VEON · VEON Ltd.

VEON delivered a strong start to 2026 with Q1 revenue of USD 1,201 million, up 17.0% YoY, significantly outpacing the weighted average inflation across its markets. Growth was propelled by digital revenues surging 57.7% YoY to USD 303 million, now representing 25.2% of total revenue (up 6.5 pp YoY), driven by expanding adoption in financial services, entertainment, healthcare, and super apps, alongside acquisitions like Uklon and Tabletki. Telecom and infrastructure revenues grew more modestly at 7.6% YoY to USD 898 million, supported by ARPU expansion (mobile ARPU +17.3% to USD 2.3) and 4G penetration rising to 70.3%. EBITDA rose 17.7% to USD 517 million with margin expansion to 43.0% (+20 bps), reflecting operating leverage, cost discipline, and telecom margins of 45.9% versus digital at 34.6%. Management highlights resilient performance amid Ukraine operations and energy volatility, with digital capex at low 5.5% LTM intensity aiding cash conversion. Equity FCF after leases jumped 73.4% YoY to USD 246 million, bolstering liquidity with USD 1,755 million total cash (USD 457 million at HQ). Net leverage excl. leases improved to 1.07x. Guidance was raised for 2026 revenue growth to 11%-14% YoY (from 9%-12%), maintaining EBITDA at 7%-10%, with capex intensity ex-Ukraine at 15%-17% to support Pakistan spectrum investments. Post-quarter, VEON advanced acquisitions like TPL Insurance and expanded Starlink partnerships, while progressing a USD 100 million buyback (50% complete) and announcing a new annual minimum USD 100 million share repurchase policy, signaling confidence in cash generation and shareholder returns.