VEON Q1 2026 revenue jumps 17% on digital surge
VEON Ltd reported a 17% increase in Q1 2026 revenues to $1.2 billion and a 17.7% rise in EBITDA to $517 million, driven by a 57.7% surge in digital revenues. The company raised its 2026 revenue growth outlook to 11%-14% while maintaining EBITDA growth guidance at 7%-10%. Net debt-to-EBITDA improved to 1.07 times.
*this image is generated using AI for illustrative purposes only.
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
| Metric | Value | YoY Change |
|---|---|---|
| Group Revenue | $1.2 billion | 17% |
| EBITDA | $517 million | 17.7% |
| EBITDA Margin | 43% | 20 bps expansion |
| Digital Revenues | $303 million | 57.7% |
| Equity Free Cash Flow | $246 million | 73.4% |
| Net Debt-to-EBITDA | 1.07 times | - |
How will the acquisitions of TPL Insurance and APNA Bank specifically contribute to the diversification of VEON's revenue streams beyond traditional connectivity?
What are the projected capital expenditure requirements to monetize the new spectrum secured in Pakistan, and how will this impact the 15%-17% Capex intensity guidance?
Can the 75% comparable growth rate in digital services be sustained as the revenue mix shifts towards a higher base of digital income?
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