VEON Ltd. ADR: A Hidden Gem in Emerging Markets Amid Digital Disruption and Geopolitical Uncertainty

In an era where geopolitical tensions and economic instability dominate headlines, investors are increasingly seeking opportunities in companies that can thrive in volatile environments. VEON Ltd. ADR (NASDAQ: VEON), a multinational telecommunications and digital services provider, stands out as a compelling case study. Operating in high-growth emerging markets like Pakistan, Uzbekistan, and Ukraine, VEON has navigated a turbulent landscape with resilience, leveraging digital transformation to unlock value. For investors with a long-term horizon, the company's current valuation and strategic momentum suggest it may be undervalued despite its exposure to geopolitical risks.

Financial Resilience Amid Turbulence

VEON's financial journey over the past three years reflects a dramatic turnaround. In 2023, the company reported a net loss of $2.53 billion, a blow exacerbated by geopolitical disruptions and operational challenges. However, 2024 marked a pivotal recovery, with net income rebounding to $415 million. As of Q1 2025, VEON's net income remains stable at $415 million, while revenue has grown to $4.0 billion, up from $3.7 billion in 2023.

The company's price-to-earnings (P/E) ratio has also stabilized, currently trading at 4.26 as of August 2025. This is significantly below the average P/E of its peers in the telecommunications sector, which typically ranges between 8 and 12. highlights this divergence, suggesting the market may be underestimating its earnings potential.

Digital Transformation as a Growth Engine

VEON's strategic pivot to digital services has been a key driver of its recovery. In Q2 2025, direct digital revenues surged 57% year-over-year, fueled by AI-driven platforms, mobile money services, and satellite connectivity partnerships like Starlink. This shift not only diversifies revenue streams but also insulates the company from traditional telecom cyclicality.

Emerging markets, where VEON operates, are particularly ripe for digital disruption. For example, in Pakistan, where 60% of the population lacks access to banking services, VEON's mobile money platform has gained traction, processing millions of transactions monthly. Similarly, in Ukraine, the company's partnership with Starlink has enabled critical satellite connectivity for businesses and communities, a move that underscores its adaptability in crisis scenarios.

Strategic Moves to Enhance Shareholder Value

VEON has also taken proactive steps to bolster its valuation. In early 2025, the company announced a $35 million share repurchase program, signaling confidence in its intrinsic value. Additionally, its planned Nasdaq listing of Kyivstar, its Ukrainian subsidiary, is expected to unlock significant capital and enhance transparency. This move aligns with broader trends of emerging-market companies seeking U.S. listings to access deeper liquidity pools.

Geopolitical Risks and Mitigation Strategies

Critics may point to VEON's exposure to geopolitical hotspots as a red flag. However, the company has demonstrated agility in navigating such risks. For instance, during the 2024 Russia-Ukraine conflict, VEON maintained operations in Ukraine by leveraging satellite infrastructure and prioritizing cybersecurity. Its diversified geographic footprint—spanning 10 countries across Asia and Eastern Europe—also reduces reliance on any single market.

Investment Thesis: Undervalued Potential

VEON's current valuation appears to discount its long-term potential. With a P/E ratio of 4.26 and a forward P/E of 5.1 (based on 2025 guidance), the stock trades at a steep discount to its historical average of 7.18. further reinforces this narrative, showing a clear upward trajectory.

For investors willing to tolerate short-term volatility, VEON offers an attractive risk-reward profile. Its digital transformation, strategic capital allocation, and exposure to high-growth emerging markets position it to outperform in a post-pandemic world where connectivity and financial inclusion are critical.

Conclusion: A Contrarian Opportunity

While VEON's path is not without risks—geopolitical instability, regulatory hurdles, and competition from local players—its financial resilience, digital innovation, and shareholder-friendly policies make it a compelling long-term investment. At current valuations, the company appears to be trading at a discount to its intrinsic value, particularly for investors who recognize the transformative power of digital services in emerging markets.

For those seeking exposure to the next wave of global connectivity, VEON Ltd. ADR is worth a closer look. The question is not whether the company can survive in a volatile world, but whether it can capitalize on its unique position to thrive.