Core Insights - VEON Ltd. has launched a new Network Operations Center (NOC) for Beeline Uzbekistan in Tashkent, enhancing its digital infrastructure and customer service capabilities [1][3] - The company also introduced BuildX, a new software development and AI company aimed at contributing to Uzbekistan's digital economy [1][5] Group 1: Network Operations Center (NOC) - The NOC will oversee more than 5,850 base stations and ensure connectivity for 7.7 million customers as of September 2025 [3] - It operates as a proactive monitoring center, detecting outages in real time and enabling rapid repairs [3] - The Beeline Uzbekistan network was recognized as the most consistent network in Uzbekistan according to independent analysis by Opensignal [3] Group 2: Security Operations Center (SOC) - Beeline Uzbekistan has established a dedicated Security Operations Center (SOC) to monitor and respond to cybersecurity threats [4] - The SOC collaborates with IT and development teams to maintain a secure digital environment for customers and partners [4] Group 3: BuildX Initiative - BuildX will focus on developing scalable, export-ready technology solutions, enhancing Uzbekistan's position as a technology hub in Central Asia [5] - The company plans to recruit and train local engineers and data scientists, contributing to the development of national talent in advanced digital skills [7] - BuildX will collaborate with universities, startups, and technology partners to foster innovation and strengthen the local tech ecosystem [7] Group 4: Government Support and Vision - The Minister of Digital Technologies of Uzbekistan emphasized the country's ambition to become a regional technology hub, supported by robust policies for digital transformation [6] - VEON's initiatives, including the NOC and BuildX, align with Uzbekistan's vision for a digital future and economic growth [6][7] Group 5: Company Overview - VEON operates across five countries, providing connectivity to nearly 150 million users and digital services to over 140 million users [8] - Beeline Uzbekistan serves 7.7 million customers with mobile connectivity and has a total of 7.9 million monthly active users across its digital services [8]

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 Data and Key Metrics Changes - VEON reported an 8.3% revenue growth in 2024 in USD terms, exceeding the 8% to 10% growth expectation [8] - EBITDA grew by 4.9% in USD terms, surpassing the 4% to 6% expectation [8] - In local currency terms, revenue growth was 14.6%, exceeding the 12% to 14% expectation, while EBITDA grew by 12%, surpassing the 9% to 11% expectation [9][15] Business Line Data and Key Metrics Changes - Direct digital revenues surged by 63% for the full year, contributing 12.6% of total revenues in Q4 [10][25] - Telecom and Infrastructure segment revenues reached $3.6 billion, growing by 3.8% year on year in USD [18] - The Pakistan business showed the strongest performance with revenues growing 22.7% and EBITDA growing 15.6% in local currency terms [22] Market Data and Key Metrics Changes - Ukraine's revenues grew 13.7% and EBITDA grew 10.3% in local currency terms, recovering from a cyber attack [22][26] - Bangladesh faced significant challenges due to political unrest, but direct digital revenues increased by 66% [36] - Uzbekistan's revenues grew 9.4% in local currency terms, while EBITDA declined by 3.7% due to higher operating expenses [37] Company Strategy and Development Direction - VEON is focused on scaling digital services and has made substantial progress in executing an asset-light strategy [10][53] - The company plans to list Kyivstar on NASDAQ, enhancing visibility and profile [11][30] - VEON aims to continue delivering on its digital operator strategy and explore accretive market opportunities [54][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 revenue guidance of 12% to 14% in local currency, driven by strong growth in digital services [15][56] - The company is optimistic about the recovery of consumer confidence in Bangladesh and expects significant growth potential in the market [64] - Management acknowledged the impact of macroeconomic conditions but remains bullish about domestic growth and consumer confidence [106] Other Important Information - VEON's net debt to EBITDA ratio improved to 1.3 times, reflecting disciplined debt management [21][52] - The company completed a $100 million share buyback program, with $30 million repurchased in phase one [11][55] - Direct digital revenues are expected to continue growing, with a target of increasing their contribution to total revenues [63] Q&A Session Summary Question: Key drivers behind 2025 guidance and country contributions - Management highlighted direct digital revenues and acquisitions as key growth drivers, with expectations for strong contributions from Ukraine, Pakistan, and Kazakhstan [64] Question: Competition developments in main markets - New competitors are entering markets like Ukraine and Kazakhstan, but VEON is well-positioned as a digital operator [66] Question: Plans for tower assets - Management confirmed ongoing tower assets in various countries and a significant deal with Anglo Corporation for tower sales [68] Question: Use of proceeds from tower deals - Proceeds from tower deals will be used for deleveraging at both local and corporate levels [89] Question: Eurobond market access timeline - Management indicated no immediate plans to return to the Eurobond market but remains open to future opportunities [91] Question: Strategic rationale behind the acquisition of Ooklon - The acquisition is seen as a way to meet unmet demand in frontier markets and integrate ride-hailing services into the digital ecosystem [78] Question: Guidance assumptions regarding Ukraine's political situation - Management remains focused on customer needs and is prepared for various political scenarios in Ukraine [80]