CEO Kaan Terzioglu speaks with media during press briefing in Dubai
Teletimes Report
- Total revenue growth of 8.9% YoY to USD 1,026 million (12.9% YoY in underlying local currency terms)
- EBITDA growth of 13.7% YoY to USD 439 million (10.4% YoY in underlying local currency terms)
- Direct digital revenue growth of 50.2% YoY to USD 147 million (+54.3% YoY in local currency terms), representing 14.3% of revenues for quarter
- Total cash and cash equivalents and deposits of USD 1,775 million, with USD 662 million at headquarters (“HQ”); and gross debt at USD 4,377 million (decreased by USD 4 million QoQ), with net debt excluding lease liabilities at USD 1,810 million (decreased by USD 91 million QoQ)
- LTM Equity Free Cash Flow of USD 387 million, Capex of USD 135 million
VEON Ltd., a global digital operator, announced selected financial and operating results for the first quarter ended March 31, 2025.
In 1Q25, VEON achieved an 8.9% year-on-year growth in USD revenues and a 13.7% YoY growth in USD EBITDA. Despite the declining blended weighted average inflation rates in our operating countries (from 11.9% in 1Q24 to 7.6% in 1Q25), VEON continued to show strong revenue growth, with a 12.9% YoY increase in underlying local currency terms. Total revenues reached USD 1,026 million for 1Q25.
Growth was underpinned by robust direct digital revenue growth, which grew by 50.2% YoY in reported currency, and by 54.3% YoY in local currency terms. EBITDA for the quarter was USD 439 million, representing a 13.7% year-on-year increase in reported currency and a 10.4% increase in underlying local currency terms. The underlying growth reflects adjustment to 1Q24 for certain identified items including the impact of the cyberattack in Ukraine and the deconsolidation of the TNS Plus LLP (“TNS+”) business in Kazakhstan on 1Q24 EBITDA base.
Capex in 1Q25 increased 8.3% YoY to USD 135 million and implies LTM capex intensity of 20.4% (+2.2 p.p. YoY, 17.9% excl. Ukraine). Total cash and cash equivalents and deposits as of March 31, 2025 amounted to USD 1,775 million (including USD 303 million related to customer deposits from our banking operations in Pakistan and excluding USD 30 million in Ukrainian sovereign bonds that are classified as investments) with USD 662 million held at the HQ level. Net debt to LTM EBITDA, excluding lease liabilities, declined to 1.23x (from 1.34x as of December 31, 2024).
Outlook for 2025
VEON affirms its 2025 outlook and expects underlying local currency growth for total revenue of between 12% and 14% year-on-year, and underlying EBITDA growth of between 13-15% year-on-year. VEON’s 2025 outlook for the Group’s capex intensity is in the range of 17%-19%.
On March 25, 2025, VEON commenced the second phase of its previously announced share buyback program with respect to the Company’s American Depositary Shares (“ADS”) in an amount of USD 35 million. As of May 13, 2025, the Company has acquired 520,366 ADSs for a total consideration of US$23.2 million as part of this second phase of buyback.
Commenting on the results, VEON Group CEO Kaan Terzioglu said:
“VEON has started 2025 with strong momentum and delivered solid results that reflect both disciplined execution and strategic clarity.
“We are making rapid progress in our digital operator strategy. Our direct digital revenues rose by 50.2%, reaching USD 147 million and now account for 14.3% of Group revenues, up from 10.4% a year ago. We are delivering innovative and locally relevant digital services that enhance our customers’ lives every minute of the day — from financial services and healthcare to entertainment, education, and enterprise applications. This is now complemented by our AI1440 vision, which integrates AI in native languages to truly augment human capabilities, well beyond process optimization. Together, these strategies position VEON as a frontrunner in digital transformation across frontier markets. Looking ahead, we are on track to meet our FY2025 goals and are reaffirming our guidance for underlying local currency growth for total revenue of between 12% and 14% YoY, and underlying EBITDA growth of between 13-15% YoY.
“We remain focused on disciplined execution and innovation as we continue to scale impact for our customers and value for our shareholders.”
During the press briefing on the results, in response to a question about other attractive markets, Kaan Terzioglu, said:
The markets we currently operate in already offer significant opportunities for executing our strategy and achieving growth. That said, as I mentioned earlier, we have a strong passion for frontier markets—especially countries with large populations and unmet demand. As new opportunities arise, we will certainly consider them as part of our evolution over the next three to five years.
In response to a question about the Engro and Jazz deal, he added:
“I believe the era of telecom companies exclusively owning infrastructure assets is coming to an end. Sharing infrastructure is the way forward. When a telecom company approaches another to lease space on its towers, the reception isn’t always positive—they often see each other as competitors and hesitate to rely on one another.”
“That’s why we believe in transferring tower assets to independent tower operators. These operators can run their businesses more efficiently and market tower space to all telecom providers on an arm’s-length basis. This approach fosters transparency and competition.”
There are also clear financial advantages. Towers sitting on our balance sheet are like dormant assets—sleeping giants. This transaction will allow us to convert those passive assets into approximately $565 million in cash, which we can reinvest in areas where our customers will gain much more value.”
Answering a question about dual listing VEON within UAE, Kaan added: “We’ve already moved our headquarters with a clear vision for the future and the relevance of these markets. From my discussions with the Dubai Financial Market (DFM) leadership and the Ministry of Economy, it’s evident that the UAE’s capital markets are evolving rapidly. More importantly, investors here have a deeper understanding of the regions we operate in.”
