Earnings Analysis November 6, 2026

VEON Ltd ADR ($VEON) Q3 FY2026 Earnings Analysis: Revenue Slightly Misses · Annual Growth Forecast Raised

Earnings Report

Revenue: $1.307 billion (Q3 FY2026, +17.2% YoY, expected $1.308 billion) ❌ Miss

EPS (Earnings Per Share): $2.67 diluted ADS (Q3 FY2026); direct comparison is not possible due to different basis from the expected $1.72 on an adjusted basis

Guidance: Upward revision. The lower end of the 2026 annual revenue growth rate in USD was raised to 16%~18% (previously 15%~18%), and the EBITDA growth rate was raised to 10%~12% (previously 9%~12%)

Stock Price Reaction: +8.43% in regular session ($81.69, as of 00:18 on 11-07 KST)

Highlights

Digital Revenue Expansion: Digital revenue reached $355 million in Q3 FY2026, a 45.9% increase compared to the same period last year.

Improved Digital Profitability: Q3 FY2026 EBITDA increased by 54.5% to $128 million.

Upward Revision of Annual Outlook: The lower end of the revenue and EBITDA growth rate forecasts for 2026 were both raised.

VEON Ltd ADR is a company that provides telecommunications connectivity and digital services together. In the digital business, profits are growing faster than revenue, leading to simultaneous improvements in both business scale and profitability.

Lowlights

Revenue Miss: Quarterly revenue slightly fell short of expectations despite double-digit growth.

Decrease in Total Free Cash Flow: Free cash flow in Q3 FY2026 was $201 million, a 33.8% decrease.

Gap in Corporate Profit Growth: The 10.1% EBITDA growth rate in Q3 FY2026 was lower than the revenue growth rate.

Excluding proceeds from asset sales, free cash flow increased by 91.8% compared to the same period last year. When assessing changes in cash generation, one should examine both the total amount including sale proceeds and the figure excluding them.

Management Commentary

CEO Kaan Terzioglu explained that the telecommunications business continues to deliver results, while the digital business is growing in scale and improving in profitability. The upward revision of the annual outlook reflects management's judgment that the growth trend is continuing.

Market Reaction and Future Key Points

Positive factors confirmed alongside the rise in the regular session are the profit increase in the digital business and the upward revision of the annual growth rate outlook. Based solely on the provided data, it is difficult to distinguish the specific impact each factor had on the stock price.

It remains to be seen whether the profit growth rate of the digital business will continue to outpace the revenue growth rate in the next quarter.

It is important to monitor whether the gap between the corporate EBITDA growth rate and the revenue growth rate narrows.

It must be confirmed whether the upward trend in free cash flow, excluding proceeds from asset sales, continues.

Earnings Call Key Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added here. We will select and summarize only the most important points, such as how management explained performance and outlook, and what questions analysts asked.