Education
About Us
Working with TipRanks
Follow Us
VEON Ltd (VEON)
NASDAQ:VEON
Top Page
VEON
(NASDAQ:VEON)
Rating:74Outperform
Price Target:
$68.00
▲(23.64% Upside)
Positive Factors
Digital Expansion
VEON's digital revenue growth advanced significantly, now representing a larger portion of total revenues, showcasing successful expansion in digital markets.
Financial Performance
VEON reported excellent results with double-digit growth in both revenue and EBITDA, showcasing strong financial performance.
Shareholder Value
The buyback program and strong cash flow position indicate VEON's commitment to returning value to shareholders.
Negative Factors
Spectrum and Network Costs
VEON faces modest further spectrum spend and must carefully manage elevated spending for network resiliency.
Trade and Liquidity Challenges
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
$4.00B
Dividend YieldN/A
Average Volume (3M)215.95K
Price to Earnings (P/E)3.9
Beta (1Y)0.75
Revenue Growth8.66%
EPS GrowthN/A
CountryUS
Employees18,027
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)8.43
Shares Outstanding69,153,800
10 Day Avg. Volume193,620
30 Day Avg. Volume215,951
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit1.94
Enterprise Value/Ebitda2.85
Forecast
1Y Price Target
$64.00Price Target Upside16.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
VEON Business Overview & Revenue Model
Company DescriptionVEON is a global telecommunications and technology company headquartered in Amsterdam, Netherlands. The company operates in various sectors, primarily focusing on mobile and fixed telecommunications services, as well as digital services and applications. VEON serves millions of subscribers across multiple countries, offering core products that include voice and data services, broadband internet, and innovative digital solutions through its digital ecosystem.
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: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant growth in revenues and digital services, successful strategic partnerships, and a completed share buyback program. However, it also notes potential noncash charges and challenges in some markets. The overall sentiment is positive due to the strong financial performance and strategic achievements outweighing the challenges.Q2-2025 Updates
Positive Updates
Strong Financial Performance
VEON's revenues increased by 5.9% year-on-year in U.S. dollars and EBITDA grew by 13.2% in U.S. dollar terms. In local currency terms, revenues grew by 11.2% and EBITDA by 19.6%.
Digital Revenue Surge
Direct digital revenues grew by 57% year-on-year in dollar terms, now contributing 16.5% of total group revenues. Financial services account for 57% of total digital revenue.
Strategic Partnerships and Expansions
Closed strategic infrastructure pooling partnership with Engro in Pakistan and made progress on direct-to-cell satellite communications in Ukraine in partnership with Starlink.
Successful Share Buyback
Completed the third and final phase of a $100 million share buyback program, acquiring close to 3% of shares.
Uklon Acquisition
Uklon contributed $21.7 million in revenue and $9.3 million in EBITDA for the quarter, marking a strategic milestone in digital expansion.
Negative Updates
Noncash Charge Expectations
Expected noncash charge of $150 million to $200 million in the third quarter due to transactions such as the Kyivstar listing and Kyrgyzstan operations sale.
Inflationary Pressures
Slight uptick in weighted average inflation to 8.7%, which is being closely monitored.
Challenges in Bangladesh
Revenue growth in Bangladesh was not double-digit, although there are signs of gradual recovery in consumer sentiment.
Company Guidance
During the second quarter of 2025, VEON reported strong financial and operational performance. The company's revenues increased by 5.9% year-on-year in U.S. dollars and 11.2% in local currency, with EBITDA growing by 13.2% in U.S. dollars and 19.6% in local currency. VEON revised its 2025 outlook, projecting local currency revenue growth between 13% to 15% and EBITDA growth between 14% to 16%. The digital services segment demonstrated exceptional momentum, with direct digital revenues rising 57% year-on-year in U.S. dollars, and now accounting for 16.5% of total group revenues. VEON completed the acquisition of Uklon, contributing $21.7 million in revenue for the quarter, and made headway with its asset-light strategy, including a strategic infrastructure pooling partnership in Pakistan. Additionally, VEON completed the final phase of a $100 million share buyback program and enhanced financial flexibility with a $200 million bond issuance. The company also anticipates noncash charges related to upcoming transactions, such as the Kyivstar NASDAQ listing and the sale of Kyrgyzstan operations, but expects these to have a positive net equity impact.VEON Financial Statement Overview
Summary
VEON's financial performance shows a recovery trajectory with improving profitability and revenue growth. However, high leverage and fluctuating net income present concerns. While cash flow stability is evident, strategic management of debt and continued revenue growth are crucial for sustained financial health.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.15B | 4.00B | 3.70B | 3.75B | 3.85B | 7.98B |
| Gross Profit | 3.38B | 3.49B | 3.26B | 3.28B | 3.37B | 6.09B |
| EBITDA | 2.29B | 1.93B | 1.82B | 2.16B | 1.85B | 2.33B |
| Net Income | 996.00M | 415.00M | -2.53B | -162.00M | 674.00M | -349.00M |
Balance Sheet | ||||||
| Total Assets | 8.46B | 8.04B | 8.22B | 15.10B | 15.92B | 14.55B |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 2.05B | 2.33B | 3.23B | 2.34B | 1.76B |
| Total Debt | 0.00 | 4.69B | 5.16B | 8.18B | 10.65B | 10.06B |
| Total Liabilities | 6.97B | 6.78B | 7.15B | 14.32B | 14.42B | 13.54B |
| Stockholders Equity | 1.31B | 1.10B | 858.00M | 569.00M | 586.00M | 163.00M |
Cash Flow | ||||||
| Free Cash Flow | 612.35M | 243.00M | 1.58B | 1.55B | 843.00M | 665.00M |
| Operating Cash Flow | 1.27B | 1.15B | 2.11B | 2.56B | 2.64B | 2.44B |
| Investing Cash Flow | -559.53M | -778.00M | -2.24B | -1.66B | -1.18B | -1.91B |
| Financing Cash Flow | -321.99M | -551.00M | -1.15B | 116.00M | -744.00M | -103.00M |
VEON Technical Analysis
Neutral
55.00
Price Trends
53.10
Positive
50.08
Positive
45.66
Positive
Market Momentum
0.87
Positive
47.81
Neutral
26.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEON, the sentiment is Neutral. The current price of 55 is below the 20-day moving average (MA) of 57.87, above the 50-day MA of 53.10, and above the 200-day MA of 45.66, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.79B | 11.04 | 7.38% | 5.84% | 19.25% | 5.69% | |
74 Outperform | $4.00B | 3.87 | 89.94% | ― | 8.66% | ― | |
60 Neutral | $46.60B | 4.09 | -13.11% | 4.12% | 1.85% | -42.71% | |
60 Neutral | $2.40B | 21.91 | 493.63% | ― | -5.41% | ― | |
59 Neutral | $736.66M | ― | -11.45% | ― | 7.68% | 18.65% | |
56 Neutral | $3.61B | 22.47 | -0.27% | 2.39% | 3.89% | -107.44% | |
52 Neutral | $738.37M | ― | -3.93% | 0.74% | 16.73% | -237.78% |
* Communication Services Sector Average
Performance Comparison
VEON
VEON
55.00
26.00
89.66%
SHEN
Shenandoah Telecommunications Co
13.45
-0.41
-2.96%
RBBN
Ribbon Communications
3.99
1.13
39.51%
TEO
Telecom Argentina
8.52
0.84
10.94%
TKC
Turkcell Iletisim
5.54
-1.20
-17.80%
IHS
IHS Holding
7.27
4.25
140.73%
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.