VEON Q4 and FY 2025 Earnings Call Summary

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.