VEON Ltd.

In Q2 2026, VEON reported revenue of $1.27 billion, up 17% year over year, and first-half revenue of $2.47 billion, also up 17%. EBITDA was $552 million, up 6.2%, with a 43.4% margin; telecom and infrastructure EBITDA was $428 million, down 3.8%, while digital EBITDA rose 66.2% to $123 million. Operating cash flow rose 238% to $463 million in the quarter and 51% to $860 million in the first half; equity free cash flow after leases and licenses grew 47.5% to $320 million in the first half. The company ended the quarter with $2.2 billion in cash, $1.8 billion of net debt excluding leases, and lease-adjusted leverage of 1.1x. VEON raised full-year guidance to 15% to 18% revenue growth and 9% to 12% EBITDA growth, while keeping capital expenditure outlook unchanged.

Kaan Terzioglu framed the quarter as evidence that VEON's transformation into a broader digital ecosystem is working. He emphasized the company's 'flywheel' of connectivity, financial services, digital life, and digital enterprise, saying digital is scaling faster than expected and now generates meaningful profits and cash. He was upbeat about repeatability across markets, highlighted Pakistan, Ukraine, Kazakhstan, Uzbekistan, and Bangladesh, and said the stronger performance justified raising guidance and institutionalizing capital returns through annual share cancellations.

Burak Ozer focused on the quarter's hard numbers and balance-sheet strength. He cited 17% revenue growth to $1.27 billion, EBITDA of $552 million, digital revenue of $342 million, and strong cash generation, including $463 million of operating cash flow in Q2 and $860 million in the first half. He also highlighted $2.2 billion of cash, $1.8 billion of net debt excluding leases, lease-adjusted leverage of 1.1x, and the $1.4 billion bond offering that pushed headquarters maturities beyond four years and addressed 2027 maturities ahead of schedule.

Analysts pressed management on why guidance was raised so sharply, and management said the digital flywheel is outperforming expectations, with digital revenue growth above 50% and digital EBITDA margins better than anticipated. They also discussed capital returns, with management saying the company will keep prioritizing share cancellations, selective in-market consolidation, and debt reduction. Questions on financial services focused on Pakistan, Bangladesh, and Ukraine; VEON said Pakistan's JazzCash is already large and that Bangladesh should launch payment services in Q3, while Ukraine remains dependent on the regulatory environment. Starlink and satellite connectivity were another focus, with management saying the partnership is complementary, non-exclusive, and likely expandable where regulators permit.