VEON, the global telecommunications and digital services group operating across Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan, reported a 17.2 percent increase in revenue to $1.307 billion in the third quarter of 2026, supported by growth in telecom services, digital platforms and customer engagement.
VEON Q3 2026 results indicated that the company reported capital expenditure of $225 million, an increase of 1 percent year on year, while its telecommunications subscriber base reached 152.3 million, up 1.9 percent.
Digital services revenue surged 45.9 percent to $355 million, representing 27.2 percent of total group revenue, compared with 21.8 percent a year earlier.
VEON’s digital customer base expanded 8.2 percent to 221.1 million, demonstrating the growing contribution of digital financial services, entertainment, superapps and enterprise AI solutions.
The group, which operates telecom brands including Jazz, Kyivstar and Beeline, also raised its 2026 revenue growth outlook to 16–18 percent from the previous range of 15–18 percent.
VEON Capex Reaches $225 Million in Q3 2026
VEON reported capital expenditure of $225 million during Q3 2026, compared with $223 million in Q3 2025.
For the first nine months of 2026, capital expenditure declined 4.7 percent to $562 million from $589 million.
The group’s trailing 12-month capex intensity reached 18.2 percent, reflecting continued investment in telecommunications infrastructure and digital services.
Excluding Ukraine, capex intensity was 15.4 percent, within the company’s full-year target range of 15–17 percent.
VEON maintained this capex intensity guidance for 2026, indicating that investment discipline remains a priority as it expands network and digital services.
Capital expenditure differed significantly across the group’s operating markets, with Pakistan increasing investment and Ukraine and Kazakhstan reducing spending.
VEON Capex by Country: Pakistan Leads Investment Growth
| Market | Q3 2026 capex | Annual change |
| Pakistan – Jazz | PKR 20.947 billion | +68.9 percent |
| Ukraine – Kyivstar | UAH 3.229 billion | -24.1 percent |
| Kazakhstan – Beeline | KZT 21.664 billion | -29.3 percent |
| Bangladesh – Banglalink | BDT 2.590 billion | 2.1 times |
Pakistan recorded the strongest percentage increase among the markets with reported annual growth rates, while Bangladesh more than doubled its investment.
Ukraine and Kazakhstan reduced capex despite continued requirements for network resilience and service development.
The variation reflects different investment priorities and operating conditions across VEON’s telecommunications businesses.
VEON Revenue Growth Across Five Telecom Markets
VEON’s revenue increased across all five operating markets in US dollar terms, with Pakistan recording the strongest growth.
| Market | Q3 2026 revenue | Annual growth |
| Pakistan | $522 million | +28.9 percent |
| Ukraine | $352 million | +17.4 percent |
| Kazakhstan | $230 million | +8.5 percent |
| Bangladesh | $117 million | +0.7 percent |
| Uzbekistan | $86 million | +11.0 percent |
| VEON Group | $1.307 billion | +17.2 percent |
Pakistan accounted for 39.9 percent of group revenue, followed by Ukraine at 26.9 percent and Kazakhstan at 17.6 percent.
Telecommunications and infrastructure revenue increased 9.2 percent to $952 million, compared with $872 million a year earlier.
Pakistan’s telecom and infrastructure revenue grew 17.6 percent, Ukraine recorded 8.3 percent growth, Kazakhstan increased 6.3 percent and Uzbekistan grew 9.5 percent.
Bangladesh was the only market to report a decline in telecom and infrastructure revenue, falling 1.5 percent.
For the first nine months of 2026, group revenue increased 17.1 percent to $3.779 billion, while telecom and infrastructure revenue rose 8.1 percent to $2.779 billion.
VEON Subscribers Reach 152.3 Million
VEON reported 152.3 million telecommunications customers as of September 30, 2026, representing 1.9 percent annual growth and 0.5 percent sequential growth.
The group maintained leading telecommunications market positions in three of its five operating countries.
VEON’s digital services customer base increased 8.2 percent to 221.1 million, including 63.9 million digital-only customers.
VEON ARPU Improves Through Multiplay Services
VEON reported that customers using a combination of telecommunications and digital services generated significantly higher average revenue per user than voice-only subscribers.
Multiplay customers generated 4.2 times higher ARPU than voice-only customers in Q3 2026.
The number of multiplay customers increased to 44.7 million from 43.5 million in Q3 2025, representing 2.9 percent annual growth.
The multiplay customer base had expanded from 35.3 million in Q3 2024.
VEON’s multiplay strategy combines 4G or 5G mobile connectivity, voice services and digital applications to increase customer engagement and telecommunications revenue.
VEON Churn: Multiplay Customers Record Half the Churn Rate
VEON reported that multiplay customers had a monthly churn rate equivalent to 0.5 times the churn rate of voice-only subscribers.
The company’s analysis also showed that multiplay customers generated 4.2 times higher ARPU.
VEON’s Ukraine operations, including Kyivstar and Ukraine Tower Company, generated $352 million in revenue during Q3 2026, representing 17.4 percent annual growth in US dollar terms.
In local currency, Ukraine revenue increased 26.4 percent to UAH 15.713 billion.
Ukraine’s capex declined 24.1 percent to UAH 3.229 billion.
The company continues to face operational uncertainty from the war, including potential regulatory restrictions and disruption risks.
Higher Energy Prices Put Pressure on VEON’s Telecom Business
VEON identified higher energy prices as a factor affecting its Q3 2026 operating performance.
The company reported that group revenue grew 17.2 percent, while its operating profitability faced pressure from macroeconomic conditions, including increased energy costs.
The group’s EBITDA margin declined from 47 percent in Q3 2025 to 44.1 percent in Q3 2026, a reduction of 2.8 percentage points.
Telecommunications and infrastructure EBITDA margin declined 3.4 percentage points to 47.2 percent.
VEON Digital Revenue Surges 45.9 Percent to $355 Million
VEON’s digital services revenue increased 45.9 percent to $355 million in Q3 2026, compared with $244 million a year earlier.
Digital revenue accounted for 27.2 percent of group revenue, an increase of 5.4 percentage points.
For the first nine months of 2026, digital services revenue increased 52 percent to $1 billion.
| Digital business | Q3 2026 revenue | Annual growth |
| Financial Services | $166 million | +54.2 percent |
| Digital Life | $123 million | +60.7 percent |
| Digital Enterprise | $66 million | +11.9 percent |
| Total Digital Services | $355 million | +45.9 percent |
Digital Life recorded the strongest revenue growth among the group’s three digital business divisions.
Financial Services generated the largest absolute revenue contribution, supported by platforms such as JazzCash and Mobilink Bank in Pakistan.
Digital Enterprise revenue increased to $66 million, reflecting VEON’s continued expansion into enterprise technology services.
VEON AI Strategy Expands Across Enterprise and Financial Services
VEON is expanding its artificial intelligence strategy through its Digital Enterprise business, which includes AI platforms, cloud infrastructure, AI factories, enterprise software and B2B solutions.
The Digital Enterprise division generated revenue of $66 million during Q3 2026, representing 11.9 percent annual growth.
For the first nine months of 2026, Digital Enterprise revenue increased 12.9 percent to $202 million.
VEON also highlighted its partnership with Mastercard to scale AI-enabled financial services across five markets.
The company’s AI initiatives are intended to strengthen enterprise technology offerings and expand digital financial services.
VEON is positioning cloud and AI infrastructure as part of its broader strategy to develop digital businesses alongside traditional telecommunications operations.
VEON’s 2026 Outlook: Revenue Growth of 16–18 Percent
VEON increased the lower end of its 2026 revenue growth guidance from 15 percent to 16 percent, maintaining the upper end at 18 percent.
The company also revised its EBITDA growth outlook to 10–12 percent from 9–12 percent.
VEON maintained its capex intensity target of 15–17 percent, excluding Ukraine.
The revised outlook follows 17.1 percent revenue growth during the first nine months of 2026 and continued expansion of its digital services businesses.
BABURAJAN KIZHAKEDATH
