VEON — VEON Ltd.

VEON Q4 and FY 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2025 Performance:
  • Revenues grew by 17% year-on-year to $1.2 billion.
  • EBITDA increased by 29% to $600 million.
• Full Year 2025 Performance:
  • Total revenues reached $4.4 billion, up 9.9% year-on-year.
  • EBITDA for the year was $2.01 billion, reflecting an 18.8% growth.
  • EBITDA margin expanded to 45.7%, up 350 basis points from the previous year.
  • Digital services revenue surged 84% in Q4 and 62% for the full year, contributing 17% of total revenue.

2. Strategic Updates and Business Highlights

• VEON executed a successful asset-light strategy, selling its Pakistan tower portfolio and deconsolidating TNS+.
• The company launched direct-to-cell connectivity with Starlink, enhancing service offerings in Ukraine and Kazakhstan, with plans to expand to Bangladesh in 2026.
• The listing of Kyivstar on NASDAQ was highlighted as a significant achievement, with VEON's stake valued at approximately $2 billion.
• The Multiplay customer base (users of both connectivity and digital services) now accounts for 56% of consumer revenues, generating nearly 4x the ARPU of voice-only users.
• VEON's digital ecosystem now serves over 135 million active digital service users, with significant growth in financial services and other digital platforms.

3. Forward Guidance and Outlook

• For 2026, VEON expects:
  • Revenue growth of 9% to 12%.
  • EBITDA growth of 7% to 10%.
  • CapEx intensity (excluding Ukraine) to decline to 14% to 16%.
• The company plans to continue its annual share buyback program of at least $100 million.

4. Bad News, Challenges, or Points of Concern

• The geopolitical situation in Ukraine remains a concern, although the business performed better than expected in Q4.
• There are ongoing challenges related to inflation in the markets where VEON operates, particularly due to rising oil prices impacting operational costs.
• The company is cautious about potential margin compression in 2026 as digital services, which have lower margins, continue to grow.
• Regulatory approvals for acquisitions, such as OLX in Kazakhstan, are pending, which could delay strategic initiatives.

5. Notable Q&A Insights

• 5G Strategy in Pakistan: VEON acquired spectrum for both 4G and 5G, indicating a dual focus on enhancing 4G services while preparing for future 5G deployment.
• Digital Banking Aspirations: VEON is actively pursuing a digital banking license in Pakistan to expand its financial services offerings.
• Capital Allocation: The management emphasized a disciplined approach to capital allocation, prioritizing share buybacks and organic growth over dividends.
• Future of Digital Services: There is a goal to achieve a 50% revenue contribution from digital services in the next 3-5 years, with both organic growth and small acquisitions expected to support this transition.
• Settlement with Dhabi Group: The recent settlement was seen as a positive move to eliminate distractions and strengthen investor relations.

Overall, VEON demonstrated strong financial performance in 2025, with a clear focus on digital growth and shareholder value, while navigating challenges in its operational environment.