VEON Q2 2026 Earnings Call: Complete Transcript

On Friday, VEON (NASDAQ: VEON ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

2% to $552 million. The company has successfully expanded its digital services, now contributing 27% of total revenues, with digital EBITDA growing by 66%. VEON raised its full-year guidance, expecting revenue growth of 15-18% and EBITDA growth of 9-12%, citing strong performance across its markets, including Pakistan and Ukraine. The company continued its share buyback program, purchasing $183 million worth of shares, and committed to canceling at least $100 million of shares annually.

VEON is focusing on building a digital ecosystem with connectivity as its foundation, supported by financial services, digital life, and digital enterprise growth engines. Management highlighted the success of the JazzCash financial ecosystem in Pakistan and plans to replicate this model in other markets like Bangladesh and Uzbekistan. Despite challenges such as energy outages in Bangladesh, VEON maintained growth, leveraging digital platforms like Toffee for World Cup streaming. The company is exploring further integration of satellite connectivity with Starlink to enhance network coverage in frontier markets.

VEON plans to maintain disciplined capital allocation, focusing on shareholder returns and potential in-market consolidation opportunities. Full Transcript James (Moderator) There we go. I see it. No, that's the end slide that Carrie's got there.

Where's your slide, Luca? Your mic is muted now. I mean, you pop your one back out. Luca What do you want me to do?

Just spot... Do you want me to spot my virtual background? James (Moderator) Yes, please. Cool.

So this is not the right one. Okay. No, it needs to be the one that's like half and half. It's got white on one side.

It's the holding slide that's attached. Luca Okay, let me just grab that. Oh, yeah, that's the one. Andy Hey, guys.

I'm just coming to say hey. Yeah, it is. Good. I'm on another call, too, so I was like, I might just pop over, say what's up?

See how it's going. James (Moderator) I was like, why does that podium look so weird? 0. Smart, though, to copy and paste.

I'd never even thought about that. 0. It's just a copy-paste, especially because it appears in the same order as it does in Zoom. So you don't even need to search.

You literally just go down the list. Copy, paste, copy, paste. Luca Sorry to interrupt, James. Lucy has said that—confirming that she can see the YouTube stream preview.

James (Moderator) Brilliant. Okay, so if I switch the spotlight, Luca, to my video. Yeah, yeah. And we'll come back to you.

Hey, Lucy. So it'll take about 30 seconds for that to come through, but when she's confirmed she can, then we can mute the video from the bigger room into the webinar. And we'll test that that's still working. And we'll spotlight your start instead.

But we still want the audio coming through, if that's possible. Luca Okay. Do you want me to stop the audio or just stop the video if possible? It.

James (Moderator) Okay. Just wait for it to confirm on that. You can all hear me still in the webinar, correct. Luca Yeah, we can hear you.

James (Moderator) Fantastic. All right, then. Cool. So that's pretty much YouTube set up.

They're seeing what we need them to see. When the room connects, we can just open the video just to test to make sure it's working, but then we can turn it back off. When they get close to start time, we'll mute the audio as well, Luca, between the two rooms so we can open the webinar early and try and get people in then. Yeah, I just need to confirm with Xena Dean the go-live process and Kalyani.

What will probably happen then is when we get a message from Xena Dean on how it's going to work, either there'll be a clear signal that we're going live and Luca will give you a go as he unmutes all the audio and video, or there'll be a frantic go, go, go, quick, everybody do everything. So we'll see what kind of notice they give us. Fingers crossed is the planned smooth, calm one. So, yeah, in worst case, they'll just sit there like lemons until we're sorted and we give them the introduction.

Yeah, because you'll be muted audio-wise between the two rooms. So just keep an eye on the Teams. Go for it, Stefan. Stefan Are you happy if I do the kind of American way and just do the naming company in both fields so I can just copy and paste twice, or do you want it split either way?

James (Moderator) Whichever works best for you. Stefan Yeah, I think, I think that way I can just. James (Moderator) With the third one as we switch the slides. Is that correct?

Phone's going off in the middle of a call. Shocking, man. Cool. Okay, so yeah, that's what—and so we'll keep the analyst spotlight throughout the question and the answer as well.

So it's like more of a conversation between the two, and it'll just be when they've said their thank yous at the end, and that's when we'll switch back to the moderator slide, then on to the next analyst. So yeah, it's cool. So hopefully that should be an easier way for you. You don't have to adjust anything or do any fancy scenes or anything.

It's the same as—who was it we did it for? It was for Stora Enso. That's who it was. Similar kind of thing for them.

Cool. Carrie I just wanted to flag. So at the end of the presentation, I mean, I know I'm not going to be the one that's doing this, but we're going to spotlight Carrie's tile for the end slide. Correct?

James (Moderator) Correct, yes. Maybe we should have you renamed then, just so it doesn't come up OA moderator. Carrie I just worry it gets a bit confusing then with multiple dots. Luca I can probably use mine.

I can probably use mine because I've got—change mine to—so we want—so that's the Q&A. James (Moderator) Luca, I think we won't—you'll need to worry about the Q&A one since I'll be speaking. So yeah, if you were to do the start one and the end one, Luca, that would work. And then, yeah, Carrie, you can just keep your virtual background says nothing.

And then if you do need to take over as moderator if something happens to Kalyani, heaven forbid. Okay. And then you can just pop it on and jump in. All right, here we go.

Slides. Oops. Right, Johnny, back up. Here you go.

Let's go and see if we can find what the last slide—this will be for the Q&A. Is that bright enough or—tell me when you find a slide that's bright enough. Yeah, so that purple at the top is a bit difficult, isn't it? And if it's possible, Christian, if you can just copy all your settings over for the next keystyle one, it should all be exactly the same—same person sharing slides on their end.

Everything. Brilliant. Okay, I shall stop that now. Lucy, Investor Relations Hello and welcome to VEON's 2Q26 results presentation.

Today's presentation will be followed by a Q&A session where we will take questions from the room as well as from virtual attendees. For those of you who have joined the Zoom webinar, if you would like to ask a question, you can use the Raise Hand button, which can be found on the black bar at the bottom of your screen, at any time to join the queue to ask a question, and you will be called upon during the Q&A session. For those of you watching on the webcast, if you'd like to submit a written question, please use the Ask a Question tab at the top right of your screen. These questions can also be sent in at any time during the presentation.

As a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Anand Ramachandran, you may begin. Anand Ramachandran, Chief Corporate Development Officer Thank you, Lucy.

Good morning and good afternoon to everyone joining us for VEON's second quarter results. We are the largest NASDAQ-listed company in Dubai and we are taking this opportunity to host this call out of New York and are very pleased to be able to be doing that. So we thank the people in the room who've joined us. Thank you for the people who've joined us on the webcast.

My name is Anand Ramachandran, Chief Corporate Development Officer. Let me introduce management. In the room next to me is Kaan Terzioglu, our Group CEO. Next to him, Burak Özer, our Group CFO.

As usual, Kaan will begin with strategic and operational highlights, followed by Burak with a review of our financial performance, and we'll then open up the call for Q&A. Before we begin, do note that today's presentation contains some forward-looking statements involving risks and uncertainties. Further details are available in our SEC filings, including our Form 20-F. Our earnings release and presentation are also available on our investor relations website.

With that, let me hand the call over to Kaan. Kaan Terzioglu — Chief Executive Officer Thank you, Anand. Good morning everyone. So exciting to have you in the room here in New York and do this earnings release here.

Beyond excellent financial results, this quarter marks another important milestone in VEON's transformation. We are becoming much more than a telecommunications company. Today, VEON is building one of the world's largest digital ecosystems across emerging markets, combining connectivity, financial services, digital consumer platforms, and enterprise solutions. Our telecom networks connect more than 150 million customers.

Our digital platforms deepen those relationships every day. The result is stronger growth, stronger cash generation, and increasing shareholder returns. Most importantly, today's results give us the confidence to raise the outlook for the year. Let me explain how we think about VEON today.

Everything begins with connectivity. Connectivity is not the destination. It is our foundation. It is our competitive advantage.

It gives us scale, it gives us distribution edge. It gives us trust. And it gives us daily engagement with millions of customers. On top of that foundation, we have built three digital growth engines: Financial Services, Digital Life, Digital Enterprise.

They reinforce one another. Every new service strengthens the customer relationship. Customers stay longer, they spend more, they generate more data. Better data improves AI.

Better AI creates better products. Better products create more cash. That cash allows us to invest again. That is the VEON flywheel.

Once you understand the flywheel, results are much easier to understand. Growth is broad-based. Telecommunications continues to grow twice as fast compared to traditional players. Digital is growing substantially faster—multiple times faster.

Digital now contributes almost 27% of our total revenues. Cash generation continues to improve. Since August 24th, we have already bought back $183 million worth of shares. Today we are taking the next step.

Starting with this year, we commit to canceling at least $100 million of shares every year. Not as a one-time action, but as a sustainable capital allocation framework. I am particularly pleased with the consistency of our execution. That consistency is why we are raising our full-year guidance a little.

Reported EBITDA growth was affected by three exceptional accounting items. Bangladesh benefited from a provision release last year. Profit comparisons include the Pakistan tower transaction last year, and this year it includes the non-cash fair value adjustment on Kfstar Group warrants. If you adjust for these items, our underlying business is even stronger.

Revenue grew 18%. EBITDA grew more than 15%. Like-for-like earnings per share actually grew 88% year on year. This is the clearest measure of our true momentum.

On the subject of consistency. Pakistan continues to deliver outstanding performance. Ukraine continues growing with extraordinary circumstances. Kazakhstan, Uzbekistan, and Bangladesh all delivered.

This matters. It tells us that the VEON operating model is becoming repeatable across markets. Only a few years ago, digital represented a relatively small part of VEON. Today, digital has become one of our main growth engines.

Our digital platforms now reach more than 227 million customers. Importantly, all three digital businesses are profitable—Financial Services, Digital Life, Digital Enterprise. They scale efficiently, they require less capital, and they generate attractive returns. Digital revenues grew more than 53%.

Digital EBITDA increased more than 66%. Digital is now generating profits and cash more than telecom business. Financial Services best demonstrates how the flywheel works. We do not begin with lending.

We begin with engagement. Customers use payments every day. Engagement builds trust. Trust creates data.

Data improves underwriting. Underwriting enables lending, insurance, and wealth management. Pakistan demonstrates this model at scale. JazzCash has evolved from a payments application into a complete financial ecosystem.

Our acquisition of TPL Insurance represents another important milestone in that journey, and our Mastercard partnership will accelerate AI-enabled financial products across every market. If there is one slide I hope you will remember, it is this one. Connectivity brings customers, and digital deepens engagement. Engagement increases loyalty; higher cash generation funds better products.

Every turn of the wheel strengthens the next. That is why multiplay customers already generate significantly higher value, and why we believe we are still in the early chapters of the story. With that, I will hand over to Burak to take you through the financials in more detail. Burak, thank you.

27 billion, with growth across all of our five markets. 47 billion. 6% to $929 million, driven by disciplined pricing and rising customer engagement. 6%, reaching $342 million, reflecting broader adoption across platforms and products, plus our recent acquisitions.

4% margin. 07 billion. 1% margin. As Kaan noted earlier, the year-on-year comparison reflects last year's Bangladesh provision release.

2% to $123 million. Digital is less capital intensive than telecom, and that's driving strong cash conversion as it scales. Profit and EPS for the period reflect $489 million of gain on the Pakistan tower sale in the second quarter of last year and a $22 million fair value loss on KGL warrants in this quarter. Cash generation was strong in the period.

Operating cash flow rose 238% in the quarter to $463 million and 51% for the first half to $860 million. 5% for the first half to $320 million. EFC for the second quarter was impacted by prepayment of taxes in Pakistan that will not reoccur. Now turning to the balance sheet and capital allocation.

2 billion in cash, including $468 million at headquarters. 1 times. 4 billion bond offering this quarter, substantially addressing our 2027 maturities ahead of schedule and extending average headquarters debt maturity beyond four years. With that, I'll hand the call back to Kaan.

Kaan Terzioglu — Chief Executive Officer Thank you, Burak. Thank you, Burak. Let me return to capital allocation. Since August 24th, we have bought back $183 million of shares.

We delivered exactly what we said we would. Now we are institutionalizing that discipline. Beginning this year, we will cancel at least $100 million of shares annually. Returning capital to shareholders is now part of our long-term financial framework.

We are seeing strong execution. Digital is scaling faster than expected. Cash generation continues to strengthen, and as a result we are increasing our guidance. Revenue growth is now expected to be 15% to 18%.

EBITDA growth is now expected to be 9% to 12%. Our capital expenditure outlook remains unchanged. These revisions reflect confidence in the underlying strength of our business. Looking ahead, please join us at our Capital Markets Day in New York on November 16th.

There we will present the next chapter of VEON's long-term strategy and value creation. Let me leave you with one thought: connectivity provides the foundation, digital creates the growth, and the flywheel generates the returns. Our second-quarter results demonstrate that this strategy is working, and I believe we are only at the beginning. Thank you very much, Operator.

Now we can take the questions. Lucy — Investor Relations May I. Operator, may I suggest we start with questions in the room, and then I'll cue you in to get questions from online attendees. So if I may start in the room, it would be great if you could put your hand up; there's a mic which will come around to you.

If you could state your name and your institution and then your questions, that would be great. Tim, always. Good morning. OPERATOR Thank you.

Jesse Sobelson — Analyst at BTIG Jesse Sobelson with BTIG. Of the guidance increase, how much was currency and how much was organic, and where are you specifically seeing outperformance versus original expectations? Kaan Terzioglu — Chief Executive Officer So as I mentioned, consistency was one of the key drivers.