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

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VEON reported strong Q1 2025 financial results with total revenue growing 8.9% YoY to USD 1,026 million and EBITDA increasing 13.7% YoY to USD 439 million. The company's digital transformation strategy showed impressive results with direct digital revenues surging 50.2% YoY to USD 147 million, now representing 14.3% of total revenues. The company maintains a solid financial position with USD 1,775 million in total cash and deposits, while reducing net debt to USD 1,810 million. VEON's 2025 outlook remains positive, projecting 12-14% revenue growth and 13-15% EBITDA growth in local currency terms. The company also announced the second phase of its share buyback program worth USD 35 million, following the completion of a USD 30 million first phase.
VEON ha riportato solidi risultati finanziari nel primo trimestre 2025 con un fatturato totale in crescita dell'8,9% su base annua, raggiungendo 1.026 milioni di USD e un EBITDA in aumento del 13,7% su base annua, pari a 439 milioni di USD. La strategia di trasformazione digitale dell'azienda ha mostrato risultati impressionanti con i ricavi digitali diretti in aumento del 50,2% su base annua, arrivando a 147 milioni di USD, rappresentando ora il 14,3% del fatturato totale. L'azienda mantiene una solida posizione finanziaria con 1.775 milioni di USD in liquidità e depositi totali, riducendo al contempo il debito netto a 1.810 milioni di USD. Le prospettive di VEON per il 2025 restano positive, con una crescita prevista del fatturato tra il 12 e il 14% e dell'EBITDA tra il 13 e il 15% in valuta locale. L'azienda ha inoltre annunciato la seconda fase del programma di riacquisto azionario per un valore di 35 milioni di USD, dopo aver completato la prima fase da 30 milioni di USD.
VEON reportó sólidos resultados financieros en el primer trimestre de 2025 con ingresos totales que crecieron un 8,9% interanual hasta 1.026 millones de USD y un EBITDA que aumentó un 13,7% interanual hasta 439 millones de USD. La estrategia de transformación digital de la compañía mostró resultados impresionantes con ingresos digitales directos que se dispararon un 50,2% interanual hasta 147 millones de USD, representando ahora el 14,3% del total de ingresos. La empresa mantiene una sólida posición financiera con 1.775 millones de USD en efectivo y depósitos totales, mientras reduce la deuda neta a 1.810 millones de USD. Las perspectivas de VEON para 2025 siguen siendo positivas, proyectando un crecimiento de ingresos del 12-14% y un crecimiento del EBITDA del 13-15% en términos de moneda local. La compañía también anunció la segunda fase de su programa de recompra de acciones por un valor de 35 millones de USD, tras completar la primera fase de 30 millones de USD.
VEON은 2025년 1분기에 총수익이 전년 대비 8.9% 증가한 10억 2,600만 달러, EBITDA는 전년 대비 13.7% 증가한 4억 3,900만 달러로 강력한 재무 실적을 보고했습니다. 회사의 디지털 전환 전략은 직접 디지털 수익이 전년 대비 50.2% 증가한 1억 4,700만 달러로 급증하며 총수익의 14.3%를 차지하는 인상적인 결과를 보여주었습니다. 회사는 총 현금 및 예치금 17억 7,500만 달러를 보유하며 견고한 재무 상태를 유지하는 한편, 순부채는 18억 1,000만 달러로 줄였습니다. VEON의 2025년 전망은 긍정적이며, 현지 통화 기준으로 매출은 12-14%, EBITDA는 13-15% 성장할 것으로 예상됩니다. 또한 회사는 3,500만 달러 규모의 주식 자사주 매입 프로그램 2단계를 발표했으며, 이는 3,000만 달러 규모의 1단계 완료에 이은 것입니다.
VEON a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un chiffre d'affaires total en hausse de 8,9% en glissement annuel à 1 026 millions de dollars et un EBITDA en augmentation de 13,7% en glissement annuel à 439 millions de dollars. La stratégie de transformation digitale de l'entreprise a donné des résultats impressionnants, les revenus digitaux directs ayant bondi de 50,2% en glissement annuel à 147 millions de dollars, représentant désormais 14,3% du chiffre d'affaires total. L'entreprise maintient une solide position financière avec 1 775 millions de dollars en liquidités et dépôts totaux, tout en réduisant sa dette nette à 1 810 millions de dollars. Les perspectives de VEON pour 2025 restent positives, avec une croissance prévue du chiffre d'affaires de 12 à 14% et de l'EBITDA de 13 à 15% en monnaie locale. L'entreprise a également annoncé la deuxième phase de son programme de rachat d'actions d'une valeur de 35 millions de dollars, après avoir achevé une première phase de 30 millions de dollars.
VEON meldete starke finanzielle Ergebnisse für das erste Quartal 2025 mit einem Gesamtumsatz, der um 8,9% im Jahresvergleich auf 1.026 Millionen USD wuchs, und einem EBITDA, das um 13,7% im Jahresvergleich auf 439 Millionen USD anstieg. Die digitale Transformationsstrategie des Unternehmens zeigte beeindruckende Ergebnisse, wobei die direkten digitalen Umsätze um 50,2% im Jahresvergleich auf 147 Millionen USD stiegen und nun 14,3% des Gesamtumsatzes ausmachen. Das Unternehmen hält eine solide finanzielle Position mit 1.775 Millionen USD an Gesamtbargeld und Einlagen, während die Nettoverschuldung auf 1.810 Millionen USD reduziert wurde. Die Aussichten für VEON im Jahr 2025 bleiben positiv, mit einer prognostizierten Umsatzsteigerung von 12-14% und einem EBITDA-Wachstum von 13-15% in lokaler Währung. Das Unternehmen kündigte außerdem die zweite Phase seines Aktienrückkaufprogramms im Wert von 35 Millionen USD an, nach Abschluss der ersten Phase im Wert von 30 Millionen USD.
Positive
  • Strong revenue growth of 8.9% YoY to USD 1,026 million, exceeding inflation rates
  • Impressive digital revenue growth of 50.2% YoY to USD 147 million
  • EBITDA growth of 13.7% YoY to USD 439 million
  • Net debt reduction of USD 91 million QoQ
  • Implementation of share buyback program totaling USD 65 million
  • Healthy LTM Equity Free Cash Flow of USD 387 million
Negative
  • High gross debt level at USD 4,377 million despite small QoQ reduction
  • Increased Capex intensity of 20.4% YoY (+2.2 p.p.) on LTM basis
  • Impact of cyberattack in Ukraine affecting base performance

Insights

VEON delivered strong Q1 results with 50% digital revenue growth and improving financials, maintaining positive 2025 outlook.

VEON's Q1 2025 results demonstrate robust financial performance across key metrics. Total revenue reached $1,026 million, growing 8.9% year-over-year in USD terms and an impressive 12.9% in local currency. This growth notably outpaced the weighted average inflation rate of 7.6% across VEON's markets, indicating effective value-based pricing strategies.

The standout performer was direct digital revenue, which surged 50.2% year-over-year to $147 million (54.3% in local currency). Digital services now represent 14.3% of total revenue, up significantly from 10.4% a year ago. This digital transformation is proving to be a key growth driver.

Profitability metrics show equal strength with EBITDA growing 13.7% to $439 million. The company maintained disciplined capital expenditure with capex intensity at 13.1%, slightly improved year-over-year. The balance sheet continues to strengthen with net debt excluding lease liabilities decreasing by $91 million quarter-over-quarter to $1,810 million. The net debt to LTM EBITDA ratio improved to 1.23x from 1.34x in the previous quarter.

Cash position remains solid with $1,775 million in total cash and deposits, including $662 million at headquarters level. This financial flexibility supports VEON's ongoing share buyback program, with a second phase of up to $35 million following the completed $30 million first phase.

Management has maintained its positive 2025 outlook, projecting local currency revenue growth of 12-14% and EBITDA growth of 13-15%. The consistent growth in digital services, especially in frontier markets where VEON operates, provides a long-term growth vector beyond traditional telecom services. Their AI1440 vision further positions the company at the forefront of digital transformation in emerging markets.

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

View the full 1Q25 Earnings Release
View 1Q25 Results Presentation
View 1Q25 Factbook

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: https://veon-1q-2025-trading-update.open-exchange.net/.

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 ir@veon.com

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: https://www.veon.com.

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
ir@veon.com


FAQ

What were VEON's Q1 2025 revenue and EBITDA growth rates?

VEON reported Q1 2025 revenue growth of 8.9% YoY to USD 1,026 million and EBITDA growth of 13.7% YoY to USD 439 million in reported currency.

How much did VEON's digital revenues grow in Q1 2025?

VEON's direct digital revenues grew 50.2% YoY to USD 147 million, representing 14.3% of total revenues, up from 10.4% a year ago.

What is VEON's financial outlook for 2025?

VEON expects 12-14% YoY revenue growth and 13-15% YoY EBITDA growth in local currency terms, with capex intensity projected at 17-19%.

How much is VEON's share buyback program worth?

VEON announced a second phase buyback of USD 35 million, following the completion of a USD 30 million first phase, totaling USD 65 million.

What is VEON's current debt position?

As of March 31, 2025, VEON had gross debt of USD 4,377 million and net debt of USD 1,810 million, with a net debt to LTM EBITDA ratio of 1.23x excluding lease liabilities.
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