VEON (VEON) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 growth with revenues up 8.9% year-over-year to USD 1,026 million and 12.9% in local currency, surpassing $1 billion despite the deconsolidation of T&S Plus.

• EBITDA rose 13.7% year-over-year to USD 439 million, with underlying growth of 10.4% after adjusting for one-off items.

• Direct digital revenues surged 50.2% year-over-year to USD 147 million, now representing 14.3% of total revenues.

• Strategic initiatives included infrastructure partnerships, share buybacks, bond repayments, and progress on Kyivstar's Nasdaq listing.

• Maintained strong liquidity with USD 1,775 million in cash and deposits, and net debt (excluding leases) reduced to USD 1,810 million.

Financial highlights

• Q1 revenues grew 8.9% year-over-year in USD to USD 1,026 million, 2.8% sequentially, and 12.9% in local currency.

• EBITDA reached USD 439 million, up 13.7% year-over-year; EBITDA margin expanded by 1.8 percentage points to 42.8%.

• Direct digital revenue: USD 147 million (+50.2% YoY), now 14.3% of total revenue (vs. 10.4% in 1Q24).

• Net debt (ex-leases) reduced to USD 1,810 million; net debt-to-EBITDA ratio improved to 1.2x.

• Cash position at USD 1,775 million as of March 31, 2025.

Outlook and guidance

• Reaffirmed full-year guidance: 12%-14% underlying local currency revenue growth and 13%-15% EBITDA growth.

• CapEx intensity expected in the 17%-19% range for 2025.

• Inflation in operating markets trending down, with Q1 weighted average at 7.6%.

• Second phase of share buyback program launched in March 2025 for up to USD 35 million.