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VEON Ltd (VEON)
NASDAQ:VEON
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VEON
(NASDAQ:VEON)
Rating:70Outperform
Price Target:
$62.00
▲(6.71% Upside)
Positive Factors
Digital Expansion
VEON's digital revenue showed substantial growth, now representing a significant portion of total revenues.
Earnings
VEON reported excellent results with double-digit growth in both revenue and EBITDA, showcasing strong financial performance.
Market Position
VEON is especially attractive relative to market peers based on absolute EV/EBITDA multiples, enhancing its investment appeal.
Negative Factors
Spending Concerns
VEON faces modest further spectrum spend and must carefully manage elevated spending for network resiliency.
Stock Performance
VEON stock sold off 18% almost certainly in reaction to an early morning block trade with the decline exacerbated by limited liquidity.
VEON (VEON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend YieldN/A
Average Volume (3M)212.29K
Price to Earnings (P/E)8.9
Beta (1Y)0.76
Revenue Growth9.75%
EPS GrowthN/A
CountryUS
Employees18,027
SectorCommunication Services
Sector Strength92
IndustryTelecommunications Services
Share Statistics
EPS (TTM)8.56
Shares Outstanding73,967,630
10 Day Avg. Volume201,655
30 Day Avg. Volume212,291
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit1.87
Enterprise Value/Ebitda2.89
Forecast
1Y Price Target
$61.00Price Target Upside4.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
VEON Business Overview & Revenue Model
Company DescriptionVEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services. It offers voice, data, and other telecommunication services through a range of wireless, fixed, and broadband internet services. The company provides value-added services, including short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance, machine-to-machine, and other services; national and international roaming services; wireless internet access; and mobile bundles and call completion services. It also offers value-added services for corporations, operators, and consumers, as well as sells equipment and accessories. The company provides its services under the Beeline, Kyivstar, Jazz, Djezzy, and banglalink brands in Russia, Pakistan, Algeria, Uzbekistan, Ukraine, Bangladesh, Kazakhstan, Kyrgyzstan, and Georgia. It serves approximately 220 million customers. The company was formerly known as VimpelCom Ltd. and changed its name to VEON Ltd. in March 2017. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.
How the Company Makes MoneyVEON generates revenue primarily through its telecommunications services, which include mobile voice and data plans, fixed broadband services, and various value-added services. The company's key revenue streams consist of mobile service subscriptions, data usage fees, and sales of devices. Additionally, VEON has developed a digital ecosystem that includes applications and platforms for messaging, e-commerce, and financial services, which contribute to its earnings. Significant partnerships with local and international companies enhance its service offerings and customer engagement, further driving revenue growth.
VEON Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 10.98%|
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
VEON presented a strong financial performance with significant growth in digital services and successful execution of an asset-light strategy. Shareholder returns were bolstered by a completed buyback program and debt repayments. However, regulatory and inflationary challenges persist, and some markets like Bangladesh show slow recovery. Expected noncash charges may impact future quarters.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Revenues increased by 5.9% year-on-year in U.S. dollars and 11.2% in local currency. EBITDA grew by 13.2% in U.S. dollars and 19.6% in local currency, reflecting a focus on profitable growth.
Digital Services Expansion
Direct digital revenues grew by 57% year-on-year in dollar terms, now contributing 16.5% of total group revenues. The acquisition of Uklon marks a strategic milestone in digital expansion.
Asset-Light Strategy Progress
Closed a strategic infrastructure pooling partnership with Engro in Pakistan, expected to unlock significant value. Kyivstar in Ukraine progresses on launching satellite communications with Starlink.
Shareholder Returns
Completed the $100 million share buyback program, buying back close to 3% of shares. Repayment of April and June bonds and a $200 million private bond issuance enhanced financial flexibility.
Improved Forecasts
Revised outlook for 2025 with expected local currency growth for total revenue between 13% to 15% and EBITDA growth between 14% to 16%.
Negative Updates
Tax and Regulatory Impacts
Headline numbers for Beeline Kazakhstan and Banglalink impacted by tax regulatory changes. Adjustments have been made but continue to affect organic trends.
Inflationary Pressures
A slight uptick in weighted average inflation across markets, up to 8.7% in the second quarter, which is a trend being watched closely.
Expected Noncash Charges
Upcoming Kyivstar listing and sale of Kyrgyzstan operations are expected to result in a noncash charge of $150 million to $200 million in Q3.
Bangladesh Market Challenges
Bangladesh saw limited growth, with total revenues up only 5.1% quarter-on-quarter, indicating a gradual recovery in consumer sentiment.
Company Guidance
In the recent call, VEON provided updated guidance reflecting a positive outlook for 2025, anticipating local currency revenue growth of 13% to 15% year-on-year and EBITDA growth between 14% to 16%. The company reported a year-on-year revenue increase of 5.9% in U.S. dollars and 11.2% in local currency for Q2, with EBITDA growth of 13.2% in U.S. dollars and 19.6% in local currency. Digital revenues were a highlight, growing by 57% year-on-year in dollar terms and now constituting 16.5% of the total group revenue. VEON's ongoing transformation into a digital operator, focusing on asset-light strategies and expanding its digital services portfolio, has shown substantial progress, including the consolidation of Uklon and partnerships like the infrastructure pooling with Engro in Pakistan. The company also completed a $100 million share buyback program and issued $200 million in private bonds, enhancing its financial flexibility.VEON Financial Statement Overview
Summary
VEON shows a recovery in financial performance with revenue growth and improved profitability. However, high leverage and fluctuating net income remain concerning. Cash flow stability is notable, but strategic debt management is crucial.Income Statement
VEON's income statement shows a solid gross profit margin with an improvement in net income compared to the previous year, moving from negative to positive. The revenue growth rate from 2023 to 2024 is commendable, reflecting a recovery trend. However, volatility in net income over the years and negative results in previous periods indicate potential risks.72
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage, which could pose risks if not managed well. Positive stockholders' equity indicates stability, but the equity ratio remains low, highlighting dependency on borrowed capital. The return on equity shows improvement with positive net income in 2024, yet past negative results impact the overall assessment.65
Positive
Cash Flow
Cash flow analysis shows variability, with a notable decrease in operating cash flow from 2023 to 2024. The free cash flow is positive but grew at a slower pace, indicating less reinvestment capability. The free cash flow to net income ratio reflects a strong cash generation relative to net income, but overall cash flow trends suggest cautious optimism.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.00B | 3.70B | 3.75B | 3.85B | 7.98B |
| Gross Profit | 3.49B | 3.26B | 3.28B | 3.37B | 6.09B |
| EBITDA | 1.93B | 1.82B | 2.16B | 1.85B | 2.33B |
| Net Income | 415.00M | -2.53B | -162.00M | 674.00M | -349.00M |
Balance Sheet | |||||
| Total Assets | 8.04B | 8.22B | 15.10B | 15.92B | 14.55B |
| Cash, Cash Equivalents and Short-Term Investments | 2.05B | 2.33B | 3.23B | 2.34B | 1.76B |
| Total Debt | 4.69B | 5.16B | 8.18B | 10.65B | 10.06B |
| Total Liabilities | 6.78B | 7.15B | 14.32B | 14.42B | 13.54B |
| Stockholders Equity | 1.10B | 858.00M | 569.00M | 586.00M | 163.00M |
Cash Flow | |||||
| Free Cash Flow | 243.00M | 1.58B | 1.55B | 843.00M | 665.00M |
| Operating Cash Flow | 1.15B | 2.11B | 2.56B | 2.64B | 2.44B |
| Investing Cash Flow | -778.00M | -2.24B | -1.66B | -1.18B | -1.91B |
| Financing Cash Flow | -551.00M | -1.15B | 116.00M | -744.00M | -103.00M |
VEON Technical Analysis
Positive
58.10
Price Trends
49.02
Positive
47.87
Positive
43.86
Positive
Market Momentum
2.25
Negative
60.92
Neutral
83.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEON, the sentiment is Positive. The current price of 58.1 is above the 20-day moving average (MA) of 54.38, above the 50-day MA of 49.02, and above the 200-day MA of 43.86, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 83.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VEON.
VEON Risk Analysis
VEON disclosed 54 risk factors in its most recent earnings report. VEON reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VEON Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.06B | 11.41 | 7.38% | 5.54% | 19.25% | 5.96% | |
70 Outperform | $4.10B | 8.91 | 43.53% | ― | 9.75% | ― | |
66 Neutral | ¥486.96B | 16.68 | 1.07% | 2.20% | 6.20% | -17.02% | |
59 Neutral | $4.25B | 22.47 | -0.27% | 2.09% | 3.89% | -107.44% | |
59 Neutral | $699.47M | ― | -11.45% | ― | 7.68% | 18.65% | |
58 Neutral | $2.32B | 20.98 | 493.63% | ― | -5.41% | ― | |
47 Neutral | $691.15M | ― | -3.93% | 0.80% | 16.73% | -237.78% |
* Communication Services Sector Average
Performance Comparison
VEON
VEON
58.10
30.39
109.67%
SHEN
Shenandoah Telecommunications Co
12.50
-1.39
-10.01%
RBBN
Ribbon Communications
3.87
0.67
20.94%
TEO
Telecom Argentina
9.75
2.70
38.30%
TKC
Turkcell Iletisim
5.84
-1.42
-19.56%
IHS
IHS Holding
7.04
3.56
102.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.