VEON (NASDAQ:VEON) Posts Quarterly Earnings Results, Beats Expectations By $0.95 EPS

Key Points

• VEON reported EPS of $2.67, beating the $1.72 consensus by $0.95, while quarterly revenue of $1.31 billion was in line with estimates. The EPS beat was reportedly driven substantially by one-time gains.
• Revenue grew 17.2% and EBITDA rose 10.1%; VEON raised the lower end of its full-year growth outlook to 16%–18% for revenue and 10%–12% for EBITDA. Digital-services revenue climbed 46% to $355 million, reaching 27% of group revenue.
• Growth came alongside pressure on profitability: EBITDA margin declined to 44.1% from 47% a year earlier, with Kazakhstan affected by higher VAT and slower-than-expected tariff increases.

VEON (NASDAQ:VEON - Get Free Report) issued its quarterly earnings data on Friday. The Wireless communications provider reported $2.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.72 by $0.95, Zacks reports. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.31 billion. VEON had a return on equity of 14.93% and a net margin of 1.24%.

Here are the key takeaways from VEON's conference call:

• Revenue and EBITDA grew 17.2% and 10.1%, respectively, in Q3. VEON raised the lower end of its full-year outlook, now expecting revenue growth of 16%–18% and EBITDA growth of 10%–12%.
• Digital services continued to scale profitably: revenue rose 46% to $355 million, with a 36% EBITDA margin. The company said digital services now account for 27% of group revenue and reach more than 221 million customers.
• Operating cash flow increased 47% year to date to $1.3 billion, while leverage stood at a relatively low 1.05x. VEON has completed $200 million in share buybacks year to date and doubled its annual buyback commitment to at least $200 million.
• Group EBITDA margin declined to 44.1% from 47% a year earlier, with Kazakhstan affected by a VAT increase and the absence of prior-year tax rebates. Kazakhstan mobile ARPU fell 10% year over year as tariff increases took longer than expected.
• VEON is expanding its digital ecosystem through the closing of its OLX acquisition in Kazakhstan, an agreement involving Jungo TV and All Women’s Sports Network, and a digital banking license in Bangladesh. Management described these as growth opportunities but did not provide detailed financial contribution targets for the new investments.

VEON Stock Up 3.0%

VEON traded up $2.23 on Friday, reaching $77.57. The company's stock had a trading volume of 213,469 shares, compared to its average volume of 116,127. The stock has a 50 day moving average of $74.34 and a two-hundred day moving average of $58.27. The company has a quick ratio of 0.96, a current ratio of 0.97 and a debt-to-equity ratio of 2.30. The company has a market capitalization of $5.74 billion, a price-to-earnings ratio of 91.26 and a beta of 1.65. VEON has a fifty-two week low of $42.60 and a fifty-two week high of $89.00.

Key Headlines Impacting VEON

Here are the key news stories impacting VEON this week:

• Positive Sentiment: Third-quarter revenue rose 17.2% year over year to $1.307 billion, while digital services reached 27.2% of revenue. VEON raised the midpoint of its 2026 revenue and EBITDA outlook; revenue guidance is $5.1 billion–$5.2 billion, around analyst expectations. VEON Q3 results and outlook
• Positive Sentiment: VEON completed its $81 million acquisition of OLX Kazakhstan, adding a large classifieds platform to its digital-commerce operations. The deal was also cited alongside the company’s swing to a third-quarter profit. OLX Kazakhstan acquisition
• Positive Sentiment: The company plans to acquire a 33.75% interest in Jungo TV, including access to All Women’s Sports Network content. VEON aims to use its platforms and Jungo’s distribution reach to grow digital entertainment. Jungo TV and AWSN investment
• Neutral Sentiment: VEON reported EPS of $2.67, well above the $1.72 consensus, but coverage noted the beat was substantially driven by one-time gains, making it a less clear measure of recurring performance. Revenue was in line with estimates. Q3 earnings analysis
• Negative Sentiment: VEON identified fuel shortages as its biggest threat, a potential operational risk that could weigh on its markets even as it pursues growth in satellite data and digital services. Fuel shortages and growth risks

Analyst Ratings Changes

VEON has been the topic of a number of recent research reports. Weiss Ratings upgraded shares of VEON from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 23rd. Northland Securities set a $85.00 price target on shares of VEON and gave the stock an "outperform" rating in a report on Tuesday, September 29th. Cantor Fitzgerald assumed coverage on shares of VEON in a research report on Friday, October 2nd. They issued an "overweight" rating and a $112.00 price objective on the stock. Wall Street Zen lowered shares of VEON from a "strong-buy" rating to a "buy" rating in a report on Tuesday, October 6th. Finally, Zacks Research raised shares of VEON from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, VEON presently has an average rating of "Moderate Buy" and an average price target of $90.33.

VEON Company Profile

VEON Ltd. is a global digital communications and services company that provides mobile connectivity, fixed broadband, and digital products to consumers and businesses. The company operates through a portfolio of local telecommunications brands, offering voice and messaging services, mobile data, broadband access, and related enterprise solutions.

VEON's principal operating brands include Kyivstar in Ukraine, Jazz in Pakistan, Banglalink in Bangladesh, and Beeline-branded businesses in Kazakhstan, Uzbekistan, and Kyrgyzstan.

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