VEON Reports Strong Revenue and Digital Growth in Q1 2025

VEON's 1Q25 results showcase 8.9% revenue growth and a remarkable 50.2% rise in digital revenue, reflecting strong operational efficiency amidst geopolitical challenges. With EBITDA increasing 13.7%, the company is poised for a positive outlook in FY25.

Date: 15-05-2025

AI Rating: 7

Performance Overview
VEON has reported a solid performance for Q1 2025, achieving an 8.9% revenue growth year-on-year, reaching USD 1,026 million. This growth primarily indicates a strong positioning in the corporate landscape. The company's EBITDA saw a healthy increase of 13.7%, totaling USD 439 million, suggesting improved profitability arising from operational efficiencies.

Earnings and Cash Flow
The growth in digital revenue at 50.2% reflects the company's successful strategy to expand its digital services, which now comprise 14.3% of total revenue. While specific details on Earnings Per Share (EPS) are not provided, the notable increase in EBITDA gives context to the likelihood of improved earnings metrics. The total cash and cash equivalents reported stood at USD 1,775 million, supporting a strong liquidity position.

Future Outlook
VEON maintains a positive outlook for FY25, forecasting revenue growth of between 12% and 14% and a similar EBITDA growth of 13% to 15%. This optimistic perspective is key for investor sentiment, as it indicates management’s confidence in continuing operational improvements despite external challenges.

Risks to Consider
However, risks associated with ongoing geopolitical issues, particularly the impact of the Ukraine conflict, may pose threats to achieving projected growth. The company's results have not been externally audited, which could generate concerns regarding reliability. Such factors could pressurize stock performance if perceived negatively by the market.

Investor Activity
Recent hedge fund activity, with 28 institutional investors increasing their positions, along with a share buyback program worth up to USD 35 million, suggests bullish sentiments. This could sustain upward pressure on stock prices, contingent on maintaining operational momentum.

In conclusion, VEON presents a potentially attractive opportunity characterized by significant digital revenue growth and positive future outlook, although attention should be paid to ongoing geopolitical risks and the completeness of financial disclosures.

Stocks: VEON