VEON .(US:VEON)2025-11-10 19:44Financial 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]