VEON (NASDAQ:VEON) reported a strong start to 2026, with management pointing to double-digit revenue and EBITDA growth, accelerating digital services revenue and higher cash generation during the first quarter.
Group CEO Kaan Terzioglu said VEON entered the year with “clear momentum,” citing 17% year-over-year growth in U.S. dollar revenue and a 17.7% increase in EBITDA. EBITDA margin expanded 20 basis points to 43%, according to Group CFO Burak Ozer. Equity free cash flow rose 73.4% year over year to $246 million.
Digital Services Drive a Larger Share of Revenue
Digital revenue rose 57.7% year over year to $303 million in the quarter, representing more than 25% of total group revenue. Terzioglu said digital services are increasingly profitable, with EBITDA margins of 34.6%.
The company also changed how it reports some services, including enterprise identity and credentials management within digital enterprise. Terzioglu said the reclassification contributed $44 million in the quarter, with prior periods adjusted for comparability. Excluding the reclassification, he said digital revenue grew more than 75% on a comparable basis.
VEON said growth was broad-based across financial services, entertainment, ride hailing and healthcare. The company began consolidating Tabletki from February, strengthening its healthcare vertical in Ukraine.
Across its digital ecosystem, VEON said it now serves 229 million digital customers, including more than 72 million digital-only users. Last-12-month transaction value across its platforms reached almost $63 billion.
Multi-Play Customers Lift ARPU
Management highlighted multi-play customers—those using both connectivity and digital services—as a key driver of revenue growth. Terzioglu said these customers generate ARPU 3.9 times that of voice-only customers. Overall ARPU increased to $2.30 in the quarter from $2.00 a year earlier.
Multi-play revenue grew almost 18% year over year and represented 58% of consumer revenue. In response to an analyst question, Terzioglu said customers using entertainment and other digital services consume more data, talk more and stay longer with VEON, supporting higher telecom revenue even with a stable customer base.
Pakistan Financial Services Remain a Focus
VEON gave additional details on its Pakistan financial services business, where JazzCash served more than 29 million users during the quarter and expanded its merchant base to more than 600,000. Last-12-month transaction value reached $60 billion, which management said equaled about 15% of Pakistan’s GDP.
Terzioglu said VEON is issuing more than 200,000 loans daily while maintaining disciplined risk management, and said non-performing loan ratios remain well controlled. Mobilink Bank’s loan portfolio reached $289 million.
During the Q&A session, Terzioglu said VEON’s financial services business is about a $500 million business overall, with nearly two-thirds coming from Pakistan. Anand Ramachandran, chief corporate development officer, said lending and interest income are “slightly over half” of total revenue for the Pakistan financial services business, while noting the company does not yet disclose more detailed segment-level figures.
Asked about potential value crystallization through a strategic investor or IPO, Terzioglu said the company remains open to creating an investment opportunity in the future but is not rushing given current growth rates. He also cited potential expansion of the model into Bangladesh.
Guidance Raised for Revenue, EBITDA Outlook Maintained
VEON raised its 2026 revenue growth outlook to 11% to 14%, while maintaining EBITDA growth guidance of 7% to 10%. Terzioglu said the company is making additional investments in Pakistan after securing the largest spectrum allocation in the March spectrum auction. CapEx intensity, excluding Ukraine, is expected to be 15% to 17%.
In the Q&A session, analysts pressed management on whether the updated revenue outlook and unchanged EBITDA guidance implied margin pressure. Terzioglu said he did not expect margin compression, pointing to pricing control, differentiated services and healthy price elasticity in VEON’s markets, but said the company wanted to wait for second-quarter results before providing more clarity.
Management also discussed external risks, including energy prices and inflation. Terzioglu said VEON is taking targeted actions to mitigate recent energy price movements. He said weighted average inflation across VEON’s markets was 8.1% and that the company expects double-digit inflation going forward.
Balance Sheet, Buybacks and Debt Management
Ozer said VEON ended the quarter with $1.75 billion in cash, including $457 million at the headquarters level. Gross debt was stable at $4.9 billion, while net debt excluding leases was $1.76 billion. Leverage declined to 1.07 times.
Ozer said the company is proactively exploring strategies to manage upcoming debt maturities and plans to address debt before it becomes current in November 2026, with “all options” on the table.
VEON also reiterated its focus on capital returns. Terzioglu said the current $100 million share buyback is underway and that the company is committed to a minimum of $100 million in annual share repurchases, subject to market conditions and liquidity. He said shares repurchased under future programs after the current one will be canceled to support long-term shareholder value.
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.
