Global operator VEON reported strong first-quarter 2026 financial results with total revenue rising 17 percent to $1.201 billion, supported by higher ARPU, expanding digital services, stronger multiplay adoption, and sustained telecom infrastructure investments across Pakistan, Ukraine, Kazakhstan, Bangladesh, and Uzbekistan.
VEON’s telecom and infrastructure revenue increased 7.6 percent to $898 million, while digital revenue jumped 57.7 percent to $303 million, contributing 25.2 percent of group revenue compared with 18.7 percent a year earlier. EBITDA increased 17.7 percent to $517 million, with EBITDA margin improving to 43 percent.
The company said its performance was driven by ARPU expansion, disciplined pricing strategies, stronger customer monetization, acquisitions in digital businesses, and rising demand for AI-enabled digital services. VEON’s AI1440 and DO1440 strategies are focused on embedding AI across financial services, entertainment, healthcare, enterprise, ride-hailing, and super-app ecosystems.
Mobile subscribers stood at 150.5 million during the quarter, while 4G users increased 4.2 percent to 105.8 million, representing 70.3 percent of the subscriber base. Fixed broadband customers rose 8.9 percent to 2.03 million. Multiplay customers, using bundled telecom and digital services, grew 7.4 percent to 45.8 million.
VEON reported mobile ARPU growth of 17.3 percent to $2.3, while multiplay ARPU rose 7.7 percent to $3.6. The company said multiplay users continue to generate significantly higher customer value through bundled digital and connectivity offerings.
Digital customer growth remained a major highlight. Total digital customers reached 228.9 million, up 11 percent sequentially. Financial services users rose to 66 million, entertainment users reached 93.4 million, while healthcare users nearly doubled to 14 million following acquisitions and expansion of digital health services.
Pakistan remained VEON’s largest market with total revenue increasing 20.4 percent to $465 million. Telecom and infrastructure revenue in Pakistan rose 14.1 percent, while digital revenue increased 32.9 percent to $172 million. Pakistan’s EBITDA surged 29.2 percent to $209 million. Mobile subscribers in Pakistan grew 2 percent to 74.9 million, while 4G customers increased 7.2 percent to 57.1 million. Mobile ARPU in Pakistan climbed 19.4 percent to PKR 496.1.
Ukraine delivered the fastest major market growth with total revenue rising 26.7 percent to $325 million, driven by a 257 percent increase in digital revenue. Kazakhstan reported 13.1 percent revenue growth to $212 million, while Uzbekistan achieved 13.6 percent growth. Bangladesh posted modest total revenue growth of 4.2 percent despite a decline in telecom revenue, supported by rapid digital expansion.
VEON’s digital business divisions continued scaling rapidly. Financial services remained the largest contributor, accounting for around 45 percent of digital revenue at $135 million. Entertainment revenue rose 88.9 percent to $37 million, while premium digital brands revenue more than doubled to $26 million. Ride-hailing revenue reached $33 million, supported by Uklon operations in Ukraine and Uzbekistan. Enterprise digital revenue reached $63 million as VEON expanded AI, cloud, API, and data solutions for enterprise and government customers.
Healthcare digital revenue increased sharply to $8 million following the consolidation of Tabletki.ua and expansion of Helsi healthcare services in Ukraine. VEON said growing adoption of digital healthcare solutions is contributing to ecosystem monetization.
Capital expenditure for the quarter totaled $138 million, with last-twelve-month capex intensity at 20.4 percent and 15.8 percent excluding Ukraine. Telecom and infrastructure capex intensity stood at 24.9 percent, reflecting continued network modernization and broadband infrastructure investments. Digital capex reached $13 million during the quarter.
VEON increased its 2026 revenue growth guidance to 11 percent-14 percent from the earlier 9 percent-12 percent range, while maintaining EBITDA growth guidance of 7 percent-10 percent. The company also raised its capex intensity outlook to 15 percent-17 percent excluding Ukraine to support additional spectrum deployment and broadband expansion in Pakistan after securing major spectrum assets during the country’s recent auction.
The operator strengthened its digital infrastructure strategy through expanded partnerships with Starlink. Kyivstar in Ukraine surpassed 5 million Starlink-to-cell users and expanded broadband services for businesses and public sector institutions. Banglalink in Bangladesh and Beeline Kazakhstan are also preparing commercial satellite-enabled messaging and broadband services. VEON ended the quarter with $1.755 billion in cash and cash equivalents, while net debt excluding leases improved to 1.07x EBITDAaL, reflecting disciplined financial management and continued operational cash generation.
BABURAJAN KIZHAKEDATH