VEON Ltd ((VEON)) has held its Q3 earnings call. Read on for the main highlights of the call.
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VEON Ltd’s recent earnings call revealed a generally positive sentiment, highlighting the company’s robust financial and operational performance. The call underscored strong growth in digital services and a strategic shift towards asset-light operations. Despite challenges such as reported EPS losses and market-specific weaknesses, the company remains optimistic, with an upward revision of its EBITDA growth guidance.
Surpassing Digital Service Users
In a significant milestone, VEON’s monthly digital service users surpassed monthly telecom SIM card users for the first time in September. This achievement marks a pivotal moment in VEON’s evolution as a digital operator, showcasing its successful transition towards digital services.
Revenue and EBITDA Growth
VEON reported a 7.5% year-on-year increase in revenues in U.S. dollar terms, with EBITDA growing by an impressive 19.7% year-on-year. The company has also revised its fiscal year 2025 EBITDA outlook, projecting growth of 16% to 18% in local currency terms.
Digital Services Expansion
The expansion of digital services is evident with direct digital revenues growing by 63% in U.S. dollar terms, now making up 17.8% of total group revenues. This growth is driven by significant advancements in financial services and other digital segments.
Asset-Light Strategy Progress
VEON has made strides in its asset-light strategy, completing the sale of its Kyrgyzstan operations and entering a new global framework agreement with Starlink for satellite connectivity.
Kyivstar Listing on NASDAQ
The listing of Kyivstar on NASDAQ has unlocked substantial value, with the current market valuation standing at $2.8 billion, significantly higher than the $1.25 billion of equity.
Reported EPS Loss
Despite the positive developments, VEON reported an EPS loss of $1.84 per share for Q3. This was attributed to $259 million in non-cash charges, including a $162 million charge related to SPAC sponsor shares and a $97 million charge for the Kyrgyzstan business sale.
Bangladesh Market Challenges
The Bangladesh market faced challenges, showing weaker performance compared to other regions. However, it returned to year-on-year revenue growth in September 2025 for the first time in 14 months.
Geopolitical and Macroeconomic Risks
VEON acknowledged ongoing geopolitical and macroeconomic challenges that continue to impact its operations, despite strong execution in other areas.
Forward-Looking Guidance
Looking ahead, VEON has raised its fiscal year 2025 EBITDA growth guidance to 16% to 18% in local currency terms, up from the previous 14% to 16%. The company also highlighted its strong financial position, with a net debt of $1.72 billion and a cash balance of $1.67 billion. Strategic initiatives include a $100 million share and/or bond repurchase program and continued growth in digital services, particularly in financial services.
In conclusion, VEON’s earnings call presented a largely positive outlook, emphasizing its strong growth trajectory in digital services and strategic asset-light operations. Despite some challenges, the company’s upward revision of EBITDA growth guidance and ongoing strategic initiatives underscore its commitment to maintaining robust financial health and operational efficiency.