AMSTERDAM AND KYIV - VEON (NASDAQ:VEON) Ltd. (NASDAQ:VEON, Euronext Amsterdam:VEON), a leading global provider of connectivity and internet services, has reported a preliminary financial assessment related to a cyberattack on its Ukrainian subsidiary Kyivstar in December 2023. The cyberattack caused significant disruptions to Kyivstar's network, affecting voice and data services, international roaming, and SMS for users both in Ukraine and abroad.
The company worked closely with Ukrainian law enforcement, the Security Service of Ukraine, and government agencies to restore services, starting with voice and data connectivity. In an expression of gratitude for customer loyalty during the outage, Kyivstar offered one month of free services on certain contracts.
Despite the service disruption, VEON expects no material financial impact on its consolidated results for the fiscal year ended December 31, 2023. The costs associated with restoring services, replacing equipment, and external consultancy have been deemed non-material. However, VEON anticipates an impact on its 2024 revenue due to the loyalty offers extended to Kyivstar customers. The estimated revenue loss from these offers is approximately 3.6 billion UAH (around 95 million USD).
The full extent of financial implications from ongoing remediation efforts is currently uncertain and cannot be reasonably estimated, as stated by VEON. The company has reiterated its gratitude to customers for their support and loyalty post-cyberattack, and to its industry partners and Ukrainian authorities who assisted in the recovery process.
VEON is a digital operator that serves nearly 160 million customers across six countries, aiming to transform lives with technology-driven services. Headquartered in Amsterdam, the company is publicly traded on NASDAQ and Euronext.
This announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. VEON has not committed to updating any forward-looking statements to reflect events or circumstances arising after the date of the release.
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