VEON Q2 2025 presentation: Digital revenue surges 57%, driving overall growth

VEON (NASDAQ:VEON) presented its second quarter 2025 results on August 7, showcasing strong performance driven by its digital transformation strategy. The telecommunications company reported solid revenue growth and margin expansion, with direct digital revenues becoming an increasingly significant portion of its business.

Quarterly Performance Highlights

VEON reported total revenue of $1.087 billion in Q2 2025, representing a 5.9% year-over-year increase (11.2% in local currency terms). EBITDA grew at an even faster pace, reaching $520 million, up 13.2% year-over-year (19.6% in local currency), resulting in an improved EBITDA margin of 47.8%, an increase of 3.1 percentage points from the previous year.

As shown in the following key performance indicators:

The company’s financial position remained solid, with group cash of $1.283 billion (up 48.5% year-over-year), including $206 million at headquarters. Net debt decreased by 11.9% year-over-year to $1.962 billion, with a net debt to EBITDA ratio of 1.3x (excluding leases), slightly up from 1.2x in Q1 2025.

VEON CEO Kaan Terzioğlu highlighted the company’s strategic achievements across four key areas:

Digital Transformation Progress

The most notable aspect of VEON’s performance was the accelerating growth of its digital business. Direct digital revenue reached $180 million in Q2 2025, surging 56.6% year-over-year (62.4% in local currency) and now representing 16.5% of total revenues, up from 11.2% in Q2 2024.

This digital transformation journey is clearly illustrated in the following chart:

The company’s digital ecosystem continues to expand, with 119.7 million monthly active users across all digital services (up 7.1% year-over-year) and a last-twelve-months transaction value of $43.8 billion (up 53.0% year-over-year in local currency).

VEON’s digital portfolio spans multiple verticals including financial services, healthcare, entertainment, ride-hailing, and enterprise services, as shown in this comprehensive overview:

Geographic Performance Analysis

VEON’s performance varied across its operating markets, with Pakistan and Ukraine delivering particularly strong results.

Pakistan, VEON’s largest market by revenue, delivered 15.3% revenue growth in local currency terms, with direct digital revenue growing by 35.7%. The country’s financial services operations, including JazzCash and Mobilink Bank, were standout performers:

Ukraine showed impressive resilience and growth with a 25.8% increase in local currency revenue and a remarkable 460.3% surge in direct digital revenue, partly driven by the consolidation of Uklon, the country’s leading ride-hailing platform:

Kazakhstan reported modest revenue growth of 3.1% in local currency, while Bangladesh faced challenges with an 11.4% revenue decline but achieved significant EBITDA improvement of 79.8%. Uzbekistan delivered solid performance with 13.6% revenue growth and 22.1% EBITDA growth in local currency.

The revenue breakdown by country shows the relative contribution of each market:

Strategic Initiatives

VEON’s strategic focus on multiplay services (customers using multiple services) continues to drive revenue growth. The company reported that multiplay users generate 3.39 times higher ARPU compared to voice-only users, highlighting the value of this strategy:

Other key strategic initiatives included:

• Closing a strategic partnership with Engro Corp
• Advancing Kyivstar’s plans to launch satellite communication services with Starlink
• Completing Phase 3 of the Share Buyback Plan
• Repaying the April 2025 and June 2025 notes at maturity
• Enhancing financial flexibility with a subsequent $200 million bond placement
• Advancing Kyivstar’s Nasdaq listing, with closing expected shortly

Forward-Looking Statements

Based on strong first-half performance, VEON revised its 2025 outlook upward:

The company now expects full-year 2025 total revenue growth of 13-15% in local currency terms, up from previous guidance. EBITDA is projected to grow 14-16% in local currency, while capital expenditure intensity is expected to be 17-19%.

VEON’s continued focus on digital transformation, multiplay services, and strategic acquisitions positions the company for sustained growth in its emerging market operations, despite varying economic conditions across its footprint.

Full presentation:

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