L1 Technology is a long-term growth investor in technology and communications – with its own patient capital, no fixed time horizon and significant funding available. We actively look for investments in the broader technology space in the EMEA region with a focus on software, digital platforms, tech enabled services, connectivity and data. Through its portfolio companies, L1 Technology seeks to satisfy society’s increasing digital needs.
VEON
VEON has had an excellent year despite a fast-moving geopolitical context. The business has had to cope with the repercussions of Russia’s full scale invasion of Ukraine, as well as challenging political dynamics in countries such as Bangladesh.
The progress on these issues has been extremely positive, with double digit growth achieved and a share price increase of 130% since January 2024. This returns the share price to pre-Ukraine war levels, even after exiting the Russian business, and we remain confident that VEON has significant room for increased value.
FY24 revenues of US$4.0bn were up 8.3% (+12.8% in LCY) on FY23, with Direct Digital revenues of US$460mn up 63.0% (+64.1% in LCY). FY24 EBITDA of US$1.7bn was up 4.9% (+10.0% in LCY).
Successful growth in Direct Digital revenues remains a core part of the strategy to become a “services company with a telco licence”, helping to move away from a tax regime which disadvantages traditional telecoms businesses when compared with digital income streams.
As part of its asset-light strategy, VEON completed the sale of TNS+ in Kazakhstan for a total consideration of $137.5mn, announced a strategic alliance with Engro in Pakistan for the sale of Deodar’s tower assets for $563mn and announced an agreement for Kyivstar to bring Starlink’s Direct-to-Cell satellite connectivity to Ukraine. VEON has also announced the signing of a business combination agreement with Cohen Circle Acquisition Corp I, a special purpose acquisition company, that will result in the listing of Kyivstar on Nasdaq. The transaction is being executed at good valuations and is expected to make Kyivstar the first pure-play Ukrainian investment opportunity to be publicly listed in the US. The HQ move to Dubai is complete, bringing the head office closer to its markets, and has been very well received in the UAE/GCC region.
Turkcell
Turkcell’s share price is up 27% since 1 January 2024 (as at close on 2 April 2025), backed up by a good performance from the business and – at least until early 2025 – confidence in Erdogan’s economic policies. FY24 revenues of TRY166.7bn were up 7.8% on FY23. FY24 EBITDA of TRY 69.8bn was up 10.2% on FY23. This performance was supported by 578k total net subscriber2 additions and growth in mobile ARPU (+10.4%) and residential fibre ARPU (+13.6%). l