VEON (VEON) Q1 2026 earnings summary

Executive summary

• Revenue grew 17.0% year-over-year to $1,201 million in 1Q26, driven by robust telecom and digital business performance, with digital revenues up 57.7% and now over 25% of group revenues.

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

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

• Multi-play and digital adoption drove ARPU up, with multi-play revenues now 58% of consumer revenues and ARPU 3.9x that of voice-only customers.

• Disciplined capital allocation, active share buyback, and new capital return policy supported by strong free cash flow.

Financial highlights

• Group revenue reached $1.2 billion, up 17% YoY in USD terms; digital services revenue hit $303 million, representing over a quarter of total revenue.

• EBITDA margin improved by 0.2 percentage points YoY to 43.0%; telecom/infrastructure margin at 45.9%, digital at 34.6%.

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

• Cash balance at quarter-end was $1.75 billion, with $457 million at headquarters.

• Net debt (excluding leases) at $1.76 billion; gross debt stable at $4.9 billion.

Outlook and guidance

• 2026 revenue growth guidance raised to 11–14% YoY (from 9–12%), with EBITDA growth guidance at 7–10% YoY.

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

• Continued investments in Pakistan following spectrum acquisition to support future growth.

• Management focused on cash flow conversion and proactive risk mitigation, especially regarding inflation and energy market volatility.