VEON Ltd. (VEON): Financial results for Q1 2026
VEON Ltd. (VEON) furnished an SEC Form 6-K — earnings release. Note: 1. Effective 1Q26, revenues from enterprise identity and credentials management services are reported within Digital Enterprise, which amounted to USD 132 million in 9M26 (9M25 USD 133 million, reclassified) 2. FCF, previously referred to as Equity Free Cash Flow ("EFCF") a
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise provide a clear catalyst for short‑term price appreciation.
Market read
The earnings beat and raised outlook make VEON a near‑term buying opportunity.
What to watch
Potential headwinds from currency volatility and geopolitical risks in key markets.
VEON Delivers Double-Digit Growth as Digital Services Reach 27.2% of Revenue
VEON reported 17.2% YoY revenue growth, 10.1% YoY EBITDA growth, 45.9% YoY digital revenue growth and raised the mid-points of both its 2026 revenue and EBITDA growth outlooks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue (3Q26)other | $1.31B | – | 17.2% |
| Total revenue (9M26)other | $3.78B | – | 17.1% |
| Revenue growth (3Q26, like-for-like)other | 15.8% | – | 15.8% |
| Revenue growth (9M26, like-for-like)other | 16.4% | – | 16.4% |
| EBITDA (3Q26)other | $577M | – | 10.1% |
| EBITDA (9M26)other | $1.65B | – | 11.0% |
| EBITDA growth (3Q26, like-for-like)other | 9.8% | – | 9.8% |
| EBITDA growth (9M26, like-for-like)other | 12.3% | – | 12.3% |
| Digital revenue (3Q26)other | $355M | – | 45.9% |
| Digital revenue as percentage of Group revenue (3Q26)other | 27.2% | – | up 5.4 percentage points YoY |
| Digital EBITDA (3Q26)other | $128M | – | 54.5% |
| Digital EBITDA margin (3Q26)other | 36.0% | – | – |
| Group net profit (3Q26)other | $225M | – | – |
| Net profit attributable to VEON shareholders (3Q26)other | $187M | – | – |
| Diluted earnings per ADS (3Q26)other | USD 2.67 | – | – |
| Profit growth (3Q26, like-for-like)other | 2.4% | – | 2.4% |
| Profit growth (9M26, like-for-like)other | 25.5% | – | 25.5% |
| Free cash flow (3Q26)other | $201M | – | -33.8% |
| Free cash flow growth excluding asset disposal proceeds (3Q26)other | 91.8% | – | 91.8% |
| LTM Capex intensityother | 6.9% | – | – |
| Cash and cash equivalents as of September 30, 2026other | $2.03B | – | – |
| Cash and cash equivalents at HQ as of September 30, 2026other | $755M | – | – |
| Leverage ratioother | 1.05x | – | – |
| Weighted average debt maturityother | 4 years | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Telecommunications and infrastructure (3Q26)Mobile ARPU increased 4.7% YoY to USD 1.8, reflecting continued disciplined pricing, customer growth and higher data usage. | $952M | – | 9.2% |
| Digital (3Q26)Digital revenue represented 27.2% of Group revenue, up 5.4 percentage points YoY. | $355M | – | 45.9% |
| Financial Services (3Q26)Financial Services customers reached 59.7 million. | $166M | – | 54.2% |
| Financial Services (9M26)Financial Services customers reached 59.7 million. | $451M | – | 48.2% |
| Enterprise identity and credentials management services (9M26)Effective 1Q26, revenues from enterprise identity and credentials management services are reported within Digital Enterprise. | $132M | – | – |
2026 outlook
- Revenue16%–18% YoY
- NoteEBITDA Growth (YoY, USD): 10%–12%
- NoteCapex Intensity (excl. Ukraine): 15%-17% of revenues
Capital returns
- 1.55 million ADSs repurchased (for USD 112.5 million) out of an aggregate 2.9 million ADS buyback program.
- 1.08 million ADSs (1.5% of issued shares) cancelled effective October 20, 2026.
- VEON recently launched a new buyback program to repurchase 3.9% of outstanding shares (represented by 2.9 million ADSs).
- This follows USD 200 million in cumulative buybacks since August 2024.
- VEON will cancel all additional shares acquired under the new buyback program.
What drove it
- Telecommunications and infrastructure revenue grew 9.2% YoY to USD 952 million in 3Q26.
- Mobile ARPU increased 4.7% YoY to USD 1.8, reflecting continued disciplined pricing, customer growth and higher data usage.
- Multiplay customers reached 44.7 million, up 2.9% YoY, and generated 4.2x the ARPU of voice-only users.
- Digital customers reached 221.1 million in 3Q26, up 8.2% YoY.
- Digital EBITDA climbed 54.5% YoY to USD 128 million, representing 36.0% EBITDA margin.
- Financial Services revenue grew 54.2% YoY to USD 166 million in 3Q26 and 48.2% YoY to USD 451 million in 9M26.
Concerns
- Free cash flow reached USD 201 million in 3Q26, down -33.8% YoY, although excluding asset disposal proceeds FCF grew 91.8%.
- VEON's results and other financial information presented in the document are preliminary and subject to financial closing procedures that have not yet been completed and are therefore subject to change.
- The filing identifies risks and uncertainties including the impact of the war in Ukraine and political instability in Bangladesh.
What to watch
- Delivery against the raised 2026 revenue growth outlook of 16%–18% YoY and EBITDA growth outlook of 10%–12% YoY.
- Digital revenue mix, which reached 27.2% of Group revenue in 3Q26, and Digital EBITDA margin, which reached 36.0%.
- Free cash flow development following the reported -33.8% YoY change in 3Q26 and the contribution of asset disposal proceeds.
- Execution of the 2.9 million ADS buyback program and the planned cancellation of all additional shares acquired under the program.
- Progress on announced transactions and initiatives including Perfectum, GigaCloud, Jungo TV, Starlink, digital banking in Bangladesh and digital payment services in Kazakhstan.
Balance sheet and cash flow
- Free cash flow reached USD 201 million in 3Q26 (-33.8% YoY); excluding asset disposal proceeds, FCF grew 91.8%.
- Cash and cash equivalents stood at USD 2,033 million as of September 30, 2026, including USD 755 million at HQ.
- Cash and cash equivalents include USD 532 million relating to banking operations in Pakistan which is excluded for calculation of net debt.
- Leverage ratio stood at 1.05x, with a weighted average debt maturity of 4 years.
Analysis
VEON reported broad-based growth in 3Q26, with total revenue increasing 17.2% YoY to USD 1,307 million and EBITDA increasing 10.1% YoY to USD 577 million. For 9M26, revenue grew 17.1% YoY to USD 3,779 million and EBITDA grew 11.0% YoY to USD 1,645 million. On a like-for-like basis, revenue, EBITDA and profit grew 15.8%, 9.8% and 2.4%, respectively, in 3Q26. Group net profit reached USD 225 million, including USD 187 million attributable to VEON shareholders and diluted earnings per ADS of USD 2.67.
The period's strongest reported growth came from digital activities. Digital revenue grew 45.9% YoY to USD 355 million, reaching 27.2% of Group revenue and increasing by 5.4 percentage points YoY. Digital EBITDA increased 54.5% YoY to USD 128 million, with a reported 36.0% EBITDA margin. Financial Services revenue grew 54.2% YoY to USD 166 million in 3Q26 and 48.2% YoY to USD 451 million in 9M26, while Digital customers reached 221.1 million, up 8.2% YoY.
The telecommunications and infrastructure business remained a material growth contributor, with revenue up 9.2% YoY to USD 952 million. Mobile ARPU increased 4.7% YoY to USD 1.8, which VEON attributed to disciplined pricing, customer growth and higher data usage. Multiplay customers reached 44.7 million, up 2.9% YoY, and generated 4.2x the ARPU of voice-only users. These reported operating metrics support the company's description of a connection between connectivity, digital adoption and revenue growth.
Cash generation was mixed on the reported comparison. Free cash flow reached USD 201 million in 3Q26 and was down -33.8% YoY, while FCF excluding asset disposal proceeds grew 91.8%. Cash and cash equivalents were USD 2,033 million as of September 30, 2026, including USD 755 million at HQ, and the leverage ratio was 1.05x. VEON continued capital returns through the repurchase of 1.55 million ADSs for USD 112.5 million and cancellation of 1.08 million ADSs effective October 20, 2026.
Management raised the midpoint of its 2026 revenue growth outlook to 16%–18% YoY from 15%–18% and raised EBITDA growth outlook to 10%–12% from 9% to 12%. The capex intensity outlook excluding Ukraine was maintained at 15%-17% of revenues. Key areas to monitor are the conversion of rapid digital revenue growth into sustained profitability and cash flow, delivery against the raised outlook, and execution of the announced buyback, cancellation and strategic transaction plans.
Management, verbatim
VEON delivered another quarter of double-digit growth, and we are raising the midpoint of our full year outlook. Our telecom business continues to perform, and our digital businesses are becoming more profitable as they scale. Each one makes the other stronger. We look forward to showing how we will keep compounding value for years to come at our Capital Markets Day on November 16.
Kaan Terzioglu, Group CEO of VEON
Not in the filing
stated, not guessed- Financial reporting basis, including whether the reported results are IFRS or another accounting basis
- Prior-year absolute values for total revenue, EBITDA, digital revenue, digital EBITDA, net profit, net profit attributable to VEON shareholders, diluted earnings per ADS and free cash flow
- Prior-quarter values for reported financial metrics
- Gross profit and gross margin
- Operating income or loss
- Operating expenses
- Income tax expense and tax rate
- Net debt amount and gross debt amount
- Operating cash flow
- Dividend information
- Prior-period values for mobile ARPU, multiplay customers, digital customers and Financial Services customers
- Quantified revenue or EBITDA contribution from the announced acquisitions, partnerships and strategic agreements
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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 reported Q1 2026 results, highlighting 17.2% YoY revenue growth and a raised 2026 outlook.
Ticker impact
VEON issued guidance raising the mid-point of its 2026 revenue and EBITDA outlook.
likely upside as market prices in higher growth expectations
The earnings release shows double‑digit revenue growth and a raised outlook, which typically supports a bullish reaction.
Market effects
Higher digital services growth may boost peers in telecom and digital platforms.
Positive for emerging‑market telecom operators with similar business models.
Adds optimism to the broader telecom sector worldwide.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pullback.
Key entities
- CompanyVEON Ltd.
Telecom and digital services operator listed on Nasdaq.
