VEON Boosts 2025 Financial Expectations
VEON, a global leader in digital connectivity and services, has recently revised its financial outlook for 2025, citing strong revenue and EBITDA momentum. The company reported an impressive revenue growth of 7.5% year-on-year, amounting to USD 1,115 million in the latest quarter. This robust performance underscores the resilience of VEON's business model and its commitment to delivering value to its customers and shareholders.
Third Quarter Highlights
In the third quarter (Q3 2025), VEON's EBITDA reached USD 524 million, reflecting a remarkable increase of 19.7% compared to the previous year. Driven by its digital revenue stream, which surged by 63% to USD 198 million, VEON successfully positioned itself to capitalize on the growing demand for digital services. This segment now represents 17.8% of total group revenues, highlighting the company's transformation into a truly digital operator.
Financial Performance at a Glance
- Revenue: USD 1,115 million (7.5% YoY increase)
- EBITDA: USD 524 million (19.7% YoY increase)
- Direct Digital Revenue: USD 198 million (63% YoY increase)
- Cash and Cash Equivalents: USD 1,666 million
- Debt to EBITDA Ratio: 1.13x
Strategic Developments Strengthening Operations
VEON's Board of Directors has approved a significant buyback program worth USD 100 million aimed at enhancing shareholder value. This move comes on the heels of successful operational strategies that have alleviated previous concerns regarding the company's long-term viability. Management is confident that there is no longer substantial doubt about VEON's ability to continue as a going concern, setting a solid foundation for future growth.
Kyivstar Group Listing Impact
The recent listing of Kyivstar Group has unlocked considerable value for VEON, with the current market valuation surpassing 2.3 times the company's book value. VEON holds an 89.6% stake in Kyivstar, valued at approximately USD 2.5 billion as of early November, based on market performance. This strategic asset has become a keystone in VEON's overall financial success.
Innovative Partnerships Driving Future Growth
In a groundbreaking move, VEON has signed a non-exclusive global framework agreement with Starlink, positioning itself as the first operator with a multi-country partnership focusing on Direct to Cell technology. This advancement promises to enhance connectivity and broaden service accessibility, transforming the customer experience across VEON's markets. Kyivstar is set to lead the charge with an upcoming nationwide rollout pending regulatory approvals.
Future Outlook and Projections
VEON is optimistic about its outlook for 2025, now forecasting local currency EBITDA growth between 16% to 18%, an upgrade from the previous projection. The anticipated total revenue growth in USD terms is estimated between 7% and 8%, aligning with VEON's strategy to leverage its deep digital capabilities and a disciplined approach to capital allocation.
Leadership Insights
VEON Group CEO Kaan Terzioglu remarked on these results, emphasizing the strength of VEON's digital operator model. He noted that the company's performance showcases the strong growth trajectory driven by digital services and operational excellence. The advancements in digital platforms and strategic initiatives reflect VEON's commitment to sustainably creating value for its customers and stakeholders.
Frequently Asked Questions
1. What is VEON's revised EBITDA outlook for 2025?
VEON has increased its EBITDA outlook for 2025 to a growth rate of 16% to 18% in local currency terms.
2. How much did VEON's direct digital revenue increase in Q3?
Direct digital revenue surged by 63% to USD 198 million in Q3 2025.
3. What strategic initiatives has VEON implemented recently?
VEON has initiated a USD 100 million share buyback program and entered a partnership with Starlink for Direct to Cell services.
4. How does the Kyivstar Group listing impact VEON?
The listing has unlocked significant value, with the market valuation of VEON's stake exceeding USD 2.5 billion.
5. What is VEON's liquidity position as of Q3 2025?
As of Q3 2025, VEON reported total cash, cash equivalents, and deposits of USD 1,666 million.
