VEON Ltd. (VEON): Financial results for Q2 2026
VEON Ltd. (VEON) furnished an SEC Form 6-K — earnings release. e v Earnings Release and Operating Highlights for the Second Quarter and Half Year ended June 30, 2026 Digital Revenue Climbs 53.6% VEON Raises 2026 Revenue and EBITDA Outlook EARNINGS RELEASE & OPERATING HIGHLIGHTS 2Q26 & 1H26 2 2Q26 HIGHLIGHTS 1. Effective 1Q26, revenues from e
How this was made
The 30-second read
Why it matters
The earnings beat on revenue, digital segment expansion, and raised guidance are likely to attract buying interest, while the modest profit decline and higher leverage warrant caution.
Market read
VEON's earnings release provides fresh material for traders focusing on telecoms and digital services exposure, especially in emerging markets.
What to watch
Potential currency and geopolitical risks in Ukraine and Bangladesh could affect future cash flows.
Digital Revenue Climbs 53.6%; VEON Raises 2026 Revenue and EBITDA Outlook
Group revenue increased 17.0% YoY and digital revenue increased 53.6% YoY, while EBITDA increased 6.2% YoY and VEON raised its FY26 revenue and EBITDA growth outlook. EBITDA margin declined to 43.4%, and reported profit, EBIT and diluted EPS fell sharply because the prior-year period included the Pakistan tower-sale gain and a Bangladesh provision release.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | USD 1,271 million | – | 17.0% |
| Telecommunications and infrastructure revenueother | USD 929 million | – | 7.6% |
| Digital revenueother | USD 342 million | – | 53.6% |
| Digital Revenue as % of Total Revenueother | 26.9% | – | 6.4p.p. |
| EBITDAother | USD 552 million | – | 6.2% |
| EBITDA marginother | 43.4% | – | (4.4p.p.) |
| Telecommunications and infrastructure EBITDAother | USD 428 million | – | (3.8%) |
| Telecommunications and infrastructure EBITDA marginother | 46.1% | – | (5.4p.p.) |
| Digital EBITDAother | USD 124 million | – | 66.2% |
| Digital EBITDA marginother | 36.1% | – | 2.7p.p. |
| Depreciation and amortizationGAAP | USD 225 million | – | 14.9% |
| Operating profit/EBITGAAP | USD 349 million | – | (57.5%) |
| Profit before taxGAAP | USD 200 million | – | (70.5%) |
| Income tax expenseGAAP | USD 60 million | – | (16.3%) |
| Effective tax rateGAAP | 30.2% | – | 19.6p.p. |
| Profit for the periodGAAP | USD 140 million | – | (77.0%) |
| Profit attributable to owners of the parentGAAP | USD 122 million | – | (79.6%) |
| EPS (per ADS, basic)GAAP | USD 1.75 | – | (79.6%) |
| EPS (per ADS, diluted)GAAP | USD 1.69 | – | (79.6%) |
| CAPEXother | USD 198 million | – | (14.3%) |
| LTM Capex intensityother | 18.9% | – | (2.4p.p.) |
| EBITDA after Leases (EBITDAaL)other | USD 428 million | – | (0.1%) |
| Equity Free Cash Flow (before leases & license)other | USD 162 million | – | 6.2% |
| Equity Free Cash Flow (after leases & license)other | USD 74 million | – | (1.4%) |
| Net cash flows from operating activitiesGAAP | USD 463 million | – | 237.9% |
| Cash and cash equivalentsGAAP | USD 2,193 million | 25.2% | 71.1% |
| Gross debtother | USD 5,362 million | 9.3% | 15.9% |
| Net debtother | USD 3,675 million | 1.6% | 0.1% |
| Net debt excluding leasesother | USD 1,819 million | 3.1% | (7.3%) |
| Net debt excluding leases / LTM EBITDAaLother | 1.10x | – | – |
| Mobile customersother | 151.5 million | 0.6% | (0.5%) |
| 4G usersother | 106.9 million | – | 3.7% |
| 4G subscriber base penetrationother | 70.6% | – | 2.9p.p. |
| Multiplay customersother | 45.3 million | – | 4.5% |
| Mobile ARPUother | 1.80 | – | 6.3% |
| Total Digital Customers (users active in quarter)other | 227.7 million | – | – |
| Digital Only Customers (users active in quarter)other | 76.0 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PakistanTelecommunications and infrastructure revenue increased 17.0% YoY and digital revenue increased 45.6% YoY. Growth was supported by pricing actions, subscriber growth, data usage and financial-services expansion. | USD 500 million | – | 26.6% |
| UkraineTelecommunications and infrastructure revenue increased 9.1% YoY and digital revenue increased 83.0% YoY, supported by tariff optimisation, higher data usage, enterprise services and consolidation of Uklon and Tabletki. | USD 341 million | – | 19.5% |
| KazakhstanTelecommunications and infrastructure revenue increased 7.3% YoY in reported USD, while local-currency telecommunications and infrastructure revenue declined 0.7% YoY. Digital revenue increased 36.8% YoY in reported USD. | USD 226 million | – | 12.2% |
| BangladeshTelecommunications and infrastructure revenue declined 7.4% YoY in reported USD, while digital revenue increased 253.7% YoY in reported USD, led by Toffee and RYZE. | USD 120 million | – | 3.1% |
| UzbekistanTelecommunications and infrastructure revenue increased 9.6% YoY and digital revenue increased 28.8% YoY in reported USD, supported by pricing actions, financial services, bundled device contracts, infrastructure income and roaming revenue. | USD 84 million | – | 12.2% |
| Telecommunications and infrastructureGrowth was underpinned by ongoing network investment, disciplined pricing actions and customer engagement initiatives. | USD 929 million | – | 7.6% |
| DigitalGrowth reflected digital adoption, Uklon and Tabletki acquisitions, and broader integration of digital services. Digital revenue represented 26.9% of Group revenue. | USD 342 million | – | 53.6% |
| VEON Financial ServicesGrowth was supported by scale across JazzCash and Mobilink Microfinance Bank in Pakistan, Simply in Kazakhstan and Beepul in Uzbekistan. | USD 151 million | – | 48.5% |
| VEON Digital LifeEntertainment, ride-hailing, healthcare and premium digital brands contributed to growth. | USD 119 million | – | 90.5% |
| Digital EnterpriseEnterprise platforms provide AI, cloud and data solutions. Enterprise identity and credentials management revenue of USD 43.3 million was included in this vertical. | USD 72 million | – | 25.5% |
FY26 outlook
- Revenue15% - 18% YoY in USD terms
- NoteEBITDA growth: 9% - 12% YoY in USD terms
- NoteCapex intensity (excluding Ukraine): 15% - 17% (unchanged)
Capital returns
- As of July 29, 2026, VEON had repurchased 1.59 million ADSs for USD 82.5 million under the current buyback program.
- VEON repurchased 3.74 million ADSs, representing USD 182.6 million worth of ADSs, under the cumulative USD 200 million buyback programs announced since August 2024.
- VEON intends to cancel a minimum of USD 100 million of repurchased shares and ADSs on an annual basis.
- Share repurchases were USD 62 million for the six-month period ended June 30, 2026.
What drove it
- Group revenue growth was broad-based and supported by continued ARPU expansion, disciplined pricing actions, digital acquisitions and demand for digital services.
- Digital revenue increased 53.6% YoY and digital EBITDA increased 66.2% YoY, with digital revenue reaching 26.9% of Group revenue.
- Multiplay customers generated 4.0x the ARPU of voice-only users.
- Financial services revenue increased 48.5% YoY to USD 151 million.
- Digital Life revenue increased 90.5% YoY to USD 119 million.
- Pakistan delivered USD 500 million of revenue and USD 216 million of EBITDA, increases of 26.6% YoY and 31.9% YoY, respectively, in reported USD.
- Ukraine delivered USD 341 million of revenue and USD 189 million of EBITDA, increases of 19.5% YoY and 14.0% YoY, respectively, in reported USD.
Concerns
- Group EBITDA margin declined to 43.4% from 47.8%, reflecting the prior-year Bangladesh provision release and the evolving revenue mix.
- Telecommunications and infrastructure EBITDA declined 3.8% YoY to USD 428 million.
- Profit attributable to owners of the parent declined 79.6% YoY to USD 122 million, primarily due to the non-recurrence of the USD 489 million Pakistan tower-sale gain in 2Q25 and the USD 21.2 million fair value loss on Kyivstar Group Ltd warrants in 2Q26.
- Kazakhstan EBITDA declined 10.9% YoY in reported USD. The company cited a challenging macro and competitive backdrop, a VAT-rate increase, and higher personnel, marketing, IT, utilities and professional-services costs.
- Bangladesh EBITDA declined 44.1% YoY in reported USD, with the prior-year comparison affected by approximately BDT 5.4 billion of one-off reversals.
- Mobile customers declined 0.5% YoY to 151.5 million.
What to watch
- Delivery against raised FY26 revenue growth guidance of 15% - 18% YoY in USD terms and EBITDA growth guidance of 9% - 12% YoY in USD terms.
- The sustained pace of digital revenue and digital EBITDA growth, and digital revenue contribution following its rise to 26.9% of Group revenue.
- Margin progression in telecommunications and infrastructure and the effect of lower-margin digital mix on Group EBITDA margin.
- Kazakhstan retention, monetisation and cost-control initiatives amid VAT, competitive and macro pressures.
- Execution of Pakistan spectrum deployment and 5G rollout, which management said will increase investment through the year.
- The planned 2H2026 launches of MuktoPay and Banglalink Direct-to-Cell services.
- The effect of the USD 1.4 billion refinancing on debt maturity, finance costs and leverage.
Balance sheet and cash flow
- Cash and cash equivalents were USD 2,193 million as of June 30, 2026, including USD 968 million held at headquarters.
- Cash and cash equivalents include USD 510 million relating to banking operations in Pakistan, which is excluded from the calculation of net debt.
- Gross debt was USD 5,362 million and net debt was USD 3,675 million as of June 30, 2026.
- Net debt excluding leases was USD 1,819 million and net debt excluding leases / LTM EBITDAaL was 1.10x as of June 30, 2026.
- Net cash flows from operating activities were USD 463 million in 2Q26 and USD 860 million in 1H26.
- Equity Free Cash Flow after leases and licenses was USD 74 million in 2Q26 and USD 320 million in 1H26.
- VEON completed a USD 1.4 billion dual-tranche senior unsecured notes offering, comprising USD 700 million of 6.95% notes due 2031 and USD 700 million of 7.45% notes due 2033.
Analysis
VEON reported 2Q26 total revenue of USD 1,271 million, up 17.0% YoY, led by USD 342 million of digital revenue, up 53.6% YoY. Telecommunications and infrastructure revenue increased 7.6% YoY to USD 929 million. Digital increased to 26.9% of Group revenue from 20.5%, while its EBITDA rose 66.2% YoY to USD 124 million. Financial services generated USD 151 million of revenue and Digital Life generated USD 119 million, demonstrating the breadth of the digital expansion.
EBITDA increased 6.2% YoY to USD 552 million, slower than revenue growth, and the EBITDA margin declined to 43.4% from 47.8%. The comparison was affected by a USD 45 million Bangladesh provision release in 2Q25. Telecommunications and infrastructure EBITDA declined 3.8% YoY to USD 428 million, while digital EBITDA growth and a 2.7 percentage point improvement in digital EBITDA margin to 36.1% partially offset that pressure. The company states that the margin profile also reflects its evolving revenue mix, as digital businesses operate at lower EBITDA margins than traditional telecommunications services.
Reported profitability declined substantially because 2Q25 included a USD 489 million gain on the Pakistan tower sale. Operating profit/EBIT fell 57.5% YoY to USD 349 million, profit for the period fell 77.0% YoY to USD 140 million, and diluted earnings per ADS fell 79.6% YoY to USD 1.69. The 2Q26 result also included a USD 21.2 million fair value loss on Kyivstar Group Ltd warrants. Depreciation and amortization increased 14.9% YoY to USD 225 million, while net finance costs increased 15.8% YoY to USD 137 million.
Pakistan and Ukraine were the largest reported USD revenue contributors, at USD 500 million and USD 341 million, respectively. Pakistan EBITDA increased 31.9% YoY to USD 216 million, while Ukraine EBITDA increased 14.0% YoY to USD 189 million. Kazakhstan revenue increased 12.2% YoY in reported USD, but EBITDA declined 10.9% YoY, with management citing competitive and macro conditions, VAT and elevated operating costs. Bangladesh digital expansion was substantial, but its EBITDA comparison remained distorted by prior-year one-off reversals.
Cash generation improved on a half-year basis. Net cash flows from operating activities were USD 463 million in 2Q26 and USD 860 million in 1H26, while equity free cash flow after leases and licenses was USD 74 million in 2Q26 and USD 320 million in 1H26. Cash and cash equivalents reached USD 2,193 million, and net debt excluding leases was USD 1,819 million. The USD 1.4 billion bond issuance refinanced substantially all 2027 maturities, although gross debt increased to USD 5,362 million and net debt excluding leases rose from USD 1,764 million at March 31, 2026.
Management raised FY26 revenue growth guidance to 15% - 18% YoY in USD terms and EBITDA growth guidance to 9% - 12% YoY in USD terms, while maintaining capex intensity excluding Ukraine at 15% - 17%. The company attributed the upgrade to strong first-half execution, broad-based growth and faster digital growth. Capital returns continue through the buyback program, with USD 82.5 million repurchased as of July 29, 2026, alongside an intention to cancel a minimum of USD 100 million of repurchased shares and ADSs annually.
Management, verbatim
VEON delivered another quarter of strong, broad-based growth and we are raising our full-year outlook. We are fuelled by our telecom foundation which powers one self-reinforcing flywheel to win us wallet share across every high-growth market we serve. We are also introducing three digital pillars – Financial Services, Digital Life and Digital Enterprise – as a lens through which to view the digital business. As customers adopt more of our digital services, they generate more revenue, stay with us longer and drive stronger cash generation for the group. Digital revenue is growing rapidly and now represents 26.9% of our revenues, up from 20.5% a year ago.
Kaan Terzioglu, VEON Group CEO
Not in the filing
stated, not guessed- Accounting framework is not explicitly identified in the provided filing text.
- Gross profit and gross margin were not reported.
- Non-GAAP EPS was not reported.
- Quarterly free cash flow under a line item titled free cash flow was not reported; the filing reported Equity Free Cash Flow.
- Dividend amount and dividend guidance were not reported.
- FY26 revenue, gross margin, operating expenses and tax-rate guidance were not reported as absolute amounts.
- Prior-release outlook was not separately provided; therefore no actual-versus-prior-guidance comparisons are included.
- Prior-quarter comparisons for most income-statement metrics were not reported on their own line items.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
VEON is a multinational telecom operator listed on Nasdaq (VEON) that provides mobile services and digital platforms across emerging markets.
Ticker impact
VEON reported Q2 2026 results with revenue up 17% YoY, EBITDA up 6.2%, and raised full-year 2026 revenue and EBITDA guidance.
Potential price appreciation in the near term as investors price in higher guidance and cash returns.
First‑report earnings release with material financial metrics and forward guidance; market typically reacts positively to raised outlooks.
Market effects
Digital services revenue surge highlights growth potential for telecom operators expanding into fintech and digital platforms.
Positive for emerging‑market telecom exposure, especially in Pakistan, Bangladesh and Ukraine footprints.
Adds to broader narrative of telecoms leveraging digital ecosystems to drive earnings growth.
Counterpoint
Guidance raise may already be priced in; higher debt load and modest profit decline could limit upside.
Key entities
- ExecutiveKaan Terzioglu
VEON Group CEO who commented on the results and outlook.
- PartnerMastercard
Partnered with VEON to expand digital financial services in four markets.
