Veon increases 2025 profit outlook again on strong digital services demand (updated)
10/11/2025 05:34
Adds graphics; updates with CEO comments and details on digital services in paragraphs 5-8, context on Starlink deal and Ukraine unit in paragraphs 9-11 Veon raises 2025 profit outlook on digital service demand Expands country-specific 'super apps' to gain more value from subscribers Digital service revenue jumps 63% in Q3, now 18% of group total By Leo Marchandon and Gianluca Lo Nostro Nov 10 (Reuters) - Telecoms group Veon VEON.O on Monday raised its 2025 profit outlook on the back of growing demand for digital services across its markets. The company expects annual adjusted earnings before interest, taxes, depreciation and amortization to grow by 16% to 18%, up from its previous forecast of 14–16%, which it had already raised after the second quarter. Veon reported third-quarter adjusted EBITDA of $524 million, up 20% from last year. Revenue rose 7.5% to $1.12 billion in the same period. Revenue from direct digital services surged 63% to $198 million and accounted for 18% of the group total, up from 12% in the same period last year. The company is seeking to capture more value from consumers by expanding beyond telecommunications through its large mobile subscriber base of more than 150 million. 'SUPER APPS' DRIVE GROWTH Veon is bundling its services through offerings that include payments, ride-hailing, entertainment platforms and delivery solutions in Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan. These services are distributed via country-specific "super apps" that, much like China's WeChat, integrate several features into a single platform. "Financial services is the biggest priority due to massive unbanked populations in Pakistan, Bangladesh and Uzbekistan," CEO Kaan Terzioglu told Reuters. "Entertainment is second. We're already the largest entertainment platform in our markets." Last Thursday, Veon also signed a global partnership with SpaceX's Starlink in a bid to bring satellite connectivity to mobile users in remote areas. The service is set to launch in Ukraine and Kazakhstan in the next few months, addressing coverage gaps caused by geography and the war in Ukraine. Veon's Ukrainian unit, Kyivstar KYIV.O, also reported positive earnings on Monday, as investors closely watch the operator's performance after its landmark U.S. listing in August. Millions of users per category and country 2024 vs 2025 https://www.reuters.com/graphics/VEON-DIGITALUSERS/akpejqoyrvr/chart.png Revenue in millions USD per category and country 2024 vs 2025 https://www.reuters.com/graphics/VEON-DIGITALREVENUE/dwpkqdzngpm/chart.png (Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak) ((leo.marchandon@thomsonreuters.com))