VEON expects “material” impairments to Russian, Ukrainian assets in 2022

div classBodysc17zpet90 cdBBJodivpReuters – VEON anticipates “material” impairment charges this year from the war in Ukraine, its second biggest market, but it still has to assess them, the Amsterdamlisted mobile operator said on Thursday.p

p“We anticipate that we will report material impairment charges with respect to assets in Ukraine andor Russia during 2022, unless there is a significant improvement in the current underlying conditions, including a lasting resolution of the ongoing conflict,” the company said in an earnings statement. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pHowever, the uncertainty over the current situation meant these charges were “not as of yet determinable”, the company added, specifying that its ability to obtain relevant data required to build a business plan also played a role.p

pSuch charges would not have an impact on the groups cash flow, it added.p

pVEON reported firstquarter revenues rising 9.8 in local currency terms but slipping 0.4 in dollars, the currency it reports in, to 1.82 billion, mostly due to the depreciation of the rouble. p

pIn Russia, its biggest market where it operates the Beeline mobile brand, revenue and core earnings EBITDA also grew in local currency but the exchange rates made it report a decline in dollar terms. Ukraine earnings grew in both cases. p

p

pp Reporting by Piotr Lipinski in Gdansk Editing by Jacqueline Wong and Muralikumar Anantharamanp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv