Core Viewpoint - VEON Ltd. has launched the "Invest in Pakistan, NOW!" initiative in partnership with JazzWorld to attract international investors to Pakistan as the country's economic fundamentals improve and growth opportunities become more apparent [1][5][6] Group 1: Initiative Details - The initiative aims to encourage international investors to reconsider Pakistan, highlighting the strengthening economic fundamentals and long-term growth prospects [1][5] - JazzWorld and Nutshell Group of Pakistan signed a Memorandum of Understanding (MoU) to foster dialogue and partnerships focused on digitalization and cross-border investment [2][5] - The signing ceremony was attended by key figures including the Minister of State for Finance and Railways of Pakistan and senior executives from VEON and JazzWorld [3][5] Group 2: Economic Context - The Minister of State for Finance emphasized that Pakistan has achieved macroeconomic stability, supported by government initiatives to enhance investor confidence and the business environment [5] - VEON Group CEO noted that the region is on the verge of a significant transformation, driven by AI and human-centered innovation, which can enhance growth and improve lives [6] Group 3: VEON's Commitment - VEON has invested over USD 11 billion in Pakistan since its establishment in 1994, demonstrating its long-term commitment to the market [8] - The company operates JazzWorld, which serves 100 million customers and offers a wide range of digital services, including connectivity, fintech, and entertainment [7][10] Group 4: Future Outlook - Aamir Ibrahim, CEO of JazzWorld, highlighted that Pakistan's long-term fundamentals are strong, and the country is well-positioned for growth, making it an attractive opportunity for regional and global investors [6][7]

Core Insights - VEON Ltd. has been recognized at the World Communication Awards 2025 for its advancements in financial inclusion, resilient connectivity, and digital transformation [1][2] Group Achievements - JazzCash, VEON's digital financial services platform in Pakistan, won the Gold Award in the Beyond Connectivity category, highlighting its role in expanding financial access [2][4] - Kyivstar, VEON's operator in Ukraine, received the Silver Award for Satellite Telecommunications, showcasing its efforts to maintain connectivity in challenging circumstances [2][3] - Jazz, VEON's operator in Pakistan, earned a Silver Award for Best Digital Transformation Programme, reflecting its commitment to delivering AI-powered digital experiences [2][5] Strategic Focus - VEON's CEO emphasized the company's commitment to building digital services that promote access, resilience, and inclusion across its markets [3] - The recognition of JazzCash aligns with VEON's strategy to leverage digital services for economic empowerment and social impact, with JazzCash serving 20.6 million monthly active users and a merchant base of 750,000 [4][9] Technological Innovations - Kyivstar's recent milestone includes the launch of SMS messaging via Starlink Direct to Cell satellites, enhancing connectivity in areas with infrastructure disruptions [3] - Jazz's joint award with Huawei for Best Digital Transformation Programme underscores its evolution into a digital life partner, addressing diverse customer needs across various sectors [5] Industry Recognition - The World Communications Awards are organized by Total Telecoms and are recognized as prestigious accolades in the telecommunications industry, adjudicated by over 100 independent experts [6]

Financial Data and Key Metrics Changes - Company reported total revenue of $1.115 billion for Q3 2025, reflecting a year-on-year growth of 7.5% in USD terms [24] - EBITDA for the quarter was $524 million, representing a growth of 19.7%, with an EBITDA margin of 47%, up 400 basis points year-on-year [25] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [8][9] Business Line Data and Key Metrics Changes - Direct digital revenues grew 63% year-on-year to reach $198 million, now accounting for 17.8% of total revenues, up from 11% a year ago [25] - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting the impact of differentiated networks and services [8] - Multiplay customers generated 3.8 times the ARPU of voice-only subscribers, with 55.4% of total customer revenues coming from this segment, which grew revenue-wise by 23% year-on-year [12][13] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which saw a return to year-on-year growth for the first time in 14 months [14] - In Pakistan, the financial services business gross transaction value rose 40% year-on-year, representing 13% of the country's GDP [15] - The digital-only user base has more than doubled to 50 million, representing nearly 35% of total digital users [17] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [6] - The company is exploring opportunities for further investment in Ukraine, aligning with its "Invest in Ukraine Now" initiative [35] Management's Comments on Operating Environment and Future Outlook - Management raised the fiscal year 2025 EBITDA outlook to 16%-18% growth in local currency terms, up from 14%-16% [4] - The company remains confident in its growth trajectory despite macro and geopolitical challenges, with a focus on sustaining long-term value creation [29][30] - Management emphasized the importance of operational cost management and disciplined pricing actions in supporting margin improvements [58] Other Important Information - The company completed the operational separation of JazzCash, enhancing growth potential in digital financial services [15] - A $100 million share and/or bond repurchase program was approved by the board, reflecting confidence in growth prospects [7] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [26] Q&A Session Summary Question: Motivation for Kyivstar's SPAC transaction - Management chose a SPAC structure for its deal certainty and speed, believing it was the right move to list Kyivstar successfully [34] Question: Plans for cash at headquarters - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [38] Question: Future of tower assets in Ukraine - The company aims to pursue divestment of tower assets in Ukraine, similar to its strategy in Pakistan, to enhance cash generation [45] Question: Financial services in Pakistan - The financial services business targets unbanked individuals, with microloans providing essential support to small businesses [49] Question: Growth of JazzCash and MMBL - The company plans to leverage capabilities from JazzCash and MMBL to expand fintech services in other markets, focusing on smartphone penetration [72] Question: Ride-hailing market expansion - The company has ambitions to grow its ride-hailing business in other markets, with a city-by-city operational strategy [80] Question: Trade-off between scale and profitability - Management noted that digital services have not diluted EBITDA margins as expected, attributing this to operational cost discipline [58] Question: Run rate for financial services EBITDA - The financial services business has shown steady growth, with expectations for continued performance in the coming quarters [95]

Financial Data and Key Metrics Changes - Company reported total revenue of $1.115 billion for Q3 2025, reflecting a year-on-year growth of 7.5% in U.S. dollar terms [24] - EBITDA for the quarter was $524 million, representing a growth of 19.7%, with an EBITDA margin of 47%, up 400 basis points year-on-year [25] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [8][9] Business Line Data and Key Metrics Changes - Direct digital revenues grew 63% year-on-year to reach $198 million, now accounting for 17.8% of total revenues, up from 11% a year ago [25] - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting the impact of differentiated networks and services [8] - Multiplay customers generated 55.4% of total customer revenues, with this segment growing revenue-wise by 23% year-on-year [13] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which saw a return to year-on-year growth for the first time in 14 months [14] - Beeline Kazakhstan's revenues on a like-for-like basis were up 23.3%, despite headline numbers showing single-digit growth [14] - The financial services business in Pakistan reported a gross transaction value increase of 40% year-on-year, representing 13% of Pakistan's GDP [15] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [6] - The company is keen on expanding its digital services portfolio and enhancing capital efficiency while maintaining EBITDA growth [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [29] - The company aims to maintain revenue guidance of 13%-15% growth in local currency terms, translating to 7%-8% revenue growth in U.S. dollar terms [29] - Management highlighted the importance of digital services in driving customer engagement and retention, with a focus on expanding smartphone ownership in frontier markets [72][86] Other Important Information - The company completed the operational separation of JazzCash, enhancing growth potential in digital financial services [15] - A $100 million share and/or bond repurchase program was approved by the board, reflecting confidence in growth prospects [7] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [26] Q&A Session Summary Question: Motivation for Kyivstar's SPAC transaction - Management chose a SPAC structure for its deal certainty and speed, believing it would create opportunities for international investors in Ukraine [34] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [38][39] Question: Future of tower assets in Ukraine - The company aims to pursue divestment of tower assets, favoring independent tower companies for better infrastructure sharing [44][46] Question: Financial services growth and loan types - The financial services business targets unbanked individuals, offering nano loans averaging $30-$40, crucial for small businesses [48][49] Question: Strategies for increasing JazzCash penetration - The company plans to enhance smartphone ownership and leverage competencies from Pakistan to expand fintech capabilities in other markets [72][73] Question: Digital bank licensing in Pakistan - The company is exploring upgrading its microfinance banking license to a full digital bank license to enhance capabilities [76] Question: Ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to grow in priority markets like Kazakhstan and Pakistan [80]

Financial Data and Key Metrics Changes - Revenues grew 7.5% year-on-year in USD terms, reaching $1.115 billion in Q3 2025 [4][22] - USD EBITDA increased by 19.7% year-on-year, amounting to $524 million, with an EBITDA margin of 47%, up 400 basis points year-on-year [4][22] - Last 12-month EPS stands at $8.89, up 60.2% year-on-year, although reported EPS for Q3 alone was a loss of $1.84 per share due to non-cash charges [7][8] - Direct digital revenues surged 63% year-on-year, now contributing 17.8% of total group revenues [4][22] Business Line Data and Key Metrics Changes - Telecom and infrastructure segment revenues grew 3.5% on a like-for-like basis, reflecting differentiated networks and services [7] - Digital services now account for 17.8% of total revenues, up from 11% a year ago [22] - Multiplay customers, who use at least one digital service in addition to voice and data, generated 55.4% of total customer revenues, growing revenue-wise by 23% year-on-year [11][12] Market Data and Key Metrics Changes - Strong double-digit revenue growth was delivered across all markets except Bangladesh, which returned to year-on-year growth for the first time in 14 months [12] - VLINE Kazakhstan's revenues grew 23.3% on a like-for-like basis, adjusting for TNS Plus deconsolidation [12] - The financial services business in Pakistan saw gross transaction value rise 40% year-on-year, representing 13% of Pakistan's GDP [13] Company Strategy and Development Direction - The company is focused on a digital operator model, combining connectivity, digital platforms, and financial inclusion to unlock sustainable growth [4] - The asset-light strategy continues with the sale of Kyrgyzstan operations and a global framework agreement with Starlink for satellite connectivity [5][6] - The company is committed to enhancing its digital services portfolio, with AI integration becoming central to operations [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macro and geopolitical challenges, revising EBITDA growth outlook to 16%-18% in local currency terms for the full year [24] - The board approved a $100 million share and/or bond repurchase program, reflecting confidence in growth prospects [6][24] - Management highlighted the importance of digital engagement exceeding mobile engagement, indicating a shift in customer interaction [15] Other Important Information - The listing of Kyivstar on NASDAQ unlocked significant value, with a current market valuation of $2.8 billion [6] - The company retains an 89.6% stake in Kyivstar, valued at $2.5 billion at current market prices [6] - The company ended the quarter with a cash balance of $1.67 billion, including $653 million at headquarters [23] Q&A Session Summary Question: Motivation for choosing a SPAC structure for Kyivstar's listing - Management believed in Ukraine's future and opted for a De-SPAC process to fast-track the listing, achieving a valuation of $2.8 billion [26][27] Question: Plans for cash at headquarters level - The cash at headquarters is $653 million, with limitations on upstreaming due to martial law in Ukraine, focusing on investments in the country [27][28] Question: Future of tower assets in Ukraine - The company aims to pursue an asset-light strategy, considering independent tower companies for better infrastructure management [29][30] Question: Financial services growth in Pakistan - The financial services business is growing steadily, with a focus on microloans and a significant merchant network driving cashless transactions [32][33] Question: Plans for ride-hailing business expansion - The ride-hailing business operates in 28 cities, with plans to explore growth in other markets on a city-by-city basis [44] Question: Digital banking license for MMBL - The company is considering upgrading to a full digital bank license to enhance capabilities and contribute to the cashless economy initiative [43]

Core Insights - VEON Ltd.'s digital financial services platform, JazzCash, has won the Silver Award in the Banking category at Money20/20 USA 2025, highlighting its significant role in the financial services ecosystem [1][4] Company Overview - JazzCash is recognized for its innovative digital lending feature, ReadyCash, which provides instant credit to individuals and micro-entrepreneurs, disbursing an average of 140,000 digital loans daily, making it the largest digital lender in Pakistan [2][3] - The platform serves 54 million customers and offers a wide range of financial services, including payments, lending, insurance, and government disbursements [6] Industry Impact - The award underscores JazzCash's contribution to financial inclusion in Pakistan, aligning with the National Financial Inclusion Strategy aimed at increasing formal financial access to 75% of the population by 2028 [3] - JazzCash's recognition at Money20/20 USA positions Pakistan's digital financial ecosystem on the global map of lending innovation, competing with major global players like J.P. Morgan Payments and Revolut [4][5]

Core Insights - VEON Ltd. inaugurated the JazzCash Experience Lounge in Islamabad, Pakistan, aimed at promoting digital financial services [1][3] - JazzCash, with 53 million customers, is the leading digital financial services provider in Pakistan, processing transactions equivalent to approximately 9% of the country's GDP in 2024 [2][5] - The Experience Lounge serves as a demonstration hub for digital payment systems, showcasing various technologies and payment methods to enhance financial inclusion [4][5] Company Overview - VEON operates across five countries, serving over 150 million connectivity customers and approximately 120 million monthly active digital users [7] - JazzCash operates under a Branchless Banking charter, offering a wide range of financial services including payments, lending, and insurance [8] Industry Impact - JazzCash's extensive network includes nearly 600,000 merchants and 300,000 agents, facilitating financial access and supporting small-scale commerce [2][4] - The platform disburses over 140,000 digital loans daily to micro-entrepreneurs, contributing to inclusive economic growth [2] - VEON's digital financial services platforms processed approximately US$43.6 billion in total transaction value over the last twelve months, highlighting their economic impact in frontier markets [5]

Financial Performance - VEON's total revenue reached $1087 million, a 5.9% YoY increase in reported terms and 11.2% in local currency[21, 48] - EBITDA was $520 million, up 13.2% YoY in local currency and 19.6% in reported terms, with an EBITDA margin of 47.8%, a 3.1 percentage point increase[21, 54] - Direct digital revenues grew significantly, reaching $180 million, a 56.6% YoY increase in reported terms and 62.4% in local currency, representing 16.5% of total revenues[21, 48] Digital Growth & Strategy - Direct digital revenues now account for 16.5% of total group revenues, compared to 11.2% in Q2 2024[21] - VEON is focused on growing direct digital revenues through financial services, healthcare, entertainment, ride-hailing, and enterprise services[24] - Multiplay users are driving revenue growth, with multiplay segment revenue reaching $438 million[29, 31] Debt & Liquidity - Net debt (excluding leases) stood at $1962 million, with a net debt to LTM EBITDA ratio of 1.32x[21] - Group cash was $1283 million, including $206 million at the HQ level[21, 58] - The company enhanced financial flexibility with a subsequent $200 million bond placement[16, 58] Revised Outlook - VEON revised its 2025 outlook, projecting total revenue growth of 13%-15% and EBITDA growth of 14%-16% in local currency[15, 60] - Capex intensity is expected to be 17%-19% for 2025[60]

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]