VEON Ltd. has reaffirmed its commitment to the Digital Qazaqstan Strategy during a meeting between Group CEO Kaan Terzioglu and President Kassym-Jomart Tokayev of Kazakhstan. The discussions took place following the 38th plenary session of the Foreign Investors Council (FIC) in Astana. This strategic alignment aims to position Kazakhstan as a creator and exporter of digital innovation through significant infrastructure investments.

Direct to Cell Technology Launch

A key outcome of the collaboration is the progress toward launching Direct to Cell technology in Kazakhstan. Developed with the Ministry of Artificial Intelligence and Digital Development, this hybrid solution combines terrestrial infrastructure with satellite technology. It is designed to provide 100% coverage of the country. Availability for Kazakhstani citizens is planned for August 2026.

Infrastructure and Cloud Investments

VEON and its subsidiary Beeline Kazakhstan are advancing several digital infrastructure projects. In December 2025, Beeline Kazakhstan began constructing a Tier III Hyper Cloud data center in Almaty. This facility is intended to anchor a sovereign cloud and AI compute ecosystem for the enterprise and public sectors, with operations targeted to begin by the end of 2026.

Beeline Kazakhstan has also partnered with Starlink Direct to Cell to advance satellite connectivity. The company completed Central Asia's first field test of voice and SMS services over the network. A commercial rollout is planned to begin with messaging services later in the year.

Strategic Vision

Kaan Terzioglu, VEON Group CEO, emphasized the long-term nature of the partnership. "We remain focused on investing in Kazakhstan and building the infrastructure of the future, from telecommunications networks to computing power and AI-based digital services," he said. "Our goal is to help Kazakhstan become not just a consumer of advanced technologies, but a creator, developer and exporter of digital innovation."

During the visit, Terzioglu also met with Zhaslan Madiyev, Deputy Prime Minister and Minister of AI and Digital Development of Kazakhstan, to further discuss these initiatives.

Company Profiles

VEON Ltd reported a strong start to 2026 with a 17% increase in revenues and a 17.7% rise in EBITDA for the first quarter, driven by a significant surge in digital services. The company’s financial performance reflects the successful execution of its digital operators strategy, combining resilient connectivity with fast-scaling digital platforms. VEON has raised its 2026 revenue growth outlook to 11%-14% while maintaining its EBITDA growth guidance at 7%-10%.

Group revenue reached $1.2 billion in Q1 2026, growing 17% year on year in US dollar terms. EBITDA increased 17.7% to $517 million, with margins expanding by 20 basis points to 43%. This growth translated into strong cash generation, with equity free cash flow up 73.4% year on year to $246 million. The balance sheet remains robust, with cash standing at $1.75 billion and net debt excluding leases at $1.76 billion, reducing leverage to a net debt-to-EBITDA ratio of 1.07 times.

Digital Performance

Digital revenues were a primary driver of growth, surging 57.7% year on year to reach $303 million. This segment now represents over 25% of group revenues. The growth was broad-based, with notable contributions from financial services, entertainment, ride-hailing, and healthcare. The company refined its reporting by including enterprise identity and credentials management within digital enterprise, which contributed $44 million for the quarter. On a comparable basis excluding this reclassification, digital revenues grew over 75%.

Operational Highlights

VEON secured the largest spectrum allocation in the March Spectrum auction in Pakistan, strengthening capacity and supporting future growth. The company is expanding its financial services footprint, with acquisitions of TPL Insurance and APNA Bank progressing as planned. Targeted acquisitions such as OLX and Tabletki are deepening the ecosystem, enhancing engagement and monetization opportunities. Multiplay customers, who use connectivity with digital services, delivered significantly higher value and helped raise overall output to $2.3 for the quarter from $2 a year ago.

Shareholder Returns and Guidance

VEON continues to prioritize shareholder value through its buyback program. The current $100 million buyback is underway, and the company is committed to a minimum of $100 million in annual share repurchases subject to market conditions and liquidity. Shares repurchased under future programs will be cancelled. Capex intensity excluding Ukraine is expected to be in the range of 15% to 17%.

Key Financial Metrics for Q1 2026