VEON Sees Strong Digital Services Revenue Surge in Q3

VEON, the global digital operator, reported a strong performance in Q3 2025 as it continues to accelerate its digital-services push. According to its recent earnings call, the company's direct digital revenues jumped by 63.1% year-on-year to US$198 million, now making up 17.8% of its quarterly revenue.

Much of this digital revenue came from financial services, followed by ride-hailing — but VEON is also investing heavily in generative AI. The company's AI arm, QazCode, contributed to the development of a Kazakh language large-language model (KazLLM), while its Ukrainian subsidiary, Kyivstar, is working with the government to build a Ukrainian language model. VEON plans to expand these AI efforts further into Uzbek, Bengali, and Urdu.

On the telecom front, VEON's total third-quarter revenue rose 7.5% year-on-year to US$1,115 million, while EBITDA surged 19.7% to US$524 million, as the company benefited from resilient connectivity trends and strong contributions from its digital operations. The EBITDA margin also expanded, reflecting improved cost discipline and a favorable revenue mix.

VEON's CEO, Kaan Terzioğlu, highlighted a notable milestone: in September, the number of monthly active digital users surpassed the number of its telecom SIM users. He also noted a significant opportunity from VEON's 40 million users who still use VEON's network only for voice calls — these users could potentially upgrade to 4G and adopt digital services.

In a move to expand connectivity, VEON recently struck a deal with Starlink to deliver direct-to-device services across its markets. Kyivstar, for example, is planning nationwide rollout once regulatory approvals are secured.

Looking ahead, VEON is raising its 2025 EBITDA outlook to 16–18% year-on-year growth (in local currency), citing the strong momentum from its digital transformation.