Group 1 - VEON Ltd. has launched "AI Tutor," an AI-powered learning assistant aimed at enhancing the learning experience in the Kazakh language for both children and adults, marking a significant step towards digital inclusion in Kazakhstan [1][4] - AI Tutor is integrated into Beeline Kazakhstan's super-app Janymda and utilizes the KazLLM large language model, offering six gamified learning modules focused on Kazakh language learning, with plans to expand into other subjects [2][3] - The KazLLM model was developed in collaboration with the Institute of Smart Systems and Artificial Intelligence and launched in December 2024, with Janymda reaching 4.9 million monthly active users as of April 2025 [3] Group 2 - The CEO of VEON Group emphasized that augmented intelligence can revolutionize education and make learning more accessible, particularly for Kazakh speakers, through the integration of AI Tutor into a leading digital platform [4] - QazCode's CEO highlighted that AI Tutor personalizes the learning experience for users, making Kazakh language and culture more accessible, and represents a significant advancement in addressing real human needs through technology [5] - QazCode, a major software development company in Kazakhstan, has developed various AI products, including the Kaz-RoBERTA conversational model, and collaborates with international institutions to enhance its capabilities in developing language models for low-resource languages [5][7] Group 3 - Beeline Kazakhstan serves 11 million mobile customers and 2 million fixed internet customers, having developed a digital ecosystem of 60 products since 2018 [6] - QazCode employs 750 people and specializes in creating private large language models, data security, and IT outsourcing services [7] - VEON operates across six countries, providing digital services to nearly 160 million customers, and is listed on NASDAQ [8]

Core Insights - VEON Ltd. has successfully closed a partnership with Engro Corporation for the pooling and management of telecommunications infrastructure assets in Pakistan, marking a significant step in its asset-light strategy [1][3][4] Group 1: Partnership Details - The infrastructure assets of VEON, managed under Deodar (Private) Limited, have been transferred to Engro Connect, a subsidiary of Engro Corp, while VEON's digital operator Jazz will lease these assets for mobile voice and data services [2][4] - The partnership was completed at an enterprise value of USD 562.7 million, with regulatory approvals obtained in May 2025 [4] Group 2: Strategic Implications - This partnership allows Jazz to accelerate its transformation into a services company, expanding its digital portfolio to include financial services, entertainment, healthcare, and enterprise services [3] - The collaboration aims to strengthen Pakistan's digital economy, reflecting the visionary approach of Pakistani authorities that facilitated the partnership [3] Group 3: Company Profiles - VEON operates across six countries, serving nearly 160 million customers and focusing on technology-driven services that promote economic growth [5] - Jazz, as Pakistan's leading digital operator, has over 71.5 million cellular subscribers and offers a wide range of digital services, including JazzCash, Garaj, and Tamasha [6] - Engro Corporation is a diversified conglomerate in Pakistan, involved in various sectors including telecommunications infrastructure, and has established partnerships with global entities [7]

Core Insights - VEON Ltd. has secured all regulatory approvals for its strategic partnership with Engro Corporation Limited to manage telecommunications infrastructure assets in Pakistan, enhancing digital investments in the country [1][2] - The partnership involves transferring VEON's infrastructure assets to Engro Connect, a subsidiary of Engro Corp, through a scheme of arrangement, expected to be completed in June [2] - This agreement is anticipated to accelerate Jazz's transformation into an asset-light services company, promoting growth for both Jazz and Engro Corp while supporting Pakistan's digital transformation [3][4] Financial Details - Engro will pay Jazz approximately USD 188 million and guarantee the repayment of Deodar's intercompany debt amounting to USD 375 million [6] Company Profiles - VEON is a Nasdaq-listed digital operator serving nearly 160 million customers across six countries, focusing on technology-driven services that empower individuals and stimulate economic growth [7] - Jazz, as Pakistan's leading digital operator, has over 71.5 million cellular subscribers and offers a wide range of digital services, including JazzCash and Tamasha [8] - Engro Corporation is a diversified conglomerate in Pakistan, involved in various sectors including telecommunications infrastructure, and aims to address pressing issues through its business portfolio [9]

Core Insights - VEON Ltd. has opened a new headquarters for Beeline Uzbekistan in Tashkent IT Park, housing around 2,000 employees and various digital service teams [1][2][4] - The relocation signifies VEON's commitment to investing in Uzbekistan's digital future and enhancing the provision of digital services in Central Asia [2][5] Company Developments - Beeline Uzbekistan serves 8.2 million customers with mobile connectivity and has 7.6 million total monthly active users across its digital services [6] - The digital portfolio includes financial services application BeePul, streaming application Kinom, and super-app Hambi, showcasing a diverse range of offerings [6] - Beeline Uzbekistan reported 9.5 million monthly active digital users in Q1 2025, indicating strong demand for its digital services [4] Industry Context - Uzbekistan is positioning itself as a regional digital hub through its Digital Uzbekistan 2030 strategy, aiming to create a thriving digital economy [3] - The government welcomes partnerships with companies like VEON to support innovation and attract global investment [3] - VEON has been investing in Uzbekistan's telecommunications and digital infrastructure since 2006, expanding its services beyond traditional connectivity [5]

Financial Performance - VEON reported total revenue of USD 1,026 million for Q1 2025, reflecting an 8.9% year-on-year increase in reported currency and a 12.9% increase in underlying local currency terms[5][7]. - EBITDA for Q1 2025 reached USD 439 million, representing a 13.7% year-on-year increase in reported currency and a 10.4% increase in underlying local currency terms[5][19]. - In Q1 2025, total operating revenues increased by 8.9% year-on-year to US$1,026 million, with net profit for the period reaching US$118 million, a 50.9% increase[38][39]. - VEON expects total revenue growth of 12% to 14% and EBITDA growth of 13% to 15% year-on-year for 2025[9][11]. - The company’s net debt, excluding leases and banking operations in Pakistan, decreased to USD 1,810 million as of March 31, 2025, down from USD 1,901 million at the end of 2024[122]. - Cash and cash equivalents at the end of Q1 2025 were US$1,774 million, a significant increase from US$832 million in Q1 2024[40]. - The company reported a gross debt of USD 4,377 million, with net debt excluding leases at USD 3,282 million[123]. Digital Revenue Growth - Direct digital revenues surged by 50.2% year-on-year to USD 147 million, now accounting for 14.3% of total revenues, up from 10.4% a year ago[12][11]. - Total digital users reached 125.1 million, a 25% year-on-year increase, with digital-only users surging 58% to 32.4 million[25]. - Direct digital revenue in Pakistan surged 49.5% YoY, contributing 27.7% of total revenues, with JazzCash revenues growing 66.1% YoY[52]. - Digital revenues in Kazakhstan increased by 29.4% YoY, contributing 12.1% to total revenues in 1Q25, driven by demand for digital services like BeeTV and Simply[71]. - The mobile financial services platform Beepul grew its customer base by 152% YoY to over 2.3 million MAUs[89]. Customer Growth and Engagement - The number of 4G users grew by 3.3% year-on-year to 101.5 million, with 4G penetration reaching 66.6% of the total subscriber base[20][12]. - Multiplay customers increased by 24.8% year-on-year to 42.7 million, representing 32.3% of the total user base, contributing to a 26.4% year-on-year growth in multiplay revenues[21][12]. - JazzCash in Pakistan reported 20.6 million monthly active users (MAUs), a 19.4% year-on-year increase, with LTM transactional value rising 62.8% year-on-year to PKR 10.8 billion (US$38.6 billion)[26]. - Tamasha in Pakistan grew MAUs by 37.6% year-on-year to 16.5 million, while Kyivstar TV in Ukraine reached 2 million MAUs, a 34.9% year-on-year increase[27]. - The SuperApp Hambi reached 4.3 million users, a 30.4% increase from the prior period, and was ranked as the top app on Google Play in Uzbekistan[90]. Capital Expenditure and Investments - Capex increased by 8.3% year-on-year to USD 135 million, with a last twelve months (LTM) capex intensity of 20.4%[8][12]. - The company’s capex intensity for 2025 is expected to be in the range of 17% to 19%[33]. - Capex in Ukraine reached UAH 2,422 million, up 125.9% YoY, indicating a focus on network and digital capabilities expansion[60]. - In 1Q25, Kyivstar's capex surged by 126% YoY to UAH 2,422 million, resulting in a capex intensity of 22.6% as the company focused on network resilience and 4G expansion[67]. - Capex in Uzbekistan dropped by 78.2% YoY to UZS 114,870 million in 1Q25, reflecting a capex intensity of 12.2%[83]. Strategic Initiatives - VEON is focusing on its "AI1440" strategy to integrate AI-powered features in digital applications, enhancing customer experience across various markets[22][12]. - The company is focusing on expanding its digital platforms, which contribute to direct digital revenues, enhancing overall revenue streams[130]. - VEON's strategic priorities include expanding its digital experience and leveraging technologies such as artificial intelligence to enhance customer offerings[146]. Regional Performance - Total revenue increased by 8.9% YoY to USD 1,026 million in 1Q25, with significant growth in Ukraine (49.5% YoY) and Pakistan (20.4% YoY) revenues[49]. - Kyivstar's total revenue increased by 49.5% YoY to UAH 10,720 million, driven by a 140.7% increase in direct digital revenue[60]. - Banglalink's total revenue in Bangladesh decreased by 12.4% YoY to BDT 13,519 million in 1Q25, impacted by a 14.6% decline in mobile customers[77][78]. - In Uzbekistan, total revenue rose by 13.1% YoY to UZS 938,751 million in 1Q25, with digital revenue skyrocketing by 224.5% YoY[83][84]. Debt and Financial Leverage - Net debt to LTM EBITDA, excluding lease liabilities, improved to 1.23x, down from 1.34x as of December 31, 2024[8][12]. - Net debt decreased by 1.0% quarter-on-quarter to US$2,905 million, with a net debt to LTM EBITDA ratio of 1.67x[42]. - The net debt of VEON is calculated as interest-bearing long-term debt minus cash and cash equivalents, providing insight into the company's financial leverage[140]. Market Challenges - The ongoing war in Ukraine has significantly impacted VEON's operations, necessitating close monitoring of the situation and its effects on financial performance[151]. - Future market developments and trends are uncertain, with potential impacts from geopolitical conflicts and regulatory changes affecting operations[146].

Financial Performance - VEON's total revenue increased by 8.9% YoY to $1,026 million in USD terms[16, 25], and by 15.7% in local currency terms[25, 78] - The underlying local currency revenue grew by 12.9% YoY, outpacing inflation and nominal GDP[16] - VEON's EBITDA increased by 13.7% YoY in USD terms[16, 25], and by 22.1% in local currency terms[25, 83] - Underlying EBITDA grew by 10.4% YoY[16] - Direct digital revenues surged by 50.2% YoY, comprising 14.3% of total revenues in 1Q25[1, 16, 25, 36] Digital Growth - Direct Digital Revenues reached $147 million in 1Q25, reflecting a 50.2% YoY increase[25, 81] - Multiplay segment revenue YoY growth was 24.8%[32] - Multiplay ARPU increased by 4.2%[32] Operational Highlights - VEON repaid the April 2025 VEON Holdings notes of $472 million[16] - June 2025 notes of $94 million are to be repaid at maturity[16, 93] - Group cash increased to $1,775 million[25, 93] - Net debt excl leases to LTM EBITDA ratio decreased to 1.2x in 1Q25 from 1.3x in 4Q24[25] Regional Performance - Pakistan's total revenue increased by 20.3% and EBITDA by 13.2%[39, 46] - Ukraine's total revenue increased by 20.2% and EBITDA by 10.2% in underlying local currency terms[40, 50, 52] - Kazakhstan's underlying revenue increased by 11.5%, but EBITDA decreased by 4.0%[41, 54, 55, 57] - Bangladesh's revenue decreased by 4.8% and EBITDA decreased by 47.5%[42, 59] - Uzbekistan's revenue increased by 13.1% and EBITDA increased by 16.5%[43, 63, 65, 66]

Financial Data and Key Metrics Changes - The company achieved revenue growth of 8.9% year-on-year, with EBITDA rising by 13.7% [5][40] - Adjusting for the deconsolidation of TNS Plus, revenue growth would have been 11.7% and EBITDA growth would have been 15.5% [6][12] - In local currency terms, revenue performance was even stronger, delivering a 12.9% increase, outpacing inflation and nominal GDP growth [6][11] - EBITDA margins improved by 1.8 percentage points to 42.8% for the quarter, reflecting effective pricing controls and disciplined cost management [14] Business Line Data and Key Metrics Changes - The Telecom and Infrastructure segment contributed $880 million, growing 4.2% year-on-year [14] - Direct digital revenues surged by 50.2% year-on-year, now representing 14.3% of total revenues, up from 10.4% last year [6][19] - The multiplay segment, which includes customers using both voice and digital services, generated 3.7 times more ARPU compared to voice-only subscribers [18][55] Market Data and Key Metrics Changes - Revenue growth in Pakistan was 20.3%, with EBITDA growing at 13.2% [20] - Ukraine's revenue grew by 49.5% year-on-year, with a 20.2% growth when adjusted for the previous year's cyberattack [24][25] - Kazakhstan's revenue performance was robust, growing 11.5% year-on-year, while Uzbekistan saw revenue growth of 13.1% [20][21] Company Strategy and Development Direction - The company is focusing on expanding its digital services portfolio and transitioning into a services company with a telco license [6][8] - The asset-light strategy remains a cornerstone of value creation, with ongoing initiatives to unlock infrastructure and tower value [8] - The strategic partnership with Engrave Corporation in Pakistan aims to pool infrastructure assets, unlocking $563 million in value [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, projecting 12% to 14% underlying local currency revenue growth and 13% to 15% EBITDA growth [46][47] - The company noted that inflation rates in its markets are trending lower, which could present both opportunities and challenges [45][46] - Management highlighted the importance of digital services in driving future value and diversification across the portfolio [41] Other Important Information - The second phase of the share buyback program commenced, with $23 million of shares repurchased [9] - The company repaid $472 million of bonds in April 2025, with no additional maturities until 2027 [43] - The company is making progress on Kevstar's listing on NASDAQ, which is expected to enhance visibility and profile [9][27] Q&A Session Summary Question: What percentage of revenue from multiplay customers is due to their use of apps versus telecom revenues? - Management indicated that multiplay customers generate 3.7 times more ARPU compared to voice-only customers, with data consumption three times higher and lower churn rates [55] Question: How does Tamasha compare to Netflix in terms of local programming capabilities? - Management stated that while Netflix is known, the ability to pay for subscriptions is limited in Pakistan, and they see their content as complementary rather than competitive [58][59] Question: What is the strategy around data centers in the Middle East? - Management expressed interest in partnering with investors for next-generation data centers while maintaining an asset-light strategy [67] Question: What are the drivers behind ARPU growth in Ukraine? - Management noted that ARPU growth reflects fair value pricing and the stability of the customer base, with a 20% growth adjusted for the cyberattack impact [76] Question: What is the guidance for CapEx in Ukraine? - Management indicated that CapEx in Ukraine has increased due to extraordinary investments related to energy sustainability, but they expect to remain within guidance excluding these factors [87] Question: Will direct digital revenue growth be organic? - Management confirmed that direct digital revenue growth does not include Uclone yet, and they expect to see organic growth starting in Q2 [91][92] Question: Will the company roll out fintech products in other markets? - Management confirmed that they are focusing on regulatory issues to introduce financial services in Bangladesh and Ukraine, following the success in Pakistan [97][98]

Financial Performance - The company achieved strong revenue growth of 8.9% year-on-year, with EBITDA rising by 13.7% [5][11] - Adjusting for the deconsolidation of TNS Plus, revenue growth would have been 11.7% and EBITDA growth would have been 15.5% [6][12] - In local currency terms, revenue increased by 12.9%, outpacing inflation and nominal GDP growth [10][11] - Direct digital revenues grew by 50.2% year-on-year, now representing 14.3% of total revenues, up from 10.4% a year ago [6][18] Business Segment Performance - The Telecom and Infrastructure segment contributed $880 million, growing 4.2% year-on-year [13] - Direct digital revenues in Pakistan surged 49.5%, contributing 27.7% of total revenues in that market [21] - In Ukraine, total revenues grew 49.5% year-on-year, with direct digital revenues increasing by 141% [24] - Kazakhstan's telecom and infrastructure revenues grew 9.4% year-on-year, while EBITDA was impacted by the absence of regulatory tax benefits [26] Market Performance - Pakistan's revenue growth was 20.3%, with EBITDA growing at 13.2% [19] - Ukraine's operations achieved 20.2% revenue growth and 10.2% EBITDA uplift after adjusting for the previous year's cyberattack [20] - Uzbekistan reported revenue growth of 13.1% and EBITDA growth of 16.5% [30] Company Strategy and Industry Competition - The company is transitioning into a services-oriented business model, leveraging digital services and AI integration [6][7] - The asset-light strategy is a cornerstone of value creation, with ongoing initiatives to unlock infrastructure and tower value [7][8] - The strategic partnership with Engrave Corporation in Pakistan is expected to unlock $563 million in value [7] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, projecting 12% to 14% underlying local currency revenue growth [42] - Inflation rates in the company's markets are trending lower, which is seen as a potential headwind [42] - The company is optimistic about the future, expecting to continue delivering on its strategy and creating sustainable value [44] Other Important Information - The second phase of the share buyback program commenced, with $23 million of shares repurchased [8] - The company repaid $472 million of bonds in April 2025, with no additional maturities until 2027 [40] - The company is making progress on the proposed NASDAQ listing for KSTAR, expected to complete in Q3 [83] Q&A Session Summary Question: What percentage of revenue from multiplayer customers is due to their use of apps versus telecom revenues? - Management noted that multiplayer customers generate 3.7 times more ARPU compared to voice-only customers, with data consumption three times higher [51][52] Question: How does the company position itself against Netflix in Pakistan? - Management sees Netflix as a complementary service rather than a competitor, emphasizing the relevance of local content [53][54] Question: What is the strategy around data centers? - The company plans to partner with investors for next-generation data centers while maintaining an asset-light strategy [62] Question: What are the drivers behind ARPU growth in Ukraine? - ARPU growth is attributed to fair value pricing and the stability of the customer base, with tower assets separated from the operating company [72][73] Question: What is the guidance for CapEx in Ukraine? - CapEx in Ukraine has increased due to extraordinary investments in energy sustainability, but is expected to align with guidance moving forward [81][82] Question: Will the company roll out fintech products in other markets? - The company is focusing on regulatory issues to introduce financial services in Bangladesh and Ukraine, following success in Pakistan [91][92]

Core Insights - VEON reported a total revenue growth of 8.9% year-on-year to USD 1,026 million for Q1 2025, with underlying local currency growth at 12.9% [2][9] - EBITDA increased by 13.7% year-on-year to USD 439 million, with a 10.4% increase in underlying local currency terms [4][9] - Direct digital revenue grew significantly by 50.2% year-on-year to USD 147 million, representing 14.3% of total revenues for the quarter [4][9] Financial Performance - The company achieved a year-on-year revenue growth of 8.9% in reported currency and 12.9% in local currency, adjusted for the impact of a cyberattack in Ukraine and the deconsolidation of TNS+ in Kazakhstan [2][3] - EBITDA for the quarter was USD 439 million, reflecting a 13.7% increase in reported currency and a 10.4% increase in underlying local currency terms [4][9] - Total cash and cash equivalents as of March 31, 2025, amounted to USD 1,775 million, with net debt to LTM EBITDA declining to 1.23x [5][9] Capital Expenditure and Outlook - Capex increased by 8.3% year-on-year, with a capex intensity of 13.1% [5] - The company maintains its FY25 outlook, expecting underlying local currency revenue growth of 12% to 14% and EBITDA growth of 13% to 15% [6] Share Buyback Program - VEON commenced the second phase of its share buyback program in March 2025, amounting to up to USD 35 million, following the completion of the first phase [7] Strategic Focus - The company emphasizes disciplined execution and innovation, aiming to enhance customer experiences through technology-driven services [10][11]

Core Insights - VEON Ltd. has partnered with GSMA Advance to become the inaugural member of the People Excellence Partner program, emphasizing its commitment to employee upskilling and knowledge advancement [1][2] - The partnership will provide VEON employees access to a variety of learning courses, enabling them to achieve certifications in critical areas such as 5G, IoT, mobile privacy, and regulatory best practices [3][4] - This initiative aligns with VEON's strategic move to Dubai, aiming to leverage the local talent pool and enhance its workforce capabilities in high-tech disciplines [4] Company Overview - VEON is a digital operator serving nearly 160 million customers across six countries, representing over 7% of the global population, and focuses on technology-driven services that promote economic growth [5] - The company is listed on Nasdaq and is dedicated to transforming lives through its digital services [5] GSMA Overview - GSMA represents the interests of mobile operators globally, uniting over 750 operators and nearly 400 companies in the mobile ecosystem [5] - The organization is known for hosting major industry events, including the Mobile World Congress (MWC) and the Mobile 360 Series [5]