VEON (VEON) Q2 2025 Earnings Call August 07, 2025 08:00 AM ET Company ParticipantsAnand Ramachandran - Corporate Development OfficerKaan Terzioğlu - Group CEO & DirectorBurak Ozer - Group CFOAdrian Cundy - SEA Consumer & Vietnam specialistDon Espey - DirectorVincent Fernando - Founder & Executive DirectorTheodore O'Neill - CEOConference Call ParticipantsNick Paton - Analyst - IndustrialsMatthew Harrigan - Equity Research AnalystChris Hoare - Lead AnalystOperatorHello, and welcome to VEON's 02/2025 results p ...

VEON (VEON) Q2 2025 Earnings Call August 07, 2025 08:00 AM ET Speaker0Hello, and welcome to VEON's 02/2025 results presentation. For those of you that have joined the Zoom webinar, if you would like to ask a question, you can use the raise hand button, which can be found on the black bar at the bottom of your Zoom screen at any time to join the queue to ask a question, and you will be called upon during the q and a session. For those of you watching on the webcast, if you would like to submit a written ques ...

1 VEON 2Q25 RESULTS PRESENTATION 7 August 2025 • DIRECT DIGITAL REVENUES UP 57% YOY • SOLID EXECUTION, STRONG RESULTS 2Q25 Results |1 DISCLAIMER VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and/or audited. The financial information included in this document is preliminary and is based on a number of assumptions that are subject to i ...

Financial Performance - VEON reported a revenue growth of 5.9% year-on-year to USD 1,087 million in the second quarter of 2025, with local currency growth at 11.2% YoY, surpassing the average inflation rate of 8.6% in its operating countries [2][9] - Direct digital revenues increased by 56.6% YoY in reported currency and 62.4% YoY in local currency, accounting for 16.5% of total revenues, up from 5.4% a year ago [3][9] - EBITDA reached USD 520 million, reflecting a 13.2% YoY increase in reported currency and a 19.6% increase in local currency terms [3][9] Capital Expenditure and Financial Position - Capital expenditures (Capex) for 2Q25 were USD 231 million, resulting in a capex intensity of 21.3% for the quarter [4] - Total cash and cash equivalents as of June 30, 2025, amounted to USD 1,283 million, with net debt to EBITDA at 1.32x [4][9] Outlook - The company revised its 2025 outlook, expecting local currency revenue growth of 13% to 15% and local currency EBITDA growth of 14% to 16% [5][10] - Capex intensity for 2025 is anticipated to remain within the range of 17% to 19% [5][10] Strategic Initiatives - VEON completed the third phase of its share buyback program, acquiring 722,588 ADSs for a total of USD 35 million, completing a previously announced USD 100 million buyback program [6] - The acquisition of Uklon in April 2025 marks a strategic milestone in expanding VEON's digital services footprint [8]

Core Insights - VEON Ltd. has launched a new office for Beeline Kazakhstan in Almaty, aimed at enhancing collaboration and innovation within its telecom, AI, and digital services teams [1][2][3] Group 1: New Office Launch - The new office is designed to foster cross-functional collaboration among approximately 500 professionals from the VEON ecosystem in Kazakhstan, including Beeline and QazCode [2][4] - The inauguration ceremony was attended by key executives, including VEON Chairman and Founder Augie Fabela and Group CEO Kaan Terzioglu [3] Group 2: Strategic Importance - Kaan Terzioglu emphasized the office's role in transforming innovative capabilities into digital services for millions of customers, showcasing VEON's commitment to Kazakhstan's digital economy [4] - Evgeny Nastradin highlighted the office's potential to strengthen collaboration between telecom, digital, and AI teams, supporting the Digital Kazakhstan strategy [4] Group 3: Company Overview - Beeline Kazakhstan serves 11 million mobile customers and 2 million fixed internet customers, executing a digital operator strategy since 2018 [5] - QazCode, a subsidiary of Beeline Kazakhstan, is one of the largest software development companies in Kazakhstan, focusing on private Large Language Models and IT outsourcing services [6][5] Group 4: VEON Overview - VEON operates across six countries, providing digital services to nearly 160 million customers and driving economic growth through technology [7]

Core Viewpoint - VEON Ltd. will release its financial and operational results for the second quarter and half-year ended June 30, 2025, on August 7, 2025, at 8:00 GST (0:00 EST) [2] Group 1: Earnings Release Details - The earnings update will be followed by a conference call with senior management at 16:00 GST (8:00 EST) on the same day [2] - A registration link for the conference call is provided for participants to access the event [3] Group 2: Q&A Participation - Participants can engage in a Q&A session by selecting the 'Yes' option during registration, allowing them to join the Q&A room [5] - A platform for submitting and upvoting questions will be available starting July 31, 2025, at 8:00 EST, and will remain open until 24 hours before the conference call [8] Group 3: Company Overview - VEON is a digital operator serving nearly 160 million customers across six countries, contributing to over 7% of the world's population [10] - The company focuses on technology-driven services that empower individuals and stimulate economic growth [10]

Core Viewpoint - VEON Ltd. and Cohen Circle Acquisition Corp. I have executed non-redemption agreements totaling approximately USD 52.3 million, securing the minimum cash condition for the proposed business combination with Kyivstar Group, which is expected to be listed on Nasdaq under the ticker symbol "KYIV" [1][2]. Group 1: Business Combination Details - The closing of the business combination is anticipated in the third quarter of 2025, pending shareholder approval and customary closing conditions [2]. - The business combination will mark Kyivstar Group as the first pure-play Ukrainian company to be publicly listed on a U.S. stock exchange [2]. - Cohen Circle's units, Class A ordinary shares, and warrants are listed on Nasdaq under the ticker symbols "CCIRU," "CCIR," and "CCIRW" respectively [2]. Group 2: Kyivstar Group Overview - Kyivstar Group is Ukraine's leading digital operator, serving over 23 million mobile customers and more than 1.1 million home internet fixed line customers as of December 31, 2024 [3]. - The company provides a wide range of services, including 4G, big data, cloud solutions, cybersecurity, and digital TV [3]. - VEON and Kyivstar Group plan to invest USD 1 billion in Ukraine from 2023 to 2027, focusing on infrastructure, technological development, and charitable donations [3]. Group 3: VEON Overview - VEON operates as a digital operator providing converged connectivity and digital services to nearly 160 million customers across six countries [4]. - The company aims to transform lives through technology-driven services that empower individuals and stimulate economic growth [4]. Group 4: Cohen Circle Overview - Cohen Circle Acquisition Corp. I is a special purpose acquisition company formed to effect a merger or similar business combination with technology and/or financial services businesses [5]. - The company’s units, Class A ordinary shares, and warrants are also listed on Nasdaq under the symbols "CCIRU," "CCIR," and "CCIRW" respectively [5].

Core Viewpoint - VEON Ltd. has successfully completed a private placement of USD 200 million in senior unsecured notes due in 2029, indicating strong investor confidence in the company's strategic direction and financial outlook [1][3]. Group 1: Financial Details - The notes are issued by VEON MidCo B.V., priced at par with an annual interest rate of 9.000% [2]. - The expected credit rating from S&P and Fitch for the notes is BB- [2]. - The proceeds from the transaction will be utilized for general corporate purposes and to optimize VEON's capital structure [4]. Group 2: Market Context - This issuance marks a significant milestone in VEON's renewed capital markets strategy, enhancing its access to global capital markets [3]. - VEON operates across six countries, serving nearly 160 million customers, and is focused on technology-driven services that promote economic growth [5].

Core Insights - VEON Ltd. announces that Kyivstar has received regulatory approval for testing Starlink Direct-to-Cell (D2C) services in Ukraine, marking a significant step towards enhancing connectivity in the region [1][4] - Successful integration of Kyivstar's SIM cards with Starlink's satellite network has been confirmed, indicating compatibility and paving the way for the launch of D2C services [2] - The planned launch of D2C services, which will support SMS and over-the-top (OTT) messaging, is set for Q4 2025, aimed at improving connectivity in areas affected by infrastructure damage and during emergencies [3] Company Overview - VEON is a digital operator serving nearly 160 million customers across six countries, focusing on technology-driven services that promote economic growth [5] - Kyivstar, as Ukraine's largest digital operator, serves over 23 million mobile subscribers and has committed to investing USD 1 billion in telecom technologies from 2023 to 2027 [6] - Kyivstar has allocated over UAH 2 billion in the past two years to support wartime challenges, including assistance to the Armed Forces and social projects [6]

Core Points - VEON Ltd. and Kyivstar are collaborating with Ukraine's Ministry of Digital Transformation to develop Ukraine's first national large language model (LLM) trained on Ukrainian-language data, with a commitment to invest USD 1 billion in rebuilding Ukraine's digital infrastructure from 2023 to 2027 [1][5][6] Group 1: Project Overview - The LLM will utilize open-source architectures and be trained exclusively on Ukrainian data sources, capturing various dialects, terminology, history, and cultural context [2] - The project aims to securely store and process sensitive national data within Ukraine, which is essential for sectors like government, defense, healthcare, and financial services [2][3] Group 2: Applications and Benefits - The LLM will serve as a foundation for AI-powered products and services, including legal and regulatory analysis tools, and specialized applications in education, finance, and health [3][4] - The model is expected to provide more accurate and relevant insights for Ukrainian users compared to general-purpose global models [3] Group 3: Strategic Importance - The initiative is seen as a significant step towards building a sovereign and culturally relevant AI ecosystem that supports economic growth and enhances the lives of Ukrainians [5] - The development aligns with VEON's broader strategy to address the AI language gap for underrepresented languages in its markets, as demonstrated by similar initiatives in Kazakhstan and Pakistan [5]