Veon shares climbed 7.9% to $81.32 on Friday after its Beeline Kazakhstan subsidiary completed an $81 million acquisition of OLX Group’s Kazakhstan business, while the company also reported a third-quarter profit after a loss a year earlier.
The acquisition, first announced last year, adds OLX KZ’s listings for goods, services, real estate and automobiles to Veon’s portfolio. The platform reaches more than half of Kazakhstan’s active internet population, the company said.
Chief Executive Kaan Terzioglu called the deal a milestone in Veon’s digital operator strategy. He said the company is building digital ecosystems across its markets, offering access to services including finance, healthcare, education and entertainment. Veon shares have gained 55% this year.
Veon reported net profit of $187 million, or 11 cents a share, for the third quarter, compared with a loss of $131 million, or 8 cents a share, in the same period last year. Revenue rose to $1.31 billion from $1.12 billion, matching analysts’ expectations in a FactSet poll.
The company raised the lower end of its full-year revenue growth forecast to 16%, from 15%, while keeping the upper end at 18%. It now expects adjusted earnings before interest, taxes, depreciation and amortization to grow 10% to 12%, lifting the lower end from 9%.
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