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 - 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. 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]

Financial Performance - VEON's total revenue increased by 8.9% YoY to $1,026 million in USD terms[16, 25], and by 15.7% in local currency terms[25, 78] - The underlying local currency revenue grew by 12.9% YoY, outpacing inflation and nominal GDP[16] - VEON's EBITDA increased by 13.7% YoY in USD terms[16, 25], and by 22.1% in local currency terms[25, 83] - Underlying EBITDA grew by 10.4% YoY[16] - Direct digital revenues surged by 50.2% YoY, comprising 14.3% of total revenues in 1Q25[1, 16, 25, 36] Digital Growth - Direct Digital Revenues reached $147 million in 1Q25, reflecting a 50.2% YoY increase[25, 81] - Multiplay segment revenue YoY growth was 24.8%[32] - Multiplay ARPU increased by 4.2%[32] Operational Highlights - VEON repaid the April 2025 VEON Holdings notes of $472 million[16] - June 2025 notes of $94 million are to be repaid at maturity[16, 93] - Group cash increased to $1,775 million[25, 93] - Net debt excl leases to LTM EBITDA ratio decreased to 1.2x in 1Q25 from 1.3x in 4Q24[25] Regional Performance - Pakistan's total revenue increased by 20.3% and EBITDA by 13.2%[39, 46] - Ukraine's total revenue increased by 20.2% and EBITDA by 10.2% in underlying local currency terms[40, 50, 52] - Kazakhstan's underlying revenue increased by 11.5%, but EBITDA decreased by 4.0%[41, 54, 55, 57] - Bangladesh's revenue decreased by 4.8% and EBITDA decreased by 47.5%[42, 59] - Uzbekistan's revenue increased by 13.1% and EBITDA increased by 16.5%[43, 63, 65, 66]