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VEON Ltd (VEON)
NASDAQ:VEON
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VEON
(NASDAQ:VEON)
Rating:73Outperform
Price Target:
$60.00
▲(7.66%Upside)
Positive Factors
Digital Revenue Growth
VEON's digital revenue showed substantial growth, now representing a significant portion of total revenues.
Earnings and Financial Performance
VEON reported excellent results with double-digit growth in both revenue and EBITDA, showcasing strong financial performance.
Negative Factors
Network Investment Costs
VEON faces modest further spectrum spend and must carefully manage elevated spending for network resiliency.
Stock Volatility
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
$3.67B
Dividend YieldN/A
Average Volume (3M)290.25K
Price to Earnings (P/E)8.0
Beta (1Y)0.70
Revenue Growth9.75%
EPS GrowthN/A
CountryUS
Employees18,027
SectorCommunication Services
Sector Strength82
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding73,967,630
10 Day Avg. Volume308,420
30 Day Avg. Volume290,252
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)2.71
Price to Sales (P/S)0.00
P/FCF Ratio4.28
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit2.20
Enterprise Value/Ebitda0.88
Forecast
1Y Price Target
$60.00Price Target Upside7.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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, including mobile voice services, data services, and other digital services. The company earns money from customer subscriptions, prepaid and postpaid plans, and usage-based charges for voice and data services. Additionally, VEON offers value-added services such as digital content, mobile financial services, and enterprise solutions, contributing to its revenue streams. Key factors such as market penetration, competitive pricing strategies, and strategic partnerships with technology providers and local businesses play a significant role in driving VEON's earnings. The company also benefits from its presence in high-growth emerging markets, which helps in expanding its customer base and increasing service usage.
VEON Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: 13.85%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive momentum with significant growth in revenue and digital services. VEON has achieved impressive market performance and strategic partnerships, though there are some challenges related to deconsolidation impacts and regulatory issues in Kazakhstan. The overall financial position has improved, contributing to a positive outlook.Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
VEON reported an 8.9% increase in revenue and a 13.7% rise in EBITDA year-over-year. Adjusting for the deconsolidation of TNS+, revenue growth was 11.7% and EBITDA grew by 15.5%.
Surge in Digital Revenues
Direct digital revenues grew by 50.2%, now representing 14.3% of total revenues, up from 10.4% last year.
Successful Strategic Partnerships
The strategic partnership with Engro Corporation in Pakistan is expected to unlock USD 563 million in value for VEON.
Positive Market Performance
Strong performance in several markets: Pakistan (20.3% revenue growth), Ukraine (20.2% revenue growth adjusting for cyberattack), and Uzbekistan (13.1% revenue growth).
Improved Financial Position
Net debt excluding leases decreased to $1.8 billion, with net debt-to-EBITDA ratio improving to 1.2x. Cash position improved to $1.8 billion.
Negative Updates
Deconsolidation Impact
The deconsolidation of TNS+ impacted the reported revenue and EBITDA figures, necessitating adjustments to reflect true growth.
Regulatory Impact in Kazakhstan
In Kazakhstan, EBITDA was impacted by the absence of regulatory tax benefits for the quarter, resulting in flat year-over-year performance when adjusted.
High CapEx in Ukraine
CapEx in Ukraine increased significantly due to investments in battery and generators amidst the war environment, affecting the group’s overall CapEx intensity.
Company Guidance
During the call, VEON provided guidance for 2025, highlighting strong financial performance and strategic initiatives. For the first quarter of 2025, the company achieved a revenue growth of 8.9% in reported U.S. dollar terms and an EBITDA increase of 13.7%. In local currency terms, revenues grew by 12.9%, surpassing inflation rates and nominal GDP growth. The company emphasized the expansion of its digital services, with direct digital revenues increasing by 50.2%, now constituting 14.3% of total revenues. VEON's asset-light strategy is progressing, with a strategic partnership in Pakistan expected to unlock $563 million in value. The company also repurchased $23 million worth of shares and repaid $472 million of its bonds in April 2025. Looking forward, VEON reaffirmed its full-year guidance, projecting 12% to 14% revenue growth and 13% to 15% EBITDA growth in local currency terms, with a CapEx intensity of 17% to 19%.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
55.73
Price Trends
48.55
Positive
46.10
Positive
41.91
Positive
Market Momentum
2.14
Negative
68.17
Neutral
55.91
Neutral
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 55.73 is above the 20-day moving average (MA) of 48.37, above the 50-day MA of 48.55, and above the 200-day MA of 41.91, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 68.17 is Neutral, neither overbought nor oversold. The STOCH value of 55.91 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.08B | 12.14 | 6.74% | 1.33% | 14.09% | -11.43% | |
73 Outperform | $3.67B | 8.03 | 43.53% | ― | 9.75% | ― | |
62 Neutral | $844.80M | ― | -4.30% | 0.65% | 21.68% | -1010.29% | |
62 Neutral | $42.18B | -1.51 | -12.07% | 2.79% | 2.09% | -71.01% | |
60 Neutral | $750.31M | ― | -11.45% | ― | 7.68% | 18.65% | |
58 Neutral | $3.96B | 19.43 | 3.99% | ― | -12.77% | 40.80% | |
55 Neutral | $2.03B | ― | 493.63% | ― | -10.70% | 98.70% |
* Communication Services Sector Average
Performance Comparison
VEON
VEON
55.73
28.73
106.41%
SHEN
Shenandoah Telecommunications Co
15.40
-5.23
-25.35%
RBBN
Ribbon Communications
3.89
0.65
20.06%
TEO
Telecom Argentina
9.22
3.04
49.19%
TKC
Turkcell Iletisim
5.75
-1.89
-24.74%
IHS
IHS Holding
6.20
3.20
106.67%
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.