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Highlights:

  • VEON's direct digital revenues increased by 50.2% year-over-year, making up 14.3% of total revenues
  • First-quarter revenue reached $1.03 billion, reflecting 8.9% YoY growth; EBITDA rose by 13.7%
  • Net debt ratio improved to 1.23x as of March 31, 2025, from 1.34x at the end of 2024

VEON Ltd. (Nasdaq: VEON) has reported its financial and operational performance for the first quarter of 2025, showing revenue and earnings growth alongside expanding digital revenues. The company generated $1.03 billion in revenue, reflecting an 8.9% year-on-year increase in U.S. dollar terms. In local currency terms, which adjusts for the effects of a cyberattack in Ukraine and the deconsolidation of TNS+ in Kazakhstan, revenue grew by 12.9%. The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter came in at $439 million, marking a 13.7% year-on-year rise in reported currency, and 10.4% growth in local currency terms after adjusting for exceptional items.

VEON is a digital operator delivering integrated connectivity and digital services to approximately 160 million users. With operations in six countries representing over 7% of the global population, VEON leverages technology-based solutions to support individual empowerment and contribute to economic development. The company is publicly traded on both NASDAQ and Euronext.

A notable driver of growth was the expansion of VEON’s digital services segment. Direct digital revenues reached $147 million, representing a 50.2% year-on-year increase in reported terms and 54.3% in local currency. This segment now accounts for 14.3% of total revenues, up from 10.4% a year earlier, signaling a shift in the company’s revenue composition.

VEON reported capital expenditure of $135 million during the quarter, up 8.3% from the same period last year. The capital expenditure intensity (capex as a percentage of revenue) for the quarter was 13.1%. On a trailing twelve-month basis, capex intensity stood at 20.4%, or 17.9% excluding Ukraine.

As of March 31, 2025, the company held $1.78 billion in cash, cash equivalents, and deposits, including $662 million at the headquarters level. This figure includes $303 million in customer deposits from its banking operations in Pakistan but excludes $30 million in Ukrainian sovereign bonds classified as investments.

VEON also reported a slight quarterly reduction in gross debt, bringing it to $4.38 billion, with net debt (excluding lease liabilities) falling by $91 million to $1.81 billion. This led to an improved net debt to EBITDA ratio of 1.23x, compared to 1.34x at the end of 2024. It expects local currency revenue growth between 12% and 14%, and EBITDA growth between 13% and 15%. The group anticipates capital expenditure intensity between 17% and 19% for the year. The company also began the second phase of its share buyback program in March 2025, allocating up to $35 million, following the earlier completion of a $30 million buyback in January. Group CEO Kaan Terzioglu emphasized VEON’s AI1440 initiative, which aims to incorporate artificial intelligence in local languages to enhance user engagement and operational efficiency. The earnings report reflects the company’s emphasis on digital transformation and cost management as it navigates evolving market conditions across its operating regions.