) (6) (14) Other non-operating (gain) / loss (101) (14) (86) (10) Net foreign exchange (gain) / loss 21 8 (8) 22 Total Adjusted EBITDA 1,729 2,292 809 994 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense is the total of the current and deferred income taxes. Current income tax is the expected tax expense, payable or receivable on taxable income or loss for the period, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable or receivable in respect of previous years. Deferred income tax is the tax asset or liability resulting from a difference in income recognition between enacted or substantively enacted local tax law and group IFRS accounting. Income tax expense consisted of the following for the six and three-month periods ended June 30: Six-month period Three-month period 2020 2019 2020 2019 Current income taxes 152 250 97 163 Deferred income taxes (8) 10 (29) 18 Income tax expense 144 260 68 181 Effective tax rate 32.9 % 30.1 % 28.0 % 70.7 % The difference between the statutory tax rate in the Netherlands (25.0%) and the effective corporate income tax rate for the Group in the six and three-month periods ending June 30, 2020 (32.9% and 28.0%, respectively) was primarily driven by a number of non-deductible expenses incurred by the Group in various countries, which are recorded in our consolidated income statement, as well as withholding taxes accrued for forecasted dividends from our operating companies. The difference between the statutory tax rate in the Netherlands (25.0%) and the effective corporate income tax rate for the Group in the six and three-month periods ending June 30, 2019 (30.1% and 70.7%, respectively) was primarily driven by profitability in countries with a higher nominal rate and income tax losses, primarily within holding entities in the Netherlands, for which no deferred tax-asset has been recognized. |
SIGNIFICANT TRANSACTIONS
SIGNIFICANT TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
Significant Transactions | |
SIGNIFICANT TRANSACTIONS | SIGNIFICANT TRANSACTIONS GTH restructuring During the first half of 2020, VEON continued with the restructuring of Global Telecom Holding S.A.E. (" GTH "), with the intragroup transfer of Mobilink Bank and GTH Finance B.V. completed in March and April 2020, respectively. As the operating assets of GTH had previously been, and will continue to be, fully consolidated within the balance sheet of the VEON Group, there was no material impact on these consolidated financial statements stemming from these intragroup transfers. For further details on GTH restructuring, refer to the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. Revised technology infrastructure partnership with Ericsson In February 2019, the Company announced a revised arrangement with Ericsson to upgrade its core IT systems in several countries in the coming years and to release Ericsson from the development and delivery of the Full Stack Revenue Manager Solution. The parties signed binding terms to vary the existing agreements and as a result VEON received US$350 during the first half of 2019. The settlement amount was recorded in the income statement within ‘Other operating income’. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table summarizes the movement in the net book value of property and equipment for the six-month period ended June 30: Six-month period 2020 2019 Balance as of January 1 7,340 4,932 Adjustment due to new accounting standard (IFRS 16) — 1,945 Additions 839 827 Disposals (25) (29) Depreciation (804) (812) Impairment (1) (10) Translation adjustment (689) 265 Other 19 76 Balance as of June 30 6,679 7,194 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
Intangible assets and goodwill [abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table summarizes the movement in the net book value of intangible assets, including goodwill for the six-month period ended June 30. Six-month period 2020 2019 Balance as of January 1 5,688 5,670 Adjustment due to new accounting standard (IFRS 16) — (15) Additions 124 101 Amortization (178) (204) Translation adjustment (519) 148 Other 4 — Balance as of June 30 5,119 5,700 Goodwill Included within total intangible asset movements for the six month periods ended June 30, 2020, as shown above, are the following movements in goodwill for the group, per cash generating unit ("CGU") : CGU * June 30, 2020 Currency December 31, 2019 Russia 2,005 (260) 2,265 Algeria 1,077 (90) 1,167 Pakistan 309 (26) 335 Kazakhstan 145 (9) 154 Uzbekistan 36 (2) 38 Total 3,572 (387) 3,959 * There is no goodwill allocated to the CGUs of Ukraine, Bangladesh, Armenia, Kyrgyzstan or Georgia Impairment analysis Goodwill is tested for impairment annually (at October 1) or when circumstances indicate the carrying value may be impaired. The Company’s impairment test for goodwill is primarily based on fair value less cost of disposal calculations that use a discounted cash flow model. When reviewing for indicators of impairment in interim periods, the Company considers, amongst others, the relationship between its market capitalization and its book value, as well as weighted average cost of capital and the quarterly financial performances of each cash-generating unit ( "CGU" ). In addition to the above, in the first half of 2020, the Company also considered the impact of COVID-19 when reviewing for indicators of impairment (refer Note 1 for further details). As a result of the above, the Company performed impairment testing for Russia CGU as of June 30, 2020. Based on the recoverable amount calculated and the carrying value of the CGU, no impairment loss was recorded in the first half of 2020. Although we believe that judgments made supporting our impairment assessment are reasonable (relying on information reasonably available to us), the COVID-19 pandemic makes it challenging for us to estimate the future performance of our CGUs. As circumstances change and/or new information becomes available, we may be required to record impairments in future periods. Key assumptions The recoverable amount of the CGU has been determined based on fair value less costs of disposal calculations, using cash flow projections from the business plan prepared by management. For further details regarding calculations and assumptions used for impairment testing, refer to the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. CGU Discount rate Average growth rate * Terminal growth rate Average operating margin * Average CAPEX / revenue *,** Russia 9.6 % 4.3 % 1.6 % 32.4 % 28.8 % * During the explicit forecast period of five years ** CAPEX excludes licenses and ROU Sensitivity to changes in assumptions The following table illustrates the CGU's remaining headroom if certain key parameters would adversely change by one percentage point within both the explicit forecast period and the terminal period. Any additional adverse changes in the key parameters by more than one percentage point would further proportionally decrease the headroom. Remaining headroom / (impairment) as a result of change in assumption CGU Existing headroom Discount rate Average growth rate * Terminal growth rate Average operating margin *** Average CAPEX / revenue **,*** +1 pp -1 pp -1 pp -1 pp +1 pp Russia 17 (682) (262) (558) (465) (472) * During the explicit forecast period of five years ** CAPEX excludes licenses and ROU |
INVESTMENTS, DEBT AND DERIVATIV
INVESTMENTS, DEBT AND DERIVATIVES | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
INVESTMENTS, DEBT AND DERIVATIVES | INVESTMENTS, DEBT AND DERIVATIVES The Company holds the following investments and derivative assets: June 30, 2020 December 31, 2019 At fair value Derivatives not designated as hedges 17 11 Derivatives designated as net investment hedges — — Investments in debt instruments 65 34 82 45 At amortized cost Security deposits and cash collateral 301 256 Loans granted to customers - microfinance banking * 125 116 Bank deposits 20 — Other investments 29 16 475 388 Total investments and derivatives 557 433 Non-current 281 235 Current 276 198 The Company holds the following debt and derivative liabilities: June 30, 2020 December 31, 2019 At fair value Derivatives not designated as hedges 62 52 Derivatives designated as net investment hedges 26 161 Contingent consideration — 41 88 254 At amortized cost Principal amount outstanding 7,550 7,519 Interest accrued 80 79 Discounts, unamortized fees, hedge basis adjustment (6) (10) Bank loans and bonds 7,624 7,588 Lease liabilities 1,815 2,083 Put-option liability over non-controlling interest 320 342 Customer deposits - microfinance banking * 192 186 Other financial liabilities * 70 96 10,021 10,295 Total debt and derivatives 10,109 10,549 Non-current 7,297 7,759 Current 2,812 2,790 * Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 14 for further details. Significant changes in financial assets and financial liabilities There were no significant changes in financial assets and liabilities in the six-month period ended June 30, 2020, except for the scheduled repayments of debt or as described below. Furthermore, there were no changes in risk management policies as disclosed in the Group’s annual consolidated financial statements as of and for the year ended December 31, 2019. Net investment hedge In the first quarter of 2020, the fair values of the Company’s derivatives designated as net investment hedges increased significantly due to depreciation of the Russian ruble, resulting in a US$275 gain recorded against the foreign currency translation reserve, which partially offset the translation loss related to our foreign operations. Appreciation of RUB in the second quarter of 2020 reduced this gain by US$146, leading to a net gain of US$129 for the six-month period ended June 30, 2020. Ex-Warid license renewal The ex-Warid license renewal was due in May 2019. Pursuant to directions from the Islamabad High Court, the Pakistan Telecommunication Authority ( “PTA” ) issued a license renewal decision on July 22, 2019 requiring payment of US$39.5 per MHz for 900 MHz spectrum and US$29.5 per MHz for 1800 MHz spectrum, equating to an aggregate price of approximately US$450 (excluding advance tax of 10%). On August 17, 2019, Jazz appealed the PTA’s order to the Islamabad High Court. On August 21, 2019, the Islamabad High Court suspended the PTA’s order pending the outcome of the appeal and subject to Jazz making payment in the form of security (under protest) as per the options given in the PTA’s order. In September 2019, Jazz deposited approximately US$225 in order to maintain its appeal in the Islamabad High Court regarding the PTA's underlying decision on the license renewal. There were no specific terms and conditions attached to the deposit. The deposit is recorded as a non-current financial asset in the statement of financial position. On May 18, 2020 a further US$57 was paid under protest, presented within 'Receipts from / (payment on) deposits' in the statement of cash flows. A hearing date before the Islamabad High Court was scheduled for April 9, 2020 but was adjourned in light of court closures due to COVID-19. Refinancing of RUB debt - Sberbank In June 2020, VEON Holdings B.V. entered into a new RUB bilateral term loan agreement with Sberbank. The agreement comprises four facilities for a total amount of RUB100 billion (US$1,450) with final maturity dates ranging between two and four years. Shortly after the agreement was signed, VEON Holdings B.V. fully utilized three facilities for a total amount of RUB87.5 billion (US$1,281) and used the proceeds to prepay all outstanding amounts under the Sberbank term facilities agreement signed on May 19, 2017. The fourth facility available under the agreement signed in June 2020 was fully utilized subsequent to reporting date, in July 2020. Global Medium Term Note program In April 2020, VEON Holdings B.V. established a Global Medium Term Note program for the issuance of bonds (the "MTN Program" ), with a program limit of US$6,500 or the equivalent thereof in other currencies. In June 2020, VEON Holdings B.V. executed a drawdown of RUB20 billion (US$288) senior unsecured notes under the MTN Program, maturing in June 2025. Extension and extinguishment of Banglalink syndicated loan In April 2020, Banglalink Digital Communications Limited, a wholly-owned subsidiary, extended the maturity of its US$300 syndicated loan by an additional two years to 2022. Following this extension, VEON Digital Amsterdam B.V., the Company's wholly-owned subsidiary, acquired the loan from the original lenders, leading to extinguishment of this financial liability within VEON's consolidated financial statements. No material transactional costs were incurred. Drawdowns under the Revolving Credit Facility In March 2020, VEON Holdings B.V., the Company's wholly-owned subsidiary, executed two drawdowns under the existing Revolving Credit Facility for an aggregate amount of US$600. Although these drawdowns are short-term in nature, VEON Holdings B.V. has an enforceable right to roll them over until final maturity date of the facility in February 2022. All outstanding drawdowns under the RCF have been fully repaid during June 2020 (US$100) and July 2020 (US$500). Refinancing of RUB debt - AO "Alfa-Bank" In March 2020, VEON Holdings B.V. amended and restated the existing facility with AO "Alfa-Bank", increasing its size and utilization from RUB17.5 billion to RUB30 billion (US$165). Following this amendment and restatement, the final maturity of this facility has been set to March 10, 2025. GTH bonds prepayment In February 2020, GTH Finance B.V., the Company’s subsidiary, repaid at par the US$500 6.25% bonds, originally maturing April 26, 2020. US$300 tap issuance of existing senior notes In January 2020, VEON Holdings B.V., issued US$300 in senior unsecured notes due 2025, which are consolidated and form a single series with the US$700 4.00% senior notes due in 2025 issued by VEON Holdings B.V. in October 2019. VEON used the net proceeds of the tap issuance to refinance certain existing outstanding debt. Fair values The carrying amounts of all financial assets and liabilities are equal to or approximate their respective fair values as shown in the table above, with the exception of: • 'Bank loans and bonds, including interest accrued', for which fair value is equal to US$7,890 at June 30, 2020 (December 31, 2019: US$7,887); and • 'Lease liabilities', for which fair value has not been determined. Fair values were estimated based on quoted market prices (for bonds), derived from market prices or by discounting contractual cash flows at the rate applicable for the instruments with similar maturity and risk profile. As of June 30, 2020 and December 31, 2019, the Group recognized financial instruments at fair value in the statement of financial position, all of which were measured based on Level 2 inputs, except for Contingent consideration, for which fair value is classified as Level 3. Observable inputs (Level 2) used in valuation techniques include inter-bank interest rates, bond yields, swap curves, basis swap spreads, foreign exchange rates and credit default spreads. During the six-month period ended June 30, 2020, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements. A reconciliation of movements relating to Contingent consideration is shown below: Contingent consideration As of December 31, 2019 41 Fair value changes recognized in the income statement (41) As of June 30, 2020 — In 2015, International Wireless Communications Pakistan Limited and Pakistan Mobile Communications Ltd ( “PMCL” ), each indirect subsidiaries of the Company, signed an agreement with Warid Telecom Pakistan LLC and Bank Alfalah Limited, to combine their operations in Pakistan. In July 2016, the transaction was closed and PMCL acquired 100% of the voting shares in Warid Telecom (Pvt) Limited ( “Warid” ) for a consideration of 15% of the shares in PMCL. As a result, VEON gained control over Warid. As part of the share purchase agreement, an earn-out payment was agreed in the event that a tower transaction is effected by PMCL within four years from the acquisition date. The earn-out would also apply if another telecommunications operator in Pakistan effects a tower transaction, provided the transaction meets certain parameters, in the same timeframe. The contingent consideration would be settled with a transfer of PMCL shares. As of the reporting date, the probability of completion of a tower deal in Pakistan prior to the relevant deadline, upon which contingent consideration would be paid, became remote. As a result, the fair value of Contingent consideration was revised downwards to zero, with a corresponding gain in the consolidated income statement. All impairment losses and changes in fair values of investments, debt and derivatives are unrealized and are recorded in "Other non-operating gain / (loss)" in the consolidated income statement. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2020 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following items: June 30, 2020 December 31, 2019 Cash at banks and on hand 658 932 Short-term deposits with original maturity of less than three months 508 318 Cash and cash equivalents 1,166 1,250 Less overdrafts (3) (46) Cash and cash equivalents, net of overdrafts 1,163 1,204 As of June 30, 2020 and December 31, 2019, there were no restricted cash and cash equivalent balances. Cash balances as of June 30, 2020 include investments in money market funds of US$27 (December 31, 2019: US$155). As of June 30, 2020, some bank accounts forming part of a cash pooling program and being an integral part of the Company’s cash management remained overdrawn by US$3 (2019: US$46). Even though the total balance of the cash pool remained positive, the Company has no legally enforceable right of set-off and therefore the overdrawn accounts are presented as financial liabilities within the statement of financial position. At the same time, because the overdrawn accounts are an integral part of the Company’s cash management, they were included as cash and cash equivalents within the statement of cash flows. |
ISSUED CAPITAL
ISSUED CAPITAL | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
ISSUED CAPITAL | ISSUED CAPITAL The following table details the common shares of the Company as of June 30 2020 2019 Authorized common shares (nominal value of US$0.001 per share) 1,849,190,670 1,849,190,670 Issued shares, including 7,603,731 shares held by a subsidiary of the Company 1,756,731,135 1,756,731,135 The holders of common shares are, subject to our by-laws and Bermuda law, generally entitled to enjoy all the rights attaching to common shares. As of June 30, 2020, the Company’s largest shareholders and remaining free float are as follows: Shareholder Common shares % of common L1T VIP Holdings S.à r.l. (“LetterOne”) 840,625,001 47.9 % Stichting Administratiekantoor Mobile Telecommunications Investor * 145,947,562 8.3 % Free Float, including 7,603,731 shares held by a subsidiary of the Company 770,158,572 43.8 % Total outstanding common shares 1,756,731,135 100.0 % * LetterOne is the holder of the depositary receipts issued by Stichting and is therefore entitled to the economic benefits (dividend payments, other distributions and sale proceeds) of such depositary receipts. According to the conditions of administration entered into between Stichting and LetterOne, Stichting has the power to vote and direct the voting of, and the power to dispose and direct the disposition of, the ADSs, in its sole discretion. |
DIVIDENDS PAID AND PROPOSED
DIVIDENDS PAID AND PROPOSED | 6 Months Ended |
Jun. 30, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | |
DIVIDENDS PAID AND PROPOSED | DIVIDENDS PAID AND PROPOSED The following table provides an overview of dividends declared by VEON during the six-month period ended June 30, 2020 and 2019: Dividends declared Dividends paid Dividends, US$ cents per share Total dividends Final dividend for 2019 February 2020 March 2020 15 262 Final dividend for 2018 February 2019 March 2019 17 297 The Company makes appropriate tax withholdings of up to 15% when dividends are paid to the Company’s share depositary, The Bank of New York Mellon. For ordinary shareholders at Euronext Amsterdam, dividends are paid in euro. |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended |
Jun. 30, 2020 | |
Related Party [Abstract] | |
RELATED PARTIES | RELATED PARTIES For the six and three-month periods ended June 30, there were no material transactions and there were no material balances recognized with related parties as of this date. COMPENSATION OF KEY MANAGEMENT PERSONNEL OF THE COMPANY Value growth cash-based long-term incentive plans The carrying value of obligations under the Value-growth cash based long-term incentive plan (the “LTI Plan” ) as of June 30, 2020 and December 31, 2019, respectively, was equal to US$5 and US$9. Included within ‘Selling, general and administrative expenses’ for the six and three-month periods ended June 30, 2020, respectively, is an expense of US$3 (2019: expense of US$6) and US$0 (2019: gain of US$2) relating to share-based payment expense under the LTI Plan. |
RISKS, COMMITMENTS, CONTINGENCI
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2020 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES | RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES Other than disclosed below and elsewhere in these interim condensed consolidated financial statements, there were no material changes to risks, commitments, contingencies and uncertainties that occurred during the six-month period ended June 30, 2020. Settlement of dispute concerning sale of Telecel Globe Limited In 2013, GTH and Niel Natural Resources Investments S.A. (" Niel ") entered into a Share Purchase Agreement (the “SPA” ) in relation to the proposed purchase by Niel of GTH's majority stake in Telecel Globe Limited ( "Telecel" ) and telecommunications operations in the Central African Republic and Burundi. Pursuant to the terms of the SPA and subsequent amendments agreed, deposits of US$50 were received by GTH from Niel and recorded within other financial liabilities. Upon Niel's failure to close the intended transaction and in accordance with the terms of the SPA, the deposits paid were not refunded. GTH completed the sale of Telecel in October 2014, to another purchaser for consideration less than had been agreed with Niel. During 2019, Niel commenced legal activities in relation to the deposit monies retained by GTH. For further details, refer to the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. In June 2020, a settlement agreement was reached between GTH and Niel, which remains subject to Niel’s satisfaction of certain conditions precedent, whereby GTH will pay US$9 to Niel to resolve all claims and counterclaims at issue in the dispute, as well as associated proceedings brought by Niel in the Netherlands and Egypt. The US$41 remainder of the value deferred on the balance sheet was released to profit and loss, within 'Other non-operating gain / (loss)'. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 6 Months Ended |
Jun. 30, 2020 | |
Events After Reporting Period [Abstract] | |
EVENTS AFTER THE REPORTING PERIOD | EVENTS AFTER THE REPORTING PERIOD Refinancing of loan agreement with VTB In July 2020, VEON Holdings B.V. successfully refinanced its existing RUB 30 billion, approximately US$422, bilateral term loan agreement with VTB Bank. This refinancing extended the final maturity of the existing loan between VTB Bank and VEON Holdings B.V. to July 2025 and amended the interest cost from a fixed rate of 8.75% to floating rate equal to CBR Key Rate + 1.85 p.p.. |
BASIS OF PREPARATION OF THE INT
BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies, Accounting Estimates And Errors [Abstract] | |
BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS BASIS OF PREPARATION The interim condensed consolidated financial statements for the six and three-month periods ended June 30, 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ( "IASB" ). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. The preparation of these interim condensed consolidated financial statements has required management to apply accounting policies and methodologies based on complex and subjective judgments, estimates based on past experience and assumptions determined to be reasonable and realistic based on the related circumstances. The use of these judgments, estimates and assumptions affects the amounts reported in the statement of financial position, income statement, statement of cash flows, statement of changes in equity, as well as the notes. The final amounts for items for which estimates and assumptions were made in the consolidated financial statements may differ from those reported in these statements due to the uncertainties that characterize the assumptions and conditions on which the estimates are based. Certain comparative amounts have been reclassified to conform to the current period presentation. Specifically, the following December 31, 2019 balances were reclassified in the consolidated statement of financial position: • Loans granted to customers relating to microfinance banking operations of US$116 is now presented within current Investments and derivatives (previously within Trade and other receivables); and • Customer deposits and other liabilities relating to microfinance banking of US$186 and US$19, respectively, are now presented within current Debt and derivatives (previously within Trade and other payables). NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS ADOPTED BY THE GROUP The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements as of and for the year ended December 31, 2019. A number of new and amended standards became effective as of January 1, 2020, which are not expected to have a material impact on VEON financial statements in current or future reporting periods or on foreseeable future transactions. The Group has not early adopted any other standards, interpretations or amendments that have been issued but have not yet become effective. In May 2020, the IASB issued an amendment to IFRS 16 'Leases', providing an option to apply a practical expedient in respect of accounting for certain rent concessions arising as a direct consequence of covid-19, such as rent holidays and temporary rent reductions. Under this amendment, which became effective as of June 30, 2020, lessees are exempted from having to consider whether these rent concessions are lease modifications. The Group has chosen not to apply the practical expedient available, and will therefore account for any rent concessions as lease modifications. |
BASIS OF PREPARATION OF THE I_2
BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies, Accounting Estimates And Errors [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION The interim condensed consolidated financial statements for the six and three-month periods ended June 30, 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ( "IASB" ). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. The preparation of these interim condensed consolidated financial statements has required management to apply accounting policies and methodologies based on complex and subjective judgments, estimates based on past experience and assumptions determined to be reasonable and realistic based on the related circumstances. The use of these judgments, estimates and assumptions affects the amounts reported in the statement of financial position, income statement, statement of cash flows, statement of changes in equity, as well as the notes. The final amounts for items for which estimates and assumptions were made in the consolidated financial statements may differ from those reported in these statements due to the uncertainties that characterize the assumptions and conditions on which the estimates are based. Certain comparative amounts have been reclassified to conform to the current period presentation. Specifically, the following December 31, 2019 balances were reclassified in the consolidated statement of financial position: • Loans granted to customers relating to microfinance banking operations of US$116 is now presented within current Investments and derivatives (previously within Trade and other receivables); and • Customer deposits and other liabilities relating to microfinance banking of US$186 and US$19, respectively, are now presented within current Debt and derivatives (previously within Trade and other payables). |
NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS ADOPTED BY THE GROUP | NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS ADOPTED BY THE GROUP The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements as of and for the year ended December 31, 2019. A number of new and amended standards became effective as of January 1, 2020, which are not expected to have a material impact on VEON financial statements in current or future reporting periods or on foreseeable future transactions. The Group has not early adopted any other standards, interpretations or amendments that have been issued but have not yet become effective. In May 2020, the IASB issued an amendment to IFRS 16 'Leases', providing an option to apply a practical expedient in respect of accounting for certain rent concessions arising as a direct consequence of covid-19, such as rent holidays and temporary rent reductions. Under this amendment, which became effective as of June 30, 2020, lessees are exempted from having to consider whether these rent concessions are lease modifications. The Group has chosen not to apply the practical expedient available, and will therefore account for any rent concessions as lease modifications. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Operating Segments [Abstract] | |
Schedule of reportable segments financial information by geography | Financial information by reportable segment for the six and three-month periods ended June 30, is presented in the following tables. Inter-segment transactions between segments are not material, and are made on terms which are comparable to transactions with third parties. For the six-month period ended June 30 Service revenue Sale of equipment and accessories Other revenue Total Revenue Mobile Fixed 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Our cornerstone Russia 1,506 1,714 265 260 151 191 5 7 1,927 2,172 Our growth engines Pakistan 559 662 — — 3 4 42 44 604 710 Ukraine 429 372 30 25 — — 2 3 461 400 Kazakhstan 190 180 37 33 2 1 1 39 230 253 Uzbekistan 101 130 1 1 — — — — 102 131 Our frontier markets Algeria 343 378 — — 2 1 — — 345 379 Bangladesh 262 264 — — — 1 5 6 267 271 Other frontier markets 55 66 12 14 2 3 — — 69 83 Other HQ and eliminations (17) (14) — — — — — — (17) (14) Total segments 3,428 3,752 345 333 160 201 55 99 3,988 4,385 Adjusted CAPEX 2020 2019 2020 2019 Our cornerstone Russia 784 966 415 462 Our growth engines Pakistan 280 369 153 118 Ukraine 313 256 96 67 Kazakhstan 124 152 52 53 Uzbekistan 45 67 26 39 Our frontier markets Algeria 145 172 38 48 Bangladesh 113 114 59 37 Other frontier markets 25 28 19 14 Other HQ and eliminations (100) 168 2 — Total segments 1,729 2,292 860 838 For the three-month period ended June 30 Service revenue Sale of equipment and accessories Other revenue Total Revenue Mobile Fixed 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 Our cornerstone Russia 711 883 128 131 68 106 — 4 907 1,124 Our growth engines Pakistan 266 324 — — 1 2 21 22 288 348 Ukraine 208 198 14 13 — — 1 1 223 212 Kazakhstan 92 94 19 17 1 — — 39 112 150 Uzbekistan 47 67 — — — — — — 47 67 Our frontier markets Algeria 159 187 — — 1 — — — 160 187 Bangladesh 128 134 — — — — 3 3 131 137 Other frontier markets 25 34 6 7 1 4 — — 32 45 Other HQ and eliminations (8) (9) — — — — — — (8) (9) Total segments 1,628 1,912 167 168 72 112 25 69 1,892 2,261 |
Schedule of segment adjusted EBITDA and capital expenditures by geography | Adjusted CAPEX 2020 2019 2020 2019 Our cornerstone Russia 357 498 249 236 Our growth engines Pakistan 133 186 85 67 Ukraine 151 138 58 38 Kazakhstan 61 97 28 42 Uzbekistan 20 35 21 14 Our frontier markets Algeria 64 83 24 30 Bangladesh 54 54 15 23 Other frontier markets 11 15 12 8 Other HQ and eliminations (42) (112) — (9) Total segments 809 994 492 449 |
Schedule of segments reconciliation of consolidated Adjusted EBITDA to Profit / (loss) before tax | The following table provides the reconciliation of Profit / (loss) before tax to Total Adjusted EBITDA for the six and three-month periods ended June 30: Six-month period Three-month period 2020 2019 2020 2019 Profit / (loss) before tax 438 865 243 256 Adjustments to reconcile Profit / (loss) before tax to Total Adjusted EBITDA Depreciation 804 812 389 409 Amortization 178 205 86 111 Impairment loss / (reversal) 1 10 1 4 (Gain) / loss on disposal of non-current assets 12 14 6 7 (Gain) / loss on disposal of subsidiaries — (1) — (1) Finance costs 391 421 184 210 Finance income (15) (28) (6) (14) Other non-operating (gain) / loss (101) (14) (86) (10) Net foreign exchange (gain) / loss 21 8 (8) 22 Total Adjusted EBITDA 1,729 2,292 809 994 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Schedule of income tax expense | Income tax expense consisted of the following for the six and three-month periods ended June 30: Six-month period Three-month period 2020 2019 2020 2019 Current income taxes 152 250 97 163 Deferred income taxes (8) 10 (29) 18 Income tax expense 144 260 68 181 Effective tax rate 32.9 % 30.1 % 28.0 % 70.7 % |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of movement in property and equipment | The following table summarizes the movement in the net book value of property and equipment for the six-month period ended June 30: Six-month period 2020 2019 Balance as of January 1 7,340 4,932 Adjustment due to new accounting standard (IFRS 16) — 1,945 Additions 839 827 Disposals (25) (29) Depreciation (804) (812) Impairment (1) (10) Translation adjustment (689) 265 Other 19 76 Balance as of June 30 6,679 7,194 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Intangible assets and goodwill [abstract] | |
Disclosure of detailed information about intangible assets | The following table summarizes the movement in the net book value of intangible assets, including goodwill for the six-month period ended June 30. Six-month period 2020 2019 Balance as of January 1 5,688 5,670 Adjustment due to new accounting standard (IFRS 16) — (15) Additions 124 101 Amortization (178) (204) Translation adjustment (519) 148 Other 4 — Balance as of June 30 5,119 5,700 |
Schedule of movement in goodwill for the Group, per cash generating unit | Included within total intangible asset movements for the six month periods ended June 30, 2020, as shown above, are the following movements in goodwill for the group, per cash generating unit ("CGU") : CGU * June 30, 2020 Currency December 31, 2019 Russia 2,005 (260) 2,265 Algeria 1,077 (90) 1,167 Pakistan 309 (26) 335 Kazakhstan 145 (9) 154 Uzbekistan 36 (2) 38 Total 3,572 (387) 3,959 |
Schedule of key assumptions used in fair value less costs of disposal calculations | The recoverable amount of the CGU has been determined based on fair value less costs of disposal calculations, using cash flow projections from the business plan prepared by management. For further details regarding calculations and assumptions used for impairment testing, refer to the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. CGU Discount rate Average growth rate * Terminal growth rate Average operating margin * Average CAPEX / revenue *,** Russia 9.6 % 4.3 % 1.6 % 32.4 % 28.8 % * During the explicit forecast period of five years ** CAPEX excludes licenses and ROU |
Schedule of information for cash-generating units | The following table illustrates the CGU's remaining headroom if certain key parameters would adversely change by one percentage point within both the explicit forecast period and the terminal period. Any additional adverse changes in the key parameters by more than one percentage point would further proportionally decrease the headroom. Remaining headroom / (impairment) as a result of change in assumption CGU Existing headroom Discount rate Average growth rate * Terminal growth rate Average operating margin *** Average CAPEX / revenue **,*** +1 pp -1 pp -1 pp -1 pp +1 pp Russia 17 (682) (262) (558) (465) (472) * During the explicit forecast period of five years ** CAPEX excludes licenses and ROU |
INVESTMENTS, DEBTS AND DERIVATI
INVESTMENTS, DEBTS AND DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Schedule of financial assets | The Company holds the following investments and derivative assets: June 30, 2020 December 31, 2019 At fair value Derivatives not designated as hedges 17 11 Derivatives designated as net investment hedges — — Investments in debt instruments 65 34 82 45 At amortized cost Security deposits and cash collateral 301 256 Loans granted to customers - microfinance banking * 125 116 Bank deposits 20 — Other investments 29 16 475 388 Total investments and derivatives 557 433 Non-current 281 235 Current 276 198 |
Schedule of financial liabilities | The Company holds the following debt and derivative liabilities: June 30, 2020 December 31, 2019 At fair value Derivatives not designated as hedges 62 52 Derivatives designated as net investment hedges 26 161 Contingent consideration — 41 88 254 At amortized cost Principal amount outstanding 7,550 7,519 Interest accrued 80 79 Discounts, unamortized fees, hedge basis adjustment (6) (10) Bank loans and bonds 7,624 7,588 Lease liabilities 1,815 2,083 Put-option liability over non-controlling interest 320 342 Customer deposits - microfinance banking * 192 186 Other financial liabilities * 70 96 10,021 10,295 Total debt and derivatives 10,109 10,549 Non-current 7,297 7,759 Current 2,812 2,790 * Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 14 for further details. |
Schedule of movements relating to contingent consideration | A reconciliation of movements relating to Contingent consideration is shown below: Contingent consideration As of December 31, 2019 41 Fair value changes recognized in the income statement (41) As of June 30, 2020 — |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents consisted of the following items: June 30, 2020 December 31, 2019 Cash at banks and on hand 658 932 Short-term deposits with original maturity of less than three months 508 318 Cash and cash equivalents 1,166 1,250 Less overdrafts (3) (46) Cash and cash equivalents, net of overdrafts 1,163 1,204 |
ISSUED CAPITAL (Tables)
ISSUED CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
Summary of common shares | The following table details the common shares of the Company as of June 30 2020 2019 Authorized common shares (nominal value of US$0.001 per share) 1,849,190,670 1,849,190,670 Issued shares, including 7,603,731 shares held by a subsidiary of the Company 1,756,731,135 1,756,731,135 The holders of common shares are, subject to our by-laws and Bermuda law, generally entitled to enjoy all the rights attaching to common shares. |
Schedule of detailed information about major shareholders | As of June 30, 2020, the Company’s largest shareholders and remaining free float are as follows: Shareholder Common shares % of common L1T VIP Holdings S.à r.l. (“LetterOne”) 840,625,001 47.9 % Stichting Administratiekantoor Mobile Telecommunications Investor * 145,947,562 8.3 % Free Float, including 7,603,731 shares held by a subsidiary of the Company 770,158,572 43.8 % Total outstanding common shares 1,756,731,135 100.0 % * LetterOne is the holder of the depositary receipts issued by Stichting and is therefore entitled to the economic benefits (dividend payments, other distributions and sale proceeds) of such depositary receipts. According to the conditions of administration entered into between Stichting and LetterOne, Stichting has the power to vote and direct the voting of, and the power to dispose and direct the disposition of, the ADSs, in its sole discretion. |
DIVIDENDS PAID AND PROPOSED (Ta
DIVIDENDS PAID AND PROPOSED (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Statement of changes in equity [abstract] | |
Schedule of dividends | The following table provides an overview of dividends declared by VEON during the six-month period ended June 30, 2020 and 2019: Dividends declared Dividends paid Dividends, US$ cents per share Total dividends Final dividend for 2019 February 2020 March 2020 15 262 Final dividend for 2018 February 2019 March 2019 17 297 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) $ in Millions, ₽ in Billions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020RUB (₽) | Apr. 30, 2020USD ($) | |
Disclosure of general information [line items] | ||||||
Other comprehensive income, net of tax, exchange differences on translation | $ (94) | $ 34 | $ 486 | $ (22) | ||
RUB100bn bilateral facility | ||||||
Disclosure of general information [line items] | ||||||
Undrawn borrowing facilities | ₽ | ₽ 100 | |||||
Borrowings | ₽ | 87.5 | |||||
RUB100bn bilateral facility | VEON Holdings B.V. | ||||||
Disclosure of general information [line items] | ||||||
Undrawn borrowing facilities | 1,450 | 1,450 | 100 | |||
Borrowings | 1,281 | 1,281 | 87.5 | |||
MTN unsecured notes | VEON Holdings B.V. | ||||||
Disclosure of detailed information about financial instruments [table] | ||||||
Bonds issued | 288 | 288 | 20 | |||
Disclosure of general information [line items] | ||||||
Bonds issued | $ 288 | $ 288 | ₽ 20 | |||
MTN unsecured notes | VEON Holdings B.V. | Maximum | ||||||
Disclosure of detailed information about financial instruments [table] | ||||||
Bonds issued | $ 6,500 | |||||
Disclosure of general information [line items] | ||||||
Bonds issued | $ 6,500 |
SEGMENT INFORMATION - Reportabl
SEGMENT INFORMATION - Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of operating segments [line items] | ||||
Service revenues | $ 1,795 | $ 2,080 | $ 3,773 | $ 4,085 |
Sale of equipment and accessories | 72 | 112 | 160 | 201 |
Other revenue | 25 | 69 | 55 | 99 |
Revenue | 1,892 | 2,261 | 3,988 | 4,385 |
Adjusted EBITDA | 809 | 994 | 1,729 | 2,292 |
CAPEX exc. licenses and ROU | 492 | 449 | 860 | 838 |
Algeria | ||||
Disclosure of operating segments [line items] | ||||
Adjusted EBITDA | 64 | 83 | 145 | 172 |
CAPEX exc. licenses and ROU | 24 | 30 | 38 | 48 |
Bangladesh | ||||
Disclosure of operating segments [line items] | ||||
Adjusted EBITDA | 54 | 54 | 113 | 114 |
CAPEX exc. licenses and ROU | 15 | 23 | 59 | 37 |
Other frontier markets | ||||
Disclosure of operating segments [line items] | ||||
Adjusted EBITDA | 11 | 15 | 25 | 28 |
CAPEX exc. licenses and ROU | 12 | 8 | 19 | 14 |
HQ and eliminations | ||||
Disclosure of operating segments [line items] | ||||
Adjusted EBITDA | (42) | (112) | (100) | 168 |
CAPEX exc. licenses and ROU | 0 | (9) | 2 | 0 |
Operating segments | Russia | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 68 | 106 | 151 | 191 |
Other revenue | 0 | 4 | 5 | 7 |
Revenue | 907 | 1,124 | 1,927 | 2,172 |
Adjusted EBITDA | 357 | 498 | 784 | 966 |
CAPEX exc. licenses and ROU | 249 | 236 | 415 | 462 |
Operating segments | Pakistan | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 1 | 2 | 3 | 4 |
Other revenue | 21 | 22 | 42 | 44 |
Revenue | 288 | 348 | 604 | 710 |
Adjusted EBITDA | 133 | 186 | 280 | 369 |
CAPEX exc. licenses and ROU | 85 | 67 | 153 | 118 |
Operating segments | Ukraine | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 0 | 0 | 0 | 0 |
Other revenue | 1 | 1 | 2 | 3 |
Revenue | 223 | 212 | 461 | 400 |
Adjusted EBITDA | 151 | 138 | 313 | 256 |
CAPEX exc. licenses and ROU | 58 | 38 | 96 | 67 |
Operating segments | Kazakhstan | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 1 | 0 | 2 | 1 |
Other revenue | 0 | 39 | 1 | 39 |
Revenue | 112 | 150 | 230 | 253 |
Adjusted EBITDA | 61 | 97 | 124 | 152 |
CAPEX exc. licenses and ROU | 28 | 42 | 52 | 53 |
Operating segments | Uzbekistan | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 0 | 0 | 0 | 0 |
Other revenue | 0 | 0 | 0 | 0 |
Revenue | 47 | 67 | 102 | 131 |
Adjusted EBITDA | 20 | 35 | 45 | 67 |
CAPEX exc. licenses and ROU | 21 | 14 | 26 | 39 |
Operating segments | Algeria | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 1 | 0 | 2 | 1 |
Other revenue | 0 | 0 | 0 | 0 |
Revenue | 160 | 187 | 345 | 379 |
Adjusted EBITDA | 64 | 83 | 145 | 172 |
CAPEX exc. licenses and ROU | 24 | 30 | 38 | 48 |
Operating segments | Bangladesh | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 0 | 0 | 0 | 1 |
Other revenue | 3 | 3 | 5 | 6 |
Revenue | 131 | 137 | 267 | 271 |
Adjusted EBITDA | 54 | 54 | 113 | 114 |
CAPEX exc. licenses and ROU | 15 | 23 | 59 | 37 |
Operating segments | Other frontier markets | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 1 | 4 | 2 | 3 |
Other revenue | 0 | 0 | 0 | 0 |
Revenue | 32 | 45 | 69 | 83 |
Adjusted EBITDA | 11 | 15 | 25 | 28 |
CAPEX exc. licenses and ROU | 12 | 8 | 19 | 14 |
HQ and eliminations | ||||
Disclosure of operating segments [line items] | ||||
Sale of equipment and accessories | 0 | 0 | 0 | 0 |
Other revenue | 0 | 0 | 0 | 0 |
Revenue | (8) | (9) | (17) | (14) |
Adjusted EBITDA | (42) | (112) | (100) | 168 |
CAPEX exc. licenses and ROU | 0 | (9) | 2 | 0 |
Mobile | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 1,628 | 1,912 | 3,428 | 3,752 |
Mobile | Operating segments | Russia | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 711 | 883 | 1,506 | 1,714 |
Mobile | Operating segments | Pakistan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 266 | 324 | 559 | 662 |
Mobile | Operating segments | Ukraine | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 208 | 198 | 429 | 372 |
Mobile | Operating segments | Kazakhstan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 92 | 94 | 190 | 180 |
Mobile | Operating segments | Uzbekistan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 47 | 67 | 101 | 130 |
Mobile | Operating segments | Algeria | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 159 | 187 | 343 | 378 |
Mobile | Operating segments | Bangladesh | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 128 | 134 | 262 | 264 |
Mobile | Operating segments | Other frontier markets | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 25 | 34 | 55 | 66 |
Mobile | HQ and eliminations | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | (8) | (9) | (17) | (14) |
Fixed | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 167 | 168 | 345 | 333 |
Fixed | Operating segments | Russia | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 128 | 131 | 265 | 260 |
Fixed | Operating segments | Pakistan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 0 | 0 | 0 | 0 |
Fixed | Operating segments | Ukraine | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 14 | 13 | 30 | 25 |
Fixed | Operating segments | Kazakhstan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 19 | 17 | 37 | 33 |
Fixed | Operating segments | Uzbekistan | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 0 | 0 | 1 | 1 |
Fixed | Operating segments | Algeria | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 0 | 0 | 0 | 0 |
Fixed | Operating segments | Bangladesh | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 0 | 0 | 0 | 0 |
Fixed | Operating segments | Other frontier markets | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | 6 | 7 | 12 | 14 |
Fixed | HQ and eliminations | ||||
Disclosure of operating segments [line items] | ||||
Service revenues | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Adjusted EBITDA to Profit/(loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Segments [Abstract] | ||||
Profit / (loss) before tax | $ 809 | $ 994 | $ 1,729 | $ 2,292 |
Depreciation | 389 | 409 | 804 | 812 |
Amortization | 86 | 111 | 178 | 205 |
Impairment (loss) / reversal | 1 | 4 | 1 | 10 |
Gain / (loss) on disposal of non-current assets | 6 | 7 | 12 | 14 |
Gain / (loss) on disposal of subsidiaries | 0 | (1) | 0 | (1) |
Finance costs | 184 | 210 | 391 | 421 |
Finance income | (6) | (14) | (15) | (28) |
Other non-operating gain / (loss) | (86) | (10) | (101) | (14) |
Net foreign exchange (gain) / loss | (8) | 22 | 21 | 8 |
Profit (loss) before tax | $ 243 | $ 256 | $ 438 | $ 865 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Abstract] | ||||
Current income taxes | $ 97 | $ 163 | $ 152 | $ 250 |
Deferred income taxes | (29) | 18 | (8) | 10 |
Income tax expense | $ 68 | $ 181 | $ 144 | $ 260 |
Effective tax rate | 28.00% | 70.70% | 32.90% | 30.10% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Taxes Disclosure [Line Items] | |||||
Effective tax rate | 28.00% | 70.70% | 32.90% | 30.10% | |
Deferred tax assets | $ 117,000,000 | $ 117,000,000 | $ 134,000,000 | ||
Higher Nominal Rate, Non-deductible Expenses and Income Tax Losses | |||||
Income Taxes Disclosure [Line Items] | |||||
Deferred tax assets | $ 0 | $ 0 |
SIGNIFICANT TRANSACTIONS (Detai
SIGNIFICANT TRANSACTIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of subsidiaries [line items] | |||||
Other operating income | $ 2 | $ 0 | $ 2 | $ 350 | |
Ericsson | |||||
Disclosure of subsidiaries [line items] | |||||
Other operating income | $ 350 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, plant and equipment [abstract] | ||
Balance as of January 1 | $ 7,340 | $ 4,932 |
Adjustment due to new accounting standard (IFRS 16) | 0 | 1,945 |
Additions | 839 | 827 |
Disposals | (25) | (29) |
Depreciation | (804) | (812) |
Impairment | (1) | (10) |
Translation adjustment | (689) | 265 |
Other | 19 | 76 |
Balance as of June 30 | $ 6,679 | $ 7,194 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of detailed information about intangible assets [line items] | ||
Balance as of January 1 | $ 5,688 | $ 5,670 |
Adjustment due to new accounting standard (IFRS 16) | 0 | (15) |
Additions | 124 | 101 |
Amortization | (178) | (204) |
Translation adjustment | (519) | 148 |
Other | 4 | 0 |
Balance as of June 30 | $ 5,119 | $ 5,700 |
INTANGIBLE ASSETS - Goodwill (D
INTANGIBLE ASSETS - Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | $ 3,959 |
Currency translation | (387) |
Goodwill at end of period | 3,572 |
Russia | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | 2,265 |
Currency translation | (260) |
Goodwill at end of period | 2,005 |
Algeria | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | 1,167 |
Currency translation | (90) |
Goodwill at end of period | 1,077 |
Pakistan | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | 335 |
Currency translation | (26) |
Goodwill at end of period | 309 |
Kazakhstan | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | 154 |
Currency translation | (9) |
Goodwill at end of period | 145 |
Uzbekistan | |
Disclosure of information for cash-generating units [line items] | |
Goodwill at beginning of period | 38 |
Currency translation | (2) |
Goodwill at end of period | $ 36 |
INTANGIBLE ASSETS - Impairment
INTANGIBLE ASSETS - Impairment analysis (Details) | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Disclosure of information for cash-generating units [line items] | |
Impairment loss recognised in profit or loss, goodwill | $ 0 |
Russia | |
Disclosure of information for cash-generating units [line items] | |
Discount rate | 9.60% |
Average growth rate | 4.30% |
Terminal growth rate | 1.60% |
Average operating margin | 32.40% |
Average CAPEX / revenue | 28.80% |
Disclosure of information of changes in methods and assumptions used in preparing sensitivity analysis [line items] | |
Existing headroom | $ 17,000,000 |
Discount rate | (682,000,000) |
Average growth rate | (262,000,000) |
Terminal growth rate | (558,000,000) |
Average operating margin | (465,000,000) |
Average CAPEX / revenue | $ (472,000,000) |
INVESTMENTS, DEBTS AND DERIVA_2
INVESTMENTS, DEBTS AND DERIVATIVES - Financial assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Total investments and derivatives | $ 557 | $ 433 | |
Non-current | 281 | 235 | |
Current | [1] | 276 | 198 |
At fair value | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 82 | 45 | |
At amortized cost | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 475 | 388 | |
Derivatives not designated as hedges | At fair value | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 17 | 11 | |
Derivatives designated as net investment hedges | At fair value | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 0 | 0 | |
Investments in debt instruments | At fair value | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 65 | 34 | |
Security deposits and cash collateral | At amortized cost | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 301 | 256 | |
Loans granted to customers - microfinance banking | At amortized cost | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 125 | 116 | |
Bank deposits | At amortized cost | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | 20 | 0 | |
Other Investment | At amortized cost | |||
Disclosure of financial assets [line items] | |||
Total investments and derivatives | $ 29 | $ 16 | |
[1] | * Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 14 for further details. |
INVESTMENTS, DEBTS AND DERIVA_3
INVESTMENTS, DEBTS AND DERIVATIVES - Financial liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | $ 10,109 | $ 10,549 | |
Non-current | 7,297 | 7,759 | |
Current | [1] | 2,812 | 2,790 |
At fair value | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 88 | 254 | |
At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 10,021 | 10,295 | |
Derivatives not designated as hedges | At fair value | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 62 | 52 | |
Derivatives designated as net investment hedges | At fair value | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 26 | 161 | |
Contingent consideration | At fair value | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 0 | 41 | |
Principal amount outstanding | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 7,550 | 7,519 | |
Interest accrued | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 80 | 79 | |
Discounts, unamortized fees, hedge basis adjustment | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | (6) | (10) | |
Bank loans and bonds | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 7,624 | 7,588 | |
Lease liabilities | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 1,815 | 2,083 | |
Put-option liability over non-controlling interest | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 320 | 342 | |
Customer deposits - microfinance banking | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | 192 | 186 | |
Other Financial Liabilities | At amortized cost | |||
Disclosure of financial liabilities [line items] | |||
Total debt and derivatives | $ 70 | $ 96 | |
[1] | * Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 14 for further details. |
INVESTMENTS, DEBT AND DERIVAT_2
INVESTMENTS, DEBT AND DERIVATIVES - Significant changes in financial assets and financial liabilities (Details) $ / mHz in Millions, ₽ in Billions | Jul. 22, 2019USD ($)$ / mHzmHz | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)numberOfFacility | Apr. 30, 2020USD ($) | Mar. 31, 2020RUB (₽)numberOfDrawdown | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020RUB (₽) | Jun. 30, 2020USD ($) | May 18, 2020USD ($) | Mar. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Financial assets | $ 557,000,000 | $ 433,000,000 | |||||||||||||||
RUB100bn bilateral facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Undrawn borrowing facilities | ₽ | ₽ 100 | ||||||||||||||||
Number of facilities | numberOfFacility | 3 | ||||||||||||||||
Borrowings | ₽ | 87.5 | ||||||||||||||||
RUB17.5bn Alfa bank facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings | ₽ | ₽ 17.5 | ||||||||||||||||
RUB30bn Alfa bank facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings | ₽ 30 | $ 165,000,000 | |||||||||||||||
Minimum | RUB100bn bilateral facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings, maturity | two | ||||||||||||||||
Maximum | RUB100bn bilateral facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings, maturity | four | ||||||||||||||||
VEON Holdings B.V. | RUB100bn bilateral facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Undrawn borrowing facilities | 100 | 1,450,000,000 | |||||||||||||||
Borrowings | 87.5 | 1,281,000,000 | |||||||||||||||
VEON Holdings B.V. | MTN unsecured notes | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Bonds issued | ₽ 20 | 288,000,000 | |||||||||||||||
VEON Holdings B.V. | USD600M term facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings | $ 600,000,000 | ||||||||||||||||
Number of drawdowns | numberOfDrawdown | 2 | ||||||||||||||||
Repayments of non-current borrowings | $ 500,000,000 | $ 100,000,000 | |||||||||||||||
VEON Holdings B.V. | Senior unsecured notes 4percent | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Bonds issued | $ 300,000,000 | $ 700,000,000 | |||||||||||||||
Borrowings, interest rate | 4.00% | ||||||||||||||||
VEON Holdings B.V. | Maximum | MTN unsecured notes | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Bonds issued | $ 6,500,000,000 | ||||||||||||||||
Banglalink | USD300M syndicated term facility | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings | $ 300,000,000 | ||||||||||||||||
Extension option | 2 years | ||||||||||||||||
Borrowing costs incurred | $ 0 | ||||||||||||||||
Global Telecom Holding | Bonds at 6.25 percent | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Borrowings | $ 500,000,000 | ||||||||||||||||
Borrowings, interest rate | 6.25% | ||||||||||||||||
At amortized cost | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Financial assets | $ 475,000,000 | $ 388,000,000 | |||||||||||||||
Pakistan Telecommunication Authority license renewal | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
License renewal cost | $ 450,000,000 | ||||||||||||||||
License renewal tax percentage | 10.00% | ||||||||||||||||
Pakistan Telecommunication Authority license renewal | Security deposits and cash collateral | At amortized cost | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Financial assets | $ 57,000,000 | $ 225,000,000 | |||||||||||||||
900 MHz Spectrum | Pakistan Telecommunication Authority license renewal | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
License renewal cost per spectrum block (USD per MHz) | $ / mHz | 39.5 | ||||||||||||||||
Frequency bands | mHz | 900 | ||||||||||||||||
1800 MHz Spectrum | Pakistan Telecommunication Authority license renewal | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
License renewal cost per spectrum block (USD per MHz) | $ / mHz | 29.5 | ||||||||||||||||
Frequency bands | mHz | 1,800 | ||||||||||||||||
Foreign currency translation | |||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||
Gains (losses) incl in foreign currency translation reserve | $ 146,000,000 | $ 275,000,000 | $ 129,000,000 |
INVESTMENTS, DEBT AND DERIVAT_3
INVESTMENTS, DEBT AND DERIVATIVES - Fair value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
At amortized cost | Bank loans and bonds | ||
Disclosure of fair value measurement of assets and liabilities [line items] | ||
Financial liabilities, at fair value | $ 7,890 | $ 7,887 |
INVESTMENTS, DEBT AND DERIVAT_4
INVESTMENTS, DEBT AND DERIVATIVES - Reconciliation of movements in contingent consideration (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2015 | |
Warid Telecom (Pvt) Limited | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Proportion of voting rights | 100.00% | |
Warid Telecom (Pvt) Limited | Pakistan Mobile Communications Limited | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
Consideration in kind | 15.00% | |
Contingent consideration period | 4 years | |
Contingent consideration | Level 3 | At fair value | ||
Reconciliation of changes in fair value measurement, liabilities [abstract] | ||
As of December 31, 2019 | $ 41 | |
Fair value changes recognized in the income statement | (41) | |
As of June 30, 2020 | $ 0 |
CASH AND CASH EQUIVALENTS - Sum
CASH AND CASH EQUIVALENTS - Summary of cash and cash equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | [1] | Dec. 31, 2018 | Jun. 30, 2018 | |
Cash and cash equivalents [abstract] | |||||||
Cash at banks and on hand | $ 658 | $ 932 | |||||
Short-term deposits with original maturity of less than three months | 508 | 318 | |||||
Cash and cash equivalents | 1,166 | 1,250 | |||||
Less overdrafts | (3) | (46) | $ (57) | ||||
Cash and cash equivalents, net of overdrafts (as presented in the consolidated statement of cash flows) | $ 1,163 | [1] | $ 1,204 | $ 1,274 | $ 1,791 | ||
[1] | ** Overdrawn amount was US$3 (2019: US$57) *** Certain comparative amounts have been reclassified to conform to the current period presentation |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2018 |
Cash and cash equivalents [abstract] | |||
Restricted cash and cash equivalents | $ 0 | $ 0 | |
Investments in money market funds | 27,000,000 | 155,000,000 | |
Overdrawn amount | $ 3,000,000 | $ 46,000,000 | $ 57,000,000 |
ISSUED CAPITAL - Common Stock (
ISSUED CAPITAL - Common Stock (Details) - Common shares - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [abstract] | ||
Authorized common shares (nominal value of US$0.001 per share) | 1,849,190,670 | 1,849,190,670 |
Issued shares, including 7,603,731 shares held by a subsidiary of the Company | 1,756,731,135 | 1,756,731,135 |
Par value per share (in dollars per share) | $ 0.001 | |
Shares held by a subsidiary of the Company (in shares) | 7,603,731 |
ISSUED CAPITAL - Major Sharehol
ISSUED CAPITAL - Major Shareholders (Details) | Jun. 30, 2020shares |
Disclosure of classes of share capital [line items] | |
Percentage of free float | 43.80% |
Total percentage of common and voting shares | 100.00% |
Common shares | |
Disclosure of classes of share capital [line items] | |
Free Float, including 7,603,731 shares held by a subsidiary of the Company (in shares) | 770,158,572 |
Total outstanding common shares (in shares) | 1,756,731,135 |
Shares held by a subsidiary of the Company (in shares) | 7,603,731 |
L1T VIP Holdings S.à r.l. (“LetterOne”) | |
Disclosure of classes of share capital [line items] | |
Percentage of common and voting shares | 47.90% |
L1T VIP Holdings S.à r.l. (“LetterOne”) | Common shares | |
Disclosure of classes of share capital [line items] | |
Outstanding common shares (in shares) | 840,625,001 |
Stichting Administratiekantoor Mobile Telecommunications Investor | |
Disclosure of classes of share capital [line items] | |
Percentage of common and voting shares | 8.30% |
Stichting Administratiekantoor Mobile Telecommunications Investor | Common shares | |
Disclosure of classes of share capital [line items] | |
Outstanding common shares (in shares) | 145,947,562 |
DIVIDENDS PAID AND PROPOSED (De
DIVIDENDS PAID AND PROPOSED (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Dividends [Abstract] | ||||||
Dividends declared, per share (in dollars per share) | $ 0.15 | $ 0.17 | ||||
Dividends recognised as distributions to owners | $ 262 | $ 297 | $ 59 | $ 84 | $ 321 | $ 405 |
Maximum | ||||||
Dividends [Abstract] | ||||||
Tax withholdings percentage | 15.00% |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - Long term incentive plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Disclosure of transactions between related parties | |||||
Total carrying value of obligation under Plan | $ 5 | $ 5 | $ 9 | ||
Share based payment expense (gain) included in Selling, general and administrative expenses | $ 0 | $ (2) | $ 3 | $ 6 |
RISKS, COMMITMENTS, CONTINGEN_2
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES (Details) - Global Telecom Holding - USD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2013 | |
Disclosure of subsidiaries [line items] | ||
Other financial liabilities | $ 50 | |
Litigation Settlement, Amount Awarded to Other Party | $ 9 | |
Gains on litigation settlements | $ 41 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) - Bilateral term loan refinancing - VTB Bank bilateral term loan $ in Millions, ₽ in Billions | Jul. 31, 2020RUB (₽) | Jul. 31, 2020USD ($) |
Disclosure of non-adjusting events after reporting period | ||
Facility amount | ₽ 30 | $ 422 |
Fixed rate | ||
Disclosure of non-adjusting events after reporting period | ||
Borrowings, interest rate | 8.75% | 8.75% |
Floating rate - Percentage points in addition to CBR key rate | ||
Disclosure of non-adjusting events after reporting period | ||
Borrowings, interest rate | 1.85% | 1.85% |
BASIS OF PREPARATION OF THE I_3
BASIS OF PREPARATION OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of voluntary change in accounting policy [line items] | ||
Financial assets | $ 557 | $ 433 |
Financial liabilities | 10,109 | 10,549 |
At amortized cost | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Financial liabilities | 10,021 | 10,295 |
At amortized cost | Customer deposits - microfinance banking | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Financial liabilities | 192 | 186 |
At amortized cost | Other Financial Liabilities - microfinance banking | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Financial liabilities | 19 | |
At amortized cost | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Financial assets | 475 | 388 |
At amortized cost | Loans granted to customers - microfinance banking | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Financial assets | $ 125 | $ 116 |
Uncategorized Items - vip-20200
Label | Element | Value |
IFRS 9 And IFRS 15 [Member] | ||
Cumulative Effect Of New Accounting Principle In Period Of Adoption | vip_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,000,000) |
Equity attributable to owners of parent [member] | ||
Equity | ifrs-full_Equity | 3,667,000,000 |
Equity attributable to owners of parent [member] | IFRS 9 And IFRS 15 [Member] | ||
Cumulative Effect Of New Accounting Principle In Period Of Adoption | vip_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,000,000) |
Non-controlling interests [member] | ||
Equity | ifrs-full_Equity | (892,000,000) |
Non-controlling interests [member] | IFRS 9 And IFRS 15 [Member] | ||
Cumulative Effect Of New Accounting Principle In Period Of Adoption | vip_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,000,000) |
Retained earnings [member] | ||
Equity | ifrs-full_Equity | (1,415,000,000) |
Retained earnings [member] | IFRS 9 And IFRS 15 [Member] | ||
Cumulative Effect Of New Accounting Principle In Period Of Adoption | vip_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,000,000) |