November 8, 2018 / 6:49 AM / 8 months ago

Veon's Q3 sales, core profit fall on currency fluctuations

AMSTERDAM, Nov 8 (Reuters) - Veon, the telecommunications company formerly known as VimpelCom, said on Thursday its third-quarter core earnings fell nearly 19 percent from a year earlier due to currency fluctuations in its core markets.

Earnings before interest, taxation, depreciation and amortization (EBITDA) declined $194 million to $848 million, while revenue dropped 5.7 percent $2.3 billion, Veon said in a statement.

The fall was “largely due to currency headwinds amounting to $289 million in Russia, Pakistan and Uzbekistan,” it added.

The mobile phone operator tried in recent years to reinvent itself as a new high-tech player, in hopes of making money from apps and service commissions instead of classic voice and data subscriptions.

But this year it reshuffled management and sold its 50 percent stake in the Italian Wind Tre joint venture with CK Hutchison Holdings Ltd, the business that was leading the strategy change.

In the third quarter, sales fell in Russia, Algeria, Bangladesh and Uzbekistan, while rising in Pakistan and Ukraine. (Reporting by Anthony Deutsch; Editing by Subhranshu Sahu)

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