02/27/2017, Mon, 15:53, MSK , Text: Igor Korolev
The Vimpelcom group changes the name on VEON to position itself as a Digital service provider. In the same way, the "revolutionary" Internet Messenger, which will be launched in all countries of the presence of Vimpelcom, including Russia.New name vimpelcom
The Vimpelcom group announced rebranding: now the group will be called veon. Rebranding takes place in the framework of the Vimpelcom transformation strategy from the traditional telecommunications operator in the "New Technological Leader" and the implementation of the Digital environment.
The head office Vimpelcom is located in Amsterdam. The group includes the Russian cellular operator VimpelCom, Ukrainian "Kyivstar", cellular operators in a number of CIS countries (work under the Beeline brand), the Italian operator Wind Telecommunicazioni, as well as cellular operators from Algeria, Pakistan, Bangladesh and Laos. The largest shareholder Vimpelcom is a group of Letterone, created by the owners of the Russian Alpha Group.
According to one of the telecommunications analysts, the decision on Rebranding Vimpelcom may indicate that the company's shareholders of business in Russia and the CIS countries are no longer important.
Revolutionary Internet Messenger
The decision on rebranding should be approved by Vimpelcom shareholders at an extraordinary meeting, which is scheduled for March 30, 2017 at the same time Vimpelcom announced its intention to launch the Messenger Veon in all countries of his presence. At the end of 2016, Veon was already launched by the Italian "daughter" Vimpelcom. The operators belonging to the Vimpelcom group will remain their own brands, including VimpelCom, the Beeline brand will remain.
Vimpelcom group changes the name on VEON in honor of his messenger
Vimpelcom is called a VEON "revolutionary" Internet platform. The new service allows subscribers to exchange messages and photos, make calls, etc. The fee for using the service itself is not charged, it will work for subscribers even at zero balance. Messenger Veon until 2017 will appear in Russia, the details are not disclosed yet.
Partnership with MasterCard and Digital Services
As part of the implementation of the Vimpelcom Digital strategy, also announced partnership with a number of international services. Partnership with MasterCard will allow developing mobile commerce services that will allow Vimpelcom subscribers to buy airtime and make electronic purchases.
In addition, Vimpelcom announced partnership with the Studio + mobile TV platform (created by Vivendi Corporation), Deezer and I.am + Music Services. Partnership with I.AM + service will include integration with personal mobile Aneeda Assistant.
Announced Vimpelcom and news for shareholders. In addition to the listing on the American exchange NASDAQ, the company in the second quarter of 2017 will hold an additional listing on the EUROEXT Stock Exchange, located in Amsterdam.
New dividend policy
Also, Vimpelcom announced a new dividend policy. Since 2014, the company due to a high debt burden limited the size of dividends and paid only $ 0.035 per share (in a set of $ 60 million). At the end of 2016, Vimpelcom also paid intermediate dividends in the amount of $ 0.035 per share.
But now in addition for 2016, Vimpelcom will pay extra $ 0.195 per share. That is, the entire dividends for 2016 will amount to $ 0.23 per share (in the aggregate of $ 400 million).
Photo: RIA Novosti / Evgeny Biyatov
Vimpelcom telecommunication holding (in Russia works under the Beeline brand) changes the name on Veon. Rebranding will not lead to a significant change in the attitude of investors to the company, analysts note.
Vimpelcom Telecommunication Holding Changes the name on VEON, the company says in annual reporting.
"Today, we begin a new and exciting era - Vimpelcom becomes Veon," the words of the head of the Jean-Iva Charles Holding Challery are shown. He noted that together with rebranding the company launches a new Internet platform, which will provide users with "truly free" services of a messenger, as well as a number of services "from music to banking".
The issue of changing the name will be submitted to the meeting of Shareholders of the holding on March 30, is indicated in the reporting.
The fact that Vimpelcom plans to launch their own messenger, reported Reuters last November. According to the Plans of the Holding Manual, by the end of 2017, VEON will be available for more than 200 million Vimpelcom clients on more than 10 markets, the Agency reported with reference to Jean-Iva Charles.
"We believe that we are in the forefront of the transformation process of the industry," the Reuters quoted. Charles clarified that in this way the operator plans to earn not on the sale of traditional telecommunication services, but on cooperation with large Internet companies, such as Uber.
The market is not looking at the name
The change in the name of the Global Company should not significantly affect the attitude of investors to Vimpelcom, the "Uralsiba" analyst Konstantin Belov notes. "Investors by and large such things are not fundamental," the analyst is sure. "Again, the name of the holding company is changed, and not operating, which will work under old brands. Of course, the company has passed the stage of corporate transformation, and rebranding may emphasize this, but I do not think that this is what is important for investors. "
The desire to hold rebranding may be connected with the desire of the company "abstract from the company's past image, as the corporate disputes between Alfoy and Telenor are remembered, Senior Analyst Raiffeisenbank Sergei Libin. "Rebranding himself, changing a sign, of course, will not change anything," he said.
"Vimpelcom significantly reduced the debt level that there was a big problem for investors for a long time. In addition, the operator returns to normal dividend politics for the industry, respectively, has changed much. And the market is not looking at the name of the company, "said Konstantin Belov from Uralsiba.
Vimpelcom results
Vimpelcom's net profit in the fourth quarter of 2016 amounted to $ 1.6 billion. Revenue of the group on the results of the quarter was $ 2.3 billion. At the end of the year, the net profit of the holding was $ 2.4 billion, revenue - $ 8.8 billion.
In 2016, the number of customers enjoyed by the mobile linking companies of the holding increased by 5.4% to 207 million subscribers, but the number of fixed-line subscribers decreased by 18.6% to 2.8 million, indicated in Vimpelcom reporting.
Ltd. I intend to change the name, "Vedomosti" two people close to the holding were told. Both say that this should happen by the end of this - the beginning of next year. According to the first interlocutor of the Vedomosti, the decision is ripe for a long time: the company wanted to leave the Association with the Russian VimpelCom. "Very often there is a confusion in communicating with investors, I wanted to get away from this name," he explains. According to another, the new name has not yet been selected, but should reflect a new Vimpelcom Ltd. strategy, focused on the development of Digital products. Brands operating companies will not change, he knows. The fact that local consumer brands of operating companies Vimpelcom Ltd. This action does not affect, another person close to the holding knows.
Vimpelcom Ltd. Appeared in 2009 as a result of reconciliation of two conflicted shareholders of the Russian "VimpelCom" - the Norwegian company Telenor and the Russian Daughter "Alfa-Group" - Altimo (ruled by the teleekomactives of Mikhail Friedman, now this function has passed to the Letterone Technology Foundation). Then "Alfa Group" and Norwegian Telenor agreed to create a company Vimpelcom Ltd., which included Russian VimpelCom and Ukrainian Kyivstar. In 2010, it became known that Vimpelcom Ltd. It intends to become a global company: he announced the acquisition from the Egyptian billionaire Nagiba Saviris and his family of 100% of the Italian cellular operator Wind and 51% of the Egyptian Orascom Telecom Holding, controlling operators in Africa and Asia.
Brand replacement
Last year, MTS refused his own brand in Ukraine, it agreed to use the Vodafone brand in this country. The interlocutors of the Vedomosti, close to the shareholders of MTS, said that the company feared the pressure of the Ukrainian authorities for business and hoped that rebranding would make the company MTS Ukraine from the Russian MTS less obvious.
Analyst Raiffeisenbank Sergey Libin binds the desire to Vimpelcom Ltd. Get away from the old name with Uzbek scandal. Investors, he says, bad memory and this imaging technique may well work.
In 2014, Vimpelcom Ltd. It turned out to be involved in a large corruption scandal: the company announced that it was investigated by American regulators and the Dutch investigating authorities - she was suspected of a bribe to high-ranking Uzbekistan to obtain a license on the local communication market. The investigation continued for almost two years and ended with the agreement with the US Securities and Exchange Commission (SEC), the US Mindoute and the Netherlands Prosecutor's Office about the settlement of claims. Vimpelcom will have to pay $ 795 million as a fine and return revenues received from illegal transactions. $ 167.5 million SEC is due, $ 230.1 million - US Ministry of Justice, $ 397.5 million to the Netherlands authorities. The company in advance, back in November 2015, reserved $ 900 million for probable fines under Uzbek business.
Vimpelcom Ltd. It was not the only person involved in the Uzbek business - bribes, according to SEC, were given other operators working in this country: Russian MTS and Swedish Finnish TeliaSonera. It was with TeliaSonera that the Uzbek scandal began: in 2012, Swedish television accused her of $ 320 million Takilant company related to the entity of the daughter of the President of the Gulnara Karimov. Teliasonera did not recognize the guilt, but also concerned about the name of the name: On March 7, she reported that he had offered shareholders to change the name on Telia Company, they should decide on April 12. This name, the operator's website, reflects and visualizes the new strategy of the new generation telecomcommospan.
An analyst "Uralsiba" Konstantin Belov does not believe that the reason for the change of the brand is a corruption scandal. Investors are not consumers, they are more accommodated, are interested in the history of the company. Belov connects possible renaming with corporate changes - the sale of the company in Algeria and the creation of the joint venture in Italy.
Transaction on the merger "Daughters" Vimpelcom Ltd. In Italy Wind Telecomunicazioni with the "daughter" Hutchison - in the process of obtaining regulatory permissions. It is assumed that the third and fourth operators of Italy are combined and Vimpelcom and Hutchison will own the joint venture on a parity basis.
Analyst Gazprombank Sergei Vasin also believes that the rebranding of a holding company can be associated with reorientation of Vimpelcom Ltd. The transaction in Italy marks the new period for the company: Vimpelcom returns to the focus of developing markets, believes Vasin.
Representative Vimpelcom Ltd. did not answer the questions of the Vedomosti.
