Core Insights - VEON Ltd. has entered a partnership with MeetKai to develop and train language models for AI-based digital products across its five operating markets: Kazakhstan, Uzbekistan, Ukraine, Pakistan, and Bangladesh [1][2][3] Group 1: Partnership Details - The collaboration aims to create regional AI solutions that enhance local language capabilities, support regional dialects, and better understand cultural nuances [2][3] - QazCode will manage data and local computing resources, while MeetKai will focus on training the AI models [3][4] Group 2: Strategic Importance - The partnership is positioned as a means to provide AI benefits to under-resourced languages, with a focus on building localized sovereign AI solutions [3][4] - VEON and QazCode have a history of innovation in AI, with QazCode having developed the first Kazakh large language model, KazLLM, which won the GSMA Foundry Excellence Award in 2025 [4][6] Group 3: Market Impact - The initiative is expected to lead to the launch of various new products, including educational services, healthcare applications, and agritech platforms, all utilizing AI agents capable of operating in local languages [3][4] - VEON serves nearly 150 million connectivity users and 140 million digital users across its markets, emphasizing its role in transforming lives through technology [7][8]

Core Points - Ukraine becomes the first European country to launch Starlink's Direct to Cell satellite technology, enabling connectivity for customers in remote areas [1][3][7] - The service will initially provide SMS capabilities, with plans to expand to voice and data by 2026, supporting both individuals and businesses [2][5] - The launch is part of a broader commitment by VEON and Kyivstar to enhance connectivity in Ukraine, especially during wartime challenges [3][4][7] Company Overview - VEON Ltd. operates as a global digital operator, providing connectivity and digital services to nearly 150 million users across five countries [8] - Kyivstar Group Ltd. serves over 22.5 million mobile customers and is a leading digital operator in Ukraine, offering a range of services including 4G and cloud solutions [9] - Both companies plan to invest USD 1 billion in Ukraine from 2023 to 2027 for infrastructure and technological development [10] Technology and Service Details - Starlink Direct to Cell is the largest satellite constellation with over 650 satellites, designed to provide connectivity in mobile dead zones [11] - The service allows existing 4G smartphones to connect without additional costs, covering most of Ukraine except for occupied and combat zones [7][11]

Core Viewpoint - VEON Ltd. has initiated a buyback program for up to USD 100 million, aimed at repurchasing both ADSs and outstanding bonds to enhance shareholder value and manage debt effectively [1][2][3] Group 1: Buyback Program Details - The buyback program was announced on November 10, 2025, and is authorized by VEON's Board [1] - The allocation between equity and debt securities will depend on market conditions [1] - The buybacks will be executed in the open market under a 10b5-1 plan and in compliance with Rule 10b-18 [3] Group 2: Rationale for Buyback - VEON believes its current equity trading levels do not reflect its strong fundamentals and cash-generation capabilities, making selective ADS repurchases a value-accretive use of capital [2] - Repurchasing bonds will allow VEON to take advantage of discounts in the debt markets, reduce future interest obligations, and manage upcoming maturities [2] Group 3: Company Overview - VEON operates as a digital operator, providing services to nearly 150 million connectivity users and 120 million digital users across five countries [4] - The company aims to transform lives through technology-driven services that promote individual empowerment and economic growth [4]

Core Insights - VEON Ltd. has received two prestigious awards at the IR Magazine Corporate Governance Awards 2025, recognizing its governance excellence and innovative use of technology in corporate governance [1][5] Group 1: Awards and Recognition - The "Best Governance Around a Corporate Transaction" award acknowledges VEON's exemplary governance during the successful listing of Kyivstar Group Ltd. on Nasdaq in August 2025 [5] - The "Best Use of Technology" award highlights VEON's innovative integration of augmented intelligence and digital tools in enhancing its governance framework [5] Group 2: Leadership and Commitment - Kaan Terzioglu, VEON Group CEO, expressed pride in the recognition of VEON's commitment to governance excellence, attributing it to the teams involved in the Kyivstar listing and the Board of Directors' oversight [2] - The recognition validates the extensive efforts in structuring the Kyivstar listing to uphold robust governance principles and protect investor interests, marking a historic achievement as Kyivstar became the first Ukrainian company to list on a U.S. stock exchange [3] Group 3: Company Overview - VEON is a digital operator providing connectivity and digital services to nearly 160 million customers across five countries, contributing to economic growth through technology-driven services [4]

Core Insights - The article reiterates a bullish stance on VEON Ltd., a Dubai-based global digital operator, following previous commentary in November of the prior year [1] Group 1 - The company focuses on generating income through investment setups by acquiring undervalued profitable stocks with strong balance sheets and minimal debt [1] - The investment strategy includes writing calls against positions to generate additional income when opportunities arise [1] - Risk management is emphasized through position sizing and the use of trailing stop losses over time [1]

Financial Performance - Total revenue for Q3 2025 reached USD 1,115 million, representing a 7.5% year-on-year growth[5] - EBITDA for the quarter was USD 524 million, reflecting a 19.7% year-on-year increase and an EBITDA margin improvement of 480 basis points to 47.0%[8] - The company reported a profit attributable to the owners of the parent of USD 563 million for the first nine months of 2025, a 68.8% increase year-on-year[52] - Operating profit for Q3'25 was USD 59 million, reflecting significant non-cash charges related to the Kyivstar Group listing and the sale of operations in Kyrgyzstan[54] - The company reported a net loss of $127 million for the period, compared to a profit of $227 million in 3Q24[135] - Total operating revenues for Q3'25 reached USD 1,115 million, a 7.5% increase year-on-year[52] - The company generated net cash flows from operating activities of USD 323 million in Q3'25, compared to USD 317 million in Q3'24[56] Digital Revenue Growth - Direct digital revenue grew by 63.1% year-on-year to USD 198 million, accounting for 17.8% of total revenues[7] - Direct digital revenues grew by 63.1% year-on-year, contributing 17.8% of total Group revenue, with financial services revenues increasing by 32.6% year-on-year to USD 107.5 million[33] - Digital monthly active users reached 143.3 million, a 39.3% increase year-on-year[17] - Direct digital revenue in Ukraine surged 531.3% YoY to UAH 1.5 billion, reflecting Kyivstar's expanding role as a national digital platform operator[75] - Direct digital revenue surged 242.6% year-on-year to UZS 115.5 billion, now representing 11.9% of total revenues[110] Customer Metrics - Mobile customers decreased by 3.1% year-on-year to 149.5 million, while 4G users increased by 4.0% to 103.7 million[17] - As of September 30, 2025, the Group reported 149.5 million mobile subscribers, a decrease of 3.1% year-on-year, excluding Kyrgyzstan subscribers following its sale[27] - The 4G user base grew by 4.0% year-on-year to 103.7 million, with 4.0 million new 4G users added in the last 12 months, representing 69.4% of the total subscriber base, an increase of 4.7 percentage points year-on-year[27] - Multiplay customers increased by 23.3% year-on-year to 43.5 million, accounting for 33.7% of the total base, and supporting 22.5% year-on-year revenue growth for the quarter[28] - JazzCash monthly active users reached approximately 20.6 million, with gross transaction value growing by 57.8% YoY to PKR 3.9 trillion[68][69] Capital Expenditure and Financial Outlook - The company raised its EBITDA outlook for 2025, now expecting local currency EBITDA growth of 16% to 18% year-on-year[11] - The Group expects total revenue growth in USD terms of 7% to 8% year-on-year and EBITDA growth in USD terms of 10% to 11% for 2025[43] - The company expects capex intensity for 2025 (excluding Ukraine) to remain within the 17% to 19% range[11] - Capex for Jazz in 3Q25 was PKR 12.4 billion, with a capex intensity of 10.8%[72] - Capex in Kazakhstan increased by 13.5% YoY to KZT 30.6 billion, with a capex intensity of 26.9%[95] Debt and Cash Position - Total cash, cash equivalents, and deposits stood at USD 1,666 million, with net debt to LTM EBITDA (excluding leases) at 1.13x[9] - Cash and cash equivalents increased to USD 1,663 million at the end of Q3'25, up from USD 1,019 million in Q3'24, representing a 63.2% year-on-year increase[58] - Gross debt increased to USD 4,861 million at the end of Q3'25, a 5.1% increase from USD 4,627 million in Q2'25[60] - Net debt decreased to USD 3,478 million at the end of Q3'25, down from USD 3,671 million in Q2'25, reflecting proceeds from the Kyivstar Group listing and the sale of Kyrgyzstan operations[61] Strategic Developments - The successful listing of Kyivstar Group on Nasdaq and the operational separation of JazzCash were completed during the quarter[10] - VEON signed a global framework agreement with Starlink to bring Direct to Cell satellite connectivity to its operating markets, with plans for a nationwide rollout in Ukraine following regulatory approvals[42] - The acquisition of OLX Kazakhstan for USD 75 million is expected to enhance synergies within Beeline Kazakhstan's digital ecosystem, pending regulatory approvals[41] - VEON disclosed intentions to potentially acquire shares of TPL Insurance Limited, aligning with its strategic focus on expanding digital financial services[73] - Kyivstar Group is co-developing Ukraine's first sovereign Ukrainian-language LLM, enhancing its digital service capabilities[83] Risks and Forward-Looking Statements - VEON's forward-looking statements are based on management's best assessment but are subject to numerous risks and uncertainties[171] - Actual results may differ materially from those expressed in the forward-looking statements due to risks discussed in the "Risk Factors" section of VEON's 2024 Form 20-F[171] - The company continues to monitor the impact of the ongoing war in Ukraine on its operations and financial condition, which may affect future performance[168]

Financial Data and Key Metrics Changes - Company reported total revenue of $1.115 billion for Q3 2025, reflecting a year-on-year growth of 7.5% in USD terms [24] - EBITDA for the quarter was $524 million, representing a growth of 19.7%, with an EBITDA margin of 47%, up 400 basis points year-on-year [25] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [8][9] Business Line Data and Key Metrics Changes - Direct digital revenues grew 63% year-on-year to reach $198 million, now accounting for 17.8% of total revenues, up from 11% a year ago [25] - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting the impact of differentiated networks and services [8] - Multiplay customers generated 3.8 times the ARPU of voice-only subscribers, with 55.4% of total customer revenues coming from this segment, which grew revenue-wise by 23% year-on-year [12][13] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which saw a return to year-on-year growth for the first time in 14 months [14] - In Pakistan, the financial services business gross transaction value rose 40% year-on-year, representing 13% of the country's GDP [15] - The digital-only user base has more than doubled to 50 million, representing nearly 35% of total digital users [17] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [6] - The company is exploring opportunities for further investment in Ukraine, aligning with its "Invest in Ukraine Now" initiative [35] Management's Comments on Operating Environment and Future Outlook - Management raised the fiscal year 2025 EBITDA outlook to 16%-18% growth in local currency terms, up from 14%-16% [4] - The company remains confident in its growth trajectory despite macro and geopolitical challenges, with a focus on sustaining long-term value creation [29][30] - Management emphasized the importance of operational cost management and disciplined pricing actions in supporting margin improvements [58] Other Important Information - The company completed the operational separation of JazzCash, enhancing growth potential in digital financial services [15] - A $100 million share and/or bond repurchase program was approved by the board, reflecting confidence in growth prospects [7] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [26] Q&A Session Summary Question: Motivation for Kyivstar's SPAC transaction - Management chose a SPAC structure for its deal certainty and speed, believing it was the right move to list Kyivstar successfully [34] Question: Plans for cash at headquarters - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [38] Question: Future of tower assets in Ukraine - The company aims to pursue divestment of tower assets in Ukraine, similar to its strategy in Pakistan, to enhance cash generation [45] Question: Financial services in Pakistan - The financial services business targets unbanked individuals, with microloans providing essential support to small businesses [49] Question: Growth of JazzCash and MMBL - The company plans to leverage capabilities from JazzCash and MMBL to expand fintech services in other markets, focusing on smartphone penetration [72] Question: Ride-hailing market expansion - The company has ambitions to grow its ride-hailing business in other markets, with a city-by-city operational strategy [80] Question: Trade-off between scale and profitability - Management noted that digital services have not diluted EBITDA margins as expected, attributing this to operational cost discipline [58] Question: Run rate for financial services EBITDA - The financial services business has shown steady growth, with expectations for continued performance in the coming quarters [95]

Financial Data and Key Metrics Changes - Company reported total revenue of $1.115 billion for Q3 2025, reflecting a year-on-year growth of 7.5% in U.S. dollar terms [24] - EBITDA for the quarter was $524 million, representing a growth of 19.7%, with an EBITDA margin of 47%, up 400 basis points year-on-year [25] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [8][9] Business Line Data and Key Metrics Changes - Direct digital revenues grew 63% year-on-year to reach $198 million, now accounting for 17.8% of total revenues, up from 11% a year ago [25] - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting the impact of differentiated networks and services [8] - Multiplay customers generated 55.4% of total customer revenues, with this segment growing revenue-wise by 23% year-on-year [13] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which saw a return to year-on-year growth for the first time in 14 months [14] - Beeline Kazakhstan's revenues on a like-for-like basis were up 23.3%, despite headline numbers showing single-digit growth [14] - The financial services business in Pakistan reported a gross transaction value increase of 40% year-on-year, representing 13% of Pakistan's GDP [15] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [6] - The company is keen on expanding its digital services portfolio and enhancing capital efficiency while maintaining EBITDA growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [29] - The company aims to maintain revenue guidance of 13%-15% growth in local currency terms, translating to 7%-8% revenue growth in U.S. dollar terms [29] - Management highlighted the importance of digital services in driving customer engagement and retention, with a focus on expanding smartphone ownership in frontier markets [72][86] Other Important Information - The company completed the operational separation of JazzCash, enhancing growth potential in digital financial services [15] - A $100 million share and/or bond repurchase program was approved by the board, reflecting confidence in growth prospects [7] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [26] Q&A Session Summary Question: Motivation for Kyivstar's SPAC transaction - Management chose a SPAC structure for its deal certainty and speed, believing it would create opportunities for international investors in Ukraine [34] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [38][39] Question: Future of tower assets in Ukraine - The company aims to pursue divestment of tower assets, favoring independent tower companies for better infrastructure sharing [44][46] Question: Financial services growth and loan types - The financial services business targets unbanked individuals, offering nano loans averaging $30-$40, crucial for small businesses [48][49] Question: Strategies for increasing JazzCash penetration - The company plans to enhance smartphone ownership and leverage competencies from Pakistan to expand fintech capabilities in other markets [72][73] Question: Digital bank licensing in Pakistan - The company is exploring upgrading its microfinance banking license to a full digital bank license to enhance capabilities [76] Question: Ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to grow in priority markets like Kazakhstan and Pakistan [80]

Financial Data and Key Metrics Changes - Revenues grew 7.5% year-on-year in USD terms, reaching $1.115 billion in Q3 2025 [4][22] - USD EBITDA increased by 19.7% year-on-year, amounting to $524 million, with an EBITDA margin of 47%, up 400 basis points year-on-year [4][22] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [7][8] - Direct digital revenues surged 63% year-on-year, now contributing 17.8% of total group revenues [4][22] Business Line Data and Key Metrics Changes - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting differentiated networks and services [7] - Digital services now account for 17.8% of total revenues, up from 11% a year ago [22] - Multiplay customers, who use at least one digital service in addition to voice and data, generated 55.4% of total customer revenues, growing revenue-wise by 23% year-on-year [11][12] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which returned to year-on-year growth for the first time in 14 months [12] - VLINE Kazakhstan's revenues grew 23.3% on a like-for-like basis, adjusting for TNS Plus deconsolidation [12] - The financial services business in Pakistan saw gross transaction value rise 40% year-on-year, representing 13% of Pakistan's GDP [13] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [5][6] - The company is committed to enhancing its digital services portfolio, with AI integration becoming central to operations [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [24] - The board approved a $100 million share and/or bond repurchase program, reflecting confidence in growth prospects [6][24] - Management highlighted the importance of digital engagement exceeding mobile engagement, indicating a shift in customer interaction [15] Other Important Information - The listing of Kyivstar on NASDAQ unlocked significant value, with a current market valuation of $2.8 billion [6] - The company retains an 89.6% stake in Kyivstar, valued at $2.5 billion at current market prices [6] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [23] Q&A Session Summary Question: Motivation for choosing a SPAC structure for Kyivstar's listing - Management believed in Ukraine's future and opted for a De-SPAC process to fast-track the listing, achieving a valuation of $2.8 billion [26][27] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [27][28] Question: Future of tower assets in Ukraine - The company aims to pursue an asset-light strategy, considering independent tower companies for better infrastructure management [29][30] Question: Financial services growth in Pakistan - The financial services business is growing steadily, with a focus on microloans and a significant merchant network driving cashless transactions [32][33] Question: Plans for ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to explore growth in other markets on a city-by-city basis [44] Question: Digital banking license for MMBL - The company is considering upgrading to a full digital bank license to enhance capabilities and contribute to the cashless economy initiative [43]

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