VEON has reported strong second-quarter 2026 growth, supported by higher telecom ARPU, rapid expansion of digital services and continued investment in network infrastructure. The telecom and digital services group generated total revenue of $1.271 billion in Q2 2026, up 17 percent year over year from $1.087 billion. First-half revenue also increased 17 percent to $2.472 billion from $2.113 billion.
The strong first-half performance prompted VEON to raise its full-year 2026 revenue growth outlook to 15–18 percent from the previous 11–14 percent range. EBITDA growth guidance was increased to 9–12 percent from 7–10 percent, while Capex intensity guidance excluding Ukraine remains unchanged at 15–17 percent.
VEON Telecom Revenue Reaches $929 Million as Mobile ARPU Rises
Telecommunications and infrastructure remained VEON’s largest business, generating Q2 revenue of $929 million, up 7.6 percent from $865 million a year earlier. First-half telecom and infrastructure revenue increased 7.6 percent to $1.828 billion from $1.699 billion.
Mobile ARPU increased 6.3 percent to $1.80 from $1.70, reflecting pricing actions and stronger customer engagement.
VEON’s overall ARPU increased 16.6 percent to $2.50 from $2.10. Multiplay ARPU climbed 14.4 percent to $3.90 from $3.40, voice ARPU increased 6.1 percent to $0.96 from $0.91, and fixed ARPU advanced 12.3 percent to $6.30 from $5.60.
Multiplay customers are particularly valuable to VEON, generating four times the ARPU of voice-only users as customers increasingly combine connectivity with the group’s digital services.
Mobile Subscribers Reach 151.5 Million, 4G Users Rise to 106.9 Million
VEON ended Q2 2026 with 151.5 million mobile customers, down 0.5 percent from 152.3 million a year earlier but up from 150.5 million in Q1 2026.
The number of 4G users increased 3.7 percent to 106.9 million from 103.1 million. The 4G penetration rate consequently increased by 2.9 percentage points to 70.6 percent from 67.7 percent.
Multiplay customers increased 4.5 percent to 45.3 million from 43.3 million and represented 34.3 percent of VEON’s one-month mobile subscriber base.
VEON’s fixed customer base expanded 10.1 percent to 2.06 million from 1.87 million.
VEON did not disclose a consolidated Group churn rate in its Q2 2026 key telecommunications metrics.
VEON Digital Revenue Surges 53.6 Percent to $342 Million
Digital services were VEON’s fastest-growing major revenue segment during the quarter. Digital revenue jumped 53.6 percent year over year to $342 million from $222 million and represented 26.9 percent of total Group revenue, compared with 20.5 percent in Q2 2025.
For the first half of 2026, digital revenue surged 55.5 percent to $644 million from $414 million, increasing its contribution to Group revenue to 26.1 percent from 19.6 percent.
Digital EBITDA rose 66.2 percent to $124 million in Q2, while the digital EBITDA margin increased to 36.1 percent from 33.4 percent. First-half digital EBITDA climbed 63.6 percent to $228 million.
Financial Services generated $151 million in Q2 digital revenue, up 48.5 percent, while Digital Life revenue surged 90.5 percent to $119 million. Digital Enterprise revenue increased 25.5 percent to $72 million.
Within Digital Life, entertainment revenue jumped 95.6 percent to $45 million, ride-hailing increased 50.8 percent to $33 million, healthcare surged 476.9 percent to $10 million and premium digital brand revenue increased 90 percent to $28 million.
Pakistan was VEON’s largest digital market with $193 million in Q2 digital revenue, up 45.6 percent. Ukraine digital revenue surged 83 percent to $74 million, Kazakhstan increased 36.8 percent to $45 million, Bangladesh jumped 253.7 percent to $17 million and Uzbekistan rose 28.8 percent to $13 million.
Digital Customer Base Reaches 227.7 Million
VEON reported 227.7 million active digital customers during Q2 2026, compared with 226.3 million in Q1 and 204.5 million in Q4 2025.
The digital ecosystem included 58.8 million Financial Services customers, 93.2 million entertainment users, 5.2 million ride-hailing users, 16.2 million healthcare users and 7.8 million premium digital brand users. SuperApps, marketplaces, education and other services accounted for 74.2 million users.
Digital-only customers reached 76 million, up from 72.8 million in Q1. These are customers actively using VEON’s digital platforms without being telecom subscribers on VEON’s mobile networks, expanding the company’s addressable market beyond its traditional connectivity customer base.
VEON Expands AI Across More Than 30 Million Customer Touchpoints
Artificial intelligence is becoming a larger component of VEON’s digital strategy through its AI1440 programme and AI First initiative.
VEON mobilised 77 AI initiatives across five markets during Q2 2026, covering networks, customer care, digital services, fintech, healthcare and enterprise operations.
AI-powered products are now live across more than 30 million customer touchpoints, with VEON targeting improvements in customer engagement, process automation, productivity and operating savings.
VEON is also developing enterprise AI opportunities. Digital Enterprise generated $72 million in Q2 revenue, up 25.5 percent, from platforms providing AI, cloud and data solutions to corporate and government customers.
VEON Capex Reaches $198 Million as Digital Investment Rises 90.2 Percent
VEON invested $198 million in capex during Q2 2026, down 14.3 percent from $231 million a year earlier. First-half capex reached $336 million, down 8.1 percent from $366 million.
Telecommunications and infrastructure accounted for $173 million of Q2 capex, down 20.5 percent from $218 million. In contrast, digital capex surged 90.2 percent to $25 million from $13 million.
For the first half, telecom and infrastructure capex was $296 million, down 14 percent from $345 million, while digital capex jumped 88.5 percent to $40 million from $21 million.
VEON’s last-12-month capex intensity declined to 18.9 percent from 21.4 percent. Excluding Ukraine, capex intensity stood at 15 percent. Telecommunications and infrastructure capex intensity was 22.8 percent, compared with 24.9 percent a year earlier, while digital capex intensity increased to 7.1 percent from 6.1 percent.
VEON expects 2026 capex intensity excluding Ukraine to remain between 15 percent and 17 percent. The company highlighted continued investment in Pakistan following recent spectrum acquisitions to support data monetisation and future growth.
Fixed Customers Grow 10.1 Percent as Network Investment Continues
VEON’s fixed customer base increased 10.1 percent year over year to 2.06 million, while fixed ARPU rose 12.3 percent to $6.30, indicating stronger monetisation of the company’s fixed connectivity operations.
VEON continues to invest in network capacity, spectrum-related assets, digital platforms and IT infrastructure. Depreciation and amortisation increased 14.9 percent year over year in Q2, partly reflecting sustained investment in these areas.
The company is also extending connectivity through satellite technology. VEON’s Starlink collaboration is progressing in Ukraine, Kazakhstan and Bangladesh. In Ukraine, Kyivstar has more than 6 million users for its satellite-enabled service, which has progressed beyond messaging to provide access to satellite-ready applications when terrestrial signals are unavailable.
Overall, VEON’s Q2 2026 performance shows an increasingly diversified business model. Telecom and infrastructure revenue grew 7.6 percent, mobile ARPU increased 6.3 percent, fixed customers expanded 10.1 percent and digital revenue surged 53.6 percent. With digital services already accounting for 26.9 percent of Group revenue and AI products reaching more than 30 million customer touchpoints, VEON is increasingly combining its core telecom infrastructure with digital platforms, financial services and AI-led applications to drive growth.
BABURAJAN KIZHAKEDATH
