Core Insights - VEON Ltd. has successfully completed a field test in Kazakhstan, marking the first voice call and text messages via Starlink Direct to Cell, integrating satellite and terrestrial mobile connectivity in Central Asia [1][2][4] Group 1: Test Details - The test involved Beeline Kazakhstan's CEO and Kazakhstan's Deputy Prime Minister making a WhatsApp audio call using standard smartphones connected through Starlink satellites [2] - Conducted in the Akmolinskaya region, the test confirmed interoperability between Starlink's satellites and Beeline Kazakhstan's mobile network, demonstrating connectivity in areas lacking traditional coverage [3] Group 2: Technological Significance - This achievement is a significant milestone for Kazakhstan, enhancing connectivity in remote areas and contributing to national communication resilience [4][5] - Starlink's technology allows connectivity in challenging terrains, which is crucial for safety and communication in Kazakhstan's diverse geography [5] Group 3: Future Plans - Beeline Kazakhstan plans to roll out Starlink Direct to Cell connectivity for customers starting with SMS services in 2026, pending regulatory approval [7] - The integration of satellite and terrestrial networks is expected to transform coverage capabilities, allowing customers to remain connected using their existing smartphones [6] Group 4: Company Overview - VEON operates across five countries, serving nearly 150 million connectivity users and 120 million digital users, focusing on technology-driven services to enhance economic growth [8] - Beeline Kazakhstan serves 11.7 million mobile customers and has developed a digital ecosystem of 60 products over the past five years [9][10] Group 5: Starlink Overview - Starlink Direct to Cell is the largest satellite constellation providing mobile connectivity, with over 650 satellites in low-Earth orbit, enabling voice, video, and messaging services in mobile dead zones [11]

Financial Data and Key Metrics Changes - Total revenue increased by 11% to $67.1 million for Q2 2025 compared to $60.4 million in the prior year period [5] - Service revenue rose by 10%, primarily driven by wholesale capacity services and an increase in the average number of subscribers in commercial IoT [5] - Adjusted EBITDA increased to $35.8 million from $32.6 million in the prior year's second quarter, despite certain cost increases impacting adjusted EBITDA margin by 300 basis points [5][6] - Adjusted free cash flow for the six months ended June 30, 2025, was $77.9 million compared to $51.9 million in the prior year period [6] Business Line Data and Key Metrics Changes - Growth in commercial IoT was highlighted by a record number of growth activations over the last twelve months [5] - The XCOM RAN development incurred higher cash costs, negatively impacting adjusted EBITDA by approximately $1.9 million [6] Market Data and Key Metrics Changes - The company is well-positioned to manage potential financial impacts from evolving tariff environments due to its global manufacturing and logistics footprint [7] - The company anticipates a relatively immaterial impact from tariffs in the near term [7] Company Strategy and Development Direction - The company is focused on executing a clearly defined strategy to capture opportunities in government and commercial sectors, including investments in core infrastructure and strategic partnerships [11][12] - A global infrastructure program has been initiated to prepare for the next generation extended MSS network, with significant upgrades planned across multiple ground stations [12] - The company is expanding its presence in defense and government markets, with new agreements expected to contribute significantly to revenue [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term profitability and strategic importance of the XCOM RAN product offering despite upfront investments [6] - The company reiterated its full-year 2025 revenue outlook in the range of $260 million to $285 million, with an anticipated adjusted EBITDA margin of approximately 50% [7] Other Important Information - The company signed a launch services agreement with SpaceX for the deployment of additional satellites, expected to enhance service continuity [13][18] - The company is actively advancing its XCOM RAN platform, which is seen as a critical entry point into terrestrial wireless markets [16][17] Q&A Session Summary Question: Any updates on the international retail opportunity for terrestrial? - Management indicated progress in enterprise sales cycles and opportunities for expansion in the business [21][22] Question: Are there any other engagements in different verticals? - Management confirmed ongoing discussions with companies in high-demand network rollouts and positive developments in government projects [26][27] Question: Any updates on XCOM RAN as a potentially licensable technology? - Management noted challenges in licensing but emphasized strong technical validation and interest in their product [28][29] Question: Updates on international licenses and authorizations? - Management reported recent success in obtaining licenses in Mexico and ongoing efforts to secure higher power system authorizations [31][32] Question: Feasibility of spectrum sharing? - Management addressed misinformation about spectrum utilization and expressed confidence in their regulatory relationships [36][39]