Hello, and welcome to VEON's 2Q '25 Results Presentation. [Operator Instructions] As a reminder, this conference is being recorded today. If you have any objection, please disconnect at this time. Anand Ramachandran, you may begin.

Good morning, and good afternoon to everyone. Thank you for joining us today for VEON's second quarter results for the period ending June 30, 2025. My name is Anand Ramachandran, Chief Corporate Development Officer and also heading our Group Investor Relations function. Allow me to introduce our senior management in the room today. Next to me is Mr. Kaan Terzioglu, our Group CEO; and next to him, Mr. Burak Ozer, our Group CFO. Today's presentation, as usual, will begin with the key highlights and business update from Kaan, followed by a discussion of the financial results by Burak. We will then open up the line for question and answers. Please note that we may make forward-looking statements during today's presentation, which involve certain risks and uncertainties. These statements relate to the company's anticipated performance, guidance for 2025, future market developments, operational and network developments and investments, and the company's ability to realize its targets and initiatives. Actual results may differ materially due to risks, which are detailed in the company's annual report on 20-F and other public filings with the SEC. The earnings release and presentation, including reconciliations of non-IFRS measures can also be downloaded from our website. With that, let me hand it over to Kaan.

Thank you, Anand. Good morning, good afternoon, and welcome. I appreciate you joining us today for VEON's presentation of our second quarter 2025 results. We listen to you, and I'll keep my presentation brief and to the point, so we have more time for your questions and a richer discussion. We have continued our strong start to the year into the second quarter, and I am pleased that we have delivered a strong quarter again financially, operationally and with regard to progress on strategic objectives. Let's start with the financial performance. Our revenues are up 5.9% year-on-year in U.S. dollars. EBITDA in U.S. dollar terms grew by 13.2% year-on-year. For the first half, our U.S. dollar revenues grew by 7.3% year-on-year, and our U.S. dollar EBITDA grew 13.4% year-on-year. In local currency terms, our revenues grew 11.2% in Q2, outpacing both inflation and nominal GDP across our markets. EBITDA in local currency grew 19.6%, reflecting our focus on profitable growth. This was yet another $1 billion-plus revenue quarter. Our strong EBITDA performance reflects the strength and the scale of our operating model. Looking ahead, we are pleased with the growth momentum across our businesses and are revising our outlook for 2025. We now expect local currency growth for total revenue between 13% to 15% year-on-year and EBITDA growth between 14% to 16%. Second, we are driving exceptional momentum in expanding our digital services portfolio. Direct digital revenues grew by 57% year- on-year in dollar terms and now contributes 16.5% of our total group revenues. Uklon was consolidated effective April 2025. This is a key milestone in our digital expansion strategy and unlocks new growth opportunities for us. We are also accelerating the integration of agentic AI-powered features across our platforms and delivering localized and intuitive user experiences to our customers…

Thank you, Kaan. In second quarter of '25, we delivered solid financial results with total reported revenue reaching $1.09 billion, representing a year-on-year growth of 5.9% in U.S. dollar terms and 11.2% in local currency. As previously noted by Kaan, the quarter included the deconsolidation of TNS+ in Kazakhstan and the Uklon acquisition. On a like-for-like basis that adjusts for this, our revenues grew 6.3% in U.S. dollar terms, underscoring the continued momentum across our operating markets. Direct digital revenues maintained their strong trajectory, growing 56.6% year-on-year in U.S. dollar terms to reach $180 million. Digital services now account for 16.5% of total revenues, further highlighting their growing relevance in VEON's business model and the successful execution of our digital operator strategy. Turning to profitability. Group EBITDA for second quarter of '25 reached $520 million, reflecting a year-on-year increase of 13.2%, or 19.6% in local currency. EBITDA margin continues to expand quarter-on-quarter and year-on-year and came in at 47.8% for second quarter. This is being supported by operating leverage and disciplined cost control. We note that our digital services now, at 16.5% of group revenue, continue to deliver attractive absolute EBITDA growth. While digital margins are structurally lower, their much lower CapEx intensity ensures comparable cash conversion relative to telecom services. As our mix continues to shift in this direction, we are focused on sustaining EBITDA growth at scale, while enhancing group-wide capital efficiency and long-term cash flow generation. Now, shifting our focus to key balance sheet figures. We finished June with $1.28 billion in cash, of which $206 million sit at headquarters. The quarter-on-quarter change primarily reflects the successful bond repayments at HQ and the completion of the Uklon acquisition in Ukraine. During the quarter, we upstreamed $59 million in net dividends from our operating companies. Gross debt stood at $4.63 billion at quarter-end, as new capitalized lease liabilities were partially offset by bond repayments in April and June. Net debt, excluding leases, was at $1.96 billion, with our net debt-to-EBITDA ratio, excluding leases, at 1.32x. Finally, as Kaan mentioned earlier, we have enhanced financial flexibility with the completion of USD 200 million bond issuance due in 2029. The bond issuance was settled on 15th of July. Let me now hand the call back to Kaan.

Thank you, Burak. While the current global environment presents both macroeconomic and geopolitical volatility, we remain confident in the resilience of our business and the strength of our operations. We have delivered a strong first half. Our teams continue to execute with discipline, and the underlying demand across our markets remains robust. All this gives us confidence in our outlook and positions us well for continued value creation. We are revising our outlook for the full year and now expect revenue growth of 13% to 15% and EBITDA growth of 14% to 16% for the year. Growth in underlying terms, which was the basis of our earlier guidance, is similar. As I highlighted earlier, underlying adjustments have become frequent and short-lived, given the pace of change across our business and are adding less and less value to our clear performance narrative. Hence, going forward, we will focus on headline numbers to provide you with a more consistent and transparent view of our trajectory. We continue to expect capital intensity, excluding in Ukraine, in the 17% to 19% range, and these targets are based on a blended weighted average inflation rate of 8.2%. Inflation has inched up in some of our markets, and it is a trend we are watching closely. In closing, we are pleased with the momentum we have delivered in the first half, and I'm excited about our prospects. We look forward to continuing to deliver on our strategy and creating sustainable value for our stakeholders. Thank you for your continued support and trust in VEON. We can now open the line for questions and answers.

[Operator Instructions] Our first question comes from Nicholas Paton with Edison Group.

I've got a couple of questions and they're a little bit technical. The first one, I think you've mentioned in the press release, Engro, the sale of which has now closed. And I think you mentioned that the proceeds of $188 million have already been received by Jazz and there's another $375 million to follow. Can you just take me through technically, how that's going to be fed up to the holding company? That's the first question. And maybe I'll slip in another one quickly while I'm on. The second one is on the technical effects of the SPAC for the third quarter financials, the listing of Kyivstar. What should we expect in the third quarter numbers around that?

Nicholas, thank you very much for your questions. I will ask Burak to answer both of them: first, the Engro question, and the SPAC impacts.

Technically, we will -- we are planning to upstream those cash, which we will receive in 20 months in equal installments, with dividends that will enable us to release our reserves and equity. So that's an answer to your question. Technically, we will get those through dividends upstream to HQ. Having said that, if we have the uses for those cash in the country, we will make sure that we do the right allocation for those uses in the country in terms of either debt repayments or potential M&A opportunities. And on the Kyivstar, can you repeat the question again?

The impact of the SPAC to the financials.

The impact of SPAC is going to be calculated based on the closing price of the stock on the first day of the trading, which is basically the difference between the valuation of the assets in the SPAC, which is the cash balance, which is around $200 million, and the shares that we are going to use to purchase the SPAC. So the closing price will influence the impact of the transaction there.

And Nicholas, we expect in Q3, of course, if the voting in the general assembly of Cohen Circle results in a positive outcome to close this deal, plus the sale of our Kyrgyzstan operations. And as I mentioned, we expect actually these 2 transactions to result somewhere in between $150 million to $200 million of P&L impact, noncash, and no impact and positive actually impact overall to the equity.

Our next question comes from Adrian Cundy with Emerging & Frontier Capital LLP. Adrian.

Adrian, we cannot hear you still.

I was just -- can you hear me now?

Yes, we can now.

Okay. Sorry if there's any background noise. I'm in a public location. One of the things I was wondering about was your comments on 4G adoption as an enabler of both data revenue in the telco business, but also as a driver of digital revenues. And in some of your markets, you're seeing -- Pakistan, you're seeing a very, very good rate of 4G take-up. In other markets, more like Ukraine, as you've alluded to, it's remained fairly stable at about mid-60s. So maybe could you elaborate on what your strategies are to drive that sort of 4G adoption up? And secondly, just at a broad level, at the group level, sort of 4G Multiplay and Multiplay users as a percentage of overall data revenue, how -- what is that?

Thanks, Adrian, for the questions. First of all, as you know, our markets, frontier markets is really still not the right platform for 5G services. So we have successfully adopted a strategy for 4G for all, not 5G for few. And over the last couple of years, we have built our 4G base up to 68% of our total customer base. Having said that, in markets, especially like Pakistan and Bangladesh, there are still 50 million customers who are only utilizing feature phone services. And this actually, on one side, of course, a big opportunity because ultimately, these customers will also migrate into smartphones and consumption of 4G services. And we are well positioned to capture this additional organic driver growth for ourselves. With regard to our 4G and 4G Multiplay customer revenues, as I mentioned, Multiplay customers, who are around 25% of our base, generates 54% of our revenues. If I would add 4G to that, I think we will reach close to 70% of our revenues as our customers for 4G and 4G Multiplay. And our strategic direction to drive this is, first of all, to increase our coverage and quality of 4G services, but also enter into smartphone business, specifically designed for our digital services. And we have already started this in Kazakhstan, where we are providing our customers smartphones preloaded with our applications like IZI, Simply and Janymda, which is our super app for the market. We see a very high adoption rate of the smartphone-enabled services and close to every single day, selling about 1,500 smartphones to our customers in Kazakhstan. Similar approaches will be also applicable in other markets.

That was basically the question I was going to lead into is, in terms of device adoption, what strategies were you going to deploy to improve the 4G take-up rate. But going back to your press release, you mentioned, in Kazakhstan, I think you were deploying 4.9G or MIMO-based 4G networks. Where else are you doing that? And are you finding that, that movement into 4G MIMO and the improved bandwidth gets you -- without going all the way to 5G, does that give you -- is that also helping you in the customer acquisition by increasing capacity or increasing effectively user experience, improving user experience on throughput, data throughput? Where else are you seeing -- are you planning? And what should we be thinking about CapEx?

So Adrian, first of all, we will continue, of course, deploying the 3 important technologies that enhances the quality of the service we provide in our markets. Massive MIMO is one of them. Virtualization of the core is the second one, which drives the cost significantly down. And the third one is aggregation of carriers. And all these 3 technologies, when combined and enhanced with 2,300 megahertz, creates a unique service quality, which actually today successfully beats the 5G operators in Kazakhstan. I'm very happy with the fact that if I look to the Net Promoter Scores in the country, the operator under -- operating under the name IZI, which is actually our digital-first application for the youth, has the highest NPS scores of 26, where all the operators are in single-digit numbers. So what I see is, 4.9G is today very well positioned to compete even against 5G capabilities. The customer, at the end of the day, does not care if they consume the services, whether it be music, games or video, whether it is on Wi-Fi, 4G, 5G, or in the future, satellite platforms, where we are also preparing ourselves, getting ready for.

Okay. If I could squeeze one final question for Burak. Just coming back to the SPAC effects, am I right to think that the direct costs for Kyivstar will be booked at that level and the balance of the cost on the share price translation will be treated at the parent level, at VEON level? Is that correct?

Yes, that's correct.

So can you sort of give me a rough breakdown? I mean, your direct SPAC costs are expected to be X, and then the -- subject to the closure, what the balance will be at the VEON level?

At the VEON level, as I stated, it will depend on the closing price on the day, but it will be somewhere between $50 million to $100 million, based on the current value of the shares trading. And in terms of transaction costs, that's going to be mostly booked into equity actually. And the amount of those transaction costs will be somewhere between $30 million to $50 million.

Our next question comes from Matthew Harrigan at The Benchmark Company.

You can hear me, of course, right?

Yes, we can.

Great. Always an element of paranoia there, although I should be accustomed to it by now. I actually had a 4.9 MIMO question as well, but I think even more interesting is the valuation because you have a telecom business that I think probably has a sustainable mid-single-digit growth rate that isn't adequately valued relative to peers. And then, you have the direct digital business, close to USD 725 million run rate now. Obviously, you're going to be at $1 billion within a few quarters, the way it's growing 56%. And that's -- it's really a gaggle of interesting businesses across different markets. I'm wondering -- I don't know how familiar you are with tracking stocks. I suspect you are. They're not used very often. But this does seem like one instance where you could do some creative financial engineering and try to do a tracker for those digital businesses that probably you can get a valuation almost tantamount to your market cap in some quarters. How do you -- and clearly, you've got Ukraine just in the process right now. But what do you have in the hopper? And what do you kind of think about unlocking the valuation? Because it surely should be realized over a period of time, but it is complicated -- very complicated company. And I clearly don't think you're getting a fair valuation for the telecom business, let alone what you're adding on, on the digital side.

Matthew, thank you very much for your question. We are a unique company. While we are unified when it comes to strategic direction, we have a decentralized way of execution. And if you look to our product portfolio, you will see local authentic brands serving our customers in different countries. And you are absolutely right. There is an opportunity here to crystallize the value. And when the right time comes, we will think about this, how to make it more transparent and more tangible. I think, at right time, we'll start phase by phase. First, I would like to see our direct digital revenues to surpass 20% of our total revenues to provide you more clarity about the marginality. And second, as we move on, certain type of businesses across the board, for example, financial services. We have JazzCash in Pakistan, which is actually already generating a $1 billion run rate for us. And we do have Simply business, who is in Kazakhstan, which is ripe for growth, and Beepul in Uzbekistan. I think, at the right time, you will see us bringing the financial services, bringing the entertainment businesses, bringing the health care, ride-hailing businesses under umbrellas where we will be much easier to communicate in terms of revenue values. But I think we are a couple of quarters ahead of that position.

And if you don't mind, it's interesting when you look at generative AI, and McKinsey is putting out numbers that suggest mid-single- digit gains to global GDP and all that. And you would have to infer from that with the growth rates we have right now that GDP will be negative if it wasn't for AI, which is rather silly. But you're in a position where you can really see what the ROIs are and what you can deliver. If you look at AI specifically to the frontier markets that you're in right now. And clearly, Uzbekistan, taking one example, you've got a very interesting business there more on the tech side. But how do you think AI affects markets with lower labor costs and lower penetrations of digital services and probably a lower white collar component in the workforce? In other words, looking at the effect of AI on the economy in Pakistan or Ukraine or Uzbekistan compared to the United States or Britain or The Netherlands, which you know well. And I know it's kind of a Sunday morning's auction type question, but I'd be interested to get your -- you're probably one of the few people who sees things.

Matthew, I think in emerging markets and frontier markets, sometimes advanced technologies are adopted in very creative ways. And I do expect that overall, local economies will be impacted significantly with the adoption of what I call not artificial but augmented intelligence. Let me explain it this way, especially from our industry perspective. A traditional telecom company's value proposition is selling number of minutes, number of gigabytes, number of SMSs. You would be surprised, but that business model still exists in many places. The digital operator sells services, rather than selling gigabytes, provides entertainment, games, video, music, health care services, education services. Now, what I call the AI generation telco will provide augmented skill sets to create capabilities for a doctor to be a better doctor, a teacher to be a better teacher. And imagine, as we provide these services, our value proposition for our customers will no more be number of gigabytes or even digital service. It will be a better version of themselves. That's what we are focusing on. That's why we are developing local language LLM models. We have already launched Kazakh LLM model. We are working on all the other countries. Probably the second one will be Ukrainian LLM. And we have already launched agentic AI capabilities like online tutor, which would help students with their homeworks, which would help them assess their level, develop an education program and do the certifications at the end. And these type of capabilities are getting very high levels of demand and adoption in the countries that we operate in. That's where I see our future value propositions will be centered around. And through our super apps, we're going to integrate all these capabilities. So the agentic AI will be the main value proposition we provide to our customers.

Our next question comes from Don Espey at Shah Capital.

Don, you might be on mute. Still not hearing, Don.

Don, can you hear us?

Can you hear us?

Yes, Don, now we hear you.

Great. We've got a few questions actually. You touched on this topic with Matthew a few minutes ago, but hoping we can drill down a little more with the fintech assets specifically. The market has given little value to your fintech assets, including JazzCash. So we're curious on your strategy to partially monetize VEON's 40 million-plus digital wallets.

Don, first of all, thank you for your trust and confidence in VEON. I think there is an echo somewhere. If you can maybe turn off your loud speaker. I think you did. Thank you very much for that. So thanks a lot for your trust and confidence. And you're absolutely right. Especially if I take the Pakistan's JazzCash business -- actually, I have to admit that it's not only JazzCash, it's Mobilink Microfinance Bank and JazzCash, where we have close to 21 million of that 40 million fintech customers that you mentioned. This is a business which actually lends 140,000 nano loans every single day, transacts 12% of Pakistan GDP and concludes 60% of all mobile payments in the country. And of course, we see the opportunity in terms of making this business much more tangible and crystallizing well. On the other side, the growth momentum is so high that every time I prepare an information memo, I have to repeat it before it gets finalized. So I am a little bit patient in terms of developing the value and the right level of value representation before hurrying in moving into a crystallization. Clearly, we have lots of interested parties in our financial services business in Pakistan and also in other markets. But I think I would like to take our time a little bit to make sure that the business growth perfectly plays into the next couple of quarters. And of course, later on, you will see us talking much more about this and also presenting it into the relevant investor circles.

Don, you had other questions?

Don, you are on mute again, I think.

When do you see your monthly ARPU close to USD 3? By the way, one [ peer ] in Africa is there even though per capita income of African countries is lower than VEON's markets.

It's a very good question, Don. So, let me take that. I think you need to mute. Thank you. So I'll break the question into, I think, 3 legs, right? I think Kaan went into a lot of length on Multiplay being the key driver to our ARPU and revenue growth strategy. And if you look at our disclosures on Page 4, we are disclosing that Multiplay ARPU is actually at $3.4 now, and that's related to the $1.9 mobile ARPU. So I think our strategy is working. And as Kaan pointed out in the slides, Multiplay ARPU is consistently multiples of what the voice-only or the regular ARPU is. This Multiplay is only 32% of the subscriber base today. And as Kaan pointed out again, one very important narrative in our story is how we continue to grow this proportion. And as that proportion grows, we do expect the overall ARPU to also start to climb. So that's, I guess, point number one. Point number two, smartphones. I think in most of our markets, it's probably 1 in 2 subscribers, [ if at that ], that own smartphones. We spoke about the smartphone strategy that we have. We spoke about the handset strategy that we have. And as that gets going, I think the entire virtuous cycle of 4G adoption, Multiplay, and therefore, ARPU accretion is again something that will go into play into driving that number. Thirdly, we're very focused on fair value pricing and obviously pushing our digital services. We look at selling services, not as selling tariffs, and that's also something that we are executing to very strongly in our markets. So I guess, long answer to your short question, these are the trends I'd expect to continue to support an ARPU move, which starts to kind of move closer and closer to what we are seeing at the Multiplay ARPU today.

That helps. And is VEON contemplating Kyivstar, Jazz, Beeline smartphones for better penetration and monetization of its digital apps?

Don, thanks for the question. We have actually started actively doing this in Kazakhstan, and the early results are very promising. So you will be also seeing other markets that we will bring tailor-made phones for our customers so that they can consume our digital services more effectively.

And last question. Yes, it's unfortunate VEON still has a going concern language. How quickly do you see that going away?

Don, thanks a lot. Let me ask Burak to explain where we see this.

Sure. I mean, the main reasons for the going concern language on our 20-F is now, I believe, off the table. One of them was our access to capital markets, which with the syndicated loan and also with the private financing that we closed in July is off the table right now. And the second one was the fact that we were able to pay our $500 million of bonds in April and June as we announced. So, as both of those are off the table right now, I'm very optimistic that until the end of this year, hopefully sooner than later in Q3, we will be able to make a disclosure in terms of getting that off our books.

Our next question comes from Vincent Fernando with Zero One Investment Research.

Can you hear me?

Yes, we can.

Okay. Great. I was looking at the Uklon numbers. You generated $9.3 million of EBITDA in the quarter, kind of puts you on track maybe for moderate growth [ at $40 million ] for 2025. You're doing 3.5 million MAUs in a country of 38 million people. How do you see growth evolving for Uklon this year? Because it looks like it's becoming a pretty strong EBITDA generator. And then, kind of in addition to that, how do you see extensibility for Uklon into -- I mean, I know you have it in Uzbekistan. Have you looked at ride- hailing in Kazakhstan?

Sure. Thanks a lot, Vincent. So Uklon is really a very unique company, which is growing fast and it is EBITDA-accretive and cash flow-generative and positive and basically almost have 70% market share in ride-hailing and delivery in Ukraine. Currently, they operate in 28 markets. When I say markets, understand that as cities. 27 of that 28 are in Ukraine, and one of them is in Tashkent in Uzbekistan. Interestingly, Tashkent is the largest market in terms of market size. So I believe the potential for Uklon, not only for ride-hailing, but also for delivery and linkage to the marketplaces that we will operate in our super apps is huge. And you will see us expanding the capabilities of Uklon and Uklon team to other markets over the next 4 quarters. And what we see is every market that we will be entering could be completely from organic, or it can also be accompanied with some also in-market acquisitions and consolidations. But this is a business where it is extremely accretive to the customer experience, and also our super app strategies, as we embed financial services and marketplaces to our super apps, as you can imagine, a product being sold on an e-commerce site delivered at home and may be financed through our financial services offerings. This is the real full 360 value proposition that we are after.

Are you -- I mean, now that it's part of the group, will the investment or the budget for expansion and marketing be increased? And have we -- and the growth that we've seen for Uklon for 2Q, has that started yet? That's what I'm trying to understand. Like is that basically growth based on their previous budgeting and marketing? And now they're part of the group. Is that -- will you change? [indiscernible] going to accelerate that?

This quarter's results are totally their organic performance, and they are performing very well on the markets that they were at. Now, with the new era of combining our capabilities in the countries -- and as I have always said, our 2 unique advantages is our effective customer acquisition and customer acquisition cost, therefore; second, effective distribution mechanism through our super apps. We have not yet seen the results of combining these capabilities with the technological advantages of Uklon. Therefore, I'm very excited to see the penetration levels actually evolve over the next quarters. And I would like to make sure that our advantage in customer acquisition and our advantage in additional service to an already existing customer will deliver huge value for us.

Our next question comes from Christopher Hoare with New Street Research.

I had a couple of questions. First one, just operational. My understanding is that the reason for the negative EBITDA in Kazakhstan is an increased tax that was introduced in Q3 last year. So is that correct? And does that drop off? And therefore, is there anything happening to underlying margins? Or should we expect from Q3 that Kazakhstan moves back to kind of EBITDA growth roughly in line with revenue growth? Yes, maybe if you answer that, and then, I'll come back with a follow-up.

Thank you, Chris. First of all, it was not about increased tax. It was actually a tax rebate due to our rural deployment of 4G technology that government extended to us. The law on that expired by the end of last year. And actually, after our Q2 closure, the law passed again, retroactively affecting Q1 and Q2. So in Q3, you will see those numbers coming back in. And maybe, Burak, you can remind me how much it will be impacting Q3 numbers.

It's about $8 million a quarter. So it will be in total about $16 million that we will have in Q3.

So the issue in Kazakhstan will be compensating in Q3. The President passed the law quite late, so it will only be impacted in Q3.

It will also impact revenue, not only EBIT.

Okay. But that means, we'll be back to positive EBITDA in Q3, basically in Kazakhstan?

We don't have negative EBITDA. I mean, we have declined, but we don't have negative...

No, no, no. Yes, but positive EBITDA growth, basically, yes.

Yes.

Yes.

Yes. So given that, I mean, should -- I mean, do you think the full year EBITDA guidance is a bit conservative on that basis, given what you've seen in the first half? I mean, the implied second half is a fair bit weaker, but you've got that benefit flowing through. Is there anything else happening that should we be aware of in one of the other operations?

I think we are, as usual, having a prudent stance on our projections. And of course, as the operations show itself, we will come back to you in next quarter to give you a highlight on that. But I think as it stands now, it's the right conservative prudent approach that we have taken.

Okay. And then, maybe if I could have another one. I think you're planning to announce a new shareholder remuneration strategy. And I just wondered, given that you've completed the third phase of the buyback, if there's anything you can say on that, either around timing or sort of how you're feeling about shareholder remuneration, both from a buyback or a dividend perspective, if there's anything you say around what we should be expecting there?

Chris, as I have mentioned in the last quarter, please expect the Q3 to be the time that we come back to the market about this. But what I would like to highlight is, we are a growth company. As you can see, we have huge opportunities to accelerate our growth, capture new markets. And we will, of course, balance this when we come back to the market and make our statements.

Our next question comes from Theodore O'Neill with Litchfield Hills Research.

First, congratulations on the good results in the quarter. Yes, my question is, given the good growth you've had here on the digital side, how should investors think about this growth split between organic and inorganic?

On the digital side, I'm assuming your question, right?

Yes.

Well, it's very simple. The $120 million is a 57% year-on-year growth. And the only inorganic part there is the $21 million coming from Uklon, and that means still a healthy growth is there organically as well.

Okay. And the follow-up is, I was wondering if there was sort of a pipeline of potential acquisitions in this area that you're looking at.

I mean, I do not want to speculate on that, but it is very clear that our digital services strategy and the way we see actually launching new services will result in organic and also inorganic efforts in all the markets. As I mentioned to you, we do have a unified strategy, but we execute in a decentralized way in the markets that we are in. That fits into the expectations of the customers the best. So -- but I don't want to speculate on what those could be at this point.

We have no further questions at this time. I will now hand back to Anand Ramachandran for closing remarks.

Thank you so much. Actually, we do have some questions left. But look, just respecting people's time and given that the hour is up, we would like to close the call here. We will revert back to you guys on the questions. And as always, any additional questions, do feel free to call us, email us. Very happy to take all the questions in a lot of detail offline. So to conclude, thank you again for your support. It's been a good quarter. We appreciate your support and the time you spent with us. Thank you for your continued support and see you again next quarter. Thank you.

Thank you very much. Bye-bye.