VEON Ltd. Form 6-K Summary: Six Months Ended June 30, 2026
Business Context and Reporting Period
This Form 6-K reports the unaudited interim condensed consolidated financial results for VEON Ltd. for the six-month period ended June 30, 2026. VEON is a global provider of connectivity and digital services operating in Pakistan, Ukraine, Kazakhstan, Uzbekistan, and Bangladesh. The financial statements are prepared in accordance with IAS 34 and presented in U.S. dollars.
Key Financial Metrics
| Metric (Six Months Ended June 30, 2026) | Value (USD Millions) |
|---|---|
| Revenue | 2,472 |
| Operating Profit | 655 |
| Profit for the Period | 263 |
| Profit Attributable to Owners of Parent | 221 |
| Adjusted EBITDA | 1,069 |
| Net Cash Flows from Operating Activities | 860 |
| Net Cash Flows from Financing Activities | 246 |
| Cash and Cash Equivalents (End of Period) | 2,193 |
| Total Borrowings | 3,506 |
| Working Capital | (124) |
Material Changes vs. Prior Period
- Revenue Growth: Consolidated revenue increased 17.0% to $2,472 million from $2,113 million in the prior year, driven by performance in Pakistan, Uzbekistan, Ukraine, and Kazakhstan.
- Profit Decline: Operating profit decreased to $655 million from $1,059 million. This decline is primarily due to the absence of a $497 million one-time gain on the disposal of the Deodar tower portfolio in the prior year, alongside higher service costs and depreciation.
- Adjusted EBITDA: Increased 11.5% to $1,069 million, reflecting higher revenues partially offset by higher energy and personnel costs in key markets.
- Finance Costs: Increased to $317 million from $246 million due to higher debt balances and interest unwinding on lease liabilities.
- Foreign Exchange: The company recorded a net foreign exchange gain of $13 million, compared to a loss of $52 million in the prior year, driven by favorable movements in the Ukrainian hryvnia, Pakistani rupee, and other local currencies.
Guidance, Outlook, and Material Events
Strategic Transactions and Acquisitions:
- Debt Refinancing: Closed a $1.4 billion dual-tranche senior unsecured notes offering ($700 million due 2031 at 6.95% and $700 million due 2033 at 7.45%) to refinance $885 million of 2027 notes.
- Acquisitions: Acquired Tabletki.ua (digital healthcare) for $161 million, ISP Shtorm (fixed broadband) for $10 million, and six solar power plants in Ukraine for $70 million.
- Divestitures: Completed a secondary public offering of Kyivstar Group Ltd. (KGL) shares, reducing VEON's ownership from 89.6% to 83.6% and generating $140 million in net proceeds.
- Legal Resolution: Settled historical claims with the Dhabi Group for $120 million in cash and $30 million in ADSs.
Outlook and Risks:
- CAPEX: Capital expenditures (excluding licenses and ROU) were $336 million. Future spending will focus on 4G/5G network modernization and high-speed data networks.
- Geopolitical Risks: Significant risks remain regarding the ongoing war in Ukraine, including infrastructure damage, sanctions, and currency volatility. Risks also include U.S. import tariffs and regional conflicts affecting supply chains.
- Liquidity: Despite negative working capital, management asserts sufficient cash and credit facilities to meet short-term requirements. The company maintains access to international capital markets.
Investor Verification Checklist
- Debt Maturity Profile: Verify the impact of the new $1.4 billion bond issuance on future interest obligations and covenant compliance.
- Ukraine Operations: Assess the physical security of infrastructure and the sustainability of revenue growth in Kyivstar amidst ongoing conflict.
- Acquisition Integration: Monitor the financial contribution and integration progress of Tabletki.ua and the solar power plants.
- Currency Exposure: Review hedging strategies for local currency denominated revenues against USD-denominated debt obligations.
- Regulatory Environment: Track regulatory developments in Pakistan (spectrum licensing) and Bangladesh (tax provisions) that could impact profitability.