VEON Q1 2026 Earnings Call Transcript

VEON (NASDAQ: VEON ) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. This content is powered APIs. 7% rise in EBITDA.

Margins expanded by 20 basis points. 7% year-on-year, now representing over 25% of group revenues, with notable contributions from financial services, entertainment, ride-hailing, and healthcare. The company raised its 2026 revenue growth outlook to 11%-14%, while maintaining EBITDA growth guidance at 7%-10%. Operational highlights include securing the largest spectrum allocation in Pakistan, expanding financial services, and targeted acquisitions like OLX and Tabletki.

07 times. Management remains confident in maintaining margin stability despite geopolitical and market uncertainties, with a focus on pricing control and disciplined execution. Full Transcript OPERATOR Hello and welcome to VEON's Q1 2026 results presentation. 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 and A session.

For those of you watching on the webcast, if you would like to submit a written question, you can please use the Ask A Question tab at the top right of your screen. These questions can also be sent in anytime 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. Good morning and good afternoon to everyone joining us for VEON's first quarter results. My name is Anand Ramachandran, Chief Corporate Development Officer at VEON.

Joining me today are our group CEO Mr. Kantar Ziolu and next to him our group CFO Mr. Burak Uzar. 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 and A.

Before we begin, please note that today's presentation contains forward-looking statements which involve risks and uncertainties. Further details are available in all our SEC filings including our Form 20-F. Our earnings release and presentation are available on our investor relations website. With that, let me hand it over to Kaan.

Kaan Terzioglu, Group CEO Thank you, Anand. VEON has entered 2026 with clear momentum, double-digit growth, accelerating digital revenues, stronger cash generation, and continued capital returns. 7%, and margins expanded by 20 basis points. 4% year on year to $246 million.

This performance reflects the strength of our digital operators strategy, combining resilient connectivity, fast-scaling digital platforms, and disciplined capital allocation. As a result, we are raising our 2026 revenue outlook which I will return to later. Second, we are seeing strong acceleration across our digital portfolio. 7% year on year and now represent over 25% of our group revenues.

6% this quarter. We also refined our reporting by including enterprise identity and credentials management within digital enterprise. These are mature services that are increasingly shifting from traditional A2P messaging towards API-based platforms. On a comparable basis, excluding this reclassification, our digital revenues actually grew over 75%.

Third, we continue to execute multiple growth levers within a disciplined asset-light framework. In Pakistan, we secured the largest spectrum allocation in the March Spectrum auction, strengthening capacity and supporting future growth. We are expanding our financial services footprint and our acquisitions of TPL Insurance and APNA Bank are on the right course. We are deepening our ecosystem through targeted acquisitions such as OLX and Tabletki.

These initiatives enhance engagement, expand monetization opportunities, and reinforce our long-term growth platforms. Finally, we remain firmly focused on shareholder value. We continue to believe our shares do not reflect the value and cash generation of the business and we are acting on that conviction through our buyback program. At the same time, we are reducing leverage and maintaining financial flexibility.

Management ownership remains a key signal of alignment, reinforcing our confidence in the value we are building. Let us review our Q1 financial performance. Let's move to the next slide. Our strategy is translating into strong high-quality financial performance.

Both telecom and digital segments are contributing meaningfully to profitability and cash flow, demonstrating the strength of our integrated model. Telecom revenues grew steadily while digital revenues increased significantly and now account for a quarter of total revenues. As highlighted earlier, we are encouraged by the strength of our cash generation this quarter and continued reduction in leverage. Next slide please.

Our growth continues to outpace inflation across our markets, reflecting the strength of our operating model on a like-for-like basis which adjusts for the divestment of Pakistan Towers, Kyrgyzstan business, and the acquisition of Utlan and Tabletki. 4% and EBITDA grew 15% year on year.