VEON 1Q25 Earnings Release: Strong Start to 2025, Digital Revenues Surge 50%, Driving Growth

VEON 1Q25 Earnings Release: Strong Start to 2025,

Digital Revenues Surge 50%, Driving Growth

Dubai, May 15, 2025

VEON 1Q25 Highlights

• Total revenue growth of 8.9% YoY to USD 1,026 million (12.9% YoY in underlying local currency terms)
• EBITDA growth of 13.7% YoY to USD 439 million (10.4% YoY in underlying local currency terms)
• Direct digital revenue growth of 50.2% YoY to USD 147 million (+54.3% YoY in local currency terms), representing 14.3% of revenues for quarter
• Total cash and cash equivalents and deposits of USD 1,775 million, with USD 662 million at headquarters (“HQ”); and gross debt at USD 4,377 million (decreased by USD 4 million QoQ), with net debt excluding lease liabilities at USD 1,810 million (decreased by USD 91 million QoQ)
• LTM Equity Free Cash Flow of USD 387 million, Capex of USD 135 million
  
  
  
  

VEON Ltd. (Nasdaq: VEON), a global digital operator, announces selected financial and operating results for the first quarter ended March 31, 2025.

For the first quarter, VEON achieved 8.9% year-on-year growth in revenues and a 13.7% YoY growth in EBITDA in reported currency (USD).

Underlying 1Q25 revenue growth was 12.9% YoY in local currency terms, when adjusted for the cyberattack in Ukraine which impacted the base, and the deconsolidation of TNS+ in Kazakhstan. Our local currency growth rate exceeded the blended weighted average inflation rate in our operating countries of 7.6% in the quarter, showcasing our capability to implement fair value pricing across our markets.

VEON’s revenue performance was supported by increasingly robust direct digital revenue growth, which rose by 50.2% YoY in reported currency, and by 54.3% YoY in local currency terms. Direct digital revenues comprised 14.3% of total revenues in 1Q25, up from 10.4% a year ago.

EBITDA stood at 439 million, representing a 13.7% year-on-year increase in reported currency. When adjusted for the identified items, this represents a 10.4% increase in underlying local currency terms.

Capex increased 8.3% YoY, with a capex intensity of 13.1% (-0.1 p.p. YoY) and implies LTM capex intensity of 20.4% (+2.2 p.p. YoY, 17.9% excl. Ukraine) for the quarter. Total cash and cash equivalents and deposits as of March 31, 2025 amounted to USD 1,775 million (including USD 303 million related to customer deposits from our banking operations in Pakistan and excluding USD 30 million in Ukrainian sovereign bonds that are classified as investments) with USD 662 million held at the HQ level. Net debt to LTM EBITDA, excluding lease liabilities, declined to 1.23x as of March 31, 2025, from 1.34x as of December 31, 2024.

Outlook for 2025

VEON is maintaining its FY25 outlook whereby it expects underlying local currency growth for total revenue of between 12% and 14% year-on-year and underlying local currency EBITDA growth of between 13% and 15% year-on-year. VEON’s 2025 outlook for the Group’s capex intensity is in the range of 17%-19%.

The Group commenced the second phase of its previously announced share buyback program in March 2025. This second phase of the buyback will be in the amount of up to USD 35 million and follows the completion of the USD 30 million first phase on January 27, 2025.

Commenting on the results, VEON Group CEO Kaan Terzioglu said:

“VEON has started 2025 with strong momentum and delivered a set of results that reflect both disciplined execution and strategic clarity.

“We are delivering innovative and locally relevant digital services that enhance our customers’ lives across every minute of the day — from financial services and healthcare to entertainment, education, and enterprise applications. This is now complemented by our AI1440 vision, which integrates AI in native languages to truly augment human capabilities, well beyond process optimization. Together, these strategies position VEON as a frontrunner in digital transformation across frontier markets.

“We remain focused on disciplined execution and innovation as we continue to scale impact for our customers and value for our shareholders.”

Additional information

1Q25 results conference call

VEON will also host a results conference call with senior management at 16:00 GST (14:00 CET, 9:00 EST) today.

To register and access the event, please click here or copy and paste this link to the address bar of your browser: .

Once registered, you will receive registration confirmation on the email address mentioned during registration with the link to access the webcast and dial-in details to listen to the conference call over the phone. 

We strongly encourage you to watch the event through the webcast link, but if you prefer to dial in, then please use the dial-in details. 

Q&A 

If you want to participate in the Q&A session, we ask that you select the ‘Yes' option on the ‘Will you be asking questions live on the call?’ dropdown. That will bring you to a page where you can join the Q&A room by clicking 'Connect to meeting’.

You will be brought into a zoom webinar where you can listen to the presentation and once Q&A begins, if you have a question, please use the ‘raise hand button’ on the bottom of your zoom screen. When it is your turn to speak, the moderator will announce your name as well as sending a message to your screen asking you to confirm you want to talk. Once accepted, please unmute your mic and ask your question.

You can also submit your questions prior the webcast event to VEON Investor Relations at . 

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. VEON is listed on NASDAQ and Euronext. For more information, visit: .

Notice to readers: financial information presented

VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the responsibility of management, and have not been externally audited, reviewed, or verified. As such, you should not place undue reliance on this information. This information may not be indicative of the actual results for any future period.

Notice to readers: impact of the war in Ukraine

The ongoing war in Ukraine, and the resulting sanctions adopted by the United States, member states of the European Union, the European Union itself, the United Kingdom, Ukraine and certain other nations, countersanctions and other legal and regulatory responses, as well as responses by our service providers, partners, suppliers and other counterparties, and the other indirect and direct consequences of the war have impacted and, if the war, such responses and other consequences continue or escalate, may significantly impact our results and aspects of our operations in Ukraine, and may significantly affect our results and aspects of our operations in the other countries in which we operate. We are closely monitoring events in Ukraine, as well as the possibility of the imposition of further legal and regulatory restrictions in connection with the ongoing war in Ukraine and any potential impact the war may have on our results, whether directly or indirectly.

Our operations in Ukraine continue to be affected by the war. We are doing everything we can to protect the safety of our employees, while continuing to ensure the uninterrupted operation of our communications, financial and digital services.

DISCLOSURE REGARDING UKRAINE TOWER COMPANY (UTC) CONSOLIDATION

The financial results presented for Kyivstar as part of VEON Group’s consolidated Q1 2025 financial statements include the full consolidation of Ukraine Tower Company LLC (“UTC”), consistent with its current ownership and control structure. However, it should be noted that in connection with the anticipated standalone listing of Kyivstar on Nasdaq, the financial disclosures prepared for the listed entity will exclude UTC, as UTC will not be consolidated within the scope of the listed Kyivstar entity at the time of listing.

Disclaimer

VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and/or audited. The financial information included in this document is preliminary and is based on a number of assumptions that are subject to inherent uncertainties and subject to change. The financial information presented herein is based on internal management accounts, is the responsibility of management and is subject to financial closing procedures which have not yet been completed and has not been audited, reviewed or verified. Certain amounts and percentages that appear in this document have been subject to rounding adjustments. As a result, certain numerical figures shown as totals, including those in the tables, may not be an exact arithmetic aggregation of the figures that precede or follow them. Although we believe the information to be reasonable, actual results may vary from the information contained above and such variations could be material. As such, you should not place undue reliance on this information. This information may not be indicative of the actual results for the current period or any future period.

This document 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. These forward-looking statements may be identified by words such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” and other similar words. Forward-looking statements include statements relating to, among other things, VEON’s plans to implement its strategic priorities, operating model and development plans; VEON's ability to achieve anticipated performance results, including VEON’s growth trajectory and ability to generate sufficient cash flow to repay its debt maturities and other obligations; VEON’s intended expansion of its digital experience including through technologies such as artificial intelligence; VEON’s assessment of the impact of the war in Ukraine, including related sanctions and counter-sanctions, on its current and future operations and financial condition; VEON’s assessment of the impact of the political conflict in Bangladesh; the expected impact of the reorganization of VEON's wholly owned subsidiary VEON Holdings B.V.; future market developments and trends; operational and network development and network investment, including expectations regarding the roll-out and benefits of 3G/4G/LTE networks, as applicable; spectrum acquisitions and renewals; the effect of the acquisition of additional spectrum on customer experience; the impact of VEON’s delisting from Euronext, VEON's HQ relocation to the Dubai International Financial Centre in the United Arab Emirates, VEON’s ability to realize the acquisition and disposition of any of its businesses and assets and to execute its strategic transactions in the timeframes anticipated, or at all ,including VEON's ability to complete the business combination that will result in the listing of Kyivstar on the Nasdaq Stock Market LLC; VEON’s ability to realize financial improvements, including an expected reduction of net pro-forma leverage ratio following the successful completion of certain dispositions and acquisitions; its dividends; and VEON’s ability to realize its targets and commercial initiatives in its various countries of operation.

The forward-looking statements included in this document are based on management’s best assessment of VEON’s strategic and financial position and of future market conditions, trends and other potential developments. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of, among other things: further escalation in the war in Ukraine, including further sanctions and counter-sanctions and any related involuntary deconsolidation of our Ukrainian operations; escalation of the conflict between India and Pakistan; demand for and market acceptance of VEON’s products and services; our plans regarding our dividend payments and policies, as well as our ability to receive dividends, distributions, loans, transfers or other payments or guarantees from our subsidiaries; continued volatility in the economies in VEON’s markets; governmental regulation of the telecommunications industries; general political uncertainties in VEON’s markets; government investigations or other regulatory actions; litigation or disputes with third parties or regulatory authorities or other negative developments regarding such parties; the impact of export controls and laws affecting trade and investment on our and important third-party suppliers' ability to procure goods, software or technology necessary for the services we provide to our customers, including those that arise as a results of baseline or so called "reciprocal tariffs" imposed in the countries in which we operate ; risks associated with data protection or cyber security, other risks beyond the parties’ control or a failure to meet expectations regarding various strategic priorities, the effect of foreign currency fluctuations, increased competition in the markets in which VEON operates and the effect of consumer taxes on the purchasing activities of consumers of VEON’s services..

Certain other factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in VEON’s 2024 Form 20-F for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 25, 2025 and other public filings made from time to time by VEON with the SEC. Other unknown or unpredictable factors also could harm our future results. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Under no circumstances should the inclusion of such forward-looking statements in this document be regarded as a representation or warranty by us or any other person with respect to the achievement of results set out in such statements or that the underlying assumptions used will in fact be the case. Therefore, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date hereof. We cannot assure you that any projected results or events will be achieved. Except to the extent required by law, we disclaim any obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made, or to reflect the occurrence of unanticipated events.

Contact Information

VEON

Investor Relations