U.S. stocks rise on Fed cut bets; earnings continue to flow
In a remarkable display of market resilience, VEON Ltd. (NASDAQ: NASDAQ:VEON), a leading global provider of connectivity and internet services, has reached a new 52-week high, with its stock price peaking at $28.49. This milestone underscores a period of robust growth for the company, which has seen its stock value surge by an impressive 69.25% over the past year. Investors have shown increased confidence in VEON's strategic initiatives and operational advancements, propelling the stock to levels not seen in the previous year and signaling a strong outlook for the company's future performance.
In other recent news, VEON Ltd. has reported strong growth and a healthy liquidity position for Q2 2024. The company's U.S. dollar revenues and Group EBITDA have seen substantial growth, with increases of 12.1% and 10.6% respectively. This growth is attributed to VEON's digital strategy and the expansion of its 4G network, which has led to a significant increase in digital revenue streams, now accounting for 10% of total revenues in H1 2024.
The company's operations in Ukraine, Pakistan, Kazakhstan, and Bangladesh have all reported growth, and VEON's liquidity remains strong with a cash reserve of $722 million. However, the company experienced a cyber-attack in Ukraine and network disruptions in Bangladesh, impacting revenue and EBITDA. Despite these setbacks, VEON anticipates continued revenue growth of 16-18% and EBITDA growth of 18-20% for the full year of 2024.
The company is also focusing on repaying its 2025 debt maturities. These recent developments indicate that VEON is effectively navigating market challenges while capitalizing on growth opportunities, particularly in digital services and network expansion.
InvestingPro Insights
In tandem with VEON Ltd.'s (NASDAQ: VEON) recent surge to a new 52-week high, InvestingPro data reflects a company that has experienced considerable revenue growth and profitability. Over the last twelve months as of Q2 2024, VEON has reported a revenue growth of 6.53%, with its gross profit margin reaching an impressive 99.66%. Additionally, VEON has demonstrated a strong operating income margin of 25.03% in the same period, reflecting its operational efficiency. The company's stock has indeed been trading near its 52-week high, with the price at 98.31% of this peak level.
InvestingPro Tips provide further context to VEON's financial health, indicating that despite some volatility in stock price movements, analysts predict the company will be profitable this year. This is supported by the company's performance over the last year, with a price total return of 62.81%. However, it's worth noting for potential investors that VEON does not pay a dividend to shareholders, which may influence investment strategies depending on individual preferences for income-generating assets.
For those looking to delve deeper into VEON's financials and future prospects, InvestingPro offers additional tips and a comprehensive analysis, which can be found on their platform. As of now, there are seven more InvestingPro Tips available that can help investors make more informed decisions about VEON.
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