Kyivstar Completes Preliminary Assessment of the Financial Impact of the Cyberattack
18 Janvier 2024 - 9:48AM
Amsterdam and Kyiv, 18 January 2024 – VEON Ltd.
(NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator
that provides converged connectivity and online services (“the
Company”), announces its preliminary assessment of the financial
impact of the cybersecurity incident that affected the network and
services of its Ukrainian subsidiary Kyivstar in December 2023.
The incident, which was caused by a widespread external
cyberattack, resulted in a temporary disruption of Kyivstar's
network and services, interrupting the provision of voice and data
connectivity on mobile and fixed networks, international roaming,
and SMS services, amongst others, for Kyivstar customers in Ukraine
and abroad. Working relentlessly, and in collaboration with the
Ukrainian law enforcement agencies, the Security Service of Ukraine
and government agencies, Kyivstar restored services in
multiple stages starting with voice and data connectivity.
After stabilizing the network, Kyivstar immediately launched offers
to thank its customers for their loyalty, including one month of
free services on certain types of contracts.
VEON and Kyivstar also engaged in a financial impact assessment,
the preliminary results of which have become available.
Largely because of the limited period during which the critical
services were down, VEON expects no material financial impact on
its consolidated results for the year ended 31 December 2023 due to
these service disruptions, or due to costs associated with
additional IT capabilities required for restoring services,
replacing lost equipment, or compensating external consultants and
partners in 2023.
However, the Company does anticipate that there will be an
impact on its consolidated revenue results for the year ending 31
December 2024 associated with the revenue loss arising from the
customer loyalty measures taken by Kyivstar in order to compensate
for the inconvenience caused during the disruptions. The revenue
impact of these offers is currently estimated to be approximately
3.6 billion UAH (approximately 95 million USD).
Kyivstar plans to continue its remediation and compensation
efforts in the coming months. The costs or loss of revenue of any
other such remediation measures is uncertain and cannot be
reasonably estimated at this time.
VEON and Kyivstar would once again like to thank their customers
for the support and loyalty demonstrated during and in the
aftermath of the cyberattack; and to their industry partners and
Ukrainian authorities for their support in the recovery of the
services.
Important Notice
Elements of this press release contain or may contain “inside
information” as defined under the Market Abuse Regulation (EU) No.
596/2014.
About VEON VEON is a digital operator that
provides converged connectivity and digital services to nearly 160
million customers. Operating across six countries that are
home to more than 7% of the world’s population, VEON is
transforming lives through technology-driven services that empower
individuals and drive economic growth. Headquartered in
Amsterdam, VEON is listed on NASDAQ and Euronext. For more
information visit: https://www.veon.com.
Disclaimer This release contains
“forward-looking statements,” as the phrase is defined in Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E
of the U.S. Securities Exchange Act of 1934, as amended.
Forward-looking statements are not historical facts, and include
statements relating to, among other things, the financial impact on
VEON’s consolidated 2024 financial results, VEON’s efforts to
address the consequences of the cyberattack, including its
remediation measures. Forward-looking statements are inherently
subject to risks and uncertainties, many of which VEON cannot
predict with accuracy and some of which VEON might not even
anticipate. The forward-looking statements contained in this
release speak only as of the date of this release. VEON does not
undertake to publicly update, except as required by U.S. federal
securities laws, any forward-looking statement to reflect events or
circumstances after such dates or to reflect the occurrence of
unanticipated events.
Contact Information:
VEON Hande Asik Group Director of Communication
pr@veon.com
TUVA Partners Julian Tanner Julian.tanner@tuvapartners.com
VEON (NASDAQ:VEON)
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