VEON (NASDAQ:VEON) management highlighted what it called a “strong and transformative” 2025, pointing to double-digit growth in U.S. dollar terms, expanding profitability, and rapid scaling of its digital services businesses during its fourth-quarter and full-year 2025 results call.
2025 results: revenue up nearly 10% and EBITDA tops $2 billion
Group CEO Kaan Terzioğlu said VEON delivered “strong financial momentum” in the fourth quarter, with revenue growth of 17% and EBITDA growth of 29% year-over-year in U.S. dollars. For the full year, VEON reported revenue growth of nearly 10% in U.S. dollars and EBITDA growth of 19%.
Özer also reported full-year EBITDA of $2.01 billion, representing 18.8% growth, with an expanded EBITDA margin of 45.7% driven by operating leverage and “disciplined cost management.” Terzioğlu said the group surpassed an “important milestone” of more than $2 billion in annual EBITDA, with margins expanding 350 basis points to 45.7%.
Digital services growth accelerates; VEON adds digital EBITDA disclosure
A central theme on the call was the pace of digital services expansion. Terzioğlu said digital revenues increased 84% year-over-year in the fourth quarter and more than 62% for the full year, reaching $759 million and representing more than 17% of group revenue in 2025. He added that in the fourth quarter, more than 20% of revenue came from digital services.
In response to investor requests, VEON added a new disclosure: EBITDA for direct digital revenues. Terzioğlu said digital services generated $207 million of EBITDA in 2025, with an EBITDA margin of 27.3%, arguing this shows the ecosystem is “becoming profitable at scale.”
Management emphasized that multi-play customers—those using connectivity plus at least one digital service—remain an important driver. Terzioğlu said multi-play customers generate nearly four times the ARPU of voice-only users and have one-third the churn rate. Multi-play customers accounted for 56% of total consumer revenues, according to the CEO.
On a question about the next phase of digital growth and margins, Terzioğlu compared telecom and digital cash-generation profiles. He said telecom may deliver roughly 47% EBITDA margins but with heavier CapEx (around 25% of revenue), while digital services carry lower EBITDA margins (27%) but lower CapEx intensity (about 7%), resulting in similar cash-generation capacity of around 20%.
Asset-light execution and balance sheet: cash, leverage, and refinancing plans
Terzioğlu cited progress on VEON’s asset-light strategy, including the sale of its Pakistan tower portfolio and the deconsolidation of TNS Plus, which management said reduced leverage and strengthened the balance sheet. He also highlighted direct-to-cell connectivity with Starlink, which is live in Ukraine and Kazakhstan and expected to expand to Bangladesh in 2026.
Özer said VEON ended 2025 with $1.73 billion of cash, including $557 million at headquarters. Net debt excluding leases declined to $1.75 billion, and leverage fell to 1.09x EBITDA. Management referenced an internal anchor of 1.5x net debt excluding leases to EBITDA, noting the company is currently well below that level.
On the 2027 bonds, Özer said VEON plans to address them this year, before they become current in November. He said the amount to refinance is not decided and will depend on the timing of asset-light actions and M&A activity.
Capital returns: buybacks expanded with a $100 million annual minimum policy
Management reiterated its focus on returning capital via share repurchases. Terzioğlu said VEON completed its first $100 million buyback program in August 2025 and has a second $100 million program underway. Going forward, VEON announced a policy to continue annual share buybacks of at least $100 million, citing confidence in long-term cash generation. Once the annual buyback program begins after the current program is completed, management said repurchased shares will be “systematically canceled.”
In response to a question on dividends, Terzioğlu said feedback from investors indicates a preference for buybacks rather than dividends, adding he does not view VEON as being “on the dividend path” as a high-growth company.
Market updates: Pakistan spectrum, OLX Kazakhstan timing, and Ukraine optionality
On Pakistan, Terzioğlu addressed questions regarding VEON’s spectrum purchases. He praised reforms to spectrum allocation and pricing, and said VEON acquired spectrum across the 700, 2300, 2600, and 3500 bands—totaling 190 MHz—for a total cost of $240 million. He said VEON expects to improve 4G quality while also deploying 5G in certain pockets, noting that 5G-capable phones represent less than 5% of the Pakistan handset base.
Özer pointed to the 2026 CapEx intensity guidance (excluding Ukraine) of 14% to 16% and said VEON expects to remain disciplined, without “big lumps” in spending. Terzioğlu later said some of the new capacity would be utilized quickly given spectrum scarcity, with some impact expected by the end of 2026 and additional effects from new deployments over about two years.
Regarding the planned OLX Kazakhstan acquisition, Terzioğlu said VEON is waiting for regulatory approvals and hopes the transaction will close within the second quarter, while cautioning the timeline depends on regulators.
In Ukraine, management deferred detailed operating commentary to a separate Kyivstar-focused call, but Terzioğlu described a long-term positive view of the country’s prospects and said he believes Ukraine’s digital appetite and future regulatory alignment with EU standards create significant opportunity.
For 2026, VEON guided for revenue growth of 9% to 12% and EBITDA growth of 7% to 10%, with CapEx intensity excluding Ukraine expected to decline to 14% to 16%.
About VEON (NASDAQ:VEON)
VEON Ltd (NASDAQ: VEON) is a global telecommunications and digital services provider headquartered in Amsterdam, the Netherlands. Originally founded as VimpelCom in Russia in 1992, the company rebranded to VEON in 2017 to reflect its transformation into a technology-driven operator. VEON operates as a holding company with direct investments in mobile and internet service providers across multiple emerging markets, delivering voice, data and digital services to individual and enterprise customers.
Through its operating subsidiaries, VEON offers a broad portfolio that includes 2G/3G/4G mobile access, fixed broadband, digital lifestyle applications and mobile financial services.
