VEON's 2025 Q2 Earnings Call: Contradictions in AI Strategy, Tower IPOs, and Shareholder Returns

Revenue and EBITDA Growth:
- VEON reported a 5.9% increase in U.S. dollar revenue year-on-year in Q2, with EBITDA growing 13.2%.
- For the first half, U.S. dollar revenue grew 7.3%, and EBITDA increased 13.4%.
- Growth was driven by a strengthening operating model, profitable expansion in digital services, and strategic asset-light transactions.

Digital Services Expansion:
- Direct digital revenues grew by 57% year-on-year in U.S. dollars, contributing 16.5% of total revenues.
- Uklon, consolidated in April, added $21.7 million in revenue and $9.3 million in EBITDA.
- Expansion was facilitated by strategic acquisitions and integrating digital services into existing platforms.

4G and Digital Service Adoption:
- 4G penetration increased to 68% across VEON's customer base, with 4G users rising 3.9% year-on-year.
- Multiplay customers, who use at least one digital service, now account for 54.4% of total revenues, up 26.8% year-on-year.
- The growth is attributed to increased 4G adoption, innovative product offerings, and strategic smartphone partnerships.

Geographic Performance and Market Strategy:
- VEON achieved strong double-digit revenue growth in most markets, with notable growth in Ukraine and Kazakhstan.
- The company successfully executed strategic asset-light transactions, such as the infrastructure pooling partnership in Pakistan.
- Growth was supported by network investments, fair value pricing, and differentiated product offerings.