VEON Ltd. Q1 2025 Earnings: Revenue and Digital Growth Surge

May 15, 2025 6:00 AM - Stuart Mooney

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VEON Ltd. (NASDAQ:VEON) Quarterly Earnings Overview

Total revenue increased by 8.9% year-over-year to $1.026 billion.
Digital revenues surged by 50.2%, reaching $147 million and accounting for 14.3% of total revenue.
Financial stability improved with a $91 million reduction in net debt and 13.7% EBITDA growth to $439 million.

VEON Ltd. (NASDAQ:VEON), a global digital operator known for its telecommunications and digital solutions, released its quarterly earnings for Q1 2025 on May 15, 2025. The company outperformed analyst expectations, which had forecasted revenue of $996 million and earnings per share (EPS) of $0.83.

In Q1 2025, VEON reported total revenue of $1.026 billion, up 8.9% from the prior year, driven by a 50.2% surge in digital revenues to $147 million. Digital revenues now represent 14.3% of total revenue, reflecting VEON's strategic focus on digital expansion. The company competes with major telecom players like Vodafone and Orange.

VEON's financial health strengthened, with total cash and cash equivalents at $1.775 billion, including $662 million held at headquarters. Gross debt was $4.377 billion, down $4 million from the prior quarter. Net debt (gross debt minus cash and cash equivalents, excluding lease liabilities) decreased by $91 million to $1.810 billion, signaling improved financial stability.

EBITDA grew by 13.7% to $439 million, supported by strong operational performance. VEON's last twelve months (LTM) equity free cash flow was $387 million, with capital expenditures (Capex) of $135 million, underscoring its commitment to global expansion and digital growth.

VEON's stock has a price-to-earnings (P/E) ratio of 10.37 and an estimated price-to-sales (P/S) ratio of 0.75, suggesting a reasonable market valuation. The earnings yield is approximately 9.64%, attractive for investors. The current ratio of 0.79 is below the ideal threshold of 1, which may suggest liquidity challenges, though this is common in the telecom sector due to stable cash flows and long-term debt structures.

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