VEON .(VEON) - 2025 Q2 - Quarterly Report

Q25 Highlights & Executive Summary VEON reported strong financial and operational results for 2Q25, with significant growth in total revenue and EBITDA, particularly driven by direct digital revenues, alongside increases in 4G users and total digital monthly active users Q25 Key Financial and Operational Highlights VEON reported strong financial and operational results for 2Q25, with significant growth in total revenue and EBITDA, particularly driven by direct digital revenues. The company also saw an increase in 4G users and total digital monthly active users Key Financial and Operational Metrics | Metric | Value | Change | Metric | Value | Change | |---|---|---|---|---|---| | TOTAL REVENUE | USD 1,087 million | +5.9% YoY (+11.2% YoY in local currency) | TELECOM AND INFRA | USD 907 million | -0.5% YoY (+4.8% YoY in local currency) | | DIRECT DIGITAL REVENUE | USD 180 million | +56.6% YoY (+62.4% YoY in local currency) | EBITDA | USD 520 million | +13.2% YoY (+19.6% YoY in local currency) | | CAPEX | USD 231 million | +27.5% YoY | LTM EQUITY FREE CASHFLOW | USD 611 million | +33.7% YoY | | TOTAL CASH, CASH EQUIVALENTS AND DEPOSITS | USD 1,283 million | | GROSS DEBT | USD 4,627 million | USD 666 million higher YoY | | NET DEBT EXCLUDING LEASES | USD 1,962 million | | NET DEBT EXCL. LEASES / LTM EBITDA | 1.32x | | | 4G USERS | 103.1 million | +3.9% YoY, 67.7% penetration | TOTAL DIGITAL MONTHLY ACTIVE USERS | 119.7 million | +7.1% YoY | Consolidated Financial Performance | Metric | 2Q25 (USD million) | 2Q24 (USD million) | YoY Reported | YoY Local Currency | |---|---|---|---|---| | Total revenue | 1,087 | 1,027 | 5.9% | 11.2% | | Telecom and infrastructure revenue | 907 | 912 | (0.5%) | 4.8% | | Direct digital revenue | 180 | 115 | 56.6% | 62.4% | | Digital Revenue as % of Total Revenue | 16.5% | 11.2% | 5.4p.p. | | | EBITDA | 520 | 460 | 13.2% | 19.6% | | Net profit for the period | 608 | 89 | >100% | | | Basic Earnings per ADS (USD) | 8.56 | 0.97 | >100% | | | Diluted Earnings per ADS (USD) | 8.30 | 0.94 | >100% | | | Capex | 231 | 181 | 27.5% | 34.0% | | LTM Equity Free Cash Flow (before leases & license) | 611 | 457 | 33.7% | | - Direct digital revenues accounted for 16.5% of total revenues in 2Q25, up from 11.2% a year ago, reflecting a strategic milestone with the Uklon acquisition[6][10][12] Executive Commentary and Strategic Direction Kaan Terzioğlu, CEO, highlighted the company's strong momentum, disciplined execution, and strategic clarity, emphasizing the rapid progress in the digital operator strategy and the acceleration of AI integration. The company is focused on profitable growth and long-term shareholder value creation - VEON's local currency revenue growth continues to outpace inflation and nominal GDP, indicating a growing share of consumer wallets[9] - The company is making rapid progress in its digital operator strategy, with direct digital revenues rising by 56.6% and now accounting for 16.5% of Group revenues[10] - VEON completed its USD 100 million share buyback program, repurchasing 2.14 million ADSs at an average price of US$46.55 per ADS[8] 2Q25 Group Performance VEON's 2Q25 performance showed robust revenue and EBITDA growth in local currency, surpassing the average weighted inflation rate, driven by significant increases in direct digital revenues and telecom and infrastructure revenues Operational and Financial Overview VEON's 2Q25 performance showed robust revenue and EBITDA growth in local currency, surpassing the average weighted inflation rate. Direct digital revenues experienced significant growth, partly due to the consolidation of Uklon, while telecom and infrastructure revenues also increased in local currency - Group revenue grew 5.9% YoY in reported currency and 11.2% in local currency, exceeding the average weighted inflation rate of 8.7% in its markets[17] - Direct digital revenues reached USD 180 million, growing 56.6% YoY in reported currency and 62.4% YoY in local currency, with Uklon contributing US$21.7 million[19] Group Revenue and EBITDA Growth | Metric | 2Q25 USD YoY | 2Q25 LCY YoY | 1H25 USD YoY | 1H25 LCY YoY | |---|---|---|---|---| | Total Revenue (Group) | 5.9% | 11.2% | 7.3% | 13.4% | | EBITDA (Group) | 13.2% | 19.6% | 13.4% | 20.8% | - The Group's 4G user base grew 3.9% YoY to 103.1 million, representing 67.7% of the total subscriber base[22] - Multiplay customers increased by 24.1% YoY to 43.3 million, contributing to 20.3% YoY growth in multiplay revenues and delivering 3.7x higher ARPU with 50% lower churn rates compared to voice-only users[23] Digital Operator and AI Strategy VEON is actively executing its DO1440 Digital Operator strategy and accelerating its AI1440 strategy, focusing on integrating AI-powered features across digital platforms. This dual strategy aims to expand hyper-local digital services and embed inclusive, human-centric AI, driving growth across various verticals like financial services, entertainment, healthcare, and ride-hailing - VEON is accelerating its AI1440 strategy, integrating AI-powered features like AI Tutor within SuperApps and developing native-language models[24][25] - Direct digital revenue grew 56.6% YoY, contributing 16.5% of total Group revenue, reflecting strong momentum across financial services (40.7 million MAUs, +27.9% YoY), SuperApps (44.6 million MAUs, +18.1% YoY), and ride-hailing (3.5 million MAUs)[26][27] - In Kazakhstan, VEON introduced AI-powered learning modules built on KazLLM, and in Ukraine, it signed a memorandum to co-develop the first Ukrainian-language LLM[28] Strategic Transactions and Shareholder Returns VEON completed its infrastructure partnership in Pakistan, generating a significant one-time gain, and made steady progress on Kyivstar's proposed Nasdaq listing. The company also concluded its USD 100 million share buyback program - VEON successfully closed its infrastructure partnership in Pakistan, resulting in a one-time gain of US$489 million at Group Level, net of tax[30] - Progress was made on Kyivstar's proposed Nasdaq listing, with investor commitments secured to meet the minimum cash condition of USD 50 million[31] - VEON completed its USD 100 million share buyback program, acquiring 722,588 ADSs for US$35 million in the final phase, with a total of 2.14 million ADSs repurchased at an average price of US$46.55 per ADS[32] Outlook for 2025 VEON has revised its 2025 outlook upwards, anticipating stronger local currency growth for both total revenue and EBITDA, while maintaining its capex intensity within a defined range Revised 2025 Financial Outlook VEON has revised its 2025 outlook upwards, anticipating stronger local currency growth for both total revenue and EBITDA, while maintaining its capex intensity within a defined range Revised 2025 Financial Outlook | Metric | 1H25 | FY25 Outlook (Revised) | |---|---|---| | Total Revenue, YoY (LCY) | 13.4% | 13 - 15% growth | | EBITDA, YoY (LCY) | 20.8% | 14 - 16% growth | | LTM Capex Intensity | 21.4% | 17 - 19% | - The revised outlook reflects continued operational momentum and strong performance across key markets[33] Presentation of Financial Results This section outlines VEON's financial reporting practices, including the use of IFRS and non-IFRS measures, and presents preliminary unaudited consolidated financial statements and details on liquidity and capital structure Accounting Standards and Non-IFRS Measures VEON's financial results are presented based on International Financial Reporting Standards (IFRS) and are unaudited. The document also includes non-IFRS financial measures such as EBITDA, net debt, and capex intensity, which are defined and reconciled in the attachments - Results are based on IFRS and have not been externally audited or reviewed[36] - Non-IFRS information, including EBITDA, net debt, capex, capex intensity, and local currency trends, is defined in Attachment E and reconciled in Attachment B[38] Preliminary Unaudited Condensed Consolidated Financial Statements VEON's consolidated financial statements for 2Q25 show significant increases in operating profit and net profit, primarily driven by a gain on subsidiary disposals. Cash flows from operating activities decreased, while investing activities saw a net inflow due to disposals. The balance sheet reflects growth in total assets and equity Preliminary Unaudited Condensed Consolidated Income Statement (USD million) | Metric | Q2'25 | Q2'24 | YoY Reported | |---|---|---|---| | Total operating revenues | 1,087 | 1,027 | 5.9% | | Operating profit | 820 | 278 | >100% | | Net finance costs | (118) | (106) | 10.3% | | Profit for the period | 608 | 89 | >100% | | Net Profit attributable to the owners of the parent | 596 | 68 | >100% | | Basic Earnings per ADS (USD) | 8.56 | 0.97 | >100% | | Diluted Earnings per ADS (USD) | 8.30 | 0.94 | >100% | - Operating profit increased significantly due to a USD 498 million gain on subsidiary disposals related to the Deodar transaction[39] Preliminary Unaudited Condensed Consolidated Cash Flow Statement (USD million) | Activity | Q2'25 | Q2'24 | YoY Reported % | |---|---|---|---| | Net cash flows from operating activities | 137 | 205 | -33.2% | | Net cash flows used in investing activities | (110) | (343) | 67.8% | | Net cash flows used in financing activities | (515) | 198 | <100% | | Net increase / (decrease) in cash and cash equivalents | (488) | 60 | <100% | | Cash and cash equivalents at end of period | 1,282 | 862 | 48.8% | Preliminary Unaudited Condensed Consolidated Balance Sheet (USD million) | Metric | 30 Jun 2025 | 31 Dec 2024 | vs. Dec % | |---|---|---|---| | Total non-current assets | 5,818 | 5,136 | 13.3% | | Total current assets | 2,571 | 2,828 | -9.1% | | Total assets | 8,463 | 8,036 | 5.3% | | Total equity | 1,496 | 1,257 | 19.1% | | Total non-current liabilities | 3,939 | 3,125 | 26.1% | | Total current liabilities | 2,992 | 3,626 | -17.5% | | Total equity and liabilities | 8,463 | 8,036 | 5.3% | Liquidity and Capital Structure VEON's liquidity saw a decrease in cash and cash equivalents, primarily due to debt repayments and the Uklon acquisition. Gross debt increased, driven by higher lease liabilities, leading to an increase in net debt and leverage ratios. The company also completed a USD 200 million bond issuance and repaid maturing notes Liquidity and Capital Structure (USD million) | Metric | 30 Jun 2025 | 31 Mar 2025 | YoY % | |---|---|---|---| | Cash and cash equivalents and deposits | 1,283 | 1,775 | 48.5% | | Gross debt | 4,627 | 4,377 | 16.8% | | Bonds and loans - principal | 2,849 | 3,212 | 2.7% | | Lease liabilities - principal | 1,708 | 1,095 | 69.1% | | Net debt | 3,671 | 2,905 | 13.4% | | Net debt excluding leases | 1,962 | 1,810 | (11.9%) | | Net debt to LTM EBITDA | 2.03x | 1.67x | | | Net debt excluding leases / LTM EBITDA | 1.32x | 1.23x | | - Cash and cash equivalents and deposits decreased to USD 1,283 million, primarily due to net debt repayments at HQ and the acquisition of Uklon Group[44] - Gross debt increased to USD 4,627 million, mainly driven by an increase in lease liabilities to USD 1,708 million[45][46] - VEON completed a USD 200 million bond issuance of senior unsecured notes due in 2029 with a 9.0% annual interest rate and fully repaid USD 472 million and USD 100 million VEON Holdings notes maturing in April and June 2025, respectively[48] Country Overview This section provides a detailed overview of VEON's operational and financial performance across its key markets: Pakistan, Ukraine, Kazakhstan, Bangladesh, and Uzbekistan, highlighting country-specific growth drivers and strategic initiatives Pakistan: Sustained All-Round Growth Pakistan's operations demonstrated sustained growth in 2Q25, with strong local currency revenue growth driven by resilient telecom performance and rapid expansion of digital segments, particularly JazzCash. EBITDA margin moderated due to a shifting revenue mix towards lower-margin digital services and increased investment costs Pakistan Key Figures (PKR million) | Metric | 2Q25 | 2Q24 | YoY | |---|---|---|---| | Total revenue | 111,219 | 96,450 | 15.3% | | Telecom and infrastructure | 79,998 | 73,436 | 8.9% | | Direct digital revenue | 31,221 | 23,014 | 35.7% | | EBITDA | 46,224 | 43,873 | 5.4% | | EBITDA margin (%) | 41.6% | 45.5% | -3.9 pp | | Mobile customers (mln) | 73.9 | 71.4 | 3.5% | | 4G customers (mln) | 54.6 | 47.3 | 15.3% | | Multiplay customers (mln) | 22.3 | 17.3 | 29.2% | | Mobile ARPU (LCY) | 332 | 305 | 8.9% | | Digital customers (mln) | 72.1 | 63.3 | 13.9% | | Jazz Cash MAUs (mln) | 21.1 | 17.7 | 19.4% | - Direct digital revenue grew 35.7% YoY, contributing 28.1% of total revenue, led by JazzCash's 47.1% YoY growth[53] - JazzCash monthly active users reached 21.1 million, with Gross Transaction Value growing 42.5% YoY to PKR 3.2 trillion[56] - VEON completed its infrastructure partnership with Engro Corporation, transferring tower assets at an enterprise value of USD 562.7 million, with Jazz continuing to lease the infrastructure[60] Ukraine: Building Further on Strong Growth with Uklon Kyivstar in Ukraine achieved strong revenue growth in 2Q25, significantly boosted by the consolidation of Uklon's ride-hailing services and robust performance across other digital platforms. Despite cost pressures and customer migration due to conflict, EBITDA grew, and the company made progress on its Nasdaq listing and AI initiatives Ukraine Key Figures (UAH million) | Metric | 2Q25 | 2Q24 | YoY | |---|---|---|---| | Total revenue | 11,857 | 9,425 | 25.8% | | Telecom and infrastructure | 10,594 | 9,200 | 15.2% | | Direct digital revenue | 1,263 | 225 | 460.3% | | EBITDA | 6,898 | 5,585 | 23.5% | | EBITDA margin (%) | 58.2% | 59.3% | -1.1 pp | | Mobile customers (mln) | 22.4 | 23.4 | -4.5% | | 4G customers (mln) | 14.4 | 14.6 | -1.2% | | Multiplay customers (mln) | 6.5 | 5.3 | 23.7% | | Mobile ARPU (LCY) | 146 | 121 | 20.6% | | Digital customers (mln) | 13.4 | 8.8 | 51.2% | | Uklon MAUs (mln) | 3.5 | - | - | - Direct digital revenues surged 460.3% YoY to UAH 1.3 billion, driven by the first-time consolidation of Uklon and strong momentum from Helsi and Kyivstar TV[64] - Uklon contributed US$21.7 million in revenues and US$9.3 million in EBITDA for the quarter, broadening Kyivstar's footprint in everyday digital services[67] - Kyivstar received regulatory approval to begin field testing Starlink's Direct-to-Cell services in Ukraine, planned for launch in 4Q25[72] - VEON is making steady progress on Kyivstar's proposed Nasdaq listing, securing investor commitments to meet the minimum cash condition of USD 50 million[73] Kazakhstan: Growth driven by network investments and digital expansion Beeline Kazakhstan's 2Q25 revenues increased in local currency, driven by ARPU expansion, handset sales, and strong direct digital revenue growth. While reported EBITDA declined, adjusted figures showed a smaller decline, influenced by tax benefits absence and investments in digital offerings. The company continues to expand its digital ecosystem and integrate AI-powered solutions Kazakhstan Key Figures (KZT million) | Metric | 2Q25 | 2Q24 | YoY | |---|---|---|---| | Total revenue | 103,466 | 100,315 | 3.1% | | Telecom and infrastructure | 90,206 | 90,673 | -0.5% | | Direct digital revenue | 13,256 | 9,642 | 37.5% | | EBITDA | 51,326 | 55,856 | -8.3% | | EBITDA margin (%) | 49.6% | 55.8% | -6.2 pp | | Mobile customers (mln) | 11.7 | 11.4 | 2.9% | | 4G customers (mln) | 8.8 | 8.7 | 2.0% | | Multiplay customers (mln) | 4.3 | 3.9 | 11.1% | | Mobile ARPU (LCY) | 2,281 | 2,236 | 2.0% | | Digital customers (mln) | 12.8 | 11.4 | 12.7% | | Simply MAUs (mln) | 3.2 | 1.7 | 94.7% | - Adjusting for the TNS+ deconsolidation, total revenue growth would have been 14.5% YoY, and telecom and infrastructure revenue growth was 11.8% YoY[74][75] - Direct digital revenues grew 37.5% YoY to KZT 13.2 billion, representing 12.8% of total revenues, driven by platforms like BeeTV, Simply, IZI, and Janymda[76] - Beeline Kazakhstan launched "AI Tutor," an AI-powered Kazakh language learning tool integrated into its Janymda super-app, based on the locally developed KazLLM[80] Bangladesh: Growth challenges, margins and cost control hold firm Banglalink experienced a YoY revenue decline in 2Q25 due to past political unrest and macroeconomic headwinds, though QoQ revenue showed recovery. EBITDA grew significantly, boosted by structural cost efficiencies and a one-off tax impact. The company maintained its DO1440 strategy, focusing on a leaner, higher-quality subscriber base and expanding digital services like Toffee and Ryze Bangladesh Key Figures (BDT million) | Metric | 2Q25 | 2Q24 | YoY | |---|---|---|---| | Total revenue | 14,203 | 16,031 | -11.4% | | Telecom and infrastructure | 13,744 | 15,776 | -12.9% | | Direct digital revenue | 459 | 254 | 80.4% | | EBITDA | 10,739 | 5,974 | 79.8% | | EBITDA margin (%) | 75.6% | 37.3% | 38.3 pp | | Mobile customers (mln) | 34.8 | 41.3 | -15.7% | | 4G customers (mln) | 18.2 | 21.3 | -14.5% | | Multiplay customers (mln) | 6.3 | 4.8 | 32.4% | | Mobile ARPU (LCY) | 134 | 128 | 4.1% | | Digital MAUs (mln) | 12.9 | 20.8 | -37.9% | | Toffee MAUs (mln) | 4.4 | 12.3 | -64.6% | - Direct digital revenues rose 80.4% YoY, driven by the wider integration of Toffee's services into consumer bundles, despite a decline in MAUs from a temporary boost in 2Q24[84] - EBITDA grew by 79.8% to BDT 10.7 billion, reflecting structural cost efficiencies and a one-off tax impact of BDT 5.1 billion[85] - Multiplay customer base increased by 32.4% YoY, with multiplay revenues up by 9.9% YoY, now comprising 40.9% of the consumer revenue base[86] Uzbekistan: Growth driven by ARPU gains and expanding digital base Beeline Uzbekistan maintained strong revenue momentum in 2Q25, driven by both telecom and rapidly expanding digital operations. Direct digital revenues showed exceptional growth, fueled by user adoption of key digital platforms. EBITDA and its margin improved, reflecting effective pricing and operating leverage, as the company continued to advance its DO1440 strategy Uzbekistan Key Figures (UZS million) | Metric | 2Q25 | 2Q24 | YoY | |---|---|---|---| | Total revenue | 958,199 | 843,257 | 13.6% | | Telecom and infrastructure | 860,854 | 810,648 | 6.2% | | Direct digital revenue | 97,345 | 32,609 | 198.5% | | EBITDA | 363,486 | 297,699 | 22.1% | | EBITDA margin (%) | 37.9% | 35.3% | 2.6 pp | | Mobile customers (mln) | 7.9 | 8.1 | -2.9% | | 4G customers (mln) | 5.8 | 6.0 | -3.3% | | Multiplay customers (mln) | 3.4 | 3.4 | 2.0% | | Mobile ARPU (LCY) | 35,221 | 32,813 | 7.3% | | Digital MAUs (mln) | 8.0 | 7.0 | 14.0% | | Beepul MAU (mln) | 1.5 | 1.3 | 17.7% | | Hambi MAU (mln) | 4.6 | 4.2 | 2.3% | - Direct digital revenues grew 198.5% YoY, fueled by accelerating user adoption of platforms like Beepul, Hambi, and Kinom[92] - Beepul maintained strong momentum with MAUs growing 17.7% to 1.5 million and processing over $100 million in monthly transactions, signing a strategic partnership with ANORBANK[96] - The Hambi SuperApp recorded 4.6 million MAUs and remained the highest-ranked app on Google Play[97] Key Recent Developments This section highlights VEON's recent corporate and strategic initiatives, including new office openings, progress on Kyivstar's Nasdaq listing, a bond issuance, and advancements in AI development across its markets Corporate and Strategic Initiatives VEON has undertaken several key corporate and strategic initiatives, including opening new offices to foster innovation, securing investor commitments for Kyivstar's Nasdaq listing, completing a USD 200 million bond placement, and advancing AI development in its markets - Beeline Kazakhstan opened a new office in Almaty to foster cross-functional collaboration and accelerate innovation in telecom, AI, and digital services[100] - VEON and Cohen Circle secured investor commitments totaling approximately USD 52.3 million for the proposed business combination of Kyivstar Group Ltd. and Cohen Circle, meeting the minimum cash condition for the Nasdaq listing[101] - VEON completed a private placement of USD 200 million of senior unsecured notes due in 2029 with a 9.0% annual interest rate[102][103] - Kyivstar received regulatory approval to conduct testing of Starlink Direct-to-Cell (D2C) services in Ukraine[104] - Kyivstar partnered with Ukraine's Ministry of Digital Transformation to develop the country's first national large language model (LLM) trained on Ukrainian-language data[105] - Beeline Kazakhstan launched "AI Tutor," an AI-powered Kazakh language learning tool integrated into its Janymda super-app[111] - VEON successfully closed its infrastructure partnership in Pakistan with Engro Corporation Limited, transferring tower assets into Engro Connect[113][114] - Beeline Uzbekistan moved its headquarters to Tashkent's IT Park, deepening its commitment to Uzbekistan's digital future[115] Attachments This section provides supplementary information, including detailed customer statistics, reconciliation tables for key financial metrics, an overview of debt management and liquidity, and definitions of financial and operational terms Attachment A: Customers This attachment provides a detailed breakdown of mobile and fixed-line broadband customer numbers across VEON's operating countries for 2Q25, 1Q24, and 2Q24, including year-over-year changes Mobile and Fixed-line Broadband Customers (millions) | Country | Mobile 2Q25 | Mobile 2Q24 | Mobile YoY | Fixed-line broadband 2Q25 | Fixed-line broadband 2Q24 | Fixed-line broadband YoY | |---|---|---|---|---|---|---| | Pakistan | 73.9 | 71.4 | 3.5% | | | | | Ukraine | 22.4 | 23.4 | (4.5%) | 1.1 | 1.1 | 0.0% | | Kazakhstan | 11.7 | 11.4 | 2.9% | 0.7 | 0.7 | 4.8% | | Bangladesh | 34.8 | 41.3 | (15.7%) | | | | | Uzbekistan | 7.9 | 8.1 | (2.9%) | | | | | Kyrgyzstan | 1.6 | 1.8 | (6.6%) | | | | | Total | 152.3 | 157.4 | (3.2%) | 1.9 | 1.8 | 1.8% | Attachment B: Reconciliation Tables This section provides reconciliations for key financial metrics, including EBITDA to profit for the period, capital expenditures, equity free cash flow, and local currency versus reported year-over-year growth rates, offering transparency on non-IFRS measures Reconciliation of Consolidated EBITDA to Profit/(Loss) for the Period (USD million Unaudited) | Metric | 2Q25 | 2Q24 | |---|---|---| | EBITDA | 520 | 459 | | Depreciation | (142) | (130) | | Amortization | (54) | (49) | | (Loss) /gain on disposals of subsidiaries | 498 | | | Operating profit | 820 | 278 | | Profit for the period | 608 | 89 | Reconciliation of Equity Free Cash Flow (USD million) | Metric | 2Q25 | 2Q24 | YoY change | |---|---|---|---| | EBITDA | 520 | 450 | 70 | | Net tax paid | (175) | (79) | (96) | | Cash capex (excluding license payments) | (203) | (181) | (22) | | Proceeds from sale of Business | 180 | - | 180 | | Equity Free Cash Flow | 153 | 66 | 87 | | Equity Free Cash Flow (after leases and licenses) | 75 | (41) | 115 | Reconciliation of Local Currency and Reported YoY Growth Rates (2Q25) | | Revenue LCY | Impact of FX and other | Revenue Reported | |---|---|---|---| | Pakistan | 15.3% | (1.3%) | 14.0% | | Ukraine | 25.8% | (5.0%) | 20.8% | | Kazakhstan | 3.1% | (13.2%) | (10.1%) | | Bangladesh | (11.4%) | (5.6%) | (17.0%) | | Uzbekistan | 13.6% | (1.6%) | 12.0% | | Total | 11.2% | (5.3%) | 5.9% | | | EBITDA LCY | Impact of FX and other | EBITDA Reported | | Pakistan | 5.4% | (1.3%) | 4.0% | | Ukraine | 23.5% | (4.9%) | 18.6% | | Kazakhstan | (8.3%) | (11.8%) | (20.1%) | | Bangladesh | 79.8% | (11.7%) | 68.1% | | Uzbekistan | 22.1% | (1.7%) | 20.4% | | Total | 19.6% | (6.4%) | 13.2% | Attachment C: Debt Management and Liquidity Overview This attachment details VEON's debt structure, including net debt reconciliation, currency mix of gross debt, and outstanding debt by entity and maturity period, along with lease liabilities Reconciliation of Net Debt (USD million) | Metric | 30 Jun 2025 | 31 Mar 2025 | 31 Dec 2024 | |---|---|---|---| | Net debt, excluding leases and banking operations in Pakistan | 1,962 | 1,810 | 1,901 | | Lease liabilities - principal | 1,708 | 1,095 | 1,033 | | Net debt, excluding banking operations in Pakistan | 3,671 | 2,905 | 2,934 | | Cash and cash equivalents | 1,282 | 1,773 | 1,689 | | Gross debt | 4,627 | 4,377 | 4,381 | Group Debt and Liquidity Currency Mix (As of 30 June 2025 USD equivalent, millions) | Currency | Gross Debt | Capitalised leases | Gross debt excluding leases | Cash, cash equivalents and deposits | Net debt * excluding leases | |---|---|---|---|---|---| | USD | 1,450 | 5 | 1,445 | 613 | 832 | | EUR | 153 | | 153 | 66 | 87 | | PKR | 1,916 | 929 | 987 | 413 | 900 | | BDT | 566 | 378 | 188 | 74 | 114 | | UAH | 181 | 181 | | 40 | (40) | | Other | 361 | 215 | 146 | 77 | 69 | | Total | 4,627 | 1,708 | 2,919 | 1,283 | 1,962 | Lease Liabilities (Principal) (USD, million) | Country | 30-Jun-25 | 31-Dec-24 | 30-Jun-24 | |---|---|---|---| | Pakistan | 929 | 321 | 299 | | Ukraine | 181 | 166 | 170 | | Bangladesh | 378 | 364 | 385 | | Kazakhstan | 169 | 140 | 116 | | Uzbekistan | 46 | 40 | 36 | | Headquarters | 5 | 2 | 5 | | Total | 1,708 | 1,033 | 1,011 | Attachment D: Rates of Functional Currencies to USD This attachment provides the average and closing exchange rates of VEON's functional currencies against the USD for 2Q25 and 2Q24, along with year-over-year changes Average and Closing Rates of Functional Currencies to USD | Currency | 2Q25 Average | 2Q24 Average | YoY Average | 2Q25 Closing | 2Q24 Closing | YoY Closing | |---|---|---|---|---|---|---| | Pakistan Rupee | 281.8 | 278.2 | -1.3% | 283.8 | 278.4 | -2.0% | | Ukraine Hryvnia | 41.5 | 39.8 | -4.2% | 41.6 | 40.5 | -2.7% | | Kazakhstan Tenge | 513.8 | 447.7 | -14.8% | 520.4 | 471.5 | -10.4% | | Bangladeshi Taka | 121.7 | 113.9 | -6.8% | 122.2 | 117.4 | -4.1% | | Uzbekistan Som | 12,842.4 | 12,659.4 | -1.4% | 12,654.1 | 12,555.2 | -0.8% | | Kyrgyzstan Som | 87.3 | 88.2 | 1.0% | 87.4 | 86.4 | -1.1% | Attachment E: Definitions This attachment provides definitions for key financial and operational terms used throughout the earnings release, including 4G users, ARPU, Capex, Direct digital revenues, EBITDA, Net debt, and various customer metrics - Definitions are provided for terms such as 4G users, ARPU, Capital expenditures (capex), Capex intensity, Direct digital revenues, EBITDA, EBITDA margin, Equity free cash flow, Gross debt, Local currency (LCY) trends, Mobile customers, Mobile financial services (MFS), Multiplay customers, Net debt, and Telecom and infrastructure revenues[132][133][134][135][136][137][138][139][140][141][142][143][144][145][146][147][148] Disclaimer and Notice to Readers This section provides important disclaimers regarding the preliminary and unaudited nature of the financial information, outlines risks associated with forward-looking statements, and addresses the impact of the war in Ukraine on VEON's operations Disclaimer Regarding Financial Information and Forward-Looking Statements This section emphasizes that the financial information presented is unaudited and preliminary, based on internal management accounts, and subject to change. It also includes a comprehensive disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially from projections - The financial information is preliminary, unaudited, and based on internal management accounts, and should not be unduly relied upon[149][154] - The document contains forward-looking statements, which are subject to risks and uncertainties, including further escalation of the war in Ukraine, market volatility, governmental regulation, and other factors[150][151][152][153] Notice Regarding Impact of War in Ukraine VEON acknowledges the significant impact of the ongoing war in Ukraine, including sanctions and counter-sanctions, on its operations and financial results in Ukraine and potentially other markets. The company is actively monitoring the situation and prioritizing employee safety and service continuity - The ongoing war in Ukraine and resulting sanctions have impacted and may significantly impact VEON's results and operations in Ukraine and other countries[155] - VEON is focused on protecting employee safety and ensuring uninterrupted communication, financial, and digital services in Ukraine[156] - Financial results for Kyivstar include the full consolidation of Ukraine Tower Company LLC (UTC), but UTC will be excluded from Kyivstar's standalone Nasdaq listing[157]