VEON this week set out its future strategy and capital allocation framework, including a commitment to boost long-term growth beyond traditional connectivity services.
Veon said its long-term goal is to become a communications and digital services provider that empowers customer ambitions by acting as a digital concierge to guide their choices and connect resources that match their needs.
The strategy framework shows how VEON plans to drive value from three business pillars: its fundamental mobile and fixed line, Connectivity services; a portfolio of New Services built around digital technologies with the active involvement of big data and artificial intelligence; and Future Assets which seeks to identify, acquire and develop ''know-how" and technologies that open up adjacent growth opportunities.
While Connectivity will remain the Group's bedrock, VEON plans to create greater incremental value from New Services and Future Assets as total returns increase from these two pillars.
The capital allocation component of VEON's strategy framework balances investing in capex for the fundamental Connectivity business with managing gearing at the Group level, investing in new growth areas and returning cash to shareholders through dividends or buybacks. VEON's revised dividend policy ensures it provides sufficient flexibility to execute on the Group’s investment opportunities in a way that maximizes returns for shareholders.
Ursula Burns, Group Chairman and CEO, VEON
Our new strategy framework underscores the growth opportunities we see beyond our Connectivity business and aligns VEON’s ambitions with our industry's future development.
Alex Kazbegi, Group Chief Strategy Officer, VEON
We are excited about the opportunity in our core Russian market, which we believe can be best accessed through a short-term increase in network capex to allow us to drive medium-term service revenue growth.
