VEON (VEON) Q1 2026 earnings summary

Executive summary

• Revenue grew 17.0% year-over-year to $1.2 billion in 1Q26, with digital revenues surging 57.7% and now comprising over 25% of total revenue, driven by robust telecom, digital business, and multiplay adoption.

• EBITDA increased 17.7% year-over-year to $517 million, with margin expanding to 43.0% due to operating leverage and cost discipline.

• Equity free cash flow surged 73.4% year-over-year to $246 million, reflecting strong cash generation.

• Digital portfolio accelerated, with financial services, entertainment, ride hailing, and healthcare as key growth drivers.

• Disciplined capital allocation, ongoing share buybacks, and a systematic capital return policy are in place.

Financial highlights

• Group revenue reached $1.2 billion, up 17% year-over-year in USD terms; digital services revenue was $303 million, up 57.7% year-over-year.

• EBITDA margin improved to 43.0%, with telecom/infrastructure margin at 45.9% and digital at 34.6%.

• Equity free cash flow (after leases & licenses) rose 73.4% year-over-year to $246 million.

• Cash balance at quarter-end was $1.75 billion, with $457 million at headquarters and $464 million in Pakistan banking operations.

• Net debt (excluding leases) at $1.76 billion; leverage ratio improved to 1.07x.

Outlook and guidance

• 2026 revenue growth guidance raised to 11–14% year-over-year; EBITDA growth guidance maintained at 7–10% year-over-year.

• CapEx intensity (excluding Ukraine) expected at 15–17% for FY26, reflecting higher investment in Pakistan.

• Minimum $100 million annual share buybacks targeted, subject to market and liquidity conditions.